Skale’s Jack O’Holleran on AAA gaming companies being ‘peanuts’ with regard to GameFi’s evolvement | The Financial Express

Skale’s Jack O’Holleran on AAA gaming companies being ‘peanuts’ with regard to GameFi’s evolvement

According to Cointelegraph, insights from DappRadar stated that blockchain-backed projects and metaverse projects are showing resilience during conditions when many players in the cryptocurrency industry suffered

Skale’s Jack O’Holleran on AAA gaming companies being ‘peanuts’ with regard to GameFi’s evolvement
Metaverse technology is reportedly going to introduce upcoming trends in the automotive industry, in the next year. (Photo credits- Reuters)

GameFi’s evolving model could make “today’s AAA game companies look like peanuts,” Jack O’Holleran, CEO, Skale, a multichain-based Ethereum native network which supports Web3.0-oriented games, as reported by Cointelegraph.

According to Cointelegraph, insights from DappRadar stated that blockchain-backed projects and metaverse projects are showing resilience during conditions when many players in the cryptocurrency industry suffered, with $1.3 billion raised in the last quarter. 

“Charging users fees every time they transact or trigger a smart contract creates a disincentive to play. In order to appeal to the mass market, there’s a ton of work that needs to be done around usability,” O’Holleran mentioned.

Despite usability challenges, Web3.0-based games reportedly accounted for close to half of blockchain activity with respect to 50 networks in the last quarter, as mentioned by DappRadar. It is believed that 912,000 Unique Active Wallets ensured interaction with games’ smart contracts in September, 2022. Most common in-game business models are play-to-earn (P2E), which permits players to earn rewards such as tokens and non-fungible tokens (NFTs), and play-to-own (P2O), which is considered to be the detailed version of P2E. Recently, an analysis from Absolute Reports projects growth for GameFi within the next six years, along with estimations for P2E games to achieve $2.8 billion between 2022 and 2028, at a compound annual growth rate (CAGR) of 20.4%. 

“We’re 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-driven, etc.). Only time will tell how suitable and reliable each of these will be over the long term in open global markets,” Sonny Tsiopani, research analyst, Delphi Digital, highlighted.

Moreover, Cointelegraph noted that Gunzilla Games, a studio created in 2020, consists of the combination of AAA content with blockchain, to allow players have access to full character and weapon customisation through owning NFT-oriented assets in the game. 

“We see GameFi is at a critical crossroads. On one hand, GameFi has the incredibly unique ability to attract the next 1 billion users to the crypto space (given how many gamers there are worldwide). On the other hand, gamification does not cater to traditional gamers and focuses heavily on just the blockchain and the play-to-earn aspect of gaming,” Vlad Korolev, co-founder and CEO, Gunzilla, stated.

(With insights from Cointelegraph)

Also Read: Countries not in compliance with cryptocurrency-based AML regulations will be placed in FATF’s ‘grey list’: Report

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First published on: 08-11-2022 at 12:41 IST