• Latest
how blockchain technology might bring triple a games to metaverses

How blockchain technology might bring triple-A games to metaverses

November 8, 2021
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

How blockchain technology might bring triple-A games to metaverses

coinnewsdaily by coinnewsdaily
November 8, 2021
in Business, Ethereum, NFT
0
how blockchain technology might bring triple a games to metaverses
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Nonfungible token-based projects such as Loot and The N Project have fueled unprecedented interest in the Metaverse, reviving hopes that blockchain will finally reach the masses. Is history condemned to repeat itself, or is it doomed to repeat itself? The issue is that the very things that grab the public imagination ultimately undermine the functioning of the underlying platforms and raise entry barriers to new heights. In this post, I’ll examine the basic flaws that contribute to this dynamic, with the objective of resolving them once and for all.

The core issue is that legacy blockchain technology — notably Ethereum — imposes significant entrance barriers, impeding the Metaverse’s capacity to grow.
These concerns are further exacerbated by the network’s failure to allow consumers to price their network consumption statically.

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Apes and penguins are pricey

Fees associated with popular NFT marketplaces can be an insidious problem, as projects frequently impose these levies on users, often with excessive assumptions of their profit potential. A cursory examination of Etherscan reveals the staggeringly huge value of transaction fees paid each project. Bored Ape Yacht Club and Pudgy Penguins have charged its users 106.7 and 111.4 Ether (ETH) to engage with their smart contract, respectively. Users of these two projects have collectively been required to pay approximately $1 million in transaction fees!

Axie Infinity, truly NFT-based?

However, here’s the rub: Those projects are not actually built on NFT! Players in Axie Infinity can battle and breed small animals that can subsequently be sold or leased to other players due to their implementation as NFTs. This is why Axie Infinity is an excellent example of a truly NFT-based game. The issue is that the more a game utilizes NFTs and the benefits of a blockchain-based asset, the more ETH customers must pay in fees.

On the Ethereum blockchain, both the trade and breeding parts of these games incur transaction fees. Axie Infinity has paid more over 15,000 ETH in transaction fees, which is almost $60,000,000! That is money that the developers could have spent on product development, but more significantly, it is money that users could have spent on additional digital content from Axie Infinity and other game producers.

active player

The catch-22 for new users and publishers

Many new users drawn to the NFT craze immediately begin listing their own NFT on a marketplace like OpenSea. In an ideal world, this would be an excellent opportunity to recruit another blockchain champion by providing an exceptional user experience. Regrettably, the transaction fee for simply placing an item for sale on OpenSea is currently roughly 0.1 ETH, or about $400. That is hardly the type of user experience that leads users to believe they are interacting with futuristic technology!

These outrageous costs not only deter new users from learning about the blockchain craze, but also deter larger business entities from developing on top of blockchain platforms. Why would large video game producers include NFT interoperability in their titles if the end user would have to pay upwards of $100 to exchange in-game weapon skins? No consumer, surely, would be enthusiastic about in-game NFT items that cost more to trade than the base game.

Even if a huge video game publisher wished to cover these blockchain transaction fees on behalf of their player base, the fees would remain prohibitively high and would climb proportionately during the game’s lifecycle. In effect, this game publisher would be penalized as their game’s replay value increases! Given these flaws in the existing transaction price model for blockchains, it’s unsurprising that video game creators and publishers have been slow to embrace blockchain-based digitization of in-game assets.

Fee-less blockchains

Clearly, current NFT-based games on legacy blockchains have significant flaws. This is largely due to their transaction pricing model, which discourages new users from adopting NFT assets and discourages video game developers from including them into their game. Regrettably, we are still a long way from seeing triple-A video game titles utilize blockchain technology to track ownership of in-game goods. Consumers and publishers would simply be unable to endure the cost of transacting on a fee-based blockchain.

However, there is hope. It is feasible to remove fees from the blockchain user experience. Since its debut in 2016, the Steem blockchain (which famously forked into Hive to resist Justin Sun’s hostile takeover attempt) has operated on a fee-free paradigm. Splinterlands, one of the most successful blockchain-based games, has made amazing use of Steem’s and now Hive’s fee-free properties.

The essence of the solution included inside those blockchains is the introduction of a token derivative or “property” that is used in place of something like Ethereum’s gas to “pay” for transaction costs, and that may be “delegated” from one user (such as a developer) to another user (like a player).

The adoption of a token derivation to cover transaction costs enables game makers to price their network usage statically over time. If this seems a little perplexing, fear not; I shall clarify.

advocate

Consider for a second what would have happened if Axie Infinity had been established on a fee-free blockchain that leveraged such a token derivative rather than forcing users to spend their balance. If this were the case, the creators might have purchased a fixed amount of local currency proportional to the amount of network bandwidth required for the game and then allocated network resources to new users.

Fueling growth

To begin, it would have enabled new users to trade their Axies and interact with in-game smart contracts without incurring transaction fees. This would therefore allow the game to grow organically, since players would not be deterred by the cost of entry. It would lessen the entry barrier, bringing in new players and increasing demand for in-game assets.

Such a fee structure could allow for game publishers and developers to pay a one-time fixed cost for consistent network usage. You pay each transaction on Ethereum, which is a significant — around $60,000,000 significant, as of November 2021 — issue for games like Axie Infinity. Of course, what happens when the user’s token derivative is depleted? Wouldn’t they be exactly where they began? That is, unless it regenerates throughout time!

Because we are discussing a characteristic of a token, rather than the token itself, it may be programmed in any way we choose without having a substantial economic impact. This property’s goal is not to exchange value, but to encourage network utilization, and it can be structured appropriately. If we do not want customers to be compelled to constantly purchase additional tokens, all we need to do is have the token property renew over time, which would also provide us with the static pricing we seek and theoretically endless transactions for the user! As a result, a game like Axie Infinity would only need to make a single purchase and would never again be required to pay — or have their player base pay — transaction fees.

Resources might be continuously delegated from the publisher or developer to the active player or user base, enabling players to interact with smart contracts for free and resolving a $60 million dollar inefficiency in the NFT gaming industry.

The existing fee-based transaction structure directly jeopardizes widespread adoption. Along with developing the first consumer-friendly blockchain, we at Koinos Group are developing a system that will enable major enterprises to more accurately price the expenses associated with adopting this cutting-edge technology.

The author’s thoughts and opinions are entirely his or her own and do not necessarily reflect those of CoinNewsDaily. Each investing and trading action entails risk; before making a decision, you should conduct your own research.

Thomas Clement is a blockchain analyst at Koinos Group, a blockchain development company dedicated to helping people leverage blockchain to benefit humanity.

Tags: APEAXIeAxie InfinityBlockchainblockchain technologyBlockchainsBored Ape Yacht ClubBusinessDerivativeETHEtherEthereumGamingIncreaseInvestmentJustin SunLeverageMetaverseNFTNFTsOPENSEASpikeTechnologyTokenTradeTrading
Share76Tweet47
Previous Post

The Ethereum Premine Debate On Fairness, Regulation, and Centralization

Next Post

DeFi can be 100 times larger than today in 5 years

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution
NFT

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts
Alt Coin

Things You Should Know Before Investing in NFTs

April 24, 2022
Load More
Next Post
defi can be 100 times larger than today in 5 years

DeFi can be 100 times larger than today in 5 years

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$23,099.001.33%
  • ethereumEthereum(ETH)$1,597.041.63%
  • tetherTether(USDT)$1.00-0.06%
  • binancecoinBNB(BNB)$307.401.67%
  • rippleXRP(XRP)$0.4122911.43%
  • cardanoCardano(ADA)$0.3892894.36%
  • dogecoinDogecoin(DOGE)$0.0876083.17%
  • matic-networkPolygon(MATIC)$1.146.26%
  • okbOKB(OKB)$37.836.30%
  • solanaSolana(SOL)$24.402.34%
  • polkadotPolkadot(DOT)$6.583.21%
  • shiba-inuShiba Inu(SHIB)$0.0000122.89%
  • litecoinLitecoin(LTC)$88.552.08%
  • tronTRON(TRX)$0.0631722.64%
  • daiDai(DAI)$1.00-0.05%
  • cosmosCosmos Hub(ATOM)$13.645.48%
  • leo-tokenLEO Token(LEO)$3.987.15%
  • chainlinkChainlink(LINK)$7.404.97%
  • moneroMonero(XMR)$180.136.11%
  • ethereum-classicEthereum Classic(ETC)$21.992.45%
  • bitcoin-cashBitcoin Cash(BCH)$134.070.65%
  • stellarStellar(XLM)$0.0933062.42%
  • crypto-com-chainCronos(CRO)$0.0820393.32%
  • filecoinFilecoin(FIL)$5.431.67%
  • algorandAlgorand(ALGO)$0.2602517.45%
  • vechainVeChain(VET)$0.0247885.54%
  • internet-computerInternet Computer(ICP)$6.025.43%
  • aaveAave(AAVE)$86.950.51%
  • eosEOS(EOS)$1.110.88%
  • elrond-erd-2MultiversX(EGLD)$44.994.00%
  • theta-tokenTheta Network(THETA)$1.116.28%
  • tezosTezos(XTZ)$1.146.07%
  • paxos-standardPax Dollar(USDP)$1.000.03%
  • bitcoin-cash-svBitcoin SV(BSV)$44.15-1.11%
  • huobi-tokenHuobi(HT)$5.070.82%
  • havvenSynthetix Network(SNX)$2.495.61%
  • pancakeswap-tokenPancakeSwap(CAKE)$4.001.93%
  • iotaIOTA(MIOTA)$0.2426976.76%
  • makerMaker(MKR)$684.345.80%
  • zcashZcash(ZEC)$46.351.06%
  • neoNEO(NEO)$8.333.33%
  • dashDash(DASH)$51.422.39%
  • zilliqaZilliqa(ZIL)$0.0302359.73%
  • basic-attention-tokenBasic Attention(BAT)$0.2702865.47%
  • compound-governance-tokenCompound(COMP)$56.838.00%
  • nemNEM(XEM)$0.0397834.48%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$37.068.59%
  • bitcoin-goldBitcoin Gold(BTG)$17.651.02%
  • qtumQtum(QTUM)$2.704.62%
  • wavesWaves(WAVES)$2.7215.55%
  • sushiSushi(SUSHI)$1.343.96%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.2531600.72%
  • yearn-financeyearn.finance(YFI)$7,630.722.84%
  • omisegoOMG Network(OMG)$1.525.38%
  • ontologyOntology(ONT)$0.2207653.01%
  • digibyteDigiByte(DGB)$0.0110780.52%
  • umaUMA(UMA)$2.072.38%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%