A deeper dive into Web3: GameStop and Immutable X
More than 84% of content on the internet today is user generated however less than 1% of it is user-owned. Video on YouTube and TikTok, Tweets on Twitter, Reels, and images on Instagram — all are posted by the users but these users don’t own a bit of it. All these web 2 platforms have the power to remove this content from their users without even a warning.
Web 2 is an internet of monopolies giving users almost no control over their content. All these problems are addressed with the next version of the internet, Web3. You must you heard this buzzword from people related to blockchain and crypto. Web3 is the people’s internet, giving control of their content to their hands, leveraging blockchain technologies. Web3 redefines the backend of the web as it uses smart contracts, NFTs, and crypto tokens to operate.
With Web3, all users share equal rights and can influence decision-making through consensus mechanisms. GameStop and Immutable X are two prominent names building the web3 space.
GameStop:
GameStop has been a traditional video game, consumer electronics, and merchandise retailer until May 2021 when it decided to jump into the fancy world of blockchain. GameStop was aware that it can no longer rely on just retail business. This rekindled romance of GameStop with crypto was decided after frequently going into downfall over the last years. Under the umbrella of ‘GameStop blockchain,’ the company is building an ecosystem that currently includes a web3 GameStop wallet and GameStop NFT marketplace. The American chain store has now become a name in the decentralized world building products on layer 2 solution Loopering and Immutable X.
GameStop, Web3, Metaverse, and beyond
This is the inception of a new venture for GameStop as it gets closer to web3. It all started in October 2021 when GameStop posted a job on LinkedIn to seek an Ethereum specialist, after teasing an NFT marketplace in May. The job description then included “Have you dabbled in the new Web3 world?”, and required experience and understanding of Ethereum, NFTs, and blockchain-based gaming platforms.
By then GameStop had already created a token on the Ethereum blockchain. The smart contract shows that this Ethereum-based token was created on May 25, 2021. GameStop has already launched a web3 self-custodial wallet — which is considered the first step to near the web3 space. “Your web3 journey starts with a self-custodial Ethereum wallet” believes GameStop. Recently, it has been dropping teasers about web3 and metaverse on Twitter with videos and images. Recently it posted
“Welcome to the Worldwide Webb… Coming Soon to @GameStopNFT”.
The GameStop is not there yet but we can say that it is at the inception of the web3 space and metaverse.
GameStop Initiative: Web3 Wallet and NFT Marketplace
On May 22, 2022, GameStop launched its Ethereum-based non-custodial wallet to send and receive cryptocurrencies and NFTs. This web3 wallet is now available as a browser extension and comes with advanced features like hiding NFTs.
Web3 wallet was the first blockchain product by the GameStop ecosystem and it never stopped since then. On June 11, 2022, the GameStop NFT marketplace officially went live.
The GameStop analysis account on Twitter GMEdd indicated a wild response by NFT enthusiasts to the marketplace. In just 9 hours of its launch, the NFT marketplace sales volume crossed over $1 million.
The NFT marketplace and web3 wallets will combine and open new avenues for blockchain products to be added to their ecosystem such as web3 gaming. In Q1, 2022 GameStop encountered a loss of $160 million and that’s when it started to expand to Web3 gaming and NFT.
Working Model of Loopering-based GameStop:
GameStop is based on Ethereum layer 2 solutions Loopering. Ethereum itself is expensive and not scalable so Loopering offers a better and faster lane to process these transactions and then add the main network using ZK rollups or “Zero Knowledge” rollups. Zero Knowledge means, that these alternative channels to process the Ethereum mainnet transaction will only show the solution to the mainnet while giving zero knowledge about how these were processed. It’s like showing the answer without showing the way you solved it.
Ethereum can handle 12 to 15 transactions per second, and that too with higher fees. It could limit the functionality of GameStop, therefore, it preferred Loopering which is capable of performing up to 1000 transactions each second. Therefore, GameStop enjoys high speeds and low fees of Loopering and the ultimate security of layer 1 Ethereum.
SWOT Analysis:
a) Strengths:
Ø GameStop has wide experience in its retail business and runs a chain network that can be used to pitch, market, and sell the blockchain products like NFTs.
Ø GameStop is a doxed company listed on NYSE so the chances of a rug with anonymity are minimum.
b) Weaknesses:
Ø GameStop comes from an entirely different domain of retail to NFTs and the blockchain world so it might take time to cement its base here.
Ø Its focus will remain divided between the retail and blockchain domains.
c) Opportunities:
Ø Most successful projects in the crypto sphere emerged in bearish markets and so is GameStop.
Ø GameStop has an opportunity to expand in NFT, Web3, and GameFi domains to turn its returns into profits.
d) Threats:
Ø GameStop is facing a continuous downfall for many years and even in Q1 2022, it encountered a loss of $168 million.
Ø GameStop’s entry into the blockchain ecosystem as a Web3 wallet and NFT marketplace is recent and the results can be anything. Keeping in mind the company’s track record, these results can be chaotic.
TLDR:
· GameStop has been facing problems and losses as a video game, consumer electronics, and merchandise retailer.
· GameStop recently joined the blockchain world and decided to build its business here in web3, NFT, and gaming domains.
· Built on top layer 2s Loopering, GameStop has launched a crypto wallet and an NFT marketplace.
Immutable X
Immutable X is yet another layer 2 scalability solution hosted on the Ethereum blockchain. Immutable X offers developers advanced tools like open-source code examples, SDKs, and grants to build projects on top of it. Like Loopering, Immutable X uses zk Rollups Proof to increase the scalability of Ethereum.
Immutable X Web3 and NFTs:
Immutable X is empowering the new world of web3 through its developer-friendly tool and carbon-free, zero-fee minting blockchain technology. In June, Immutable X dedicated $500 million to the development of the web3 game on top of its blockchain to accelerate its growth in the decentralized world. These funds are distributed among the IMX-based projects in token grants and investments in the most promising web3 games.
‘Immutable’s fund will be collaborating with prolific crypto and gaming investors including BITKRAFT, Animoca, Arrington Capital, Double Peak, Airtree, King River Capital, and GameStop, which are focused on web3 games and NFTs, as well as leading strategic Gaming publishers, giving developers access to additional investment opportunities, according to a press release.
Robbie Ferguson, president, and co-founder of Immutable further elaborated the idea saying,
“We see gaming being one of the biggest opportunities in web3 to have ever existed. The total addressable market is going to be enormous and much bigger than what gaming is today — a $100 billion industry for in-game items alone.”
Immutable is performing even better in the NFT domain by offering zero gas fees. Over $31 NFTs have been minted on its platform for absolutely no gas fees. The Immutable X website claims that over 7 million NFTs have been traded this year so far on its platform and it has saved over 2.5 billion kWh of energy due to its carbon neutrality.
Immutable Projects and Partnerships:
Immutable is evidently loved by the NFT and Web3 gaming community. Hype practice Heavily backed, Immutable X Initiatives, Gods Unchained, Ebook Video games, Guild of Guardians, and Highrise are the top NFT projects based on Immutable X.
Immutable X has partnered with many known names and large communities in the blockchain world building DeFi, GameFi, Web3, Metaverse, and NFTs. Fr0ntierX community has already joined Immutable which has paved the way for many other consumer apps like TikTok and NFTs like Gods Unchained.
Besides this, Immutable X backing many other projects that include DeFi (SuperFarm), and gaming (GameStop, Highrise, ESL Gaming, Ember Sword, Planet Quest, Gods Unchained, Guild of Guardians, GreenPark Sports, Illuvium, MyCryptoHeroes). Many big names like Marvel, Unity, Coinbase, Tencent, illuvium, and Disney are attached to the Immutable ecosystem.
SWOT Analysis:
a) Strengths:
Ø Immutable has a fully developed ecosystem that offers its community everything including NFTs, Tokens, Web3 games, and the metaverse.
Ø It offers zero gas fees and carbon neutrality to support NFTs and the web3 gaming industry which consumes over 52% of the blockchain technology.
b) Weaknesses:
Ø Immutable X is a self-custodial protocol meaning all users are responsible for their own security.
Ø You must have a $IMX token to pay the transaction fees as a 20% fee must be paid in IMX.
c) Opportunities:
Ø Immutable X has partnered with a huge number of top players including unity, Tencent, and Marvel. Thus, it combines multiple communities in one place.
Ø IMX gives 20% of the collected fees to the illegible stakers for staking on its platform.
Ø $IMX token is still trading under $1 so it can be a potential investment given the growth of its core network
d) Threats:
Ø Immutable is great but it is one of many Ethereum layer 2 solutions so it has many crafty competitors like Polygon.
Ø Immutable-based NFTs are supported by only a few NFT marketplaces, therefore, these NFTs don’t enjoy full exposure.
TLDR:
· Immutable X is an Ethereum-hosted L2 solution that offers high scalability.
· Immutable X is funding the potential players in NFT and Web3 Gaming domains through a developer venture fund.
· Immutable X can be one of the best options to develop games and NFT projects
· Due to its carbon-neutral nature and high scalability, Immutable X saves a lot of energy and has powered millions of NFTs without any gas fees so far.
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