Jack O’Holleran of Scale on AAA Gaming Companies Being ‘Peanuts’ Regarding GameFi’s Development
GameFi’s evolving model “could look like a peanut to today’s AAA game companies,” said Jack O’Holran, CEO, Scale, a multichain-based Ethereum native network that supports Web 3.0-oriented games, as reported by Cointelegraph. has been done.
According to Cointelegraph, insights from DappRadar noted that the blockchain-backed project and the Metaverse project are showing resilience in situations when several players in the cryptocurrency industry lost $1.3 billion in the previous quarter.
“Charging users every time they transact or trigger a smart contract creates a disincentive to play. In order to appeal to the mass market, there is a ton of work that needs to be done around usability. need,” O’Holran noted.
Despite usability challenges, Web3.0-based games reportedly accounted for nearly half of blockchain activity across 50 networks in the past quarter, as noted by DappRadar. In September 2022, 912,000 unique active wallets are believed to have interacted with the game’s smart contracts.
The most common in-game business model is play-to-earn (P2E), which allows players to earn rewards such as tokens and non-fungibles. Tokens (NFTs), and Play-to-Own (P2O), which is considered an extended version of P2E. Most recently, an analysis by Absolute Reports pegs growth for GameFi within the next six years as well, with estimates to achieve $2.8 billion between 2022 and 2028 at a compound annual growth rate (CAGR) of 20.4%.
“We are witnessing the birth of many different economies with different distribution mechanisms, as well as the development of different token models (single token, two-token, NFT-powered, etc.). Only time will tell if each of these How appropriate and reliable would open global markets be in the long term,” highlighted Sonny Tsopani, research analyst at Delphi Digital.
In addition, Cointelegraph noted that Gunzilla Games, a studio created in 2020, combines AAA content with blockchain, giving players access to full character and weapon customization through owning NFT-oriented assets in the game. it occurs.
“We see that GameFi is at an important crossroads. On the one hand, GameFi has the incredibly unique potential to attract the next 1 billion users to the crypto space (considering how many gamers there are around the world). On the other hand, Gamification does not cater to traditional gamers and focuses heavily only on the play-to-earn aspect of blockchain and gaming,” said Vlad Korolev, Co-Founder and CEO, Gunzilla.
GameFi’s constantly evolving model could make “today’s AAA game companies look like peanuts,” said Jack O’Holleran, CEO of Skale, a multichain Ethereum-native network that powers Web3 games. In fact, blockchain-based games and metaverse projects are showing resilience amid a winter that has dragged down many players in the crypto industry, with $1.3 billion raised in the last quarter, as reported by DappRadar.
Finding a sustainable GameFi model, however, remains a challenge. User experience ranks amid the top struggles in the industry, mainly because of gas fees and the complexity of buying, owning and trading NFTs. “Charging users fees every time they transact or trigger a smart contract creates a disincentive to play,” noted O’Holleran, adding that “in order to appeal to the mass market, there’s a ton of work that needs to be done around usability.”
Despite usability challenges, Web3 games accounted for nearly half of blockchain activity across 50 networks in the last quarter, according to DappRadar, with 912,000 daily Unique Active Wallets interacting with games’ smart contracts in September only.
Again you have to know that most common in-game business models include play-to-earn (P2E), which allows players to earn rewards such as tokens and nonfungible tokens (NFTs), and play-to-own (P2O), which is a more detailed version of P2E, providing players with proof of ownership of rewards for peer-to-peer trading. A recent analysis from Absolute Reports projects massive growth for GameFi within the next six years, with P2E games estimated to achieve $2.8 billion between 2022 and 2028, a compound annual growth rate of 20.4%.