Learn Metaverse Technology – Chapter 9 – Metaverse and Gaming DeFi (Decentralized Finance)
Note: This is the last chapter of the “Learn Metaverse Technology” blog posts. Recommend you to scroll down to the bottom of the page for a recommended product called Meta Quest 2 to dive into the Metaverse. Thanks.
It is estimated that the gaming industry will generate $179.7 billion in 2020. In comparison, the global film industry achieved $100 billion in revenue for the first time in 2019.
Approximately 2.7 billion people around the world actively or passively play video games, with China being the largest gaming market just ahead of the United States. A new breed of play-to-earn games, also known as GameFi, is the latest innovation in this dynamic market. Unlike the traditional “win-to-win” model that has been prevalent in the gaming industry, GameFi provides monetary incentives to gamers through a play-to-earn model.
Recently, the Metaverse concept has also attracted attention, in part due to the inclusion of blockchain technology in GameFi, but also as a result of the growth of the gaming market. The XR Association was launched by tech titans dominated by gaming, including Microsoft, Samsung, and Sony, to promote the concept of an ‘experiential reality’.
In an effort not to be outdone at the end of June, Facebook CEO Mark Zuckerberg made a bold play, basically laying out the future for Facebook in the metaverse, before changing the company’s name to Meta, signaling the company’s growing ambitions beyond social media. According to Zuckerberg, “the metaverse will not be created by one single company.”.
Rather, it will be developed by creators and developers creating new experiences and digital items that are interoperable and unlock a greatly expanded creative economy. Microsoft, worth $2.5 trillion, and $731 billion Nvidia quickly followed suit with their own metaverse visions.
As a result, this Metaverse is likely to be far more pervasive and powerful than any other. Metaverses will have their own economy and currency, where value can be earned, spent, lent, borrowed, and invested interchangeably, both tangible and intangible.
Many proponents of the metaverse believe that GameFi’s success coupled with the growth of NFTs provides a solution for a truly interoperable metaverse that is not dominated by Facebook and similar platforms.
Traditional players are switching to GameFi projects such as Axie Infinity as a result of the play-to-earn model shook the online gaming industry. Recently, crypto currencies have been successfully integrated into virtual worlds developed by companies such as Decentraland and Sandbox. In Decentraland, users can purchase virtual real estate, such as theme parks, and monetize them using cryptocurrencies.
As a result of the popularity of GameFi projects such as Axie Infinity, BigONE believes GameFi has become mainstream. With the introduction of CryptoKitties in 2017, GameFi has been in development since 2017. The game did not go mainstream until this year, with the game Axie Infinity reaching a market capitalization of over $1 billion in 2021. Prior to “play-to-earn,” gaming assets and tokens had no real-world value and could not be used outside the gaming environment. As a result of GameFi, in-game purchases can now have real value and be used outside of gaming environments.
In addition to being built on blockchain technology, GameFi also uses the Unity and Java frameworks as opposed to traditional gaming apps. Moreover, GameFi is generally easier to implement and develop from a technical standpoint. A power of this magnitude from GameFi has been cited by traditional gaming publishers, such as Ubisoft and Epic Games, as the future of their blockchain-based games strategy.
BigONE believes that this is yet another indication of GameFi’s meteoric rise and why the company will play a major role in the future of online gaming. It has been reported that Axie Infinity, the largest GameFi project, is a significant source of income for the people of the Philippines, paying some citizens more than their average monthly salary. As well, reputable investment firms are increasingly investing in GameFi initiatives, with Solana Ventures, FTX, and Lightspeed announcing a $100 million GameFi fund recently.
Regardless of who wins the battle to control the metaverse, someone will need to use some form of digital currency to fuel the virtual economy. If the strategy is to adopt a monopolistic approach, it is more likely that a dollar-based cryptocurrency such as Novi will become the de facto standard currency.
However, despite the fact that Zuckerberg is aware that by its very nature the metaverse is interoperable, rather than a ‘walled garden’, the amount of money and resources put into this virtual space indicate that first-mover advantage will be a potent force in the web3 world, just as it is in the current web 2.0 digital economy, which is dominated by Google and Amazon.
I believe that it is up to the leading GameFi companies, such as Axie Infinity, to demonstrate that the more choices people have for earning money from gaming and creating, the stronger will be the metaverse for everyone.
The gamer community, DeFi traders, and other stakeholders would be greatly benefited by a more decentralized model of the metaverse inspired by the likes of GameFi startups like Axie Infinity.
The metaverse can be envisioned in many different ways, but GameFi is a leading example, with a decentralized model for gaming and earning money, which is based on trading tokens and NFTs. Here, people have greater choices and opportunities, and are able to form their own communities and economies.
Dear Friends, recommend you to buy this Meta Quest 2 Headset to start diving into the Metaverse. CLICK WIDGET below to buy.