See the breakthrough road of crypto games from Axie Infinity

With the success of AxieInfinity, people saw the possibility of encrypted games. In the last cycle, the crypto cat game successfully turned Ethereum into congestion, but it accelerated the exploration of Ethereum’s scalable solution and also promoted the birth of other different chains. In this cycle, encrypted games like AxieInfinity have opened a larger channel, expanding the application scenarios of Ethereum from DeFi to encrypted games and NFTs.

The development of encrypted games in 2021 has many comprehensive factors. Among them, it is very important to benefit from two aspects. One is the combination of Play-to-earn, NFT and the guild; the other is the expansion of Ethereum (such as Layer2 or side chain, etc.).

. Play-to-earn mode and Games Association

With the evolution and development of the software and Internet industries, games have undergone an iterative business model, from selling game software, to paid games, to free-to-play games. Now that it has entered the stage of encrypted games, it is a play-to-earn model, which means that you can earn money by playing games. Users can earn NFT virtual items or tokens by playing games, and sell them on the open market for revenue. In traditional Internet games, players can also obtain item rewards from the game, but players have no substantial control over these items and can only trade within their games.

The successful exploration of AxieInfinity games on Play-to-earn has brought a lot of enlightenment to encrypted games. Axie’s Play-to-earn model has this concept a long time ago, but why didn’t it gradually develop until 2021? This also has its development opportunities, one of which is the impact of the epidemic on the industry. Just as the SARS epidemic in 2003 changed the e-commerce industry and gave the e-commerce industry a rapid development opportunity, the new crown epidemic also changed the encrypted game industry to a certain extent, giving the Play-to-earn model the soil for development. .

The development of AxieInfinity has a certain relationship with the promotion of the game guild in the Philippines. The game guild and the Play-to-earn model are complementary. When the new crown epidemic came, many people in the Philippines lost their jobs and no source of income. At this time, someone told them that by playing Axie games, they can earn hundreds of dollars a month. This is about 2-3 times higher than the local minimum wage.

See the breakthrough road of crypto games from Axie Infinity

There are hundreds of people playing Axie on a certain street in the Philippines. The picture is from the short documentary of “PLAY-TO-EARN: NFTGAMESINTHEPHILLIPINES”

It is the player community that introduces Axie games to the local people. Some players lease their Axie to new players so that these new players don’t have to invest in the first place. After all, the three Axies will cost hundreds or even thousands of dollars later, and the input cost is relatively high, which is difficult for ordinary players to bear. Through Axie leasing, the capital threshold for new players can be reduced to a minimum.

In this way, new players do not need to invest any costs, and only need to invest time and energy to obtain income, which is also considered a PoHW (Proof of Human Work). Through the Axie game, players can obtain SLP, and after selling SLP, they can earn income, thereby solving the problem of income sources for some locals under the epidemic.

In YGG’s guild design, it has three roles: Scholar, Community Manager, and YieldGuild. Among them, Scholar is the player and gets 70% of the income, the community manager is responsible for expanding and training newcomers and gets 20% of the income, and YieldGuild is the guild organization and gets the remaining 10% of the income. YieldGuild does not directly contact Scholar players, but mainly contacts with community managers. Various players are organized and managed by community managers.

According to YGG’s disclosure, it currently owns or plans to own virtual assets in games such as illuvium, League of Kingdoms, F1DeltaTime, TheSandbox, StarAtlas, ZEDRUN, etc.

In addition, the Crypto Game Association may gradually develop into a DAO organization. DAO is a decentralized organization that can organize people based on a certain purpose. It can be an investment DAO or a DAO for various tasks. With the emergence of the Play-to-earn mode of encrypted games, the encrypted game guild has gained new opportunities, and DAO may be developed in the future. It will eventually become the game guild layer of the entire encrypted game field and serve the cold start of the entire encrypted game. And follow-up development.

. NFT assets and encryption game

People spend more and more time in the virtual world every day, and various virtual items worth tens of billions of dollars are stored on the Internet, and they are growing all the time. Among these virtual items, the fast-growing category is NFT assets, of which the transaction volume in the first half of 2021 exceeded US$2.5 billion. From the chart below, we can also see that comparing June and July, the transaction volume of some major NFT trading markets increased very rapidly.

See the breakthrough road of crypto games from Axie Infinity

The volume of crypto games and NFT transactions is growing rapidly, a report from TokenInsight

Blue Fox Notes also mentioned encrypted collections such as NBATopShot and CryptoPunks before, and also introduced encrypted artworks by encrypted artists such as Beeple. These NFTs are scarce and have certain community consensus. However, relatively speaking, there are certain thresholds for encrypted collectibles and encrypted artworks, and the advent of encrypted games may change the pattern of NFTs.

The user base of the game is naturally larger. If NFT is only a collection value, its scene will have a certain ceiling. If NFT still has use value, then its scene will be broader. Axie is not only an NFT, it also has application scenarios in the game. It can breed and participate in battles in the virtual world, and can use it to earn revenue in the game. DeRace is a virtual horse racing game, the horse racing in the game is also NFT, similar to Axie in the AxieInfinity game, you can buy, develop horse racing, and participate in the competition. Illuvium is an RPG adventure game based on Ethereum. In the game, you can capture the virtual species of illuvial. These illuvia are more than 100 kinds, live in the alien world, and have different professions and ability attributes. Players can capture them, upgrade them, and win in battle. Encrypted games of this kind are increasingly flocking to the market.

From these games, we see some similar frameworks and modes, the combination of assets in encrypted games and NFT, making Play-to-earn truly a reality.

3. Scalability provides the foundation for the explosion of encrypted games

If we look at the timeline, the outbreak of Axie was after the introduction of the Ronin side chain. Axie could not accommodate too many players before, and even if the guild can organize more players, it will be limited due to scalability reasons.

The number of AixieInfinity users was less than 40,000 DAU at the end of April. After the introduction of the sidechain Ronin, the number of daily active users soared to more than 250,000. The side chain Ronin can increase the speed of transaction confirmation and greatly reduce gas costs. Users can also transfer assets such as Axie from the side chain to Ethereum Layer 1 to meet higher security requirements.

See the breakthrough road of crypto games from Axie Infinity

Trends in Google search interest in AxieInfinity since the end of April, a report from DelphiDigital

See the breakthrough road of crypto games from Axie Infinity

Axie has seen a sharp increase in DAU since the end of April, based on data from Dappradar

In order to solve the scalability issues of encrypted games and NFTs, even Layer 2 solutions dedicated to NFTs, such as immutableX’s Layer 2 technology, have been born. The current illuvium game plan uses immutableX’s Layer 2 technology, which is a solution developed based on StarkWare. The security of current side chains, such as Matic, Ronin, and xDai, depends on the situation of their respective side chains. There is a big gap with the security of Ethereum Layer 1. On the side chains, transaction speed and fees have been greatly improved. However, some trade-offs have been made in terms of security. This is also a point that needs attention.

Judging from Axie’s experience, after solving a certain degree of scalability, encrypted games have removed the obstacles to rapid development. With the emergence of more and more scalability solutions, the larger-scale adoption of encrypted games is coming


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-08-08 09:12
Next 2021-08-08 09:13

Related articles