Blockchain, GameFi, and the P2E Revolution

Digital collectibles allow users to own different digital assets on the blockchain. According to a study by Bloomberg, nearly $41 billion worth of money was spent on such marketplaces in 2021, compared to only $250 million in the previous year. While the USD value fell in 2022, given broader consolidation in crypto prices, the number of trades jumped from 58 million to 101 million. The growth rate is immense, and the digitized art market is bound to overtake the $50 billion conventional art market sooner rather than later. Global conglomerates such as Nike, Twitter, Formula 1, Prada, and Taco Bell, among others, have also embraced the blockchain revolution.

This rapid growth of innovation in blockchain technology - the realignment of incentives and decentralized ownership, has acted as perfect ingredients to shake up a giant industry - gaming and has resulted in “Play & earn” as we know it today. Monetization of the gaming industry was substantially present within the traditional gaming industry, with games like Clash of Clans generating over $1B in annual revenue from in-game purchases. The way play & earn distinguishes itself is by rewarding players for their playtime and game progression through sustainable economic models, reducing the “take rate” - the commission that goes to the developers drastically from ~ 100% to ~ 5%, thus putting gamers at the front and enabling value accrual for all the stakeholders