Gaming industry heavy-weights are teaming up with blockchain technology and NFTs, opening the door to a massively profitable, more transparent entertainment economy.
Metaverse economics
The metaverse exists virtually and offers a variety of virtual environments, experiences, and assets. A land that was fiction in the very recent past is today a reality — a virtual reality. Owning a cryptocurrency or a non-fungible token (NFT) gains one entry to this new and potentially highly profitable economy.
The key to successful economic growth within the metaverse is integration. Metaverse is freedom. The freedom to own property is critical. It creates numerous financial incentives to satisfy the drive for wealth. Most importantly, it does not limit one’s creativity.
The fundamental theories behind building a gaming economy
As gaming develops in complexity, with currencies and NFTs being created, used, and exchanged, a free-standing economy starts to form. The importance of understanding the fundamental theories behind the economics of gaming.
In short and simply put, the following factors contribute towards a successful game:-
- ‘Taps’ and ‘Sinks’ — resources, where they come from and go to (e.g., virtual currency and shops)
- The ‘pinch point’ is the balance between the taps and sinks to keep the players motivated
- Inflation is a tool used in the balance and monetization of a game.
- ‘Anchor Values’ (e.g., time spent earning currency) is the basis on which a gaming economy is built.
- Overpowered mechanics (‘OP’) need adjusting when unbalanced ‘anchor values’ threaten to make a game dull.
This is where the technical department and mathematicians play a critical role in complex gaming economies.
The future of gaming in Metaverses
The plan is for gaming companies to partner with each other, thereby growing this lucrative economy and benefitting.
For this to happen, traditionally, online video games exist in ‘Walled Gardens’, meaning they are enclosed and restrict users to certain online services or websites. With the advent of cryptocurrencies and NFTs, the gaming world is looking to open up its silos.
Big Time CEO Ari Meilich and Decentraland’s Thor Alexander and critical players from ‘World of Warcraft,’ ‘Call of Duty, and ‘League of Legends’ head up projects built on Ethereum and groundbreaking proprietary technology. Progress is being made in Virtual Reality, Augmented Reality, and Artificial Intelligence. Industries need to integrate more with the gaming world, combining some of the largest fast-growing markets together. The potential for the multiverse to be the ‘host’ of all these makes it the umbrella of future technologies.
Players today cannot trade items they purchase. By introducing blockchain and NFTs, players will have absolute ownership, and as the masses catch on and join in, and economically viable metaverse will take shape. Players can move assets between games, metaverses, businesses, and virtual reality words. The opportunity is endless.
Virtual land platforms like Next Earth, whose core idea and key to success have been formulated by enhancing the fundamentals of other successful virtual projects, connect buyers and sellers in a transparent, decentralized land ownership platform.
Now, every NFTs, virtual assets, businesses, and games have new earth — Next Earth.
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