When the first ping-pong game was released by Atari, decades ago, its success marked the beginning of the modern video game industry. Who would have prophesied that gaming would move to the domain of teenagers on home consoles and would eventually find its way to a wider population through smartphones and tablets?
We all agree to the fact that games are more than a way to entertain or pass time. Instead, they represent a lifestyle, a challenge in which the desire to win, to be the best, drives the market. According to a leading research firm, the global gaming industry is has surpassed a revenue of $140 billion last year, with digital revenues accounting for over 91 percent of the market.
Commercialization of Virtual Assets
Several games enable the creation and commercialization of virtual assets by gamers. Ever increasing number of gamers log on and play their favourite games to level up and upgrade their characters to seek identity, reputation and of course money. This makes the gaming industry have real trade relations which are now hard to distinguish from other markets.
While, we as gamers like to buy, sell or trade any in-game asset — current systems for trading are inefficient, expensive, unfair and pretty wide open to scams. One of the biggest issue is that gamers don’t own their acquired in-game assets for which they pay real money and spend hours on leveling up. Gaming companies and developers put in restrictions of what users can do with those items. End User License Agreements, and many other things, often stop the exchange or transfer ownership of items, with developers intervening in every step.
Lack of Fungibility
There is a shocking lack of fungibility for in-game assets. It’s not just an issue for gamers but also the industry is suffering. But thanks to the blockchain technology, Host Games is on a verge to change that.
Host Games plans to build a digital assets marketplace where users will be able to trade multiple in-game assets, independent of the game. This will all be enabled with Host token, our digital currency. By leveraging the blockchain tech and custom protocols, just meant for gaming, we’ll create a safe liquid market for all in-game assets.
Enabling a Blockchain powered marketplace
Most virtual assets are trapped inside a single game. Gamers spend hundreds of thousands of dollars and unimaginable playing time to earn digital goods, only to find the value of their investment is 0 when they stop playing the game. And that’s when these users turn to platforms like reddit to buy, trade and sell these digital assets but it often leads to scams.
Even without a secure marketplace, the market for in-game assets is increasing by the day. These goods are even more valuable than purchased though game publishers and they often tend to hold that value over time.
Many platforms have tried to enable a marketplace for these goods. However, many of them lack transparency and the fraught of fraud. For instance, forums don’t guarantee the users with security, which often leads to scams.
Even the Steam marketplace is an option to trade in-game goods but this is only useful to people who want to trade within the Steam gaming ecosystem. Additionally, it doesn’t allow you to convert anything to cash.
Cultivating Growth: A collaborative ecosystem
Host Games plans to build a safe and transparent marketplace for trading in-game assets. The smart contracts will protect our gamers from fraud. Further the blockchain tech will enable gamers globally to trade virtual assets. The best part is gamers will be able to trade universally and not just Host Games.
To cultivate the growth of Host, we will provide game developers and gaming studios with SDKs and plug-ins.
Gaming studios are important to the success of blockchain based in-game marketplace — a reality everyone seems to ignore. Incentivising developers and publishers to join our platform will offer more assets on the Host ecosystem and enable secure transactions. Being able to trade, buy and sell goods for real value will further encourage gamers to buy more in-game items, certain that they will get a good return of investment, which is a great deal for publishers.