Blockchain sets its sights on electronic gaming
Blockchain, already disrupting the finance industry, sets its sights on electronic gaming
- As gamers increasingly purchase digital avatars and tokens to customize their experience, a growing number of observers think blockchain technology will play a bigger role in the explosive growth of esports.
- “We see blockchain adding a whole new dimension to the gaming industry on many different levels,” one game publisher says.
Annie Pei | @pei_annie
However, the digital securities-side of blockchain has also given way to a different avenue for investing in games.
Planet Digital Partners essentially funds games through digital offerings of preferred shares that can be purchased to fund a basket of 10 games — and “Cooking Mama” is just one game in the basket. As revenue is raised from those games, investors receive returns thanks to their initial purchase of those preferred shares.
Grossman and his team essentially launched the system to democratize the games investment. He said there are different sectors of the gaming market, and a good chunk of the sector involves the billion-dollar blockbuster releases that typically see “returns of investment of tens of millions of dollars.”
Yet there’s also a midtier market that has also managed to create hit titles. The presence of digitally offered preferred shares allows for investors to tap into that market as the gaming industry grows.
“The midmarket sector has always been there,” Grossman said. “It’s not a new dynamic, but it’s a dynamic that’s becoming more magnified and [makes the sector an increasingly attractive] investment target.”
Yet gaming participants cautioned that blockchain isn’t necessarily one size fits all for the sector. While it can be used in esports to reduce instances of cheating, or players taking advantage of game glitches, it shouldn’t be “shoehorned” into every circumstance.
“Where I see potential use for blockchain in esports is if a team were to create part of their governance around voting, and you want to vote on what’s happening with the team, player contracts and trading contracts. But it’s an idea that won’t happen in volume,” Sood said.
He stressed that blockchain adds to the gaming experience — but it won’t take precedence over the ideas and elements that make a quality game.
“Blockchain is a cherry on the cake, it helps take it to another level,” he said.
This content was originally published here.