In a recent interview with cryptoblog CryptoPotato, Zhao Chen, the general manager of NEO Global Development (NGD), broke down the project’s focus as it relates to crypto adoption and the industries that will facilitate that process.
— NEO Smart Economy (@NEO_Blockchain) October 29, 2018
“We believe that in the future digital assets will cover so many areas we can’t even imagine. But from today’s point of view, the lowest hanging fruit within the space are native digital assets, and games are already in a digital form on your laptop or your phone. These are areas that are quite easy for game developers and game players to adopt,” said Chen in the interview.
Chen noted that he believes the new token economy will work to solve two major pain points exist for game developers.
First, Chen emphasized that game developers currently suffer from a lack of funding, as video games largely produce a hit-or-miss type of outcome, often deterring traditional investors from participating. Therefore, Chen sees crowdfunding as the number one way that blockchain technology can help game developers.
Second, Chen sees the centralized databases attached to games as a significant problem, as companies could decide to shut down game servers at any time. With distributed ledger technology, gamers can upload their virtual assets into the blockchain to avoid losing out on previous purchases.
The second point is something that will likely help drive blockchain gaming into the emerging esports industry, as current tournaments rely on the stability of centralized databases as the bedrock. If a game developer decided to pull the servers of any major game, it would have a significant impact on the portion of the market that depends on that game.
“For blockchain-based games, we already have a ready to use Integrity Development Environment (IDE),” said Chen. “It’s for game developers to use so that they can just release their games in both the traditional form and on the NEO blockchain. It makes their job easier and hopefully helps them, and the gamers.”
NEO is currently trading for $15.92, giving the project a $1.03 billion market cap and making it the 14th largest cryptocurrency in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.