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GameFi airdrops are here to stay but won’t save a bad game: Execs

Blockchain gaming tokenomics may have got a bad wrap last cycle, but GameFi execs say it’s not going away anytime soon as it’s one of the key ways to build a player base.

Despite lingering resistance from some gamers over “tokenomics,” gaming studios will most likely continue to use airdrops and other incentives to attract players, according to industry executives.

“It’s a very easy way to get market share, said Kieran Warwick, founder of gaming studio Illuvium in an interview with Cointelegraph.

However, games that fail to deliver on the fun, or gameplay aspect, are still doomed to fail, said Warwick.

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‘FOMO’ once drove GameFi funding, but VCs say it’s different this time

During the last bull run, VC firms were more concerned about missing out on the hype, but they’re taking a much more measured approach this time.

Venture capital firms haphazardly piled into blockchain gaming projects during the last bull run but are taking a much more mature and sustainable approach this time, according to industry executives.

“[It was] insane,” Shi Khai Wei, founder of cryptocurrency-focused VC firm LongHash Ventures, told Cointelegraph, adding that some GameFi projects were receiving up to $100 million with only a few team members and some lofty promises.

Keiran Warwick, founder of GameFi studio Illuvium, who recently raised $12 million in VC funding, said he saw the same thing, with much of the investor fervor then driven by a fear of missing out (FOMO).

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GameFi ecosystem makes a comeback amid surging crypto prices

The number of daily active wallets engaging in GameFi has doubled over the past year.

After a dormant 2022 and much-muted 2023, GameFi projects are making a comeback as the bull market rages.

This week, move-to-earn protocol StepN announced it would partner with Adidas for a 1,000 Genesis Edition nonfungible tokens (NFT) drop on Solana. The launch is part of an ongoing one-year partnership between the two firms that will see a mixture of NFTs and wearable sneaker releases in the future. Each NFT sneaker from Genesis Edition will be valued at 10,000 GMT ($2,200).

Created by FSL in 2021, StepN allows users to earn rewards for walking, jogging, or running. Rewards are available after users purchase a virtual Sneaker NFT and link their smartphones. By interacting with the app, users earn GMT tokens, which have an inflationary mechanism, a supply cap of 6 billion and a current diluted market capitalization of $1.2 billion.

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How the crypto bull run can impact Web3 gaming beyond play-to-earn

Web3 gaming has remained unfazed by the bear season. But how does the expected bull run impact interest in blockchain-based games?

On-chain data tracker DappRadar recently reported that another $600 million was poured into Web3 gaming projects in Q3 2023, making the total investments surpass $2.3 billion in the year so far. 

Another report from the blockchain gaming community, Game7, indicates a stabilization in Web3 gaming despite the market correction.

The interest in Web3 gaming — a general term used to describe the ecosystem housing blockchain-based video games — is clear and remains unfazed by the so-called “crypto winter.”

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Mainstream approval critical for blockchain games — Gaming execs

Three gaming executives believe mainstream audiences will play a factor in the overall success and future of Web3 games.

Web3 game developers have been battling to gain the attention of mainstream audiences for years, and according to three former gaming executives, that market is essential for the industry’s future. 

Video games have become a favorite pastime for a lot of people all over the world and have even evolved into a sport. Overall, there are more than three billion Web2 gamers worldwide as of 2023, according to Exploding Topics. Most are considered casual gamers who play regularly but rarely invest significant time.

Jennifer Poulson, who has worked in the gaming industry for 18 years, including at Web2 gaming companies Bandai Namco (Tekken, Elden Ring, PacMan) and Riot Games (League of Legends), believes mainstream audiences are “absolutely” important for the future of Web3 games.

Speaking to Cointelegraph, Poulson, who is currently vice president of game partnerships at Immutable Games, said in her mind, “Bringing mainstream players into the Web3 space will be essential in the coming years.”

“However, it isn’t so much that we need to entice mainstream players to take the leap into Web3; rather, we need to be building games that are fun to play and will appeal to all gamers,” she added.

Mainstream gamers aren’t particularly fond of crypto, especially when nonfungible tokens (NFTs) are involved.

Blockchain entertainment firm Coda Labs released its Global Web3 Gamer Study in 2022 and found traditional gamers were not fans of crypto or NFTs. Respondents rated their feelings about them at 4.5 and 4.3 out of 10, respectively.

Poulson believes working with mainstream publishers and studios will be crucial for the future of Web3 games.

Because “it’s less about attracting mainstream audiences, and more about working with publishers and studios to understand how and why to integrate Web3 elements into their games.”

Related: Grinding out a living: Can blockchain games really offer a sustainable income?

“The reality is that these are all just games. Some have Web3 elements, and some don’t; as long as they are fun to play, this is what, in essence, determines whether a game is successful or not,” Poulson added.

Web2 gaming companies have also been hesitant to adopt Web3. According to a Nov. 13 State of Web3 Gaming report released by Game7 — a decentralized autonomous organization dedicated to accelerating the adoption of blockchain technology in gaming — six out of 10 Web3 games are being excluded from mainstream distribution platforms.

However, the report found some progress in marrying the mainstream with Web3 and blockchain games. Video game digital distribution service Epic Games Store has been listing more Web3 games every year, peaking at an all-time high of 69 in October 2023.

Could Web3 games survive without a mainstream audience?

Mainstream audiences are important for the future of Web3 and blockchain games, but if the bulk of those players don’t ever make the switch, Poulson believes they will survive and likely “continue as they are today.” 

Related: Web3 gaming investors more ‘choosy’ in crypto winter — Animoca’s Robby Yung

However, she thinks that eventually, all games will have elements of Web3, whether gamers are aware of them or not.

“More than likely, the underlying technology will morph into the mainstream gaming world where the average gamer can finally realize the benefits it offers, especially when it comes to ownership of in-game digital assets,” Poulson said.

“Eventually, gamers will not know they are even playing a blockchain game; the Web3 elements will be so seamlessly integrated into gameplay that it will be a similar experience to what playing a game is today.” 

Daniel Paez, a former senior manager at major gaming company Blizzard (Warcraft, Diablo, Starcraft), also thinks mainstream audiences are critical for the future of Web3 games because of the sheer size of the player base. 

According to an Oct. 9 report from CoinGecko, over 800,000 people play Web3 games daily, regardless of market conditions. However, on average, the Web2 game Minecraft has over 11.9 million daily players.

Paez, the current vice president and executive director for the Web3 card game Gods Unchained, told Cointelegraph that while mainstream audiences are necessary for Web3 and blockchain games to thrive, he is not convinced they are required to survive.

According to Paez, the key to longevity for Web3 games will be to focus more on the player experience instead of blockchain elements.

“This, of course, puts them into direct competition with thousands of other games, but the benefits greatly outweigh the cons,” he said. 

“The market for gamers is significantly larger, and you begin to build out communities of players who share the game experience with each other, as opposed to communities of users who hold assets from the same game.”

Paez says Web3 games in search of “longer lifespans” will need the mainstream audience long term because selling content and experiences to players is the foundation of the games industry.

“The challenge for blockchain games is figuring out how the blockchain element can really improve the perceived value a player has of the game,” Paez said.

“The payoffs from figuring this out are huge!” he added.

According to the online data gathering platform Statista, the traditional gaming market is projected to generate over $400 billion in 2023. It is expected to continue growing and reach $584 billion by 2027.

In contrast, the Web3 and blockchain game market has yet to come close to such lofty heights. According to data from market intelligence firm Grand View Research, it was valued at just over $4.8 billion in 2022, with projections predicting growth in the coming years. 

Ultimately, Paez believes there will always be room for more “GameFi-esque type games,” however, they will be at the mercy of the crypto markets, which are notoriously volatile.

GameFi, short for game finance, allows players to earn rewards in the form of tokens or NFTs. Players can then use these rewards to purchase in-game assets and cash them out for fiat currency.

One breakthrough application will be all it takes

Michael Rubinelli, who has previously worked at Disney, THQ and Electronic Arts, told Cointelegraph he thinks mass market adoption is vital for the future of Web3 gaming.

Rubinelli, who is currently the chief gaming officer at Web3 gaming platform WAX, said that to attract players, there needs to be a “guiding principle” that clearly shows the benefits of Web3 to both Web2 developers and players.

This “breakthrough application” is what Rubinelli says Web3 games are in search of right now.

“Until such a killer application emerges, conventional gaming companies are likely to remain observers, awaiting guidance from those who pioneer the path,” Rubinelli said.

Related: Free-to-play Web3 games hold the key to mass adoption — YGG co-founder

It’s anyone’s guess if mainstream gaming companies will ever come on board with Web3 games. According to a 2022 survey of Web2 game developers by Coda Labs, three out of four expect to work on Web3 games in the future but did not provide a firm timeline.

Overall, Rubinelli thinks Web2 gamers are important but feels a key indicator of whether Web3 games will stand the test of time will be whether the industry can achieve specific objectives.

“It’s not about whether a mainstream audience is drawn in or not; rather, it’s about reaching a pivotal moment that enables all stakeholders to achieve their product and business objectives,” he said.

“Even if the audience doesn’t materialize, the enduring concept remains: players desire ownership and control over their digital assets.”

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Roblox CEO ‘dreams’ of in-game cross-platform NFTs and digital objects

Roblox founder and CEO David Baszucki expects top brands and celebrities to take charge and play a key role in making the "dream" of cross-platform NFT come true.

The frontman of the popular virtual universe game Roblox, David Baszucki, has said he ‘dreams’ of having the ability to move nonfungible tokens (NFTs) and digital objects across multiple platforms. 

Following the company's Q3 2023 earnings call, Roblox founder and CEO Baszucki spoke about the role major influencers play in fueling the widespread adoption of NFTs and digital collectibles in a recent CNBC interview. He believed in the idea of users being able to move their collections across non-native platforms:

“There’s a bit of a dream here about objects and NFTs moving from platform to platform.”

For example, Baszucki stated that A-list celebrities such as Elton John could sign up on Roblox and make and sell limited edition collectibles like capes for charity. These types of collectibles could go off the Roblox platform as an NFT and could be sold in other marketplaces.

“What we do expect is that creators, whether it’s Elton John or Nike or someone else making a digital item, that they would play a key role and have a fair amount of control in that process,” Baszucki concluded.

Roblox’s latest earnings call revealed a loss in Q3; however, the company recorded a 20% year-over-year growth in booking estimates on higher in-game spending and the total number of users.

Related: MultiversX eyes metaverse scalability as CEO sheds light on spatial computing

Baszucki’s growing interest in NFTs resonates with overall market sentiment as blockchain analytics company Nansen reported spike in November NFT sales volumes.

In terms of NFT collections, Bored Ape Yacht Club (BAYC) had the highest trading volume in the last 30 days. The BAYC collection had a volume of 35,226 ETH, or around $66.7 million. NFTGo’s data also showed that there was a 12% increase in NFT traders during that timeline.

Magazine: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers

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Games need decentralized randomness to be fair

Does your RNG have sufficient randomness? Is it secure against tampering? Is it decentralized? These qualities are critical to building a viable metaverse.

Quantum mechanics tells us that what looks like a highly predictable and orderly universe is built on a world of unpredictability and mere probability. While the quantum world looks bizarre, it can be understood and even harnessed for technology like semiconductors, LEDs, and quantum cryptography. Something similar can be said about randomness in the metaverse. What looks like a system built on random values produced by random number generators (RNGs) is, in fact, based on programs with a method behind them that can be understood — for good or ill.

The pivotal role of random numbers

Random numbers are of great importance in a number of applications, including games, security systems, decentralized autonomous organization (DAO) governance, and nonfungible token (NFT) generation. If your game cannot access randomly generated numbers, your starts will become repetitive and stale. If your security system relies on easily guessed authentication codes, it isn’t providing much security. If any system that needs variety isn’t getting it, it won’t be very effective.

Even if these systems don’t look random, they rely on being supplied with randomly generated values to execute important operations. Without access to randomness, well-planned systems can’t operate. However, the random numbers these systems rely on are not always as random as they may seem.

Many RNGs are, in fact, Pseudo RNGs (PRNGs). Instead of producing random outputs, they are providing the results of a fixed equation. The output value results from running a starting value, often called a “seed,” through this equation. The output is then used as a new seed, and the process starts again. While the outcome isn’t random, it can certainly appear random to an outside observer.

For many applications, this is effective. True randomness is not required in every application. In a video game with random encounters, for example, there may only be a limited number of actions the game can take at any given time. A PRNG that provides values outside a given scope isn’t going to be of much use. When the stakes are low, technical requirements often match. However, the quality of a PRNG can vary dramatically. This can be an issue for applications with higher stakes, many people depending on them, or a variety of use cases.

Some PRNGs rely on simple equations which can repeat themselves after a short period of time. This repetition breeds predictability. Others can be influenced by outside factors. This leads to tampering. Additionally, many PRNGs do not provide a way to determine if the number provided is the intended value. This lack of verification opens another door to tampering and can lead to accusations by users that applications relying on these numbers are being manipulated by biased outputs.

While being able to verify that an apparently random number was the one intended by an RNG may seem silly, it is no laughing matter. The ethos of many blockchain systems is based on transparency and trustlessness. Not being able to confirm that a given number was truly randomly produced strikes at the very heart of these ideals. When the numbers are doing work, such as providing winnings in games or reinforcing security, not being able to prove that the numbers were not tampered with can seriously impact community confidence.

Additionally, not every PRNG is suited to every possible application. Some are designed for certain Web3 functions. These are not universally applicable.

True random number generators (TRNGs) compared to Pseudo RNGs (PRNGs). Source: Level Up Coding

The quest for true randomness

However, these systems also have failings. They are often highly centralized, which can again lead to tampering by anyone with access to the machine. True randomness often comes at a much higher price than services by a quality PRNG. Lastly, the centralization these devices rely on means that if anything goes wrong, there is system-wide downtime.

Decentralization and the imperative of reliability

Using an RNG that does not meet your application's decentralization, verification, or security needs can be disastrous. As the collapse of Axie Infinity due to a security breach demonstrated, a technical failure can have major repercussions for even the best applications with the strongest user base. Given how important RNGs are to the applications that use them, the best one for the task at hand must be used.

The perfect RNG would be unpredictable, tamper-resistant, verifiable, decentralized, and continuously available. If you're selecting an RNG, ask:

  • Does it provide sufficient randomness?
  • Can the outputs be verified?
  • Is it secure against tampering?
  • Is it decentralized to avoid single point failures?

As blockchain developers continue to expand their vision, push the boundaries of their applications, and provide more and more opportunities for the public to engage with the technology, it is imperative that the best possible support for their applications be made available.

Felix Xu Crypto geek, early adopter, and NFT collector. Felix graduated from NYU Stern and founded two crypto projects, ARPA and Bella Protocol, among the global top 500 by market cap. Felix previously worked at Fosun Investment, Sackler family office, and Vertical Research in New York and Beijing. Felix loves sailing, kitesurfing and was featured in the Wall Street Journal and The New York Times for his NFT collection.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Latest from Web3 gaming: Gaming Demo Day with Cointelegraph Accelerator, Animoca Brands, BGA, Metaera, Cipholio and Sandbox

Cointelegraph Accelerator, Animoca Brands, BGA, Metaera, Cipholio and Sandbox the second Gaming Demo Day to showcase seven new projects from the Web3 gaming space.

Web3 gaming has become one of the hottest trends in the tech world, and not without a good reason. Using blockchain technology to give more control to gamers turned out to be a fascinating idea and catapulted Web3 gaming to the main stage of Web3 space.

Web3 gaming applies key principles of blockchain technology - including decentralization, true ownership and community - to video games. Blockchain has enabled the creation of concepts such as play-to-earn (P2E), nonfungible tokens (NFTs) and more to cater to the needs of true players who don’t want to escape exploitation by the Web2 monopoly.

Web3 gaming components

The fast growth of Web3 gaming, however, makes it hard to track the most promising projects and chart the map of the blockchain-based gaming ecosystem. To provide a reliable perspective on Web3 gaming, Cointelegraph Accelerator has partnered with Cipholio, Animoca Brands, Blockchain Gaming Alliance, Metaera and Sandbox for the next Gaming Demo Day, slated for Oct. 12 at 2 pm UTC.

Gaming Demo Day: For investors, developers and gamers

By joining Gaming Demo Day, startups can introduce their projects and present their ideas to an engaged audience of interested parties eager to hear about new games, including investors. Developers can capitalize on the opportunity and leverage the event to gain exposure to potential investors actively seeking projects to support.

What’s more, investors attending Gaming Demo Day gain early access to promising projects, enabling them to identify and support projects with high potential. Investors get the chance to witness developers in action and research their potential clients. The “X factor” of the new projects introduced during the event can be measured through the audience's live reaction. These opportunities combined provide direct feedback and ease the process of making investment decisions.

The Web3 startups scheduled to present their groundbreaking projects throughout the event are:

Challenge

Challenge is a decentralized multi-chain tournament platform where gamers can compete against each other, host tournaments and earn rewards. The platform’s reward protocol ensures active participants receive a share of the tournament revenue. Challenge’s software development kit (SDK) facilitates the integration of both Web2 and Web3 games, enabling on-chain tournaments.

JR Studio

JR Studio is a platform designed to empower game creators with the tools they need to create, host, launch, manage and grow their games and communities. The platform serves as a gateway from traditional gaming into Web3 gaming by providing true ownership and effectively managing technical aspects like blockchain integration.

SuperSnappy

SuperSnappy is a cross-platform messaging app with a social network and a gaming portal that allows users to play games. The social network, which boasts 3D avatars, pets, spaces and NFTs, enables users to smoothly transition between games and create profiles featuring friends lists, feeds, achievements and digital assets.

Isotopic

Isotopic is a software distribution service that utilizes blockchain technology to advance the metaverse towards a sustainable Web2.5. The service also hosts the first decentralized cross-platform game store.

Worlds Beyond

Worlds Beyond is a creator platform that lets creators craft immersive virtual experiences fueled by the power of artificial intelligence (AI). The platform aims to become the definitive Web3 destination and aspires to be the Roblox of Web3 for grown-ups.

The Unfettered

The Unfettered is an AA-quality story-based Web3 action RPG game with elements from the soulslike genre. The team is dedicated to presenting an immersive adventure that provides true ownership to players using virtual assets.

MetaFight

MetaFight is a digital trading card game and social entertainment platform for fighting sports. The platform stands as the world’s premiere globally-licensed gamified platform for mixed martial arts, featuring collectibles of fighters.

Investors, gamers, and startups who want to witness exceptional projects, explore investment opportunities and build connections within the Web3 gaming industry’s key players in a single place can mark their calendars for Oct. 12 to be a part of the Gaming Demo Day.

Registrations are now open for investors who wish to secure their spots at this exclusive event. Attendees can guarantee their place in the event and become a part of the flourishing blockchain community by registering here. One of the startups attending the event will also receive a 12-month basic membership to the Blockchain Gaming Alliance after pitching their projects to frontrunning industry backers. Check out the registration page here.

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How the actor model could enable better blockchain gaming apps

Can developments in computing help fix blockchain gaming’s quality problem?

Decentralized applications (DApps), including apps for gaming, have gained traction for their transparency, security and user asset ownership. However, delivering high-quality AAA gaming experiences through DApps presents challenges.

Existing 2D gaming DApps operate on blockchain networks using smart contracts for asset management. While they’re favored for their simple mechanics and resource efficiency, their limitations become evident as the complexity of the gaming experience increases.

Scalability is a primary hurdle for traditional blockchains like Ethereum, impacting real-time interactive gaming due to constraints surrounding transaction throughput and latency.

Performance is also an issue. AAA games require high-performance computing and superior graphics rendering. Yet, existing DApps struggle to meet these demands, resulting in subpar visual experiences.

Moreover, developing AAA gaming DApps is costly due to resource-intensive tasks and blockchain execution fees. Balancing immersive experiences with user-friendly expenses complicates the use of traditional DApp frameworks for AAA games.

What is the actor model?

The “actor model” is a communication model that enables parallel computing and asynchronous messaging within a blockchain protocol, making it possible for developers to build complex DApps with less difficulty.

The actor model is used within the Gear Protocol, and development was led by Nikolay Volf, founder of the Gear Protocol and Vara and one of the key developers of Polkadot and the Substrate framework.

Within the model are actors — programs or users that send messages to other programs in the protocol. Each actor has a mailbox and a private state that cannot be changed directly by another actor, rather they can only change states by receiving a message from another actor.

Messages between actors are taken from the mailboxes and processed in cycles. Once an actor has received and processed a message, they can either send a message to another actor, create an actor or change its state.

How is this beneficial for DApp development?

Asynchronous message handling in blockchain programming offers several significant benefits that contribute to the overall efficiency, scalability and reliability of DApps.

Firstly, asynchronous message handling allows for non-blocking processing of transactions and smart contracts.

Recent: ETF filings changed the Bitcoin narrative overnight — Ledger CEO

Unlike synchronous processing, where each transaction must be executed sequentially, asynchronous messaging enables concurrent execution of multiple tasks.

This parallel processing capability enhances the performance of the blockchain network, as it can handle a larger number of transactions and computations simultaneously, resulting in reduced transaction processing times and improved overall throughput.

Jack Platts, co-founder of Hypersphere — a crypto venture capital fund that has invested in gaming projects — told Cointelegraph, “In traditional synchronous systems, multiple tasks often have to wait for each other, leading to a slowdown when processing a high volume of transactions.”

Platts continued, “In the context of blockchain networks, this parallel processing capability becomes vital for maintaining high transaction throughput. As more transactions are initiated by users, the system can handle them concurrently, ensuring faster confirmation times and overall improved network performance. This is particularly crucial for blockchain gaming, where real-time interactions and quick processing are essential for providing a smooth and enjoyable gaming experience.”

Some blockchain games, such as Ember Sword, have already integrated parallel processing into their development processes. Mark Laursen, co-founder and CEO of game development company Bright Star Studios, told Cointelegraph, “In the development of Ember Sword, we employ parallel processing utilizing our ECS [entity component system] solution. Typically, there would be a necessity to manually integrate multithreading and make intricate decisions on a system-by-system basis.”

Laursen continued, “However, in our scenario, the requirements for reads, writes and ordering dependencies are specified, allowing our engine to discern the most efficient method to schedule and parallelize those systems.”

Let’s say a player of a blockchain game wants to transfer an in-game item in the form of a nonfungible token, like moving a legendary sword from their chest (wallet for long-term storage) to their inventory (wallet used for gaming).

The transfer process can happen instantly with low or near-zero fees, the same way a player can simply click and drag a sword from their inventory and move it to a merchant or chest in a traditional game.

Additionally, with asynchronous messaging, blockchain developers can design DApps that are more resilient to fluctuations in network conditions and temporary failures.

Pavel Salas, chief growth officer at Gear Foundation — the organization behind the Gear Protocol — told Cointelegraph, “The actor model actually boosts the dependability of applications that run on blockchain,” adding:

“Since actors process messages independently, failure or issues with one actor do not affect others, preventing cascading failures and improving the overall robustness of the system. And suppose there are disruptions or network trouble, the actor model allows the system to recover quickly and continue functioning seamlessly.”

This can be beneficial for blockchain gaming DApps if there is a network outage, allowing the game to continue running despite any issues on its blockchain.

Moreover, asynchronous message handling enhances the scalability of blockchain networks. Traditional synchronous approaches may lead to bottlenecks and performance degradation as the number of users and transactions increases.

In contrast, asynchronous messaging allows for the distribution of tasks across multiple nodes, enabling the system to scale more efficiently and handle higher transaction volumes without sacrificing performance.

Salas said, “As the user base and activity within the DApp grow, the system can easily manage increased message traffic without causing bottlenecks or slowdowns. Even if a single application grows, it will still manage messages sequentially.”

This scalability is crucial as blockchain networks aim to support a growing user base and accommodate diverse use cases.

Salas continued to explain how the process works: “Through the actor model, individual actor-programs act as shards, ensuring that the system can be shared by design as the number of programs grows. [...] Vara processes all transactions without sharding across bunches of nodes; each node handles everything. However, within Vara, each program operates independently, containing its own state, processing and sending messages according to its specific logic.”

“In blockchain gaming, where real-time interactions and quick processing are crucial, the actor model’s sharding capability ensures fast processing of game-related actions and events, supporting a seamless gameplay experience.”

“As the number of actor-programs increases, the system shards and distributes the workload, effectively accommodating the growing user base and maintaining a responsive and efficient network.”

Another benefit of asynchronous message handling is its support for event-driven architectures in DApps. Instead of continuously polling for updates, DApps can subscribe to specific events or messages, allowing them to respond promptly and efficiently to changes on the blockchain.

This event-driven model reduces unnecessary computational overhead and conserves network resources, leading to more efficient and responsive applications.

Moreover, implementing actor messaging capabilities can significantly enhance the overall user experience by mitigating extended waiting periods for transaction validation. Adopting asynchronous processing allows the actor to receive a message acknowledgment of their transaction along with a pending transaction ID.

Subsequently, any computational tasks or external data dependencies can be managed by the same or alternate actor in a subsequent block, ensuring efficient processing without compromising the responsiveness of the blockchain network.

Magazine: 6 Questions for JW Verret — the blockchain professor who’s tracking the money

This real-time feedback is especially crucial for applications requiring quick confirmations.

As the blockchain ecosystem continues to grow and diversify, leveraging asynchronous message handling becomes essential for creating powerful, AAA-style gaming DApps that can cater to the demands of an expanding user base and meet various use cases across industries.

By adopting this methodology, developers have the opportunity to expand the limits of decentralized gaming and potentially realize the complete capabilities of blockchain technology within the gaming sector.

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What is Gala Games and how to buy GALA coin?

Gala Games is a blockchain-based gaming platform enabling players to create, own, and trade in-game assets using cryptocurrencies.

Echoing the momentum of GameFi (gaming and finance) and the great success of Axie Infinity, Gala Games was launched in 2019 to pursue technology development and innovation in play-to-earn (P2E) blockchain gaming. The global market size of blockchain gaming exceeded $4.6 billion in 2022 and is expected to reach around $65.7 billion by 2027, establishing itself as one of the most promising sectors revolutionized by blockchain technology.

Gala Games offers players a plethora of blockchain games that encourage players to gain in-game rewards and earn cryptocurrency and nonfungible tokens (NFTs).

For the first time, through the use of NFTs, blockchain games offer players the ability to own in-game items, such as strategic tools, physical accessories and land. All items can be acquired in Gala Games using the GALA native token (GALA). GALA is also used for governance voting and to incentivize node operators.

This article takes readers through an understanding of the Gala ecosystem, how Gala Games works, and what the incentives are for using it.

What is Gala Games (GALA)?

Gala Games is a blockchain gaming platform that participants can use to play, stake and sell assets and compete with one another. The platform uses blockchain technology to secure the network and offers decentralized video games to allow players to have fun while earning rewards like NFT prizes.

Developed on the Ethereum blockchain, Gala Games offers players P2E games, an NFT marketplace, and the possibility to store and distribute music and film products. It relies on a network of distributed user-owned nodes necessary for the platform’s security and to boost its development.

Players and user-owned nodes are rewarded with the GALA ERC-20 token for playing and contributing to the network. It is the necessary currency to participate in the platform’s games, trade NFTs on the marketplace, and cast a governance vote.

How does Gala Games work?

The Gala Games ecosystem offers a multitude of blockchain games developed by in-house developers and external partners, including Ember Entertainment, Kung Fu Factory, Gamedia, Certain Affinity and 22cans. It launched as a platform for users who want to play and have fun rather than a platform that only uses incentives to attract customers.

Gala Network users can enjoy real-time strategy (RTS), multiplayer online battle arena (MOBA) and role-playing game (RPG) titles all while being rewarded with the GALA cryptocurrency and NFTs for using the platform.

NFTs represent in-game items, such as weapons, tools and skins, that users actually own and can trade on the Gala Store — also known as its nonfungible marketplace — and OpenSea, one of the world’s largest NFT marketplaces.

Gala Games’ platform was developed on Ethereum; however, the Gala team launched its own blockchain (Project GYRI) in February 2022. Initially permissioned, the Gala blockchain aims to transition to a more decentralized platform for maximum autonomy in the peer-to-peer transfer of value.

One of the features the Gala team promotes is incentivizing players to run their own nodes for an opportunity to earn the GALA cryptocurrency, limited edition NFTs and the chance to contribute to the growth of the ecosystem. To operate their own node, users must buy a license for roughly $100.

Gala Nodes

The Gala Games platform is run by a distributed network of nodes ensuring decentralization rather than a central server controlled by a single entity. These nodes offer their computational resources to contribute to the ecosystem, vote on community proposals, and help guide the network’s development. There are four different types of nodes, as follows:

  • Founder Nodes are necessary to secure the network from fraudulent activities and vote on the project’s development using the GALA cryptocurrency. There are only 50,000 Founder Nodes available that can be purchased from the platform with the GALA token.
  • Game Nodes are specially dedicated gaming servers that can access specific allowances, such as NFTs, the ability to invite other players, etc., in the games they support.
  • Player Nodes are decentralized music players that allow participants to play and share their music as NFTs.
  • Film Nodes, like Player Nodes, are for film experiences and entertainment.

History of Gala Games

The founders of Gala Games are Eric Schiermeyer, Michael McCarthy and Wright Thurston, who launched the project in 2019. Schiermeyer had previously co-founded Zynga, an online gaming platform that developed popular games, such as Farmville, Mafia Wars and many others. Also, McCarthy worked at Zynga as a director before moving on to Gala.

Gala Games entered the market in 2019, and since its launch, Gala has secured some significant partnerships with Flare, Mazer Gaming, Bitrue, Brave, Ember Games and AMC, which helped promote the project and increase its market penetration.

What is GALA used for?

The primary use case for the GALA token is to be a medium of exchange between participants in the Gala Games ecosystem and to purchase digital assets, including NFTs.

The GALA token can be an Ethereum-based ERC-20 token or a BNB Smart Chain-based BEP-20 token and is used in various ways across the Gala platforms. It can be a reward incentive for Founder Node operators or a governance token that allows its owners to vote on the project’s future developments.

It can also be in the form of in-game player rewards and can be used to purchase NFTs from the Gala Store. Users can also spend it to buy a license required to operate a Gala node.

How to buy GALA

While Gala Games has been developed to run mainly on Ethereum, the GALA token can be used on platforms such as Polygon and bridged to the BNB Smart Chain so that users can enjoy better trading fees when transferring value.

Gala’s total supply is approximately 50 billion, and each day, a pre-determined amount of new GALA tokens are distributed to the Founder Nodes and the Gala Games Conservatorship, which is Gala Games’ treasury. The daily issuance is cut in half every year, and in July 2023, it was slightly fewer than 4.3 million tokens.

Players can earn GALA in games, and investors can buy GALA from a number of cryptocurrency providers, including major exchanges such as Kraken and Binance. Kraken offers to trade GALA with the United States dollar and euro only, while Binance provides a broader choice of cryptocurrencies — other than Bitcoin (BTC) and Ether (ETH) — that can be exchanged with the GALA token. Coinbase only allows you to buy Gala with a Coinbase wallet from a decentralized exchange.

Investors must have an account with their provider of choice and verify their identity to start acquiring GALA; select the currency that will buy the token, click “buy,” and once the transaction has gone through, they can either store the token within the exchange (not recommended) or withdraw it to store it in a private and secure wallet.

Is Gala Games a good investment?

As the blockchain-based gaming industry keeps expanding, it is fair to predict that GameFi will play a significant role in the future of entertainment. In 2021, Gala Games sealed a partnership with crypto investment firm C2 Ventures to form a $100-million fund to invest in advancing the play-to-earn gaming and metaverse markets. Gala Games also received funding from Binance’s Accelerator Fund for its development.

Such funding was a positive outcome for Gala Games investors looking for the project’s reliability, opportunities and innovation. Whether Gala Games is a good investment or not is up to the investor to decide after proper research and assessment. Indeed, from a future perspective, GameFi is a promising branch of finance that uses blockchain technology to leverage security and decentralization, encouraging widespread optimism across the financial world.

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