Alex Altgausen, CEO of Banksters explains how tokenization is transforming the gaming industry
The gaming industry has always developed at rapid speeds, and with the rise of blockchain technology riding a similar wave, the two-look certain to synergise to become the next catalyst for innovation in the space.
The process of transforming real or digital assets into tokens on a blockchain is referred to as tokenization, a driver that has the potential to change the future of the gaming industry.
Due to the integration and rise of tokenization, the way gamers engage with all facets of the gaming sector looks set to change, whether that be from a game development lens, or, the approach game studios are using regarding the direction of their strategy and upcoming titles.
True Content Ownership and Customization
The capacity to boost player engagement and ownership is one of the main advantages of tokenization in gaming.
Players can actually own the in-game assets they represent by employing non-fungible tokens (NFTs), giving them more control over their use and trading.
Players enjoy a larger sense of ownership and involvement in their virtual world as a result, making for a more immersive and safe gaming experience.
In the traditional gaming sphere, player spending continues to remain steady, prompting developers and studios to broaden their offerings regarding downloadable content (DLC) and micro purchases.
Through the use of blockchain technology, players can experience different forms of content and customization – such content that is truly owned by the player, meaning they have complete control over each form of content.
As an alternative to ‘DLC’ (downloadable content) in traditional games, blockchain games can offer DLC in the form of assets that can be traded or sold in the future, for perhaps other forms of content, and verifying these transactions to be secure, immutable and transparent will only serve as a plus for players.
Moreover, tokenization can open up new revenue opportunities for publishers and game developers. Developers can earn more money and perhaps establish a secondary market for in-game assets by offering them for sale as NFTs.
This benefits both the gamers and the developers as the latter can make money by selling their assets on the secondary market. Afterall, game developers and creators are gamers too, right? So why shouldn’t they benefit too?
Looking at the bigger picture, tokenization has the ability to develop more democratic and decentralised gaming environments.
Developers may guarantee that ownership and control are spread among a decentralised network of players rather than concentrated in the hands of a few centralised companies by using blockchain technology to establish tokenized game assets.
As seen on multiple occasions, when players are able to have more control and decision making for their favourite games, they tend to appreciate the transparency from the game developer.
With this in mind, we can expect that players who feel empowered are very likely to be content with the distribution and control of ownership of these assets in blockchain games and economies that are more stakeholder centric.
We take a similar approach with Banksters, in order to hone our efforts on creating a happy community, essential for a NFT based trading game.
As a CEO and gamer myself, I recognize the importance of community growth and player welfare, and do think it is quintessential that players are well looked after and encouraged to try participating in these games, particularly for this niche in our sector to reach its potential.
Driving Engagement through Tokenization
It shouldn’t come as a surprise, we all love free rewards, and for some, they love the feeling of accomplishment and earning rewards by participating, competing and playing in their favourite games.
Incentivization is a commonly discussed topic among stakeholders in the gaming industry, due to concerns of engagement and variability in some areas of the sector, with some genres being affected more heavily than others.
By giving players rewards and incentives for participating, tokenization can undoubtedly help increase player involvement in the gaming sector. Tokens, virtual goods, and even currency can be used as examples.
By completing a level, dominating a competition, or helping the game’s development, players can receive rewards for their efforts in the game.
Additionally, participation in early stages of games’ development can be encouraged by tokenization.
The development of a community-driven approach will allow game designers to interact with players and involve them in the decision-making process.
As a result, players have a more interesting experience, which improves consumer loyalty, prompting players to buy into the ethos of the game and continue to follow its development.
As reported by Newzoo, a multitude of AAA and AA publishers are looking to pivot their main franchises to service-based models, over concerns of being unable to meet players’ expectations. Keeping players engaged in 2023, requires consistently high quality and successive content, requiring higher developmental times and developmental teams.
Live service games promote involvement above expenditure, which has motivated developers to create gameplay mechanics that motivate players to log in frequently – a trend that blockchain gaming and tokenization has driven to new heights via the variance of rewards an individual can earn due to this emerging technology.
Tokenization is transforming the gaming industry, providing players with greater control, security, and engagement. As blockchain technology continues to evolve, I see it becoming an integral part of the gaming industry, and the way we incentivize various stakeholders.
By embracing tokenization, game developers can create a more engaging and rewarding experience for players, while empowering them to take control of their gaming assets, putting power in the hands of those who matter most.