How Gameflip is Using Blockchain Technology to Revolutionize the Gaming World - Moderator
How Gameflip is Using Blockchain Technology to Revolutionize the Gaming World
As much of the latest excitement and buzz suggests, Blockchain technology promises an encouragingly secure and efficient future. With features core to blockchains, like encryption and validation, we can solve for fundamental, globally-scaled obstacles that have been stagnating evolution for decades.
Much like the early days of the internet, entrepreneurs and investors alike are rushing to market, eager to partake in the ‘blockchain revolution.’ New companies are being formed each and every day, applying blockchain technologies to every industry imaginable. While many are likely to fade away quickly, there are a few early movers who are showing serious potential by applying the technology in niche and clever ways.
One startup topping all of the recent headlines is Gameflip, a marketplace for gamer-earned digital goods. Currently, their venture-backed platform, founded in 2014, provides for over 500,000 active monthly users, who exchange millions of dollars in digital items monthly. Their marketplace has become a staple component of the industry, serving as the single most comprehensive hub for digital goods.
Representing nearly $100 billion (and growing) in annual transactions, the market opportunity for digital goods, however, is much larger than any individual, the centralized entity could create.
That is why the Gameflip team, backed by centuries of combined industry experience, is developing an entirely new decentralized ecosystem “where digital goods on all gaming platforms – mobile, PC, console, and VR/AR – can be sold as liquid assets using trustless (i.e., fully secure) smart contracts executing on blockchain technology.” This new environment will further advance their vision of creating “a fully transparent and frictionless infrastructure for transacting digital goods,” all of which will be secured on the blockchain.
At a high level, FLIP (their tokenized platform solution), hinges on the Ethereum blockchain and ERC-20 Token interface, which provide a secure and efficient transactional environment for the marketplace. In this distributed world, the participants (gamers, publishers, developers, and other contributors) are compensated directly for the value that they bring to the table in the form of FLIP tokens. FLIP is a fixed-supply crypto-token, meaning its value directly correlates with the supply and demand of the market. It has real value that is entirely transferable and liquid on the market.
Gamers who join the platform gain access to unprecedented liquidity, in the form of an open, secure marketplace that allows them to buy, sell, and trade their digital goods at a “peer-to-peer level.” For perhaps the first time in history, gamers will be able to feel true ownership over their digital goods. Rare collectibles, which are currently viewed as transient investments only made by hard-core gamers, will become longer-term assets, as gamers know they will be able to retain their value for longer periods of time.
Importantly, this new ecosystem will eradicate much of the friction in the limited existing marketplaces, such as 3rd-party Reddit forums, that are rampant with scammers and hackers. Smart contracts will eliminate the risk of fraud and provide a safe environment for the exchange of digital items that gamers can finally trust.
The Gameflip team also realizes the importance of including developers and publishers in their open marketplace. Without their buy-in, it will be impossible to make progress.
Gameflip plans to incentivize publishers in a number of different ways to adopt their open source and SDK clients, such that all parties win out.
To help game developers integrate with their platform, Gameflip has created a platform API, along with a wide set of SDKs across a number of popular programming languages, to facilitate function calls to smart contracts, including monitoring and receiving notifications from the Ethereum Network. The API is easy to integrate and cleanly accessible. Publishers will be able to tailor their implementation of the Gameflip API to customize the user experience for their games.
Besides making the onboarding process simple and streamlined for developers, Gameflip also has built a number of mechanisms to help publishers increase their top of line revenue. Naturally, the digital marketplace will encourage gamers to consume more digital goods than they would have otherwise. Quick to become the standard in the industry, Gameflip’s ecosystem will become a large, entirely liquid exchange of gamer-earned collectibles and items. Game publishers will benefit from this increase in spending by also receiving a kickback commission whenever gamers buy, sell, or trade their items.
All of this transaction history is documented automatically on a blockchain secured ledger using Ethereum smart contracts so that each key stakeholder has the access they need without compromising data integrity. The commission structure will serve as a new revenue stream for game creators, incentivizing active participation and rewarding quality development. In addition, game publishers will benefit by having their games stay relevant for longer periods of times, as digital items will maintain their value longer.
Gameflip’s marketplace implementation of blockchain is a great example of finding a practical business application of this frontier technology. If executed correctly, they will be able to generate tons of value for the industry, while, perhaps most importantly, enhancing the overall user experience for all important stakeholders.