Beyond Traditional Gaming: How Blockchain is Reshaping the Industry with Seedify

Gaming on Chain: Behind the Rise of Blockchain Gaming

Blockchain gaming has become a popular application of decentralized ledger technology (DLT). In terms of activity, the space has arguably become a fast-growing area within the Web3 space. A recent report, suggests over 1,000 projects were blockchain gaming native in 2022, with many Web2 gaming studios making the pivot to develop blockchain-based games. These projects are also very well-funded, with the same report suggesting that over $10.5bn has been invested in the area since the beginning of 2022.

And this does not account for interest from established Web2 native companies. Meta - the parent company of Facebook, Instagram and Whatsapp – made headlines towards the end of 2021 with the announcement of new a ‘Metaverse’ strategy. There is a general consensus that this strategy has so far failed, with Meta not being able to attract the users it sought. However, Meta is but one company. Given the statistics above, its fortunes do not seem to be mirrored by the wider space.

This article will explore the trends and developments in the blockchain gaming space. It will also examine some of its key attributes, namely NFTs, P2E/GameFi and the Metaverse. But first, what is blockchain gaming, and where did it originate?

The History of Gaming on Chain

‘Blockchain gaming’ is a loose term that encompasses several fields at the intersection of DLTs and gaming. Colloquially, most people in the Web3 space associate blockchain gaming with either developing a game whose data is stored on a decentralized network or a game in which the assets are stored ‘on-chain’ as non-fungible tokens (NFTs).

These ideas go back to at least 2017, possibly earlier, and although the origins are contested, the most infamous blockchain game was Crytpokitties. Cryptokitties was a feline-themed, Ethereum (ETH) based collection of NFTs with changeable attributes such as color, size and accessories. The plan was that users who purchased a ‘Cryptokitty’ could enter a virtual world with their purchase in which they could interact with other Cryptokitties.

This simple concept went viral towards the end of 2017, with Cryptokitties attracting prices of up to 650 ETH (~$2,000,000 at the time) and becoming the number one project within the ETH ecosystem by transaction volume. However, the Cryptokitties did not anticipate the congestion this would cause in the ETH network. Shortly after the 650 ETH peak, the ETH network was paused; all transaction processing stopped.

For a single project to cause the second largest decentralized network to be paused was no insignificant event and understandably caused concern amongst the ETH developer community and the blockchain gaming space. Notwithstanding the fact that the problem was one of popularity and virality, the lesson was clear: blockchain gaming projects, and the decentralized networks that host them, needed to think about scalability.

Needless to say, the ETH developers were quick to propose upgrades that could scale ETH to handle viral blockchain gaming projects in the future. Moreover, subsequent projects took note and immediately explored layer 2 solutions, as well as other, more efficient layer 1 networks such as Polygon and Solana. This has undoubtedly resulted in more innovative approaches to scalability, both within the blockchain gaming space and when it comes to decentralized networks more generally.

Consequently, the conversation quickly moved onto the acquisition and retention of the traditional gaming community.

From Play-to-Earn to ‘Play-and-Earn’

‘Play-to-Earn’ (P2E) is the idea of earning ‘real currency’ for in-game activity. In traditional games, the in-game economy is often underpinned by a currency that allows gamers to purchase the assets they need to complete the game. However, the value of this currency is limited to its utility within the specific game itself.

P2E includes a mechanism to exchange an in-game currency for one with real-world value, often a cryptocurrency. The idea is to incentivize gamers to play by introducing earning potential. Whilst this is attractive for blockchain gaming developers (as a user acquisition strategy) and gamers (as a potential income stream), the success of traditional games – Grand Theft Auto, Skyrim to name but two – without this model, suggests that gameplay and story might be more important.

Seedify, a blockchain gaming incubator (more on them later), is attempting to move beyond the P2E and even the P&E models. This idea centers around the importance of the gameplay and story, with earning being a secondary incentive. Indeed, Seedify successfully launched a project called Sidus Heroes which, in its own words, “transports players to a world based on crypto and blockchain philosophy”.

‘Into the Metaverse with Seedify’

Simply put, the ‘Metaverse’ is a 3D representation of the internet. Historically limited to gaming, it now also applies to so-called ‘virtual worlds’ in which there is no set gameplay or objective.

The largest and most famous metaverse is Second Life, a virtual world in which users can create, interact and even do business. In fact, launched in 2003 by Linden Labs, Second Life was the first virtual world to establish an in-game economy underpinned by a currency called Linden Dollars. These are exchangeable for all major fiat currencies and created a vibrant business environment that created many successful entrepreneurs.

Second Life also attracted many Fortune 500 brands who saw its user base of over 65,000,000 (~the population of the United Kingdom) as a fantastic captive audience to which they could target their promotion. This led to a wave of said brands setting up virtual HQs, hosting events and creating branded content for Second Life users. However, despite its history, experience and size, the metaverse behemoth has chosen not to experiment with decentralization.

Some suggest this is due to the threat to the monopoly of control Linden Labs has over the virtual world. Others put it down to institutional inertia; there is neither the will nor expertise yet to port a decades-old metaverse to a decentralized network in a sustainable way. The likelihood is that both are true, and it is the responsibility of the Web3 space to provide a practical and convincing method of entry. This is what Seedify is attempting to do.

Seedify is a community focussed launchpad and incubator, focused on the blockchain gaming space (as above). They provide start-ups in the blockchain gaming (as well as NFT, AI and Metaverse) sectors with a range of resources that extend to an Initial Game Offering (IGO) launchpad, access to VCs, tokenomics design, access to its large community (including influencers and key opinion leaders) and strategic marketing through its platform. The launchpad’s ecosystem is built around SFUND, a token that provides holders with incentives in return for staking. There are a number of benefits of holding SFUND; these include:

The opportunity to join IGOs and INOs, giving you early access to quality Blockchain Gaming and NFTs projects on Seedify's Platform. Staking and Farming which allows you to earn passive income by earning SFUND rewards and accumulating Seed Staking points at the same time that will later grant you tokens from Seedify’s Incubated projects for free. As well as tier upgrades, a higher tier means higher allocations.

On examination, this innovative mechanism seems to be working in the context of its objective: to support the growth of the blockchain gaming space. Seedify has launched 54 blockchain gaming projects so far, with a total valuation of over $20 million. Projects such as Blocktopia, Cryowar and Sidus Heroes – all Seedify projects – have posted ROIs of 710x, 169x and 109x, respectively. Moreover, there are a number of incubation projects in the immediate pipeline.

Coupled with the upcoming launch of their NFT collection called “The Mounts” by their in-house creative team Meta Studios, Seedify supports experiments and developments across blockchain gaming, positioning itself as the pioneer that can convince Web2 companies of the potential of the space.

Find out more about Seedify here.

‘Trends and the Future of Gaming’

So, now we understand the history of blockchain gaming, and the key players and ideas at present, what are the trends we should follow? According to a recent report, the blockchain gaming space grew by over 2,000% in Q1 2022. In Q1 and Q2, projects in the space raised $10.5 billion, the report goes on to say, attracting 1.22 million unique, active wallets.

We are investing in Web3 gaming because we know its future potential, but it also needs a lot of maturing and development to reach its full potential. That’s why we are dedicated to incubating and supporting projects to help bring Web3 gaming to the mainstream. Play-to-earn models in the first iterations were very wrongly done, and a significant focus on fun aspects of gaming was missing ingredients. True ownership of in-game items and rewards through competitive tournaments in a fun-to-play game without barriers of entry are key ingredients to unlock the true potential of Web3 gaming. As the issues are resolved, and games resonate with traditional gamers, we believe that the adoption of Web3 gaming will dramatically increase. - Levent Cem Aydan, Founder & CEO of Seedify.

These trends suggest the blockchain space is rapidly expanding year-on-year, with the level of funding, number of projects and number of active users showing no indications of slowing. Put together with the active development in the space and continued interest from Web2 projects, it is reasonable to assume blockchain gaming will form part of the Web3 conversation for a long while to come.

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Image credits: DeepMind