An intriguing correlation between cryptocurrencies and video gaming has become apparent. This new form of money makes gamers more aware of how they should be able to control their assets. Fred Ehrsam, co-founder of Coinbase, thinks blockchain gaming startups will reap the rewards from this trend.
Fred Ehrsam has an Intriguing View
It is safe to say the video gaming industry has come at a crucial crossroads. Numerous debates over game prices, content, lootboxes, and in-game assets have sparked over the past year. Blockchain startups can prove to be a valuable ally in this department. Coinbase co-founder Fred Ehrsam is convinced cryptocurrencies are on par with “mods” for popular video games.
The current most popular games are all based on existing platforms. That is not uncommon in the industry. Innovative ideas are often copied and improved upon under a different banner. Borrowing existing concepts is not prohibited in the gaming industry. In fact, it allows for innovation and building new franchises in its own right. Fortnite is a bright example, as its “origins” trace back to a mod built for the popular ARMA 2 game.
Ehrsam claims this trend will only become more apparent. By actively introducing blockchain and cryptocurrency technology, new use cases can be unlocked. The current demand for blockchain assets is quite significant. Game developers can build platform ecosystems to attribute real-world value to in-game items. As such, any gaming enthusiasts would be able to earn a living by doing something they truly care about.
Game Companies have a Working Model
As interesting as the vision by Fred Ehrsam sounds, it might not stick. More specifically, game developers have numerous working business models in place. Downloadable content, season passes, and microtransactions all generate a ton of revenue. This “closed loop” of money making will be difficult to disrupt. Mounting backlash over these practices doesn’t dissuade publishers from including such options.
For Ehsram, now is the time to look toward the future of gaming. Replacing in-game currencies with blockchain-based tokens will not necessarily happen overnight. He is convinced entrepreneurs will force this change upon the industry sooner or later. Startups looking to take a gamble can gain a competitive edge in this regard.
The future of gaming may look very different compared to its current iteration. Building engaging and scalable games with a focus on blockchain appear to be the next frontier waiting to be conquered. That is, assuming the vision outlined by Ehrsam will eventually come true. There are still some unknown factors associated with this business model waiting to be ironed out. Disruption often occurs in stages, rather than in one clean sweep.
How do you think blockchain technology might affect the future of the gaming industry? Let us know in the comments.
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