Hello again, this week I have been looking into blockchain and NFT-based gaming after the announcement that the blockchain-based sci-fi card game Parallel raised $500M from Paradigm. Parallel is a game in which a player collects digital collectible cards which are then used to build a desk for online play. The game sets itself apart with its story and realism-based art style.
Within the blockchain-based gaming space there are some projects which have set themselves apart from the others, garnering them large communities of fans who wish to see the project succeed. This has been achieved either through a unique art-style, unique gameplay, and/or the strong sense of community surrounding the project.
Now any project that succeeds will be good for the NFT/blockchain-gaming space as a whole, but seeing projects such as this gain traction (and large investment) from VC’s shows the power of blockchain gaming and its ability to revolutionise the gaming space. Already we have plenty of games with collectible in-game items (Fortnite, Hearthstone, etc.) and what the blockchain (and NFT’s) can do for this space is empower the artists who create these in-game items, enabling them to continually collect royalties for their work while also giving the purchaser the ability to authenticate their new item/skin. Fans can also use these new blockchain-authenticated items to better recognise other fans online, allowing for stronger and more organic community growth.
Taking advantage of an already-shifting market
In recent years it’s been evident that there is a shift in the release strategy of titles, moving from the standard triple-A title dropping once a year, to the now more commonly seen “fremium” model, wherein the game itself is free but the developer makes money through in-game micro-transactions, whether that be skins, weapons, pets, etc. The once controversial model (looking at you, World of Warcraft) is now widely accepted and almost expected and preferred by fans. It reduces the barrier of entry for potential new fans while also giving the developer a source of income year-round. An example of this shift can be seen the Call of Duty franchise, who have (successfully) utilised this model via the release of Warzone, which added to the series’ normal yearly release schedule. It has proved to be wildly popular and with skins bundles dropping regularly it provided a steady, sizeable income stream.
It is within this “fermium” model where NFT’s and blockchain will take these micro-transactions into the next level. Rare skins and collectible items (think CSGO Dragon Lore-level rare) are what provide bragging rights for community members and fans of the game. It also provides them with a way to continually support its development. Users aim to collect authenticated items from their favourite pro-players, heroes/champions, and artists. These NFT’s can represent rare or unique items from the game, which in turn can net the user a real asset which people are willing to pay a lot of money for. It doesn’t have to be just tied to online-only characters or events, you can create NFT’s that are linked to real-life experiences such as in-person tournaments, merging the digital and physical.
Developers such as Parallel, if done correctly, will be on forefront of this shift in the gaming industry, and I wouldn’t be surprised to see larger, more established developers taking notice. Blizzard, Riot, even Valve are some who immediately jump to mind who could take serious advantage of this kind of technology
Artist and fan empowerment
Finally I want to quickly talk about something I previously touched upon, payment of the artist. The introduction of blockchain technology would go a long way in providing a solution to an ongoing issue in the gaming space, content ownership and creator payments. Typically we would see content creators not getting the adequate recognition nor payment for their work and NFT’s provides them with a solution to both. When minting NFT’s the creator now gets to set the level (%) of royalties they wish to receive, in perpetuity, when someone resells their work. The blockchain also allows for the creator and their fans to authenticate their work as genuine, removing the ability for others to rip off their creation.
This will be a change that is long overdue and, instead of simply taking the designs of the hard-working artists, we can now hopefully see them get what they deserve. As the saying goes, “exposure doesn’t pay the bills”. So please, pay the damn artists.
Thanks for reading and I’ll see you next week!