Where Fun Meets Fortune: Decentralized Games

We may have just had a DeFi summer, but we’re about to have a DeFi decade. Since last September, we’ve seen nearly a 600 percent increase in funds held in DeFi. But let’s stop here and look at the bigger picture. 

While there’s over $100 billion in DeFi, that’s a far cry from cryptocurrency’s $2 trillion market cap. So, what gives? Why hasn’t DeFi caught up yet? 

Well, if you wanted to, you could spout all of the obvious answers pretty quickly. 

  • DeFi protocols haven’t been around as long. 
  • Smart contracts are confusing. 
  • DeFi’s potential seems too good to be true. 

I could go on, but I’ll stop there. In reality, we need to drill down further and think about why we adopt anything new. It solves a problem for or it’s just straight-up fun. And let’s be real. When something is fun, we can get past most of its other hurdles. 

So, how will DeFi turn into a $100 trillion dollar industry? By bringing in the people who are at the forefront of most tech revolutions: gamers. 

Gamers: The Key to DeFi Domination 

Think back to being a kid. Imagine how thrilled your parents would have been if you said you wanted to become a doctor or a lawyer. Now, think about the look on their faces if you said you wanted to be a professional gamer. Probably not so cheery, am I right? 

Well, I can’t say I blame them. Thinking back to the 80s and 90s, was there really a way to earn money as a gamer? Probably only if you reached some colossal level of fame. But we’re living in a totally different world now. 

There are over 3 billion gamers in the world. Why should big corporations make all the profit in this industry! 

Playing to earn isn’t exactly a new concept. But it’s definitely an area of contention with game developers. They want to create the illusion of fairness within the game. So, it’s not ideal if you can pay for a shortcut. Either way, this is something they’ve been unable to stamp out.

If there’s someone willing to pay for something, you can bet that there’s someone who’s going to provide it. That’s supply and demand 101. 

But what if the giant gaming companies stopped fighting this trend and steered right into it? What if we’ve got the biggest catalyst for DeFi right in front of us? 

A New Economy Emerges 

Gone are the days of your family calling you lazy for spending hours in front of the screen. That’s not going to fly when gaming can get you some real money. But how does this even work? Let’s break this down. 

People like to have fun – that’s a no-brainer. So, when you introduce earning potential with something that’s already addictive, we’ve got an opportunity on our hands. 

It goes like this. Gamers create value for developers by contributing to an in-game economy. In return, they’re given in-game assets. Seems pretty simple, right? These assets can range from tools to aesthetics, to cryptocurrencies. 

Now, I’m not blind to the fact that in-game assets aren’t new. But now that game developers are embracing blockchain technology, these assets can find a whole new value. Assets can be turned into NFTs, tokenized, and sold for fiat. All using blockchain technology. 

And this isn’t just a theory at this point. There’s proof that this new economy is going to be a key accelerator in the world of DeFi.  You may have heard of a game called Axie Infinity. It’s kind of like a modern-day version of Neopets. Players can adopt, trade, and breed digital pets in the form of NFTs. 

Now, can you guess how much money this game has brought in? Well, in January of 2021, they had nearly $2 million in revenue. By July, that number increased to $120 million. By the end of the year, analysts estimate their revenue will reach $1 billion. 

This sounds great for the company, but what’s happening with its players? 

Don’t Pause Now – Gaming Could Give You a Real Return 

If you’re not into games already, it’s time to level up. The average Axie player earns around $1,200 a month! 

While you might not want to quit your day job in North America, this money could be life-changing in developing countries. And this could have huge implications across international markets. How can companies continue to underpay their workers when there’s a much better option on the table? Once again, decentralization is creating choices that didn’t exist before.

In traditional economics, there’s a pretty established order in place. Companies produce products, you consume products.  You then give up your money in the process. But DeFi-enabled games show that there’s another path to financial freedom. 

When you bring value into this ecosystem, you can get more than just a sense of belonging. You can get a real financial reward. I think a lot of industries are going to get shaken up by decentralization. Why not start with the one that brings fun into our lives? 

Tying It All Together

Like I said, there are over 3 billion gamers in the world. We’re talking about big stakes here. We know that DeFi is going to improve our lives in countless ways. But gaming and DeFi might be the match that we need to bring DeFi to the masses.

Do you know someone who’s apprehensive about DeFi?

Do they hear yield farming and liquidity pools and immediately tune you out? 

Well, maybe introducing them to a decentralized game is the best place to start. Everyone has to be a noob at some point. 😏

More articles

This Week In Crypto – April 11th

Apr 11, 2022

This Week In Crypto – April 4th

Apr 4, 2022

This Week In Crypto – March 28th

Mar 28, 2022

Crypto News Mid Week March 23rd

Mar 23, 2022