The CEO of Ava Labs believes that despite criticism from GameFi, the industry is gaining popularity, and especially in the area of NFT-backed game item lending.
John Wu on the Decrypt gm podcast declaredthat all types of blockchain-based games are an integration of DeFi and NFT, and this combination of innovative trends ensures global popularity:
“GameFi apps, also known as “play to earn” or “play and earn” games, are exploding right now, serving as the intersection of decentralized finance and NFT, two in one.”
Wu says that GameFi typically rewards players with cryptocurrencies, and owning in-game items in the form of NFT assets gives players the opportunity to reap rewards even when they’re not playing. Wu noted the potential for loan services, which allow owners to offer an item for use by other players and reap the rewards when the item levels up over the course of the game. This way they can earn money.
At the same time, he drew attention to some harsh criticism of the NFT. Wu added that many opponents of collectible tokens claim the environmental impact of blockchains using a proof-of-work consensus model (as Ethereum is currently doing).
The head of Ava Labs noted that many users are concerned about the prevalence of fraud in the NFT market and in the crypto space. The businessman suggested that simply many investors are not yet ready to give up intermediaries.
As an example, Wu cited artists who themselves keep in touch with fans through NFT.
“People don’t really think that digital collectibles are a thing. They think of it as something like, “Well, I can just copy this into a GIF and show it, so any digital collection is just bullshit.” I think that’s why they hate NFT, ”said the head of Ava Labs.
At the same time, many video game developers remain skeptics who do not accept such technologies and refuse to implement NFT in their products. In April, Activision Blizzard announced that it has no plans to support collectible tokens in games yet.
Source: Bits
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