Blockchain-based video games could be the next evolution in an industry that is now advanced enough to reach market cycle maturity, said Paul Gadi, CTO of Outplay Games.
In his unitize panel titled “Decentralizing Video Games,” he gave a lecture on how blockchain can revive an industry that has fallen into what many consider predatory practices and platform closures. He highlighted three ways in which blockchain can help solve the problems that arise from centralization within the industry.
A decentralized identity
An important step in decentralizing video games, says Gadi, A decentralized identity mechanism is to be provided.
With the development of the video game industry, publisher platforms became custodians of user accounts. On PC, Steam, Uplay and others they currently like are the dominant way to track game ownership.
“This doesn’t really help us (developers) in the long run by restricting development because our actors are trapped in closed ecosystems.”
Web3 wallets offer a solution, and Gadi takes the Web3 model as an example. In this way, decentralized applications can communicate with the user’s account wallet, which is available independently of the dApp. However, Gadi warned that “this is a certain type of platform in itself,” and suggested that developers rely on blockchain protocols rather than certain frameworks.
Gadi said that “platforms are generally the ones that control data in the video game industry,” referring to cloud computing solutions such as Amazon Web Services (AWS). He argued that these are of little use to developers and gamers because they are the only option for scaling the infrastructure.
To remove this control, decentralized file storage protocols such as IPFS must be used. However, these can have their own limitations. The industry is still young, as several competing projects aim to create a decentralized AWS.
Possession of assets
Gadi believes that many game-based assets suffer from excessive ecosystem blocking as they cannot exist outside of the video game despite efforts to maintain it:
“This property has a real monetary value, a real value that people have worked to acquire. Even if this object is enclosed in an ecosystem and is not even part of a cryptosystem, it still has a real monetary value. “
The decentralization of in-game assets through non-consumable tokens (NFT) could be an opportunity to create a completely new asset class with its own possibilities and jobs. “This opens the economy to something bigger,” he added.
In addition to “building on the shoulders of the giants” through open source technology and platform collaboration, “we can start reshaping the platform economy and developing a strategy to decentralize things,” he concluded.