Blockchain Adoption in Gaming - Gameflip Approach

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Description

Gaming is all about the items and it seems so logical to apply blockchain to gaming, and yet we don't see widespread adoption. Gameflip has proposed a top-down approach to encourage adoption - is this...

AI Analysis

The world of video games, with its endless supply of unique items like guns, knives, pets, and gold, seems like a perfect fit for blockchain technology. This is because blockchain is fundamentally about tracking items securely and transparently. However, despite this natural synergy, widespread adoption of blockchain in gaming has been frustratingly slow. Gameflip is proposing a new, "top-down" strategy to encourage this adoption, focusing on incentivizing game publishers rather than relying on a "bottom-up" community approach.

Here's a breakdown of the key points and thoughts on Gameflip's approach:

* Why Blockchain and Gaming Are a Natural Fit: Games are fundamentally about items that players invest significant time and effort into acquiring. Blockchain's ability to securely track and verify ownership of digital assets makes it ideal for these in-game items.
* Current Problems with In-Game Items:
* Lack of Real Ownership: In older games like World of Warcraft, selling valuable in-game items for real cash was nearly impossible and often required resorting to risky "black markets."
* Platform Restrictions and Fees: Modern platforms like Steam allow developers to integrate items for sale on their marketplace, but they take a hefty 15% cut. More importantly, when you sell an item, you only get "Steam credit," which means you can only use it to buy more games on Steam, not convert it to real money. This forces players with valuable inventories back to "gray markets."
* Scams in Gray Markets: These unofficial markets are rife with scams. Buyers can claim a "chargeback" from their credit card company, stating they never received the digital item (which lacks a tracking number), causing sellers to lose their payment. Sellers, on the other hand, might misrepresent the item, leading buyers to receive something different than expected.
* How Smart Contracts Solve These Problems: Smart contracts are perfect for this situation because they can be programmed to automatically release digital goods only when funds are received, and the payments are irreversible. This transparency protects buyers by guaranteeing item delivery and protects sellers by ensuring payment once the item is sent, effectively eliminating risk and uncertainty in transactions.
* The Barrier to Adoption: Despite the clear benefits, blockchain isn't widely adopted by game developers because they lack the experience and are hesitant to take on the perceived risk of integrating such a new system.
* Gameflip's Top-Down Approach (JT's Strategy):
* Understanding the Gatekeepers: JT, Gameflip's CEO and a former game publisher (Aeria Games), recognizes that publishers are the key. They fund game development, are risk-averse, and need to see a clear profit incentive to adopt new technologies.
* Building the System for Publishers: Gameflip plans to build the necessary blockchain system for publishers, reducing their development burden.
* Incentivizing Adoption with Flip Tokens: Gameflip aims to raise funds through an Initial Coin Offering (ICO) for their "Flip" token. This token will facilitate game and item transfers on their platform. Crucially, 40% of these tokens (40 million tokens) will be reserved and distributed to publishers as an incentive.
Reducing Publisher Risk: These tokens will be locked and distributed to publishers quarterly over a year after* they integrate blockchain technology into their games. This approach significantly reduces the publishers' risk, as they are guaranteed a sum of tokens, which gain value as the network grows.
* Targeting the Right Games: While developing an entire game on blockchain is expensive, this incentive could appeal to medium-sized developers or larger studios looking to implement blockchain for a specific, smaller part of a game, like a new "loot drop box."
* Experienced Team and Connections: Gameflip has assembled a strong team of gaming industry veterans, including co-founders from Aeria Games and advisors from major companies like Electronic Arts and Glu Mobile. These connections are vital for reaching and convincing publishers.
* Thoughts on Gameflip's Strategy:
* A Step in the Right Direction: I believe this approach is a much-needed step forward. We need new ways to encourage game developers and publishers to embrace blockchain, as they've been aware of the technology but slow to adopt.
* Importance of Industry Connections: Having advisors with strong industry experience and connections is absolutely critical for gaining traction and attention from major publishers.
* Funding Innovation and Incentives: By contributing to Gameflip's ICO, you're not just sponsoring the development of smart contracts and SDKs; you're directly helping to provide the financial incentives needed to get publishers on board.
* The "Unfair" Reality: While it might seem a bit unfair that the cryptocurrency community has to pay a multi-billion-dollar industry to adopt a technology that ultimately benefits players, it's a necessary step to achieve true item ownership in gaming. This push helps the entire cryptocurrency community gain broader acceptance.
* Challenges Ahead: I acknowledge that getting publishers fully on board is a difficult task, even with existing connections. Securing full collaboration for major titles like the next Assassin's Creed will require significant effort and likely some trial and error.
* Long-Term Value: Despite the challenges, I firmly believe that cryptocurrency offers immense value to the gaming community, and Gameflip's approach is one way to accelerate this integration.
* The Wider Debate: This approach contrasts with a "bottom-up" strategy (like Enjin Coin, which relies on community adoption). Some developers, like Blizzard, actively choose to lock items within their ecosystem, which goes against the core idea of tradable, player-owned digital assets. The ultimate goal is to empower players with true ownership and liquidity for their in-game possessions.

Transcript

What's up everyone my name is Michael and welcome to box mining so I have a background in the video game industry and one thing I really want to see is the application of blockchain technology in video games so why is that important why do I want that it's because video games is all about items you have your guns your knives your weapons your pets and even your gold and these are all items and blockchain is all about tracking items and that is why it just seems like such a natural match the thi...