Research Summary
The report discusses the evolution of blockchain gaming, its infrastructure, and the potential it holds for developers. It emphasizes the importance of decentralization, interoperability, and composability in the gaming industry. The document also highlights the trade-offs and challenges that come with adopting blockchain technology, such as platform risk, censorship, and regulatory constraints. It encourages developers to understand their audience, needs, priorities, and constraints while building a crypto-driven economy. The report concludes with the notion that the financialization of blockchain gaming necessitates developers to explore the entire Web3 stack.
Actionable Insights
- Understand the importance of decentralization: Decentralization mitigates potential abuses of power, such as a platform’s lock-in and unilateral censorship. It provides a trustless environment where members don’t need to trust each other to work together.
- Embrace interoperability: Interoperability allows players to move their belongings and progression across games, benefiting both players and developers. It can decrease development time and costs, extend games’ shelf life, and generate incremental revenue.
- Recognize the potential of composability: Composability can help developers integrate various building blocks on their own or go with an integrated solution. It can help to future-proof games and operational frameworks.
- Consider regulatory constraints: Developers need to consider the legal environment they operate under and ensure their organizational and legal structure is ready to operate at a global level. Regulatory compliance is crucial as it can have significant implications on the ability to operate and monetize.
- Explore the entire Web3 stack: With the financialization of blockchain gaming, developers should aim to explore the entire Web3 stack, not just what they consider adequate gaming-related applications. This includes experimenting with a variety of tools, from liquidity pools to staking to yield aggregation.
