Can fintech disruptions change the way digital gaming industry operates?
Money is flowing in the digital gaming sector. Guess what? The value of Venezuela’s currency had fallen to one-seventh of that of Azeroth in May 2018. You may not have heard this in the news because Azeroth is a virtual world in the popular game World of Warcraft, where the economy is booming, and gamers are generating more real-time wealth than Venezuelans are generating by exporting petroleum!
Now coming back to the real world, the global digital gaming market is estimated to reach $264.9 Bn by the end of 2023. It’s a booming industry and is likely to go through drastic transformations despite several challenges. A key challenge faced by the gaming industry today is the prevalence of fraudulent activities and data breach, making it one of the reasons for the less than anticipated growth of the ‘pay-to-play’ model. For more information, download the entire white paper.
Key topics addressed in this whitepaper:
- Contribution of fintech firms in the gaming sector
- Roadblocks faced by blockchain gaming
- Benefits of blockchain gaming in the digital gaming market
- The Blockchain impact on E-sports
How do fintech firms control gaming economies?
According to Tom Bollich, the former founder of Zynga, in order to have a commercially viable game it is important to have a good economy; and for this economy to be sustainable the game needs an aspirational loop. A loop is where gamers rise up the levels and after each conquest, find themselves thirsting for more. It is for this reason that games like World of Warcraft and EVE, where players create their own storylines and interact more with each other, creating more opportunities for peer-to-peer transactions, are thriving for almost fifteen years, while other console games have fizzled out, months after their release.
Peer-to-peer transactions are a rising component in MMO games. These include in-game purchases to arbitrage, tips and services. With banks lagging in the digital era, the most disruptive fintech firms have made their foray into the digital gaming market. With continuous streams of microtransactions happening between players, payment providers like Venmo, PayPal and Square Cash are providing faster and more convenient service. The wave of cryptocurrency is here to solve the issues of security breaches and trust. Blockchain gaming is soon going to be the new key trend in the gaming industry. For more information, download the entire white paper.
Why is mainstream gaming exploring blockchain as an opportune area?
Blockchain is undoubtedly a useful tool for gamers and is all set to disrupt the gaming world with the benefits that it offers:
The problem of fraudulent activities can be controlled with the help of blockchain. Blockchain can prevent illegal trading of virtual assets and is also capable of stopping hacking.
Control over virtual assets
Blockchain has been successful in decentralizing the assets, thereby facilitating exchange of virtual assets. Decentralization is a welcome relief among players as it allows interactions in a peer-to-peer model.
Processing of payments
Blockchains can help process in-game payments faster, and transactions can be carried out without involving debit and credit companies.
For more information, download the entire white paper