Blockchain Gaming Boom Built on Stronger Base

Legendary Video games’ VP of Blockchain Tech, Cameron Thacker, mentioned he believes the present curiosity in blockchain gaming is extra sustainable than the final cycle. He attributes this to a shift in focus, with initiatives now prioritizing “partaking experiences over frothy advertising and questionable tokenomics.”

Gaming Giants Enhance Blockchain Gaming Business

In an interview with Bitcoin.com Information, Thacker cited the rising prevalence of layer-2 (L2) options, which higher equip blockchain networks to deal with consumer calls for, as another excuse curiosity in blockchain video games is one the rise once more. He additionally highlighted the entry of conventional gaming giants like Bandai Namco, Konami, and Ubisoft as a optimistic for the business, as they create experience and assets.

Thacker however acknowledged that regulation or the shortage thereof pose challenges. He argued that whereas uncertainty can decelerate innovation clearer laws can doubtlessly bolster confidence in reliable initiatives. Nonetheless, he expressed concern that compliance prices might change into a “barrier to entry for smaller studios.”

In the meantime, when requested concerning the prospects for blockchain gaming and the Web3 business within the subsequent 5 years, Thacker predicted larger adoption and extra involvement from mainstream gaming corporations. He additionally defined why investments in Web3 gaming are growing.

Beneath are the Legendary Video games VP’s solutions to all of the questions despatched.

Bitcoin.com Information (BCN): The Web3 gaming enterprise has seen substantial enlargement and funding in recent times. Information from Dappradar reveals that investments in Web3 gaming hit $1.1 billion in Q2 2024, marking one of the best quarter since Q3 2022. It displays the resurgence of blockchain gaming for the reason that 2021-2022 bear market when the sector collapsed following a season of unprecedented progress and consciousness. What components do you suppose are liable for this progress and enlargement?

Cameron Thacker (CT): The latest progress in Web3 gaming has many drivers, most notably the final maturation of blockchain know-how and with it improved scalability, larger public consciousness and understanding, and so forth. The standard of Web3 video games has additionally markedly improved, with extra give attention to gameplay reasonably than tokenomics, one thing that helps to draw extra Web2 players reasonably than profit-driven speculators. We’re seeing extra institutional curiosity and never simply submit Bitcoin ETF both, although that has actually accelerated the momentum: the trajectory of the general crypto market has undoubtedly renewed curiosity in lots of Web3 initiatives together with video games.

BCN: The surge in curiosity throughout the blockchain gaming business is mirrored within the costs of a number of gaming initiatives, particularly the newly launched tokens like MYTH. When this occurred between 2020 and 2021, most individuals thought it was due to the novelty of the business, however an identical pattern is growing a couple of years later. May you clarify to our readers what you suppose is the explanation behind the present surge amongst some blockchain gaming-related cryptocurrencies?

CT: I consider it stems from a mix of improved fundamentals and market dynamics. Many forward-looking initiatives used the bear market as a chance to refine their merchandise and economics in readiness for the following bull run. Because the crypto market has rebounded we’ve seen speculative capital move again into gaming tokens, significantly these with actual utility inside functioning recreation ecosystems. The strategic partnerships that blockchain gaming studios have additionally served to spice up credibility and broaden their potential consumer bases.

BCN: Many crypto customers stay skeptical of the blockchain gaming and non-fungible token (NFT) sector due to their experiences with the know-how’s hype cycles. After a surge in market worth adopted by a major crash, some buyers are cautious of renewed enthusiasm. Do you suppose the present resurgence of hype and consciousness is sustainable? Clarify your reasoning.

CT: I consider the present resurgence in blockchain gaming has extra sustainable foundations than the earlier hype cycle, however I’d nonetheless advocate warning. To not put too high quality some extent on it, however we’re seeing a a lot stronger give attention to gameplay now as initiatives, in the principle, prioritize partaking experiences over frothy advertising and questionable tokenomics.

The preponderance of Layer-2s has additionally made networks higher geared up to deal with consumer calls for than they have been a couple of years in the past. Maybe most significantly mainstream adoption is rising as conventional gaming giants like Bandai Namco, Konami, and Ubisoft enter the area and convey their experience and assets with them.

BCN: Your venture Legendary Video games is a part of the Polkadot ecosystem. May you clarify the thought course of behind transferring your venture to Polkadot and the way, if in any respect, Legendary Video games might assist Polkadot strengthen its presence within the Web3 gaming sector?

CT: There are a couple of causes we determined to maneuver to Polkadot. At first, the parachain structure not solely provides the scalability we want immediately, however the roadmap for scalability we want sooner or later. Moreover, Polkadot is very decentralized and safe, boasting a best-in-class governance mannequin. In reality, Polkadot is the world’s largest DAO and has set a governance instance we intention to emulate. One other essential issue is Polkadot’s flexibility in parachain design, permitting us to create a gaming-specific setting tailor-made to our wants. This customization reduces friction for onboarding new gamers, which is invaluable for our progress.

As for the way Legendary Video games may help strengthen Polkadot’s presence within the web3 gaming sector, we hope to showcase the platform’s capabilities via our profitable video games and by attracting extra builders, customers, and builders to the ecosystem. Our recreation NFL Rivals has already racked up over 4 million downloads demonstrating our capacity to interact a big viewers. I feel as quickly as we finalize the migration to Polkadot, it’s going to immediately be one of many high gaming.

BCN: Stringent regulatory measures have led to the untimely extinction of a number of blockchain initiatives, together with these within the gaming sector. In different situations, many blockchain initiatives have relocated to extra pleasant jurisdictions for the liberty to hold out their actions. To what extent do you suppose the present regulatory frameworks throughout main jurisdictions have impacted the blockchain gaming business?

CT: It’s true that regulatory uncertainty has slowed innovation in some areas, as corporations are understandably cautious about potential authorized points. Compliance prices have additionally elevated, which could be a barrier to entry for smaller studios. On the similar time, clearer frameworks in some jurisdictions have offered a pathway for reliable initiatives to function with confidence and I consider innovation in regulator-friendly nations will spur innovation elsewhere. Finally, we view wise regulation as vital for the business’s long-term progress.

BCN: For prediction, the place do you see the blockchain gaming and Web3 sector within the subsequent 5 years?

CT: Whereas I don’t have a crystal ball, it’s laborious from my vantage level to envisage a situation by which the area doesn’t proceed to evolve in thrilling methods and develop. I consider we’ll see blockchain gaming change into extra mainstream, with a number of AAA-quality web3 video games attaining widespread adoption. I anticipate extra conventional gaming corporations to come back to the occasion, whether or not guided by FOMO or a real appreciation for what the know-how can do to win gamers’ hearts and minds.

As for the precise gaming infrastructure underneath the hood, it’ll more and more allow seamless, low-cost transactions that are virtually fully invisible to the tip consumer. Gamers shouldn’t actually need to grapple with any technical complexity to benefit from the video games they love, however nor ought to they miss out on the advantages blockchain brings.