What role is DeFi expected to play in the gaming sector | The Financial Express

What role is DeFi expected to play in the gaming sector

Insights from surveys have stated that decentralised gaming will be beneficial for investors

What role is DeFi expected to play in the gaming sector
According to a market report from Newzoo, a global provider of game-oriented analytics, the blockchain gaming industry is expected to be worth $196 billion by the end of 2022

Market behaviour suggests that the demand for decentralised finance (DeFi) has changed the way cryptocurrency traders used to earn profit or passive income. Experts believe that one of the benefactors of this development is the gaming sector. In a BGA Blockchain Game Report, published by DappRader, a decentralised applications-based platform, the number of blockchain gamers increased by 121% due to success of play-to-earn (P2E) DeFi games such as Axie Infinity. “As more and more people turn to blockchain-oriented entertainment forms, both gamers and game developers are looking for ways to monetise the gaming industry. Blockchain games, such as online video games without a central server, have the potential to enable this form of revenue generation. To achieve game objectives, players mine tokens. One should make use of DeFi protocols to make use of the tokens won from playing games. Moreover, owners of blockchain-oriented games can reap positive returns through DeFi usage,” Amanjot Malhotra, head of growth, Tezos India, a decentralised blockchain organisation, told FE Digital Currency.

Various reports have suggested that use of DeFi can help in the integration of non-fungible tokens (NFTs) and blockchain units which can be owned by users on-chain, and carries the capability of being transferred to other blockchain-based games. As per a survey by Worldwide Asset eXchange (WAX), a decentralised marketplace, 62% of gamers would be more likely to invest in digital assets if they were transferable between games, while 84% of developers would create in-game items for the associated reasons. “In the upcoming years, DeFi will enable the decentralised governance of gaming protocols for users to have more control over their overall gaming experience, along with policies and regulations related to it,” Rishabh Bhansali, co-founder, FanClash, a fantasy gaming application, stated.

However, it is believed that the future prospects of DeFi in blockchain-backed gaming can be a challenge as blockchain programs are difficult to program and rollout. Furthermore, insights from surveys have stated that users still lack knowledge around how a decentralised application (dApp) runs on blockchain, but it has also been highlighted that once these challenges are addressed, decentralised gaming will be beneficial for investors. According to a market report from Newzoo, a global provider of game-oriented analytics, the blockchain gaming industry is expected to be worth $196 billion by the end of CY2022. “The future of DeFi is expected to help with monetisation of content creators, gaming tournaments and community engagement for development of value-oriented games. Also, NFTs usage will also help with the gaming ecosystem for creation of tokenomics, which refers to the economics around a specific cryptocurrency token, and brand value. The gaming community will hold the decision-making ability around blockchain-based games, rather than presence of a single entity,” Yash Pariani, founder and CEO, House of Gaming, an Esports technology company, noted.  

Also Read: As Ethereum readies for an upgrade, what should users expect out of it

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