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- DeFi projects are gaining popularity and due to this blockchain gaming is attracting a lot of potential gamers
- The investors see a bright future in the gaming industry as they will reap benefits from DeFi projects.
- Microsoft’s latest earnings call reported that it earned $5 billion in Q4 from its Xbox business
- Liquidity pool is another advantage of this new type of emerging industry.
The popularity of DeFi projects is high on the minds of many. Ethereum is also steaming high and has passed the $1,700 mark, an all-time high. Emerging layer 1 protocols like Polkadot and Elrond are getting huge popularity from the DeFi boom which was once observed as the dead asset.
DeFi’s Growth
DeFi is like an industry that has the potential to explode. The volume of decentralized exchanges has surged from $39.5 to $45.2 million in a span of 2 years that is from 2019 to 2021 January. The spurt in DeFi based projects will be beneficial for one industry and that is blockchain gaming. It is a sector with great potential to introduce new forms of value for an unknown gaming sector.
Gaming Industry & DeFi
Gaming is the most innovative industry today and it is evident from the Pandemic, which has crippled the economy. During the pandemic, millions of people confined to their homes have uplifted the gaming industry. Microsoft’s latest earnings call reported that it earned $5 billion in Q4 from its Xbox business. This is seen for the first time after experiencing 51 per cent growth year-on-year.
Gaming is no doubt a distraction and for the addictive gamers, a traditional game is popular and the gamer invests more time and more money into it. Hence, DeFi comes to rescue them by offering a new method of compensation through blockchain-based tokens. There are other rewards also, powered by an armoury of decentralized mechanics.
The industry has a lot of potential and blockchain gaming has to still find its feet. But increasing adoption of DeFi mechanisms is sure to be propelled even further by the recent success of the broader DeFi industry. There is a new type of asset class coming up. If the gaming industry brings out its tokens, people see in-game assets as digital coins with no real value. However, they are becoming real financial assets.
Booming Gaming Sector & Blockchain Games
With the growing interest of games among the general public, the mechanisms of DeFi enables the blockchain games to provide players with different ways to make it worth their while and earn rewards. This growing popularity will have benefits to the blockchain gaming world. The popular games on the blockchain are collectable and trading games. Under this category, the gamers can buy, sell and trade unique tokens and assets.
Recently, games are becoming extremely popular. They are creating their native tokens and in return developers are able to construct their economies and ecosystems. They can also connect via business. However, the success of these tokens depends on the usage by the broker and the value to the gamer.
Advantages of the DeFi Mechanism
Liquidity pool is another advantage of this new type of emerging industry. Under this players can trade the currency of the game when they excel and can also trade the currency of the game when they are struggling. They can also do in-game currency, for virtual currency and fiat currency like bitcoin and U.S. dollars.
Another advantage for the gamers is that they can have an extra income on collectibles and other assets they have already accumulated in the game. This is by taking them to liquidity pools. Liquidity pool is one of the ways through which DeFi rewards gamers, it gives liquidity to the whole ecosystem.
Ethereum based Games & Sandbox
The innovation and the increasing adoption of games in the gaming sector has made the DeFi projects more important as they unlock many new opportunities for product developers to build DeFi protocols across multiple verticals. One such example is the Ethereum based games which have garnered immense popularity even in the DeFi because of their built-in economies and innovative models.
Sandbox before launching the game has allowed the people to earn extra sand tokens by staking sand into liquidity pools. This move has also helped the early adopters of the game a heart start once the game is launched.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
