The story of the Metaverse relies entirely on Chain Games

Chain Games supports over 90% of the Metaverse’s revenue, but it seems to be contrary to its original technical intention.

On the afternoon of August 26, in the Kowloon Hall of the Kerry Hotel in Beijing, a summit on the Metaverse was underway. Just as the current concept in this industry is bigger than the landing scene, there is almost no expected actual experience booth, but a PPT from 8 companies and 9 speakers…

It is understandable that the Metaverse industry is in the ascendant under the influence of technology, capital, policies and other factors. Even big companies such as NetEase and Baidu have just entered the deployment period, and there are very few scenes that can really be implemented. Few.

If there is, perhaps only blockchain games (chain games for short) can arouse players’ enthusiasm.

Such as the original god.

The story of the Metaverse relies entirely on Chain Games

Although Mihayou has never linked this phenomenal open world game to the Metaverse, it is impossible for Metaverse practitioners to always be willing to take the initiative to “get close”.According to the concept of Metaverse “BAND” (Blockchain blockchain, Game games, Network network communication, Display imaging technology), open world games such as Genshin Impact have built three-quarters of the BAND concept.

Everything is there, only the blockchain is owed.

To put it more bluntly, what is lacking is the monetization link supported by blockchain technology – P2E (play to earn, earning income by participating in games and other projects).

In other words, if the original stone in the Yuanshen world can be directly linked to virtual currency, then the so-called chain game will be formed.

Of course, it is currently impossible in the country. But abroad, such “fantasy” is becoming a reality.

Banban, a blockchain R&D engineer, told AI Lanmeihui (ID: lanmeih001) that it is the blockchain that props up the Metaverse—there is no P2E (play to earn, earning income by participating in games and other projects), and immersing in it is just a matter of Games are just services, not platforms.

“There are many technical routes, and most of the actual applications are games. The story of the Metaverse is now supported by chain games (gamefi, blockchain games).”

But the paradox is that in the eyes of more technicians, the chain game is not mature at this stage. “There are more speculators in the chain game industry, and some project parties are purely for making money.”

Over 90% of Metaverse’s income comes from Chain Games

Putting aside the contradictions, let’s first understand how the chain game that supports the Metaverse story at this stage works?

Banban disassembles the chain game into two parts: game image quality and blockchain interaction.

“The picture quality belongs to the category of traditional games, while the blockchain is inclined to the financial field. The concept of chain games is not complicated. It is a game, plus currency exchange that is in line with the real world.

Take a sandbox game as an example:

In game A, players have a high degree of creative freedom and can interact online. The content of the game includes not limited to enclosure, building a house, and making props with the materials in the game – he is called “Minecraft”.

Game B: Players have a high degree of creative freedom and must interact online. The content of the game includes not limited to spending money to buy land, build a house, and use the materials in the game to make props, and all of the above are NFTs, which can be freely traded, and the transaction proceeds are virtual currency – he is “Sandbox” or “Roblox”, two. A top-notch Metaverse game.

“Any existing game mode that joins the blockchain financial system is a chain game.” According to industry insiders, the threshold for chain games is not high. Without the high enthusiasm of players and frequent asset transactions, the transactions are not timely and the handling fee is not low. And the private chain (private blockchain) is not “decentralized” enough, so it is difficult to build a consensus.”

The story of the Metaverse relies entirely on Chain Games

Figure/Blockchain game, photo courtesy of the interviewee

In other words, from the researcher’s point of view, the only technical difficulty of ChainGame is that players trade too frequently, resulting in insufficient computing power of the blockchain, including human and material resources, making the transaction cost itself high; In terms of game production, it is not difficult.

“Most Metaverse games are currently chain games. The reason why these games are dynamic is that they naturally deal with finance.

Simple and rude, it is good to make money.

Referring to the report released by the chain game “Axie infinity” in July 2021, the platform’s average daily active users in July 2021 exceeded 800,000, and the transaction volume reached 670 million US dollars, making it the NFT product with the largest transaction volume in the month. for other cryptocurrencies such as Bitcoin and Ethereum.

According to the report “Mobile Game Market Insights under the Concept of Metaverse” released by Sensor Tower, in the first half of 2022, applications tagged with the Metaverse received a total of 170 million downloads and revenue of US$650 million. Among them, game applications were downloaded 110 million times and earned 610 million yuan.

The story of the Metaverse relies entirely on Chain Games

Image source/Sensor Tower

An indisputable fact is that at this stage, blockchain games contribute more than 2/3 of the downloads of Metaverse applications and more than 90% of the industry revenue.

According to this logic, it seems that it is not too much to say that the story of the Metaverse depends entirely on chain games.

Get Rich or Ponzi Scheme?

This exaggerated industry data has been verified by the investment population interviewed by Blue Media Exchange.

Senior currency player Max revealed to AI Bluemedia that in the middle of last year, through his investment in sandbox and decentraland two chain games, Max’s personal wallet finally pocketed 10w of dollars.

“There are a few projects that I pulled out in time, and escaped the bear market of NFTs. Chain Games is still in the risk release period, the prices of high-quality projects are unstable, and the remaining projects are purely for making money.

Some netizens in the currency circle broke the news about a chain game called “HERO CAT”. In the game, players need to collect pets and fight monsters, and settle virtual coins as income, with a daily upper limit of 100.

The upper limit can be done every day, and the benefits can be imagined.

But the routine of Chain Tour is unfathomable. In fact, when netizens play on the third day, they will find that the upper limit of virtual currency income has been reduced to 15, and the only way to expand the capacity is to attract new players to register the game… There are many similar projects, including Metaverse and blockchain games. , use the income to tempt players to enter the market, and then use players to pull new people to buy coins and take over.

The Ponzi scheme model sounds familiar, but in the Metaverse it has become a “new story”.

The story of the Metaverse relies entirely on Chain Games

Of course, the story of chain games making money is not necessarily “cheating”. Even a relatively conscientious chain game platform, its ability to make money should not be underestimated.

For chain game manufacturers, cryptocurrency, NFT, and transaction (platform + miner) fees constitute the main income of the game. “Most of the chain games use NFT to sell props. The game producer sells the NFT to the first batch of players and begins to circulate on the chain. The NFT commodity price and platform fee for your first transaction are directly given to the game company. Generally speaking, before buying NFT, users need to first buy the corresponding cryptocurrency, and then use the cryptocurrency to buy NFT.”

“And if you sell your land, place an order for 100 yuan, and someone pays 100 yuan to buy it, the actual payment is 100+gas fee (miner fee). Assuming that the platform requires 5% of each transaction, then you are the seller. The money received is not 100, you may receive 95, 5 pieces were taken away by the platform, and they are all settled in cryptocurrency.”

All in all, the low threshold, no supervision, and the temptation brought by the popularity of the “Metaverse”, make ChainGames a profitable business for manufacturers.

Lianyou deviates from the original intention of the Metaverse

But the industry is still in the ascendant, and it is obviously premature to rush to define the Metaverse industry in terms of revenue.

Putting aside the perspectives of “investors” and “speculators”, more technical people have something to say.

In Banban’s view, the fire of Lianyou actually deviates from the original intention of the Metaverse technology route.

The story of the Metaverse relies entirely on Chain Games

“The P2E model makes some players ignore the gameplay and even the rationality of chain games, and only come here for the purpose of making money. First, this is not the concept of the Metaverse ‘parallel world ‘. Second, the financial attributes and return on investment will be directly Limit the life cycle of blockchain games. Go back to the concept of BAND, compare the Metaverse and chain games, you will find that chain games only have blockchain and network technology, and the gameplay and visual experience are still far from the existing traditional games. .”

A Zhihu blogger also holds a similar view: “Relying on revenue to maintain the life cycle cannot solve the problem of lack of playability for most chain games.”

The story of the Metaverse relies entirely on Chain Games

According to the latest survey results of ChainPlay, 75% of blockchain investors entered the field of cryptocurrency and NFT because of chain games. However, the collapse of the encryption market directly caused 62% of investors to lose more than 50% of their income. For the “virtual world” emphasized by the Metaverse, an immersive sensory experience is a must, and Chain Games is more like another job for migrant workers – a new occupation, joining the Earth Online that humans have been playing for thousands of years.

There’s nothing wrong with that – where you make money you don’t make money. It’s just that this money doesn’t seem to be counted in the output of the Metaverse.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-story-of-the-metaverse-relies-entirely-on-chain-games/
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.

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