$10 Million In Crypto-Games per Week

  Source: DappRadar

Source: DappRadar

We've talked before about how important CryptoKitties was to the new web -- with all sorts of technologies like artificial intelligence, augmented reality, streaming video and online commerce getting their start from pictures of cute animals. Content is the killer app of the Internet. And putting aside adult content, video games have been a key driver for the development of online communities (e.g., MMORPGs), virtual economies (e.g., Second Life), video technology (e.g., Twitch), bandwidth development (e.g., Battlenet), hardware that runs AI and Bitcoin mining (e.g., GPUs), and many other key pieces that are responsible for innovation across the web.

It's not a surprise to see that, when analyzing the spending volume in decentralized apps on the Ethereum blockchain, over $10 million of economic activity is happening weekly in gaming, according to tracker DappRadar. So if we put aside the financial speculation in crypto currencies, i.e., trading them as assets or launching fundraises, what's most vibrant in the public ecosystem is video games. From CryptoKitties to EtherIslands or CryptoCities or EtherBots, developers are creating software that functions like a toy around digital assets. In a case of imitation being a source of flattery, decentralized gaming Chinese blockchain TRON launched a Crypto Puppies game for Chinese users and now has $3 billion marketcap.

And this, in our view, is the key insight about the space. What matters most is not the network or the mining, but the ability to make digital assets scarce and transferable. If it works for digital toys, it will work for digital equities, attention tokens, land titles and so forth. Games are the perfect proofs of concept for ownership and designing economic systems, as they are starting from scratch, and are not entangled with existing regulatory and legal regimes. How games turn into reality however, is a matter for the sovereigns. See the latest actions from the SEC, the Milken Institute's report on Fintech legislation, of the German Federal Financial Services Supervisory Authority's statements to see how we are progressing.

 S ource: Tron Games

Source: Tron Games