1. Home
  2. Tokens

Tokens

Blockchain gaming adoption means more options for gamers

Blockchain games are cropping up across various genres, giving games options for what they can play.

Over the past couple of years, games that use blockchain technology have increased their presence in the gaming industry.

While there were early examples like CryptoKitties — launched in 2017 — the trend has truly gained steam, with major gaming studios even exploring the technology.

At the beginning of 2022, the market capitalization of blockchain games was around $25 billion and it doesn’t seem to be decreasing anytime soon, even in the depths of a bear market. According to the analytical service DappRadar, the two most stable areas this year in the cryptocurrency market are blockchain games and nonfungible tokens (NFT), which have recently become very tightly intertwined, creating a new economic phenomenon.

A striking example here is the well-known game Axie Infinity, the token price of which rose above $150 last fall, providing the project with a capitalization exceeding $9 billion. During the same period, the daily audience of the game was approaching 2 million people.

In December 2021, when Bitcoin (BTC) began to fall from its record highs, the Axie Infinity (AXS) token also began to sink, but the Axie Infinity audience grew to almost 3 million people a day, and the transaction activity in its network increased four times.

There are objective reasons for such dynamics. Firstly, most blockchain games use browsers and the creators use HTML5 and WebGL technologies, which have radically expanded the possibilities for developing browser games. Such games repopulated browsers and, at the same time, provided the ability to connect crypto wallets and withdraw NFTs to external marketplaces without any regulatory restriction.

Secondly, blockchain games have no competition as such, as the traditional PC game industry still refers to the blockchain as an incomprehensible or even “toxic” space. This gives small studios, which are not yet able to create large gaming franchises, a huge head start on development. The ability to quickly launch the in-game economy allows developers to immediately fund the continued development of their game worlds without getting into debt and without inflating working capital.

Finally, blockchain games are mostly about income because in blockchain-based games players can earn money just by playing. For completing tasks and spending time in the game, users receive tokens that can then be invested or converted into real money.

What genre to choose

Just like classic PC games, blockchain games cater to all tastes. They have a number of common features: They work from a browser or a mobile app, have simple controls and have a user-friendly interface that even a beginner can handle.

Blockchain games relate to different genres, while they all have one common feature: They are developed by using smart contracts. That is, they provide an opportunity to receive valuable virtual assets. Therefore, all games, no matter what visual component or story they have, are all play-to-earn (P2E) games. Genres of such games include actions, strategy, online multiplayer arenas, sandboxes and more, but it is possible to define the most popular.

Massive multiplayer online role-playing games (MMORPGs) usually have a dynamic reward system where players get tokens by completing in-game tasks. Tokens are used to upgrade characters in order to gain an advantage over opponents in the form of a fortified arsenal or the development of character abilities. The most popular games in this genre are CryptoBlades, My Crypto Heroes and, of course, Axie Infinity.

If pocket monsters and endless battles seem boring, gamers can pay attention to collectible card games. Such games use the NFT system so that the digital cards look like real collectibles. Players need to strategically outplay their opponents by building decks to counter different tactics, and cards can be bought, sold or traded — just like real cards. Some of the most popular card games are Splinterlands, Gods Unchained and Sorare.

Another interesting genre is “x-to-earn,” that is, to do something to earn income and not necessarily just “play” the game. The concept of “X-to-earn” was first proposed by Ben Schecter, head of operations at RabbitHole — a platform that rewards users for learning about crypto. In this equation, “X” can be any daily activity like eating, exercising, sleeping, shopping or studying. “To earn” is the financial profit received as a result of performing these specific actions.

In blockchain games, the concept of “x-to-earn” was developed primarily in the form of move-to-earn, with the example of the famous STEPN game that rewards users for playing sports or exercising. In the English learning game Let Me Speak, the main way to earn money is to buy NFT avatars and start learning English in the app. Every few minutes, players are instantly rewarded with tokens for their progress.

The most ambitious and large-scale projects are AAA games, or games developed by a major publisher, which require a lot of time, a lot of resources and a lot of money to develop. Such games are designed not only to attract players with the opportunity to earn money but simply to enjoy the gameplay. The combination of real AAA gameplay and stunning graphics sets them apart from the rest. The best example of a AAA game right now is Illuvium, which has been in development since 2020 and was released this year. The Illuvium “ILV” token is currently trading at around $60, according to CoinMarketCap, with a market capitalization of $560 million.

Related: Is Illuvium the first fun crypto RPG video game?

Lesley Fung, a content operation specialist from Footprint Analytics, believes that AAA games are the future of GameFi:

“Some of the AAA Games combine the experienced team with delicate production. The teams behind these projects have a record of success in both blockchain and gaming, and the resources to potentially make a AAA title work. The narrative in GameFi is that current games lack quality and have unsustainable tokenomics. However, once AAA games come out, these will bring GameFi to the masses after the bear market, solving much of the current problems.”

According to Footprint Analytics, which is engaged in discovering and visualizing blockchain data, the most popular blockchain game genre for the first nine months of 2022 was card games such as Splinterland, leaving x-to-earn and AAA games behind.

So, the gaming space is replete with various blockchain games for any taste. Here we chose some unique games from each genre.

Nine Chronicles

Nine Chronicles is an Idle MMORPG developed by Planetarium in partnership with Ubisoft. The client works on the Unity engine, and the backend is completely on the blockchain. 

Robert Hoogendoorn, head of content at DappRadar, told Cointelegraph:

“When we’re talking about gameplay, it’s difficult to really point one out. However, on a technological level Nine Chronicles is very unique. While most blockchain games rely on existing blockchain ecosystems like Ethereum, Polygon or BNB Chain, Nine Chronicles runs on its own custom blockchain.” 

Furthermore, the entire set of game rules exists on the blockchain, making it impossible for gamers to cheat. Each player can manage a node, participating in the maintenance of the network. Therefore, updating the game also requires all users to update their nodes.

The game focuses on crafting and in order to develop a character, the player has to constantly loot in player-versus-environment (PvE) and craft more powerful equipment.

Armor inventory in Nine Chronicles.

All fights are resolved automatically, with victory determined by the level of a player’s equipment, its element and randomness in hits. Using the same equipment, the player can both win and lose.

In March 2022, the developers made a global change in the gameplay, wherein equipment level restrictions were introduced.

Solitaire Blitz

In the genre of card games, the fantasy game Splinterlands is now very popular. But, what if a gamer wants to play an old-fashioned card game on the blockchain? 

One of the most widely played card games of all time was the classic Solitaire, a game that can be played by people everywhere and of almost any age. Perhaps that is why the developers of Solitaire Blitz took the game as a basis for their project, which now enjoys a considerable number of active players. It is the standard Solitaire card game built on the Flow blockchain. The game has seamless and fairly simple gameplay that makes it attractive.

Screenshot of Solitaire Blitz.

In Solitaire Blitz, a player competes with opponent players who have similar ranks. The player with the most points wins the game. With a unique algorithm, the skill-based matchmaking system ensures fair competition. Solitaire Blitz is a mobile game and can be downloaded from Google Play or the iOS App Store.

XCAD Network

When thinking of the x-to-earn genre, the first image that comes to mind is move-to-earn games, but this genre is not limited to movements. One of the most intuitive variations of x-to-earn is watch-to-earn, a model that allows players to earn tokens by watching videos.

At the moment, the watch-to-earn industry is run by the XCAD Network project, not a game but a platform that allows YouTube content creators to make fan tokens and release NFTs, thus opening up new sources of monetization and ways to attract fans. As for the fans themselves, they earn fan tokens for watching the content of their favorite bloggers.

XCAD Network differs from other x-to-earn projects in that the amount of reward directly correlates with user activity. The total number of subscribers of all bloggers working with XCAD Network is already more than 260 million.

Another unique feature of the project is that on the XCAD Network, users do not need to watch what the platform offers them. Instead, they simply install the XCAD plugin and watch the same videos as before. And, since the platform is built on the Zilliqa blockchain, users do not face any minimum withdrawal amounts.

MIR4

MIR4 is a AAA game that appeared on the crypto game market in August 2021 and became successful both on mobile platforms and Steam, the largest online store for computer games.

The most important distinguishing feature of the game is partial automation. Auto-battles, auto-collection of game resources and auto-completion of tasks will partly replace manual gameplay, which is suitable for players who do not have enough time.

The storyline continues The Legend of MIR3 PC game, which was closed back in February 2012. The player takes on the role of an archmage’s apprentice guarding the princess, and the main attraction of the game is to upgrade everything, mining hundreds of components and resources.

The interface of the game is quite pleasing to the eye and the game world is huge. The game store has a great selection of items, including leveling boosters, currency, scrolls, power-up stones and others.

As a mobile game, MIR4 is quite beautiful. Of course, for a player who is not used to such projects, it seems that the screen is too loaded with information and inscriptions, but everything is done compactly. Models of characters and monsters are well-detailed.

Interestingly enough, the developers officially allow four windows to be played: one on Steam, two on the official game client and one on a phone. It is worth noting that the Steam version, according to the terms of the platform, is not tied to cryptocurrency and money withdrawal.

The controls are better on the PC version, but the graphics are much nicer on mobile.

PC screenshot of a fight between the author’s character and a monster.

In terms of earning real money in the game, the game is filled with “dark steel,” a resource that after level 40, can be exchanged for DRACO tokens. This metal is required for crafting and upgrades. The rate varies but roughly corresponds to the value of 100 thousand dark steel for 1 DRACO. The tokens can be converted into fiat currency and transferred to a bank card.

Trading on the in-game market also starts at level 40. Goods and resources are sold for gold coins, which can later be exchanged for dark steel and converted into DRACO.

MIR4 has good graphics, animation, special effects, dynamic battles and beautiful characters. It attracts with the cross-platform, automation, branching development system and a lot of tasks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 

Crypto deregulation under Trump: Promises vs reality

Ukraine’s Kharkiv Art Museum Launches NFT Collection With Binance to Raise Funds, Secure Jobs

Ukraine’s Kharkiv Art Museum Launches NFT Collection With Binance to Raise Funds, Secure JobsThe art museum in the Eastern Ukrainian city of Kharkiv has partnered with cryptocurrency exchange Binance to offer non-fungible tokens (NFTs) of some of its most valuable artworks. Proceeds from the auction will be used to restore the museum’s activities and support its staff. Ukrainian Museum to Sell 15 Works of Art as Digital Collectibles […]

Crypto deregulation under Trump: Promises vs reality

To HODL or have kids? The IVF Bitcoin Babies paid for with BTC profits

A Bitcoiner in London brings new meaning to the phrase “generational wealth.” Noodle sold some Bitcoin to pay for IVF treatments for two babies

Hold Bitcoin till the very end or sell a little bit to start a family? For one Bitcoiner in Northwest London, it was a no-brainer.

Noodle, (a nickname) a Brit who first heard about Bitcoin around 2012, took profits on his Bitcoin buys to pay for in vitro fertilization (IVF) treatment for his wife. He told Cointelegraph he has “no regrets,” about his decision to start a family using fiat-denominated profits from buying, holding then selling Bitcoin.

Noodle first found out about Bitcoin at the tail end of 2012, when one Bitcoin was worth roughly $13.

“I was in the gym chatting to this guy that I get on well with. We were speaking in the changing rooms, and it’s funny because he was trying to explain this Silk Road thing to me — which was on the dark web.”

The now-defunct marketplace Silk Road was a place where early Bitcoin users could buy and sell pretty much anything using Bitcoin as the in-house currency. At the time, Noodle didn’t necessarily dismiss Bitcoin despite his gym buddy's recommendation, but it passed him by until a close friend explained how to buy cannabis with Bitcoin on the Silk Road.

The Silk Road was a popular website for buying and selling just about anything using Bitcoin.

Once his close mate had explained that they might be able to use the Bitcoin to buy real-world items, Noodle was convinced: 

“And I thought Let's do it… So we bought seven Bitcoins and at the time — they were $57 a pop."

The price of Bitcoin has since risen almost 400 times higher, to a $20,000 bear market value in 2022. For Noodle in 2013, he explained it was actually quite difficult to obtain Bitcoin — it was “a really convoluted process.” However, he persevered and managed to obtain Bitcoin to buy goods. Unknowingly, Noodle had also tripped down the rabbit hole and his Bitcoin journey had just begun.

Once the weed arrived, I was fully down the rabbit hole, like I was looking into everything. I never, ever thought I would have any interest in fiscal policy, in macroeconomic outlooks, etc — any of this stuff!

For Noodle, Bitcoin opened his eyes to finance, education and a whole world of new information. From fractional reserve banking to the Federal Reserve to currency debasement and how money works, Noodle was hooked. Naturally, Noodle’s wife with whom he’d been since 2008 was exposed to Noodle’s newfound passion.

The passion eventually rubbed off as in 2014, Noodle’s wife took some of the newly married couple’s wedding money to buy Bitcoin. Noodle jokes, “And who would know that that that Bitcoin would then go on to effectively fund IVF — which is not f**king cheap!”

The Noodle family had always planned to have kids. Sadly, due to Mrs. Noodle’s medical condition, conceiving was a challenge. They sought medical advice and soon realized that they may have to undergo fertility treatment:

“We struggled for a long time. We've never really liked the stigma around IVF, which means we prefer to talk about it then kind of keep it sort of hush.”

IVF is a fertility technique in which an egg is removed from the woman's ovaries and fertilized with sperm in a laboratory. The fertilized egg is returned to the woman's womb to grow and develop.

The process is time-consuming, expensive and has a success rate of 4% to 38% depending on various factors. Plus, as Noodle alluded to, there is still a stigma attached to IVF treatment, despite being a regular occurrence in Noodle’s home country, the United Kingdom. Noodle continued:

“The costs behind IVF are astronomical. Most people can't afford it or they go into debt to afford it. Some people said 'you shouldn't sell Bitcoin; you should have got a loan.' But I wasn't prepared to be that pigheaded about it.”

So Noodle sold some Bitcoin. In sum, Noodle converted north of $70,000 in Bitcoin into government-issued pounds sterling over the course of a few years. The fiat-denominated profits paid for several rounds of IVF treatment for both of his children leading to two healthy babies.

Without Bitcoin, Noodle explained would have likely taken out a loan to pay for the treatment: “Family is important to me and I would have thrown anything and everything at it in order to try and make it work. But we were very fortunate that we had some Bitcoin and I didn't sell it for a long time.”

Related: The UK 'Bitcoin Adventure' shows BTC is a family affair

With Bitcoin, Noodle and his wife were able to live their dream of starting a family, but debt free. As for whether or not there might be any more Bitcoin baby Noodles running around North West London soon, Noodle joked, “I think we're done with two kids unless the price goes super crazy!”

Noodle’s story is part of an upcoming crypto story on Cointelegraph’s Youtube channel. Subscribe here.

Crypto deregulation under Trump: Promises vs reality

Industry exec explains why NFT fraud protection falls on brand and not marketplaces

Brands that issue NFTs should hold the greatest responsibility to protect themselves and potential investors from fraud, an NFT security executive suggested.

Nonfungible token (NFT) marketplaces should commit to combat fraudulent NFTs, but brands are far more responsible for protecting NFT investors, according to one industry executive.

Brands that issue NFTs should be taking the first step to protecting themselves and potential investors from fraud, BrandShield CEO Yoav Keren said in an interview with Cointelegraph on Oct. 12.

According to Keren, it’s more straightforward for a brand to recognize NFTs that were not released by the company itself rather than marketplaces like OpenSea or Rarible. NFT marketplaces usually have fewer insights into which brands are creating NFTs when they are launching and other details, the CEO noted.

Although marketplaces should not be negligent of the reality of NFT fraud, it’s still a must for brands to keep their audience publicly and transparently updated about any NFT offerings, Keren hinted, stating:

“Brands should understand the legal implications of misuse of their image, and should take action to protect their customers across all platforms, websites and marketplaces.”

The CEO went on to say that counterfeits and copyright infringements have emerged as the two most common forms of NFT fraud so far.

Counterfeit NFT fraud implies unauthorized replicas that are sold despite the existence and sale of an original NFT drop by its creator or authorized party. Copyright and trademark infringements refer to fraudsters hijacking a brand’s likeness or image to create and sell NFTs without prior authorization.

Both types of NFT fraud occur across some of the largest NFT marketplaces, including OpenSea, Rarible and Nifty Gateway, Keren noted.

“We conducted a scan on OpenSea and found 41,500 suspicious NFT listings using unauthorized likenesses or images associated with prominent celebrities who’ve promoted NFTs or cryptocurrency,” Keren said. In these cases, fraudsters utilized copyright or trademark infringements to defraud consumers, he added.

One of the ways to eliminate NFT fraud is for platforms to encourage more reporting of fake listings when a suspicious listing is discovered by a user of the platform. “Ideally, brands and marketplaces should work together on solutions,” Keren stated, adding that attacking a problem from multiple angles is the fastest way to an effective solution.

Related: French police use Crypto Twitter sleuth’s research to catch scammers

Despite encouraging brands and marketplaces to do their best to protect NFT investors, BrandShield CEO emphasized that it’s still important for consumers to do their own research while investing in NFTs. It is important to not only double-check the website of the NFT marketplace’s domain but also go for only verified NFT sellers and avoid suspicious shortened links.

“Work to verify an NFT before purchasing because by the time marketplaces catch on to these abuses, it’s oftentimes too late,” Keren added.

The rise of NFTs and metaverse has created yet another way for fraudsters to mislead investors into falling for scams and counterfeits. According to data from crypto risk management firm Elliptic, NFT investors became victims of more than $100 million worth of NFT scams and thefts related to NFTs in a period from July 2021 to July 2022.

Crypto deregulation under Trump: Promises vs reality

TempleDAO exploit results in $2M loss

The hack was allegedly caused by “a missing onlyMigrator check.”

TempleDAO, a yield-farming Decentralized Finance (DeFi) protocol, lost over $2.34M to a hack on Oct 11. 

The exploit was announced by twitter account holder @spreekaway, who shared that the Defi platform had been hacked, along with a snapshot of how the stolen funds had been moved.

Blockchain Security companies Blocksec and Pecksheild confirmed in a series of tweets that the exploit had indeed occurred. Blocksec shared that the root cause of the attack was “insufficient access to control to the migrateStake function.”

While Peckseild claimed that the exploiter funded from Simpleswap had transferred 1,831ETH ($2.34M) to a new address.

Staxfinance, a decentralized app (dAPP) powered by TempleDAO, stated in a series of tweets that:

“A total of 321,154 xLP tokens were taken from the xLP Staking contract at 13:08 UTC time. These tokens were swapped for precisely 1,418,303 $TEMPLE and 1,262,438 $FRAX. 1,418,303 $TEMPLE were sold for FRAX.”

The account suggested that only one agent was responsible for the hack, which had allegedly been caused by “a missing onlyMigrator check”, confirming Blocksec’s tweets. In the meantime, the account cautioned users against further deposits into STAX contracts until remediations were made, saying:

“The dApp has been taken down to avoid accidental usage. This is now under control and the exploiter can do no further harm. Remediations will be made for all affected users.”

An investigation is now taking place between Binance and TempleDAO since the exploiter’s address was linked to a Binance account. The TempleDAO-powered dApp account said:

“We are following up with Binance and will initialize a white hat bounty for the exploiter. We are increasing our existing bounty with Hats Finance and establishing secure communications if the hacker chooses to return funds and receive a legal bounty. Details to come.”

Prior to the exploit, DeFiLlama reported that the total value locked in TempleDAO’s protocol was about $57 million. The exploit amounted to an estimated 4% of the protocol’s holdings.

On Oct 6, Cointelegraph reported that the BNB Chain, the blockchain of crypto exchange Binance, had been paused due to an exploit on its cross-chain bridge, where attackers made off with an estimated $100 million worth of cryptocurrency.

Crypto deregulation under Trump: Promises vs reality

Vyper, Solidity and Scrypto: How the smart contract languages compare

A look at three different programming languages for blockchain networks and how they compare.

The Ethereum network brought smart contracts into the blockchain space, making concepts like decentralized finance (DeFi) possible. 

Smart contracts can automatically execute processes once certain conditions have been met. Along with this new technology, a new coding language was developed called Solidity.

As the blockchain industry continues to grow and new blockchain networks emerge, additional programming languages are being brought into the space, notably Vyper and Scrypto.

Programming languages are a set of rules that convert strings of text and numbers into machine-readable code. In simple terms, programming languages enable computers to understand instructions that are input by human beings. When it comes to the blockchain industry, Solidity, Python and Javascript are some of the most commonly used languages, yet they all work differently.

What is Solidity?

Solidity is an object-oriented and high-level programming language for building smart contracts on the Ethereum blockchain and other blockchain networks like BNB Smart Chain and Avalanche. The language was developed in 2014 and shares similarities with programming languages like JavaScript, C++ and Python.

Since Solidity is a high-level language, computer code is typed in an easily understandable and human-readable manner instead of ones and zeros. For example, Solidity code will include words and phrases like “function” and “contract,” as well as curly brackets and numbers.

Being an object-oriented coding language means that Solidity revolves around using “objects,” which are pieces of code that can be reused to create similar pieces of code without re-writing the original code each time.

Solidity also uses a compiler to convert the human-readable, high-level code into machine-readable code that is executed on the Ethereum Virtual Machine (EVM).

What is Vyper?

Vyper is a contract-orientated, pythonic programming language for smart contracts that is designed to be used with the EVM. The language was designed to improve on Solidity by improving the security and readability of the code. Vyper has a strong focus on the audibility of its code. Due to this, one of its principles is that humans should be able to read as much Vyper code as possible. 

Vyper also aims to make it as difficult as possible for anyone to write misleading code. Simplicity for the reader (i.e., an auditor) is more important than simplicity for the writer (i.e., developer). This way, it will be easier to identify malicious code within a smart contract or decentralized application (DApp).

What is Scrypto?

Scrypto is an asset-orientated smart contract language. The language was developed by Radix, is based on Rust, and keeps most of Rust's features while adding specific functions and syntax for Radix Engine v2. Since Scrypto is asset-orientated, it can interact with assets such as tokens, which are a type of resource within the language. 

In coding languages like Solidity, ERC-20 tokens exist as smart contracts on the EVM. Assets within Scrypto are resources that exist within containers and vaults. In simple terms, it’s like having a bucket (the container) and filling it with coins (the asset) that can be stored inside a piggybank (the vault).

Recent: Demand for talent in crypto less dependent on market as industry matures

Scrypto also focuses on being developer-friendly by allowing them to only write the necessary code while interacting with the containers and resources to enable functionality within a DApp. Security is another principle with developers being able to give specific instructions to a DApp instead of giving out blanket permissions.

How the smart contract languages compare

Solidity has a wide range of online learning resources and a lot of community support due to its use in major blockchain networks like Ethereum. Solidity also has a wide range of features taken from object-orientated programming (OOP), making it modular and easier to troubleshoot when there is a problem. For example, if an object from a certain class was to malfunction, it could be traced back to the origin of the class. 

This works because Solidity uses encapsulation, meaning that every object is self-contained, with each function working independently. The modularity of the coding language also allows developers to work on multiple objects simultaneously, making it more efficient to build, fix and deploy smart contracts.

Vyper is a simpler coding language than Solidity, emphasizing transparency, simplicity of the language structure and audibility. Vyper also has fewer features than Solidity, which was done intentionally for security reasons. The limited feature set reduces the number of vulnerabilities malicious actors can exploit.

For example, Solidity employs modifiers indicating that checks have been carried out before and after a process is executed. However, Vyper does not use modifiers as the developers believe it makes it easier to write misleading code. It also encourages individuals to develop code that bounces throughout the file, reducing audibility. Since modifiers are not present in Vyper, it’s impossible to add any state changes to the code.

Another feature that is excluded from Vyper is inheritance. In Solidity, multiple contracts can inherit features from a parent contract. If there is a disagreement, it also necessitates that individuals understand the norms of precedence. Vyper does not use class inheritance because it eliminates a potential source of complexity in the code, which contributes to improved audibility. In general, Vyper is a more minimalist coding language that trades some functionalities for increased security and better examination of its code base to better protect users of Vyper-based smart contracts.

While Solidity may be one of the most popular and well-known programming languages in the blockchain space, some languages have easier learning curves for developers. In addition, simpler programming languages make it easier to attract new developers to the industry.

Adam Simmons, chief strategy officer at RDX Works — the developers behind Radix — told Cointelegraph, “Having the right tools for the job makes a big difference — and right now, blockchain developers don't have the right tools. This isn’t just about making the languages more simple, but making developer tools that are intuitive and secure,” continuing:

“At its peak, DeFi grew to over $200 billion TVL in just two years — so clearly, there are very high levels of demand. Yet, despite this 200x growth in capital, the number of developers only increased by 2x, to a total of around 19,000 (out of around 30 million developers worldwide).”

Despite the high level of growth seen in the decentralized finance space, the number of developers didn’t grow to match the demand. Simmons believes that developers may have found Solidity to be too difficult for them to transition into blockchain development:

“Developers are hesitant to go full-time in Web3 due to the steep learning curve of Solidity and the high levels of risk around security. Despite the highly talented developers and millions of dollars spent on security audits, DeFi is still hemorrhaging money from hacks and exploits. This alone is enough to deter developers from entering the space.”

“Having the right languages and tools will enable developers to grow the whole industry far more rapidly. Just as game engines gave developers the tools to revolutionize video game production in the 90s, the right Web3 languages and tools will enable developers to accelerate the growth of Web3,” Simmons added.

Scrypto also focuses on security, simplicity and user-friendliness. Scrypto transactions are focused on assets. They define how the user wants system resources to be distributed. They may also indicate how returned resources should be handled by the user or another component in a multi-component transaction.

Transactions on Ethereum are usually a call to a smart contract (since DApps and tokens on Ethereum are smart contracts). In contrast, transactions on Scrypto involve moving assets from one component to another.

For example, if User A wants to send 10 custom tokens to User B, their transaction would show that they’re trying to withdraw 10 tokens from the vault that contains them. The transaction will also show that they will send those tokens to the deposit method of User B’s account component. Since resources (in this case, the tokens) need to be located somewhere, a bucket (container) will be used to transfer the tokens from User A to User B.

In the above example, the user transfers a bucket containing the resources (the tokens) to the deposit method of the second user instead of making a call to a token smart contract. Interacting with DApps works similarly, with users withdrawing tokens from their accounts and passing them to the relevant component they wish to interact with. In summary, Scrypto takes an asset-based approach, with users storing and passing along actual assets. The asset-based approach also makes it easier for developers to code DApps since it’s easier to interact with tokens (resources), token pools (vaults) and users (components).

For another example, if a swapping DApp (like Uniswap) was coded with Scrypto, the developers would only need to code the trading method for the swap. First, the DEX would need to identify a user’s incoming container of Token A, then calculate the exchange rate. Next, the incoming tokens will be deposited, and the DEX will send the correct amount of Token B back to the user.

Which programming language should blockchain developers choose?

Developers can use traditional programming languages (C++, Python, JavaScript) for blockchain development as well as specifically built solutions like Solidity, Vyper and Scrypto. Multiple programming languages can be beneficial for the blockchain space since it gives developers a range of tools to work with. 

For example, developers who are familiar with C++, JavaScript and Python may find Solidity attractive. Developers who are familiar with Python may gravitate toward Vyper, while developers familiar with Rust may choose to use the Scrypto language.

Recent: Social tokens will be the engine of Web3, from fanbases to incentivization

Simmons agrees, telling Cointelegraph, “With more languages coming to Web3, we will likely see a period of time where there are quite a few competing approaches. As these languages find product-market fit with developers and most importantly enable those developers to build powerful, useful and secure DApps, we will likely see the industry gravitate towards those that deliver the best results.”

Solidity will naturally be the choice for developers who want to work on Ethereum and similar blockchain networks. At the same time, Vyper and Scrypto could attract developers who prefer simplicity and additional security. Scrypto may also be preferable for developers due to its increased simplicity and asset-orientated approach.

Crypto deregulation under Trump: Promises vs reality

Value Held by Blockchain Oracles Slides 61% in 7 Months, Chainlink Dominates by 45%

Value Held by Blockchain Oracles Slides 61% in 7 Months, Chainlink Dominates by 45%While the crypto economy has shed significant value, losing more than $2 trillion since the highs recorded at the end of 2021, a great deal of value was erased from smart contract platform tokens and decentralized finance (defi) protocols. One sector of the defi ecosystem that’s recorded heavy losses this year is the blockchain oracles […]

Crypto deregulation under Trump: Promises vs reality

Dapper Labs Suspends NFT Operations for Russian Users Amid New EU Sanctions

Dapper Labs Suspends NFT Operations for Russian Users Amid New EU SanctionsCanadian company Dapper Labs has blocked operations with non-fungible tokens (NFTs) for Russian accounts. The move follows a new round of sanctions recently imposed by the EU which prohibit the provision of crypto-related services to Russian residents and entities. NFT Platform Dapper Labs Conforms to Latest EU Restrictions Against Russian Federation Dapper Labs, the creators […]

Crypto deregulation under Trump: Promises vs reality

Social tokens will be the engine of Web3 from fanbases to incentivization

Social tokens are increasingly being used in online blockchain communities. They offer numerous benefits to users.

The crypto world is going through a transformative chapter that is bound to revolutionize how the internet works and how online communities interact, and social tokens are at the heart of the latest inflective developments.

Their rise comes at a time when transactional frameworks, such as Web3, are gaining popularity, especially among crypto enthusiasts.

Social tokens support the democratization of social networks by enabling brands, influencers and businesses to create and monetize their own online communities using blockchain technology.

Daniel Nagy, vice president of Swarm — a decentralized data storage and dispensation firm — spoke to Cointelegraph regarding the new token class, stating that social tokens had significant disruptive potential.

“If done right, they can take communities to the next level, and it’s only a matter of time before we see more innovation in this space, most likely related to DAOs or GameFi, combined with ideas around so-called ‘soulbound’ tokens,” he said.

“Right now, the space is still in its early stages, and experimentation is key, but as adoption grows, social tokens can become the next bridge to non-crypto users and bring blockchain further into the mainstream, similar to what NFTs have done.”

He also highlighted that the tokens would be especially impactful for burgeoning companies that are still in their growth phase due to the need to capitalize on a loyal fan base.

How social tokens work

Social tokens are cryptocurrencies that are used as a form of patronage. They are underpinned by blockchain technology and allow community creators, influencers and enterprises to monetize their fan base. Fans who buy social tokens are usually given access to exclusive content and product offerings.

The main advantage of the social token model is that the tokens are redeemable and can be resold.

Social tokens are based on the same concept as nonfungible tokens (NFTs) in that they rely on a blockchain-based ownership model. However, they serve a different purpose. While NFTs can be used to represent actual real-world assets and are nonfungible, social tokens are fungible — i.e., interchangeable and/or divisible. This makes them ideal as a medium of exchange that can be used to monetize online communities and services.

Types of social tokens

There are two main categories of social tokens: personal and community.

Personal tokens are usually created by individuals to monetize some forms of labor and experiences. The ALEX personal token is, for example, based on the life of crypto entrepreneur Alex Masmej.

He launched the token using a “human initial public offering” approach in order to fund his move to Silicon Valley, San Francisco. Silicon Valley is home to some of the world’s largest blue-chip tech companies, and Masmej’s aim was to meet potential co-founders for his crypto startup.

Initially, holders of the ALEX token had voting privileges on his life choices, such as his diet. They additionally got to receive a portion of his earnings through an income-sharing agreement. Today, investors with at least 5,000 ALEX tokens get exclusive access to Masmej’s newsletter and the token’s Telegram chat.

Community tokens, on the other hand, are designed to reward participation in a group setting. The utility tokens are developed for use in online communities that want to boost network tokenomics.

Recent: The blue fox: DeFi’s rise and the birth of Metamask Institutional

Many community token implementations often use online communication platforms, such as Slack, Discord and Telegram, the access of which is regulated using token-gating smart contracts.

The SWAGG token is an example of a participation token. It is used in the Swagg House community to propagate a collaborative culture by rewarding participation.

Users who possess SWAGG tokens gain myriad benefits that include access to Swagg Drops before they are made available to the public. They also get to receive Swagg Grants, which are awarded to community projects, and stand to earn Swagg Rewards for sharing content.

Social tokens and Web3

Social tokens are designed to reinforce value distribution that matches member contributions.

They enable online communities to create incentivized models that not only encourage stakeholder diversity but also allow members to reward creative contributors.

Now, at the cusp of a new era of internet democratization, social tokens are set for integration in Web3 environments. While tech behemoths essentially dominate Web2 and control information dissemination channels, Web3 will be focused on devolving these systems by giving more privacy control options to users while upholding the principles of decentralization and self-governance. This is where social tokens come in.

The tokens can be used on Web3 platforms to tip and compensate creators. By cutting out intermediaries, creators will be able to retain a significant portion of their earnings while maintaining their creative independence.

Today, there are numerous companies offering social tokens, Web3 integration and monetization solutions. Some blockchain platforms, such as Roll and Rally, enable creators and companies to mint their own social tokens.

Cointelegraph was able to catch up with David Atterman, CEO and founder of the Most Fan social token management platform, to discuss the current state of the industry. He noted that social tokens still have a few hurdles to overcome before going mainstream:

“Web3 products are still struggling to get a foothold with a non-crypto audience. With an intuitive design and millions of users following their favorite celebrities, we’re looking to accelerate Web3 adoption.”

Fuad Fatullaev, co-founder and CEO of Web3 ecosystem WeWay, told Cointelegraph, “Web3 is considered the next iteration of the internet, which is designed basically to give every user a sense of control of their data, money and anything of value that can be represented digitally.” 

“The advent of social tokens can act as a glue for this version of the web, as the token will represent the stake of every user to decide on how a business or platform can make use of their data through DAOs,” he added.

The benefits of social tokens

Social tokens provide numerous benefits to users. 

Traditionally, enterprises have attempted to reach their audiences through media buys on social media platforms and top Web2 properties, such as search engines. However, this strategy is flawed due to poor targeting options and unquantifiable reach.

In addition, current revenue, advertising and information dissemination systems are highly centralized and are designed to ensure that top Web2 properties continue to exert autocratic control over most of these channels.

Social tokens have the potential to disrupt these archetypes by allowing enterprises to build their own ecosystems powered by their own native social tokens. The widespread use of social tokens would allow more freedom when it comes to information sharing and allow companies and creators to monetize their following without having to involve intermediaries.

Jeremiah Owyang, chief marketing officer of the RLY Network tokenization protocol, told Cointelegraph that engage-to-earn and play-to-earn models were bound to be used extensively in networks that choose to adopt social tokens:

“Instead of promising non-monetary incentives such as likes, social networks will reward community members with tokens for creating content and engaging with users such as through the engage-to-earn or play-to-earn models where the tokens can then be used to unlock new experiences for tokenholders, or even be redeemed for goods or products.” 

He likened the systems to those implemented on current Web2 social networks but with a financial benefit.

Another benefit of using social tokens is enhanced security. Social tokens are powered by blockchain technology, which utilizes blocks of encrypted data. Blockchain systems such as the Ethereum blockchain, which facilitates a sizeable number of social tokens, rely on advanced encryption algorithms for enhanced security.

The Ethereum blockchain system, for example, uses elliptic-curve cryptography along with Keccak-256 hashing technology to ensure data integrity.

This makes direct hack attacks on social token blockchain networks incredibly difficult to pull off. This not only ensures data security but also prevents loss of funds in the event of a direct attack on the core framework.

A further advantage of using social tokens is that they support the engagement of fans in unique ways that contribute to the growth of content creator networks. Personal social tokens, for example, enable fans to interact with their idols through a more personalized experience.

Recent: Is Bitcoin an inflation hedge? Why BTC hasn’t faired well with peak inflation

By purchasing social tokens, fans are, in essence, pledging their support for their preferred creators, and this helps to cultivate a loyal fan base.

Verdict

Social tokens are starting to gain traction in creator ecosystems, especially among celebrities and artists who are ardent crusaders of blockchain technology. Widespread use of the novel incentivization model is likely to lead to greater acceptability among mainstream online communities.

As things stand, social tokens have the capacity to redefine the way enterprises engage their fans. Embracing social tokens will result in more monetization opportunities for content creators and firms and lead to more growth prospects.

Crypto deregulation under Trump: Promises vs reality