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Polygon, a maker of a crypto-based platform for non-fungible tokens (NFTs), has set up a $ 100 million fund for projects to combine hot blockchain technology with gaming. .
To meet the needs of game companies, Polygon sets up Polygon Studios to focus on game projects so developers can merge their Web 2.0 games with decentralized Web 3.0 technology.
Polygon has added a layer on the popular Ethereum cryptocurrency platform to enable faster and more efficient processing. This allows it to remove the “gasoline charges” associated with the computational costs of blockchain transactions, from NFT purchases that consumers make.
NFTs use blockchain, the transparent and secure digital ledger, to uniquely identify digital items. This enables the authentication of digital collectibles or the auctioning of unique items that can be authenticated through blockchain, the transparent and secure digital ledger behind cryptocurrencies. Polygon allows users of companies like OpenSea, an NFT marketplace, to buy and sell NFTs without expensive fees.
NFTs have exploded in applications such as art, sports collectibles, and music. NBA Top Shot (a digital version of collectible basketball cards) is one example. Built by Dapper Labs, NBA Top Shot has surpassed $ 700 million in sales just seven months after its IPO. And an NFT digital collage by artist Beeple sold at Christie’s for $ 69.3 million. The game has a few new unicorns, or startups valued at $ 1 billion, in Animoca Brands and Forte. NFTs are now selling at a rate of $ 62 million per week, although the initial hype around NFTs is fading after a peak in May of $ 175 million per week, according to Nonfungible.com.
Polygon, which started in 2019, is used by more than 90 decentralized applications (DApps) and has recorded more than seven million transactions and 200,000 users.
“We don’t want to be a VC. It’s not our strength, ”said Shreyansh Singh, head of games and NFTs at Polygon, in an interview with GamesBeat. “We are going to incubate products and teams that want to build projects. Maybe we can get them an external license and support them. We are here to support the entire ecosystem. We want to add value and bring in the next 100 million users.
The purpose of the polygon
Polygon’s goal is to evolve Ethereum so that it can be a platform for mass adoption, allowing NFTs to enter the mainstream, Singh said.
Just a few months ago, as NFTs exploded, gasoline costs derailed the market with gasoline fees amounting to $ 300 per Ethereum transaction, making NFTs prohibitive to “issue,” said Singh.
“We have reduced these fees to zero,” Singh said. “We manage the transaction on the Polygon chain itself. “
While sitting on top of Ethereum, Polygon has the advantage of being compatible with an extremely popular cryptocurrency and being able to rely on the security of Ethereum, which is protected by a large community of IT sources that can complete blockchain verification tasks.
Over 60% of current NFT and blockchain based web 3.0 games including Decentraland, Sandbox, Somnium Space, Decentral Games have chosen Polygon’s Proof of Stake blockchain as their preferred scaling solution. This means that these games can use it to expand their operations to handle a lot of transactions.
Now, Polygon will extend plug-and-play SDKs for developers like Ubisoft, Electronic Arts, Atari and others, allowing them to integrate blockchain attributes into non-blockchain games. The studio will leverage Polygon’s $ 100 million treasury fund to provide investment, marketing, technology and community support.
Polygon Studios will also serve as a hub of innovation, helping a host of celebrities, fashion houses, major commercial and mainstream brands and artists launch their own custom NFT models and markets. Serving as a proof of concept, new NFT artist Beeple recently chose to build their latest NFT Marketplace WeNew on Polygon.
In fact, several projects are already leveraging Polygon’s low-cost environment as a sustainable, carbon-neutral base of operations to scale their games and create NFTs.
“Our team has done a lot of research and everything is already covered because our partners, including celebrities and big brands, care about the environmental aspect,” Singh said.
Partners include gaming brand Atari, which launched a partnership with Polygon in February, leveraging the speed, scalability, tools, and community of protocols to kick-start the development of Atari’s entry into the space. Web 3.0 and NFT game.
The studio is following in the footsteps of its parent company, Polygon (formerly Matic), which is a scaling solution for the Ethereum network. He has previously raised funds from billionaire serial entrepreneur Mark Cuban. Polygon is also a member of the Blockchain Game Alliance, a consortium of blockchain and gaming companies including Ubisoft, AMD, and Consensys.
The roots of the polygon
Originally designed as a framework for building and connecting blockchain networks compatible with Ethereum, the Polygon ecosystem has become a development node, enabling scalability and interoperability between Ethereum-based projects. Today, the company said the ecosystem is branching out into the metaverse and NFT games.
For the Polygon team, this was a natural progression to create a central hub where these projects could gain technical advice and community support, as well as collaborate and merge to form a larger gaming ecosystem, where Cross-channel compatible projects can harness the potential of interoperability and the metaverse, the universe of virtual worlds that are all interconnected, as in novels such as Snow accident and Loan Player One.
Monetization is the number one issue with current service-based games. Conversion rates remain low for standard free game monetization (F2P), and the typical season pass model does not allow price discrimination based on usage. Additionally, developers often miss out on player-to-player transactions that are already happening in black markets (e.g. buying gold, increasing character), which also results in poor player experience (imbalances in the game). gambling, loss of accounts / items and customer support). Questions).
Over 80% of digital game revenue comes from F2P, but just 2.2% of free-to-play gamers spend any money. Regardless, the F2P industry still generates $ 87 billion per year. By capitalizing on this revenue potential, items owned in the game could grow the market by over $ 50 billion for 1% of converted players, Polygon said.
Blockchain-enabled player savings increase the likelihood of a player converting with a potential resale and reduce the perceived risk of investing time and money in the game, the company said. Players who spend anything in an F2P game have higher engagement and hold longer, and game developers unlock additional revenue streams to support and earn royalties through side transactions between players.
Rivals include Immutable, which recently launched its ImmutableX platform. Immutable operates its own game while Polygon does not. Polygon has more than 100 people, while Polygon Studios has about ten people and is recruiting.
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