How Nakamoto Games Is Decentralizing Play-to-Earn

By Casper Brown
Published November 18, 2021 Updated November 18, 2021
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How Nakamoto Games Is Decentralizing Play-to-Earn

By Casper Brown
Published November 18, 2021 Updated November 18, 2021

In contrast to many industries, the online gaming market experienced growth amidst global lockdowns. According to Statista, global online gaming revenues reached $21 billion in 2020, representing a 21% increase compared to 2019. The same forecast suggests this momentum will persist through 2021 when revenues are expected to reach $23.8 billion. At the same time, the number of gamers worldwide is forecast to surpass 1.3 billion by 2025, up from approximately 1 billion today.

In historically tech-savvy countries like China, South Korea, and Japan, online gaming has seen the highest adoption rates. However, improving global internet connectivity and pandemic related uncertainty are distributing adoption worldwide. This growth is likely to continue as users search for new gaming experiences and communication channels. And while traditional games are likely to benefit most from this movement, blockchain-based games have been attracting a growing share of the total funding flowing into the online gaming industry.

Why Decentralized Gaming?

According to InvestGame, blockchain-focused gaming companies received nearly $500 million in funding during the first half of 2021. This figure equates to 5% of total gaming industry investment over the same period. While minimal, previous investments in blockchain gaming have been minuscule in comparison, signalling a rapid influx of capital.

Although growing awareness of non-fungible tokens (NFTs) is driving this movement, the connection to gaming isn’t always straightforward. In short, blockchain technology enables NFT creation, which is capable of encapsulating in-game assets. For example, let’s say a player purchases an upgraded weapon using USD in a traditional game. Although this weapon provides enhanced gameplay, the gamer receives no real-world value from this purchase. In short, the game developer generates profit, and the player holds a virtual item with limited utility.

Now let’s say the same player purchases an upgraded weapon in a decentralized gaming environment. In this scenario, an NFT encapsulates the weapon, making it an exchangeable asset. Through this mechanism, players can buy and sell in-game purchases with minimal friction. These exchanges can occur directly between users or on secondary NFT markets like Rarible, Opensea, and Nifty Gateway.

As a result, games that integrate NFT rewards are also experiencing a massive spike in popularity. These play-to-earn (P2E) platforms allow gamers to compete for unique tokens that can have substantial real-world value. Because these are crypto rewards, gamers worldwide can participate, even those without a bank account. For these users, P2E games are an opportunity to generate income; a reality that holds transformative potential. In some countries, P2E games have become so popular that governments are exploring taxation schemes for developers and players.

The Nakamoto Gaming Ecosystem

However, while P2E crypto games signal innovation within the blockchain gaming industry, these platforms appeal to a comparatively small audience. As a result, only a handful of P2E games become extremely popular and gain widespread adoption. In addition, many decentralized P2E games are rudimentary and offer a poor user experience (UX). Finally, there is no existing ecosystem where developers can launch their games to an existing audience, making decentralized gaming development extremely difficult.

However, companies like Nakamoto Games are working to build infrastructure that addresses these P2E shortcomings. In the case of Nakamoto Games, its ecosystem will provide players and developers with opportunities to tap into the lucrative P2E market. To achieve this potential, the Nakamoto platform will offer players more gaming options and developers full autonomy over game monetization. In addition, Nakamoto Games will provide developers with a software development kit (SDK) to streamline game development and deployment. These activities, and all other value-generating exchanges on the platform, will utilize the NAKA token.

NAKA: Nakamoto Games Tokenomics

By denominating all transactions in the native NAKA token, the Nakamoto Games ecosystem serves as a self-sustaining economy. In general, the NAKA token facilitates three core functions:

  • Play: The NAKA token is necessary to participate in the Nakamoto Games ecosystem. The native digital currency will provide the necessary “fuel” to participate in games, similar to the gas fees encountered on the Ethereum network. One of the first games on the platform, Duck Hunter, will require NAKA for in-game ammunition.
  • Earn: All the NAKA tokens used in-game become part of a prize pool which is immediately distributed to gamers after each game. A part of each prize pool is “burned” as a deflationary mechanism. The highest-ranked gamers in each game will receive the greatest share of the rewards from the prize pool.
  • Governance: Finally, the NAKA token will allow gamers to participate in ecosystem governance. This governance activity may include voting on proposals to burn tokens or the structure of prize pools.

Elevating Decentralized P2E Gaming

Nakamoto Games is positioning itself as the leading decentralized P2E market. Ecosystem participants will have access to cutting-edge P2E games while developers benefit from streamlined deployment and autonomous monetization models. In addition, by integrating the native NAKA token, the Nakamoto Games ecosystem exists as an independent P2E sandbox environment on the blockchain. This supportive community eliminates barriers to entry and encourages accelerated innovation. Beyond these virtual benefits, Nakamoto Games offers gamers worldwide the opportunity to generate a sustainable and sizable income. For many, this benefit alone could be life-changing.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Casper Brown
395 Articles
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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