Bitcoin halving’s impact on blockchain gaming: Insights from YGG’s Gabby Dizon
As the crypto world braces for the impact of the anticipated Bitcoin halving event, Gabby Dizon, co-founder of Yield Guild Games (YGG), sheds light on how this phenomenon is set to catalyse innovation within the blockchain gaming sector.
In an interview with AIBC News, Dizon points out that the Bitcoin halving event can have a significant impact on the liquidity of cryptocurrencies, subsequently influencing the value and adoption of Web3 gaming tokens and non-fungible tokens (NFTs).
Rise of Web3 gaming and opportunities for smaller studios
With the surge in Web3 gaming adoption, smaller studios are emerging as hotbeds of innovation. Dizon emphasizes that the agility and risk-taking propensity of smaller studios contribute to this trend, allowing them to pioneer groundbreaking concepts and gameplay experiences.
“Smaller studios can take bigger risks, be more experimental, move faster and be more agile, and be highly focused, so, in Web3 as well as the broader startup ecosystem, we often see the greatest innovation coming from smaller, early-stage projects,” Dizon explained. “YGG has backed almost 70 early-stage web3 games that are building really impressive products in smaller studio environments.”
Traditional gaming giants embrace Web3: Implications and lessons
The entry of gaming behemoths like Ubisoft and Square Enix into the Web3 gaming arena heralds a new era of mainstream adoption. Dizon underscores the potential of these industry giants to drive blockchain adoption and outlines valuable lessons that smaller studios can glean from their initiatives.
“These Web2 gaming giants can bring a lot of credibility to Web3, thanks to their very strong brand equity while having the potential to onboard massive existing fan bases into crypto games and ultimately help to boost blockchain adoption,” Dizon said.
“Smaller studios can take notes on the efforts of these larger studios and franchises as they launch and distribute their web3 offerings to their very large player bases; NFTs were not immediately welcomed by those traditional audiences however we believe this will change over time. Particularly with Web3 being introduced by the really big names of the traditional video gaming industry,” he said.
Addressing gameplay concerns in GameFi projects
GameFi projects have garnered significant attention, with recent releases dispelling misconceptions about the engagement levels of Web3 games. Dizon highlights the immersive gameplay experiences offered by titles such as Pixels and Nine Chronicles, underscoring the evolution of blockchain gaming.
“Since 2018 the sector has attracted approximately $19 billion in investments and Web3 game developers have been hard at work throughout the Crypto Winter. In November 2023, at the YGG Web3 Games Summit in Manila, Philippines, we showcased more than 40 high-quality Web3 games all playable now with a very positive response from our community,” Dizon elaborated. “Recent releases like Pixels, Parallel, My Pet Hooligan, Blocklords, and Nine Chronicles have proven that web3 games offer engaging gameplay. So, the idea that Web3 games lack engaging gameplay has largely been debunked with these new releases.”
Unlocking value with NFTs: A paradigm shift in ownership
NFTs have revolutionized the concept of digital ownership, empowering players to assert control over virtual assets. Dizon explains how YGG leverages the Soulbound token (SBT) to reward and recognize community members, fostering a sense of belonging and incentivizing active participation.
“A particular type of non-transferable NFT is a Soulbound Token (SBT). Through YGG’s Guild Advancement Program (GAP) and Superquests, players complete quests and earn SBTs that are issued by YGG, to recognize and reward members for their achievements and their contributions to the community,” Dizon said.
“Reputation and Web3 identity are a very important concept if you want more individuals to be protected and be able to access opportunities in the open Metaverse.”
Evolving gaming economies
The synergy between blockchain technology and gaming heralds the emergence of player-owned economies, where players dictate the value and trajectory of in-game assets. Dizon delves into the implications of on-chain reputation systems, which enhance trust and collaboration within virtual communities.
“Web3 gaming economies are player-owned, meaning that the players themselves bring, build, and maintain the value and growth among their own community. When you put an asset on-chain, it’s basically giving ownership to the players and then they can do what they want to do with it, so it means they can own it, trade it, or sell it, but it means you are giving them permission to cash it out of your economy,” Dizon further explained.
“On-chain reputation is also very important within virtual economies as it gives players control over their digital identities. For example, if a player wants to join a guild or participate in a multiplayer quest, their on-chain reputation vouches for their skills and reliability, earning them respect and opening opportunities within the game community,” he said.
“This level of trust and transparency fosters deeper engagement and collaboration among players, ultimately shaping the evolution of the game economy.”
Outlook for the blockchain gaming sector
Looking ahead, Dizon expresses optimism about the trajectory of the blockchain gaming sector. With gaming guilds establishing their identities on-chain and platforms like Farcaster and Lens redefining social interactions, the future promises a tapestry of innovative possibilities.
“Platforms like Farcaster are making strides with features such as frames, offering a new perspective on social networking. Lens is also interesting, providing novel ways for social interactions to take place on the blockchain,” he said.
“We’re seeing more and more different ways that people can interact on-chain, and YGG is contributing to this to show how groups and guilds can also participate,” he concluded.
