- According to Jack O’Holleran (CEO of Skale) a multichain Ethereum-native network that enables Web3 games, “today’s AAA game businesses look like nothing” because to GameFi’s dynamic business model.
- Since user experience is the top industry concern, finding a sustainable GameFi model is still difficult.
- In fact, with $1.3 billion raised in the most recent quarter, blockchain-based games and metaverse projects are demonstrating endurance in the face of a winter that has brought down many participants in the cryptocurrency business.
According to O’Holleran, “there’s a tonne of work that has to be done around usability in order to appeal to the mass market, charging consumers fees every time they transact or activate a smart contract offers a disincentive to play.
Despite their usability issues, Web3 games accounted for over half of blockchain activity in the last quarter across 50 networks. With 912,000 daily Unique Active Wallets interacting with the games’ smart contracts in September alone.
GameFi will experience rapid growth over the next six years, with P2E games expected to generate $2.8 billion between 2022 and 2028, representing a compound annual growth rate of 20.4%.
The 2020-founded game firm Gunzilla Games uses blockchain technology and AAA content to power its games, enabling players to fully customize their characters and weapons by owning the in-game assets as NFTs.
According to the statement of Vlad Korolev (Co-founder and CEO of Gunzilla),
Players won’t ever need to set up wallets, swap tokens, or carry out any other “typical” crypto-related duties because all blockchain-related functions will run in the background, according to the statement.
We can see that GameFi is at a turning point. On the one hand, GameFi has the astonishingly rare capacity to draw the next 1 billion people to the cryptocurrency realm (given how many gamers there are worldwide). On the other hand, gamification focuses mostly on the blockchain and the play-to-earn part of games and does not cater to conventional players.
Defi, where users can pay for transactions directly, has been the emphasis of Web 3. In contrast, for a game, even 5 cents per transaction would be just unacceptable because even the most basic games would quickly become unaffordable.