Polygon, the Ethereum-scaling project formerly known as Matic, has announced the launch of Polygon Studios. The new division aims “to serve as a bridge between Web2.0 & Web3.0 world.”
With the growing popularity in the blockchain ecosystem, Polygon has aimed to become the leading platform for NFT’s and Gaming by offering lower transaction fees, added scalability, and better performance in the Ethereum network.
1/ ???? Presenting Polygon Studios: @0xPolygon's brand new arm for Blockchain Gaming & NFT ecosystem. This will cement Polygon’s existing lead position as the de-facto platform for NFTs & Gaming!
We aim to serve as a bridge between Web2.0 & Web3.0 world.
— Gaming #onPolygon (@polygon_onchain) July 19, 2021
The increased congestion and gas prices experienced by Ethereum over the past year had a negative impact on blockchain gaming, which requires a high transaction volume of low-value fees. This forced blockchain game developers to move to other networks or alter their model altogether.
Polygon’s Layer-2 solution saw more than 100 thousand blockchain gamers move to the network as a result, which according to the team’s announcement also resulted in ”top Web3 games and metaverses building high-quality gaming experiences thanks to Polygon’s strong infrastructure.”
With the launch of Polygon Studios, which will be a division of Polygon, the network expects to become the go-to destination for top creators in the gaming and NFT ecosystems to venture into Web3 development efforts.
Polygon is Committing $100 Million to Gaming NFT Projects
Blockchain gaming and NFTs go hand to hand in most cases, with NFTs proving to be a reliable way to provide gamers with ownership over their assets and developers with a way to prevent the creation of black markets, while also diminishing security concerns.
For this reason, the new studio will make use of Polygon’s $100 million treasury to boost the growth efforts of gaming NFT projects by providing funding, technical assistance, and community support.
Shreyansh Singh, the head of gaming and NFTs at Polygon, referred to the studio’s vision by commenting,
“We don’t want to be a VC. This is not our strength. We will incubate some 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 the next 100 million users.”
This support will prove to be especially valuable to games that choose to rely on a Free-to-play (F2P) model, which usually experiences issues when getting off the ground, which is especially concerning at a time when only 2% of all gamers spend money in those games.
Is Blockchain The New Platform for Gaming?
Gaming has been seen by many experts as the gate to the mass adoption of cryptocurrency and blockchain technology. So far, many of the blockchain gaming platforms have been very successful.
It allows developers to incorporate the tech and provide gamers with their benefits without requiring them to even realize it is there, which is the most important step on the adoption of any technology.
Blockchain games like Decentraland and The Sandbox have gained notoriety over the past years due to their use of crypto and NFTs to provide their players with true ownership over all of their assets.
This has resulted in brands like Animoca Brands gaining notoriety in the gaming space, allowing them to raise $50 in a recent funding round and reaching a valuation of more than $1 billion.
Gaming giants like Ubisoft and Atari have also seen the potential of the gaming industry, heavily investing in launching their own blockchain projects and funding blockchain startups.
This may see other companies enter the space, as gamers demand more rights in the platforms that they support via their use and capital. In fact, it may lead to a new way of thinking about online spaces.
Companies like MakerDao, Atari, AMD, Consensys, Enjin, Ubisoft, and the Web3 Foundation have partnered to boost the blockchain gaming ecosystem by forming the Blockchain Game alliance.