Market Overview
As of 2022 Feburary, the gaming industry is worth 300+ billion US$ internationally, and the total number of gamers is close to 3 billion. At the current rate of development, the international gaming market value is expected to exceed the 204+ billion US$ mark by 2023.
Currently, there are 5 million gamers in the Blockchain Gaming Space. Market data and activities show that more and more Gamers and Funds are entering the GameFi Ecosystem
GameFi News
Roblox was listed on the New York Stock Exchange on March 10, 2021, with a valuation of US$30 billion.
On July 14, 2021, Axie Infinity generated more than US$334 million in revenue in a single month, surpassing the US$231 million in revenue of the traditional game "Honor of Kings" in July this year, paving the way for the Blockchain Gaming Space.
On July 26, 2021, Zuckerberg announced that within five years Facebook will become a full-fledged metaverse company.
In September 2021, Dapper Labs, the development company of NBA Top Shot, completed a $250 million financing, led by hedge fund Coatue Management.
In September 2021, Ethereum's fantasy football game Sorare announced that it received $680 million USD investment, led by SoftBank.
In November 2021, GuildFi, the Thai Chain Tour Association, received 6 million US$ in financing, led by crypto investment institution DeFiance Capital, and well-known investment institutions such as Coinbase Ventures participated in the investment.
In November 2021, Avocado Guild announced the completion of its Series A financing, raising a total of US$18 million, which is the highest record for the P2E Association's Series A private placement so far, and its valuation has also jumped to 200 million USD.
In November 2021, Achip & Achair Guild (AAG) received $12.5 million in private equity financing led by Shima Capital, Tribe Capital, and Tess Ventures.
With the popularity of Metaverse, NFT, the Blockchain gaming space has had gained a lot of attention, attracting investment institutions to enter the market. Traditional Venture Capital Firms such as Sequoia China, Rothschild Trust Capital, Jack Ma's Blue Pool Capital, and Samsung Venture Capital have all started getting involved in this emerging field.
Blockchain + Games + Finance jump-started the Blockchain Gaming Space
According to Newzoo, blockchain gaming has progressed rapidly since July 2021. Players have increased from 80,000 in early April to 1.33 million in October with an average monthly increase of more than 270%. The daily transaction volume has increased from around 500,000 US$ in early April to about 544 million US$ in October with average monthly increase of over 181 times which allowing people to see the endless potential of the GameFi space in the future. According to relevant data at the end of August, the total market value of Play-to-Earn tokens has set a record high exceeded 10 billion US$.
Web3.0 Blockchain Gaming: The next "Blue Ocean" is here
In the current Web 2.0 Paradaigm, gamer data are used to catagorize and profile the gamers for percisision marketing on centralized platforms such as Steam. Games are reliant to those platforms to onboard gamers via paid content advertising. Though Gamer data being the main revenue-generating mechnicism has generated monumental profits for major platforms, the gamers who provided the data are not rewarded monitarly for the fact. This status quo may no longer exist in the emerging Web 3.0 paradigm.
In the entire Web 3.0 architecture, Decentralized Identity (DID) is a crucial part. DID allows users to own and control their digital identities. The DID contains the user's identity information and privacy data, which can only be used with the user's authorization, and has the characteristics of security, verifiability, and interoperability.
Web 3.0 is committed to changing the control of data from a centralized platform to a decentralized fashion. Distributed storage has the advantages of high security, privacy protection, and the prevention of single points of failure. Web 3.0 provides a more open, fair, and secure network to solve the core problem - the distribution of platform benefits. Web3.0 will try to solve the problem of benefit distribution on the basis of motivating people's subjective initiative and value creation. Ownership is one of the biggest characteristics of Web 3.0 - participants have full ownership of its content, data, and assets. Web 3.0 implements a decentralized network system where users can control the ownership of their assets, identities, data, and privacy.
GameFi is deeply ingrained with Web 3.0. Asset ownership identification in the Web 3.0 era enables each user member of GameFi to have credible asset value and identity authentication, and user data information truly belongs to themselves. Web 3.0 helps GameFi players to split and reorganize their digital assets, allowing them to independently control their assets to transfer between multiple different games, and it also allows gamers to extract value from the time and energy spent playing games, thus creating impact via providing more opportunities to people in developing nations to have extra sources of income via the new form of wealth transfer.
Web 3.0 will truly realize that players own data assets, asset ownership belongs to users, and the blockchain game ecosystem will truly achieve the goal of "scarcity", "practicality" and "viewability". As the leader of blockchain games in the Web 3.0 era, Formless strives to enable everyone to control their own digital identity, assets, and data, and then control their own destiny. Real participants and gamers can become shareholders and owners of interests, get rewarded accordingly thus breaking the existing boundaries and opening the era of Blockchain Gaming in Web 3.0.
The age of SocialFi+NFT+GameFi
On August 27, 2021, NBA star Stephen Curry (Stephen Curry) updated his profile picture on Twitter (1 BAYC NFT wearing a thick floral suit). The profile picture cost a total of 180,000 U.S. dollars (55 Ethereum), Which arose market attention.
NFTs can be seen as a bridge connecting Web 2.0 and Web 3.0. It has proved itself to be an effective social "tool" via hype and FOMO which has sparked interest in the general public to start to learn about or get involved with Web 3.0 one way or the other on a massive scale. A decentralized digital identity, digital ownership of artistic expression is a key milestone in the development of Web 3.0
The birth of NFT became a social phonomen and a hot trend because one can truely own a digital asset that is verified by the blockchain for the first time. The Formless Community based on Web 3.0 is integrated with NFTs and GameFi, where value is generated through social interactions between the community members through social mining
Metaverse + Blockchain games to explore the future of gaming
The more long-term significance of GameFi is that it provides an access point for users in the real world to participate in metaverses.
There are numerous metaverses in existance. First of all, in metaverses, one creates a consistent identity that can span to multiple closed metaverse platforms, which is the gateway to countless diverse experiences. Secondly, the higher sense of immersion is the metaverse has the more players in the real world and the existing metaverses they will attract. Lastly, the metaverse must be open and possess strong social attributes. We happy serve as the access point to the network of metaverses.
GameFi allows us to see the embryonic form of the huge metaverse worlds in the future, people can be in a virtual world created by a computer, where the lights are brilliant, millions of people walk through downtown, and everyone can buy their own land, and build their own house on the land.
With the development of blockchain technology, AR/VR, Internet of Things, Metaverse, Web3.0, and other technologies, the gameplay of future blockchain games will be richer and more diverse, and the experience will be more immersive and realistic. With the Play-to-Earn model, it is expected that people’s life, entertainment, and work revenue will be integrated into one with broader development prospects.
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