Home Technology How Blockchain Technology is Beginning to Transform Industries Outside of Finance

How Blockchain Technology is Beginning to Transform Industries Outside of Finance

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How Blockchain Technology is Beginning to Transform Industries Outside of Finance
Source: AdobeStock / Krakenimages.com

Aron Beierschmitt is the CEO and co-founder of game development and R&D studio Laguna Games.
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The first quarter of 2022 has been profitable and encouraging for the crypto industry. The value of the global cryptocurrency market has reached $1.7 trillion and is expected to double in size by 2027.

Crypto was also on the rise in public consciousness. The FTX the cryptocurrency exchange has become one of Major League Baseball’s major sponsors while Crypto.com renamed a sports arena in a $700 million deal and Coinbase spent nearly $14 million on its QR code Super Bowl Advertising.

Celebrities also began to pile in, with Eminem, Snoop Dogg, Martha Stewart, Paris Hilton and Shawn Mendes tossing either non-fungible tokens (NFT) or spending millions on NFT collections of popular profile pictures.

But ultimately, the high never lasts.

The domino effect

Disaster struck the cryptocurrency market on May 7, 2022, when a series of sudden sell-offs of USTone of the components of the $18 billion algorithmic stablecoin TerraUSD has sparked a run on banks, inducing a death spiral for the wider Earth ecosystem, which hosted the currency. The dollar-indexed asset was de-indexed and on May 12 was worth 0 USD. Then heads started to roll, unveiling a series of under-secured loans and high-risk yield strategies that caused investment firms to crumble under its weight.

While that erased a trillion dollars from the crypto market capitalization, NFTs and gaming seemed to continue to gain momentum. In May 2022, more than 1.15 million daily unique active wallets interacted with blockchain games, down just 5% from the prior month, showing minimal slowdown.

Winter Proof: Game NFTs?

In the face of the advance of a bear market, $2.5 billion in investments were poured into blockchain gaming during the first quarter of 2022. Solana Companies set up several funds worth more than 100 million dollars to develop the gaming sector on its blockchain and Immutable spent $500 million on games and Web3 development. Recently, Animoca brands raised $75 million at a valuation of $5.9 billion to invest in blockchain games.

Despite a reduction of 29% in organic NFT sales since Q1, gaming NFTs saw a 19% year-over-year increase in sales.

Games, GMI?

Although there are many signs of optimism in the blockchain video game markets right now, there are still scaling and retention challenges. Simple mechanics like staking and unstaking are not enough to keep players engaged. We can expect blockchain games to grow in complexity, with more depth in both their storylines and overall gameplay.

As games evolve, so do their economies. Since revenue generation is one of the key metrics to identify a game’s endurance, it is important for blockchain game developers to design their tokenomics with this in mind.

In Crypto unicorns (developed by Laguna Games), for example, players don’t just plant and harvest seeds, they craft new materials in the workshop and buy and sell items in the game’s Rainbow Market. Over the past three months, Crypto Unicorns has seen players collect half a million unicorn poop, craft 130,000 items, and register a quarter of a million market transactions.

As blockchain games have become an unexpected sanctuary in the bear market, it’s important to note how these early successes will shape the next generation of games.

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Learn more:
Crypto Games Least Affected by Bear Market, VC Investments Remain Strong CryptoBlog
How to Play Metaverse Games: A Beginner’s Guide to Decentraland

Top 5 Metaverse Games to Play in 2022
Top 5 Play-to-Earn Games on Ethereum

Players play different strategies: Minecraft says no to NFTs, while Square Enix unveils its NFT project
VC Play-to-Earn investors are now “more cautious”, in-game engagement remains strong – Animoca Brands

NFT Play-to-Earn games most popular in India, Hong Kong and UAE, survey finds
Blockchain Games in 2022: Play-to-Earn, Gamification, Interoperability and Top Publishers

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