Blockchain-based gaming could take over the gaming industry, the world’s largest media category, ahead of television and other media formats.
Gaming has become the world’s largest media category, ahead of television, on-demand entertainment, film and other media formats. According to BITKRAFT Ventures, the gaming industry is currently valued at USD 336 billion. By 2028, the global gaming market is predicted to reach USD 545.98 billion (Fortune Business Insights).
The Cryptocurrency market could exceed USD 3.4 trillion by 2030. Up from USD 1.9 trillion in 2021, with a compound annual growth rate (CAGR) of approximately 30% between 2021 to 2031 (Fortune Business Insights).
At the end of 2021, almost 50% of active crypto wallets connected to decentralised applications were related to gaming (DappRadar/BusinessWorld). Outstripping wallets designated for decentralised finance (DeFi) purposes. This uplift corresponds to the increase of 5000% in investment into blockchain gaming last year, compared to just $80 million in 2020. (DappRadar’s Dapp Industry Report 2021).
In traditional gaming, developers control in-game assets. The problem is that gamers don’t own their digital possessions. So if a game company shuts down or decides its rules have been broken, gamers will lose access to their items. These items can be worth tens of thousands of dollars in many cases.
This is particularly an issue in some of the best-selling video games of all time. In Massively Multiplayer Online (MMOs) like Minecraft and World of Warcraft, players often spend their time producing high-level items. Users can sell them to lower-level players for cash. However the threat of account deletion from the developers of these games discourages such practices.
Play-to-earn gaming is a concept that came to the fore in 2016 with the release of games such as Multiverse and Cryptokitties. Back then, the main idea behind P2E was that people could rent out their time and talent as opposed to just in-game items for cash and cryptocurrency. However, the concept of reward through P2E games has taken hold in recent years. It is estimated that in 2021 over USD 449 million was raised from initial offerings in the play-to-earn games market (ICO Drops).
With the tremendous success of cryptocurrencies, we believe significant disruption is well overdue within the traditional gaming industry. Blockchain-powered gaming titles that reward gamers for their playing time and give them actual ownership of their digital items are in the ascendancy. Our confidence is underpinned by the USD 5.4 million of private investment we have gained for the Opis Group and the development of OpiPets, and our goal is to help bring about this industry-wide change.
Our blockchain-based P2E game OpiPets addresses many of the aforementioned issues. For example, in-game achievements, extensive character customisations, unique digital items, and tokenised assets like NFT’s are verified on the Blockchain. Our vision is to empower every player to control their in-game digital assets, allowing them to mint and trade these assets at any time. Further, our governance token (OPV) will provide our community members with the option to buy into the potential upside of OpiPets through token ownership.
Barriers to entry with existing play-to-earn titles
Onboarding requirements, translation costs and economic rebalancing efforts designed to control in-game inflation are beginning to impact some of the most popular P2E titles ability to attract and retain players. New players have to follow complicated instructions to get started. From downloading multiple wallets, installing browser extensions, and purchasing tokens through cryptocurrency exchanges. Starting costs can be as high as USD 400 to USD 7000 before earning a single dollar revenue. As a result, taking the plunge to buy into many of the current play-to-earn gaming titles is high-risk for many new players.
Players also face high gas or transaction fees on some blockchains, such as Ethereum. Recent sidechain solutions mediate some of the cost but still limit the number of free transactions before users are charged. High starting costs have become such an issue that guilds and scholarship programs Decentralised autonomous organisations (DAOs) that operate in this space have seen much success due to the growing number of players willing to take on debt to gain entry to play-to-earn games.
Blockchain games are adopting new economic models, particularly those which allow players to create value for themselves rather than passively consuming entertainment. One of the biggest obstacles for blockchain games is how to make them fun for players that aren’t interested in crypto or those who see beyond the hype. Our consumer research demonstrates that few things are less appealing to users than being forced to endure complicated wallet onboarding procedures or high starting costs and lack of engaging gameplay.
We are creating a blockchain gaming experience that is intrinsically enjoyable and rewarding—participation without technical or cost barriers.