Loom Network: Gaming Is Key to Onboarding Millions of Users to Ethereum
Loom Network (LOOM), a blockchain ecosystem for games and social apps, has recently released a breakdown of the current state of decentralized applications (dApps), emphasizing that games will be the key to mass adoption of the Ethereum (ETH) network.
Some of you have been asking… “Loom Network, why are you so focused on games?” 🤔
Because we think games will be THE KEY to onboarding MILLIONS of new users to Ethereum within the next six months.https://t.co/eTSiY3iRsb
— Loom Network (@loomnetwork) September 24, 2018
In the report, Loom’s team details the two major factors that are currently inhibiting mass adoption of blockchain platforms: the lack of killer dApps and UX issues that make dApps significantly harder to use than their centralized counterparts.
These issues have ultimately resulted in abysmal dApp user numbers for not only Ethereum but also other smart contract networks like EOS. Between the two projects worth over $25 billion, only a handful of dApps have had more than 500 users in the past 24 hours. The applications that do see traffic tend to be decentralized exchanged (DEXs), which don’t necessarily correlated to real-world adoption.
Loom concludes that games can address both issues facing dApps as they can gain significant popularity, even with a saturated market.
“Games, unlike apps, don’t have to do something 10x better than any previous app and convince users to jump ship. Gamers are always looking for new fun games each month, and will try them on a whim,” states the Loom team.
To that end, one of Loom’s first major games, Zombie Battleground, looks and feels like any other mobile game, despite it running entirely on the blockchain.
Other top blockchain players targeting gaming
Enjin (ENJ), a blockchain project building a decentralized ecosystem for gaming and a major competitor to Loom, officially went live on the Ethereum mainnet at the end of July. Video game developers can now mint ERC-1155 tokens to power in-game items, collectibles and currencies without needing to write a single line of code. ERC-1155 tokens enable items to be stored on a single contract with the minimum possible amount of data needed to distinguish that item from others within the contract.
Ella Zhang, the head of Binance Labs, recently stated that video games are very low hanging fruit for the blockchain industry. The exchange giant recently joined alongside other major investors, including NEO Global Capital, to invest in the $40 million financing round of blockchain gaming startup Cocos-BCX.
Cocos-BCX plans to build an end-to-end platform where game developers can “build, deploy, operate, and scale their games across all major blockchain platforms.”
The Kin Foundation, the project by the KIN cryptocurrency, has also identified gaming as a key vertical for blockchain adoption. 8 out of the 40 projects participating in the Kin Developer Program, the $5 million incubator program led by the Kin Foundation, are currently working on blockchain-driven games.
Interestingly, Kin’s UX-first approach to developing dApps within their ecosystem has been a smashing success. The Kin (KIN) blockchain recently surpassed the daily active users of all dApps on the Ethereum blockchain. The user activity comes from the two major applications active on the Kin blockchain: the Kik messenger beta and Kinit, which rewards users with Kin for completing daily activities like surveys, quizzes, interactive videos and more.
The data is beginning to back the ideas conveyed by the Loom team, which also believes that the first killer dApp to gain one million, or even 100,000 users will help pave the way for adoption across the entire industry.
Once you have that ONE core app that onboards a million users, everything compounds on itself and snowballs from there.
Beyond Loom’s own game development, it is actively building out an ecosystem to support third-party developers looking to create the next generation of games. The project leverages a system of sidechains that allow each dApp to run on its own blockchain, working to reduce the network load facing these applications and further promote speed and scalability. Additionally, developers can use Loom Network’s software development kit (SDK) to code dApps in common programming languages.
Looking forward, Loom Network thinks that it will have solved the outstanding problem facing blockchain gaming, stating “By the end of 2018, we will have totally solved the UX issues faced by blockchain games — making them feel just as seamless as normal mobile games.”
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.