Hal Bame
Hal Bame
Dec 13, 2018 · 6 min read
  • If that’s not enough proof, look no further than Disney’s majority stake purchase in BAMTech for streaming rights to the hit game, League of Legends.
  • Considering that Disney also recently pulled all its content from Netflix, secured a 60% controlling stake in Hulu, and plans to launch its own streaming service, it’s safe to say that gaming content in this booming niche will be a major part of their viewer and user acquisition strategy moving forward.
  • Plenty of other deals with eSports, video game streaming, major mainstream brand sponsorships, and massive events have been made, as well — including major online players like Amazon (especially via Twitch), Facebook, and others.

Yet, underlying all this exciting growth is a darker truth: the talented developers responsible for creating the games we know and love have been given an impossible ultimatum:

  1. Join a major studio (such as Blizzard Entertainment, Bungie, Zynga) that’s backed by a massive publisher (Sony, Nintendo, Microsoft, Activision, etc.).
  2. Try your hand at making it on your own.

Now, there has been a significant amount of discussion in the industry about how blockchain tech could solve some of these issues.

As the CEO of the world’s first public gaming blockchain, MagnaChain, I can tell you that Blockchain technology, as amazing as its intended promise looks to be, isn’t the “magic fairy dust” many claim it to be. In fact, this technology faces the same challenges as other emerging tech — it will only prove useful if managed properly, implemented purposefully with an actual business model in mind, and adopted widely over time. That’s the only way we’ll address the root causes which fuel the overall game industry’s growing opportunity gap. It’s the only way, in a sense, to make sure the gaming community works foreverybody.

1. Profit and Loss (P&L)

Right now, developers have to pay an inordinate amount of the revenue they generate just to get their games distributed, let alone marketed.

2. 100% Asset Ownership

This, as it happens, is the issue which the blockchain has the most potential to ameliorate. If solved for successfully — by way of a more empowered gamer and developmental community — it will also work to address the P&L concerns cited above.

In other words, decentralization could, in time, help create a token economy which more directly benefits players and liberates developers to compete outside of the existing mega-publisher ecosystem.

There are companies already working to this end, too. Alto.io is one — their approach to utilizing digital assets and game rewards is remarkably innovative — as are Monetizr.io and Gaex.com. All are invested in leveling the playing field, as it were, and establishing and growing a stronger community which produces better games and closes the developer opportunity gap.

But, again, make no mistake: the blockchain is no magical silver bullet.

Especially, while blockchain gaming is at such a nascent stage.

Hal Bame

Written by

Hal Bame

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