Podcast Summary
Intersection of Gaming and Crypto with Ryan Wyatt: Ryan Wyatt, a former YouTube executive, discusses the shift towards Web 3 and crypto in gaming, reasons for the brain drain, current state of crypto gaming, concerns of NFT haters, entry of traditional game studios, and role of new content creators.
The gaming industry is on the brink of a major shift towards Web 3 and crypto, and Ryan Wyatt, a former YouTube executive, is leading the charge. In the discussion on Bankless, Wyatt shares insights into why there's a brain drain from Web 2 to Web 3, why crypto gaming is currently for "whales," and why NFT haters have valid concerns. He also talks about how traditional game studios are entering the crypto space and how a new generation of content creators will propagate crypto games. With over 3 billion gamers worldwide, this represents a massive market for crypto. Wyatt, who has experience in the web 2 gaming world, is now applying those skills to the web 3 gaming ecosystem through his work with Polygon Studios. Overall, the episode provides practical advice and unique insights into the intersection of gaming and crypto. Sponsors Alchemix, Ledger, and Polygon were also highlighted as valuable resources for anyone looking to live a bankless life and engage in the crypto space.
Ryan Wyatt's Interest in Crypto and Blockchain Gaming: Former YouTube gaming head, Ryan Wyatt, is drawn to crypto and blockchain gaming due to its rapid growth and potential to offer more than traditional platforms. He joins Polygon Studios as CEO, bringing valuable assets from the creator economy and gaming industry.
Ryan Wyatt, the former head of gaming at YouTube, was drawn to the crypto and blockchain gaming space due to its rapid growth and the shift towards digital worlds as a primary form of entertainment and social connection. He saw potential in this decentralized landscape to offer more than traditional centralized platforms. Wyatt's background in the creator economy and experience in the gaming industry, including esports and gaming video content, will be valuable assets as he joins Polygon Studios as their CEO. He was initially intrigued by the emerging category within gaming and became increasingly fascinated as he learned more, ultimately deciding to fully immerse himself in the crypto world.
From YouTube Gaming to Polygon: Parallels in Industry Growth: Susan Ojinski's transition from YouTube Gaming to Polygon reflects the potential growth and evolution of the Web 3 and NFT space, as she looks to support the developer ecosystem in a new industry with similarities to her past experiences.
The gaming industry's growth and evolution parallels the current state of Web 3 and the NFT space. When Susan Ojinski joined YouTube as the head of gaming, the industry was nascent, and she helped establish processes and support systems for creators and publishers. Now, as she joins Polygon, she sees similar potential in supporting the developer ecosystem in the Web 3 space. Previously, people doubted the potential of gaming content on YouTube, but it became a significant vertical. Similarly, many dismiss NFTs as a bubble or meme, but their potential is becoming increasingly clear. Susan's passion for building and her belief in the potential of blockchain development led her to make the transition from YouTube to Polygon.
Growing Polygon's Ecosystem: From Content to Developer Relations: Polygon's success depends on its team and partnerships, with a focus on setting up infrastructure for developers and recognizing that the decision of where to build will be less about tech stack and more about team and partnerships.
The growth of crypto gaming is a topic of great interest not only in the crypto industry but also in the broader web 2 and gaming world. Ryan shares his experience transitioning from a content-focused role at YouTube to a more developer-relations focused role at Polygon, where he's working to grow the Polygon ecosystem. While content was a significant part of his previous role, it's not the primary focus at Polygon. Instead, Ryan is focused on setting up infrastructure to support developers, recognizing that the success of Polygon will depend on the people and partnerships involved. He believes that as the tech landscape evolves, the decision of where to build will be less about the tech stack and more about the team and partnerships. Therefore, he's focused on building a world-class team to support developers and creators in the future. The order of operations for crypto gaming is crucial, with content coming later once the games and ecosystem are established. Ryan sees a future where games will be the main attraction, and the obsession with NFTs and on-chain transactions will fade away for the majority of gamers.
Web 3 and gaming: A new era: Web 3 technologies are disrupting the gaming industry by enabling free economies and greater player ownership, potentially attracting a significant revenue base and pressuring traditional free-to-play models.
The shift from Web 2 to Web 3 technologies, including crypto gaming, is attracting talent and interest from the gaming industry. This trend, while still in its early stages, could lead to significant changes in the gaming landscape. Web 3 offers unique opportunities for game developers to create free economies and provide players with a greater sense of ownership. While not every gamer will make the transition, those who value both great games and free economies could represent a significant revenue base. This could put pressure on traditional free-to-play models and encourage triple-A game developers to explore new approaches. The potential impact on the gaming industry is still uncertain, but the combination of Web 3 technologies and gaming has the potential to create innovative and engaging experiences for a subset of the gaming community.
Blockchain gaming as an alternative to traditional gaming: Blockchain gaming focuses on economic integration, coexisting with traditional gaming, improving onboarding, and offering differentiated experiences like play-to-earn and NFTs.
Crypto gaming will not replace traditional gaming entirely but will instead coexist and evolve as an alternative, focusing on economic integration. The free-to-play model, which emphasizes the involvement of both whales and workers, will likely be the first market to adopt blockchain gaming. As the technology improves, the onboarding experience will become more seamless, allowing users to easily transition from fiat to tokens and access new product features. Blockchain gaming offers differentiated experiences, enabling innovations like play-to-earn and NFTs, which add value to the gaming industry. It's essential to view blockchain gaming as an evolution, not a replacement, and focus on the unique product features it brings to the table.
Exploring the Integration of NFTs in Gaming: NFTs in gaming offer potential benefits like democratizing game development and enabling new forms of self-expression, but concerns like impact on game mechanics and pay-to-win dynamics need careful consideration.
The integration of NFTs (Non-Fungible Tokens) in gaming goes beyond just digital ownership and opens up new possibilities for creators, artists, and players. The speakers in the discussion acknowledged the potential concerns, such as the impact on game mechanics and pay-to-win dynamics, but emphasized the potential benefits, like democratizing game development and enabling new forms of self-expression. They highlighted examples like Counter-Strike and its skin marketplace as a successful precedent, and envisioned a future where digital artists could create and sell custom skins for various in-game items. They also emphasized the importance of understanding the underlying spirit of the technology and its potential to foster communities and enable new forms of expression. Overall, the conversation acknowledged the need for nuanced discussions and recognized that the implementation of NFTs in gaming requires careful consideration.
Traditional gamers vs blockchain gamers: While some embrace blockchain tech and NFTs, others prefer traditional gaming. Bridging the gap requires education and addressing historical issues.
The gaming industry is experiencing a significant divide between traditional gamers and those embracing blockchain technology and NFTs. While there are valid concerns regarding carbon footprint, financialization, and potential negative impacts on the industry, it's essential to recognize that not every game needs to adopt blockchain technology. Instead, this technology offers a new format and experience for a subset of players. However, education and addressing historical resentments, such as the impact of Bitcoin mining on graphics card prices, are crucial to bridging the gap between these communities. Ultimately, the industry should aim for compromise and innovation, allowing for diverse desires and experiences within the gaming world.
Considering the long-term vision of web 3 and crypto gaming: Despite issues with scams, rugs, and real-world economics, some see the long-term potential of web 3 and crypto gaming as worth overlooking for financial opportunities and unique aspects of blockchain gaming.
The current state of web 3 and crypto gaming comes with its fair share of issues and criticisms, but it's essential to consider the long-term vision and potential of these technologies. Some people might be put off by the problems, such as scams, rugs, and real-world economics invading virtual gaming environments, but others see these challenges as temporary and worth overlooking for the future benefits. It's important to remember that everyone has different time frames and visions for the space. While some people might prefer traditional, non-crypto games for their escapism and avoid the potential downsides, others might enjoy the combination of competition and financial opportunities. Ultimately, it's a matter of personal preference and understanding the unique aspects of blockchain gaming.
Expanding the Gaming Industry with Crypto Assets: Crypto assets in games offer new opportunities without replacing traditional gameplay, enhancing the overall experience for players
The gaming industry and the integration of crypto assets in games should be seen as an expansion rather than a replacement. Just as different genres of music or games cater to various audiences, the addition of crypto assets in games can offer new opportunities for players while not diminishing the value of traditional gameplay. The Internet serves as a useful analogy, as it initially faced criticism but eventually became the foundation for various communication platforms, including those that coexist with traditional media. Similarly, crypto assets can enhance games by introducing new features and properties without eliminating the existing gameplay experience. Ultimately, embracing the diversity and inclusivity of the gaming industry and the potential benefits of crypto assets can lead to a more vibrant and engaging experience for players.
Exploring Decentralized Technologies in Gaming: Decentralized technologies like Crossroll Optimistic Rollups and MetaMask are revolutionizing gaming by enabling instant asset transfers and secure access to DeFi and NFT markets. However, it's crucial to balance these technologies with the gaming experience to avoid disrupting the economy and negatively impacting players.
The use of decentralized technologies like Crossroll Optimistic Rollups (CROS) and MetaMask is revolutionizing the way we interact with decentralized finance (DeFi) and non-fungible tokens (NFTs). With CROS, assets can be bridged between different blockchain networks almost instantly and securely, while MetaMask serves as a secure wallet and bridge for users to access DeFi and NFT markets. However, balancing the use of these technologies with the gaming experience is a fine line that needs to be walked carefully. The past, such as the Diablo auction house example, shows that implementing auction houses or similar features can disrupt the game economy and negatively impact the player experience. As we continue to explore the potential of Web 3 technologies, it's important to remember the lessons from the past and strive for a balanced approach. For those interested in getting started, Across and MetaMask are great places to begin your journey into the world of decentralized finance and NFTs.
Decentralized gaming and NFTs enable experimentation and wider acceptance: The decentralized nature of blockchain technology and NFTs in gaming fosters innovation, learning, and addressing criticisms, leading to wider acceptance of crypto gaming. Web 2 builders and social media incumbents play crucial roles in onboarding more users.
The decentralized nature of blockchain technology and NFTs in gaming offers a level of experimentation and iteration that was not possible with traditional gaming platforms like Blizzard's Diablo auction house. This open and permissionless environment allows for learning and addressing criticisms, ultimately leading to wider acceptance of NFTs and crypto gaming. Web 2 builders, with their practical approach and focus on user experience, will play a crucial role in onboarding more people into the space as high-polish triple A games with long development cycles emerge. Social media incumbents, such as Google, Facebook, and Twitch, view Web 3 as both an opportunity and a threat. They have large user bases and can recreate some functionalities without blockchain, but the benefits of decentralization and the potential for new revenue streams make it an attractive opportunity.
Exploring NFTs for Web 2 Companies: Web 2 companies like YouTube and Instagram could leverage NFTs to validate tech, expand user base, and enable true ownership for creators and users, potentially opening new revenue streams and governance opportunities.
Web 2 companies, such as YouTube or Instagram, could benefit from exploring the use of blockchain technology and NFTs to enhance user experiences and validate their technology. While they have the luxury of observing the space and making strategic decisions, integrating NFTs could potentially open up new revenue streams, user engagement, and governance opportunities. For instance, YouTube could mint and sell NFTs of popular clips, create a governance token for community decision-making, or even enable creators to sell NFTs for exclusive perks. The potential benefits include validating the technology, expanding user base, and enabling true ownership and control for creators and users. The challenges are significant, but the potential rewards could be substantial. As more web 2 companies explore the NFT space, it's an exciting time for innovation and collaboration between the traditional web and the decentralized world.
The Future of Gaming at the Intersection of Traditional and Web 3: Web 3 gaming combines fun gameplay with strong economic systems, but there's a talent drain from Web 2 to Web 3. Polygon Studios aims to bridge this gap, offering a team with a mixed background in traditional game development and understanding of tokenomics and game design.
The future of gaming lies at the intersection of traditional game development and the emerging field of web 3 gaming, which prioritizes economic elements. Axie Infinity, a pioneer in crypto gaming, showcases this potential by combining fun gameplay with a strong economic system. However, there's a talent drain from Web 2 to Web 3, with many skilled individuals moving to crypto gaming studios. Traditional gaming giants like Activision Blizzard and EA struggle to incorporate strong economic elements into their games due to a lack of crypto-savvy talent. Polygon Studios aims to bridge this gap by offering a team with a mixed background in traditional game development and understanding of tokenomics and game design. This collaboration could lead to innovative blockchain-based games that attract both communities.
Crypto-enabled gaming disrupting the industry: Unprecedented capital inflow, industry fragmentation, unique advantages for creators, potential disruption of traditional publisher model, influence of content creators, and quality of games determining success
The future of gaming could see significant disruption due to the influx of crypto-enabled and crypto-funded gaming studios. With an unprecedented amount of capital being deployed in the game space, there's a growing belief that gamers will have more optionality, leading to industry fragmentation. Web 3 games, in particular, are expected to offer unique advantages to creators and developers through token economics and NFTs, potentially disrupting the traditional publisher model. Content creators, such as YouTubers and Twitch streamers, who significantly influence gaming trends, are expected to benefit from these new go-to-market strategies. Although consolidation is happening, the shift in user base towards web 3 and the potential influence of content creators could accelerate the adoption of crypto gaming. However, the success of crypto gaming ultimately depends on the quality of the games themselves.
Intersection of Crypto and Gaming Industry Potential: The crypto gaming industry has a large addressable market and can be motivated by content to bring in new users and engage existing ones, potentially solving PR issues.
The intersection of crypto and content creation, specifically in gaming, has the potential to be a significant industry with a large addressable market (TAM). The learning curve for creators to enter the crypto space can be daunting, but when they find a game that they're interested in and understand the economics change because of it, they will be motivated to learn. Content plays a crucial role in this process as it helps bring new people into crypto and provides a way for existing users to learn and engage with the space. The success of YouTube in the gaming industry serves as a precedent, and one game that goes viral in the blockchain space could lead to a material shift in the industry, potentially solving crypto's PR issues with anti-crypto gamers and NFT skeptics.
The future of crypto gaming: Incentivizing content production and community building: Crypto gaming's future relies on creating engaging products, linking financial compensation to content creation, and utilizing DAOs for community and asset ownership. DAOs function like gaming guilds, enabling group decision-making and investment strategies. Innovative financial models, community building, and cross-ecosystem asset value are key trends.
The future of crypto gaming lies in creating great products that generate positive PR and incentivize content production. The link between financial compensation and content creation is crucial for the evolution of the crypto gaming industry. Crypto assets in games can transcend ecosystems, and the use of DAOs (Decentralized Autonomous Organizations) can create a sense of community and asset ownership. The complexity of these systems may take time to fully understand, but the potential for better aligned incentives makes it an inevitable trend. DAOs can function like gaming guilds, allowing for group decision-making and investment strategies. The gaming industry, including crypto gaming, can be broken down into different types, and the roles of guilds and DAOs may vary among them. Overall, the future of crypto gaming holds promise for innovative financial models, community building, and the potential for assets to have value beyond their specific game ecosystems.
Gaming Industry Shift with Crypto and Blockchain: The gaming industry is evolving with crypto and blockchain technology, leading to new opportunities for innovation and revenue. Traditional gaming companies are reacting differently, with some banning, ignoring, or embracing it. Polygon's scalability tech is a crucial component, enabling developers to build decentralized applications, including games.
The gaming industry is experiencing a significant shift with the emergence of crypto gaming and blockchain technology. This new trend is facilitated by innovative tech stacks and is leading to the creation of a whole new industry within the games sector. Traditional gaming industry incumbents are reacting in different ways, with some banning crypto games due to safety concerns, others ignoring it, and a few embracing it. Steam, for instance, is taking a cautious approach by temporarily banning all crypto games until they fully understand the technology and ensure user safety. On the other hand, game studios could consider creating new blockchain-based games to explore potential revenue opportunities, learn about new game economies, and retain talent. Polygon, a scalability technology, is an essential component of this ecosystem, providing a platform for developers to build and enrich decentralized applications, including games. Overall, the intersection of gaming and blockchain technology presents a unique opportunity for innovation and growth.
Polygon's Community and Ecosystem Development: Polygon, a layer 2 Ethereum scaling solution, stands out due to its community and ecosystem focus, strong tech stack, and support for creators and businesses.
Polygon, a layer 2 Ethereum scaling solution, is gaining popularity due to its strong focus on community and ecosystem development, in addition to its technical capabilities. The speaker, Ryan, is bullish on Polygon because of Ethereum's long-term potential and Polygon's investment in enhancing its developer tech stack. Furthermore, Polygon's emphasis on business development and support for creators sets it apart from other offerings. With a world-class tech stack and a dedicated development arm, Polygon is well-positioned to work with a wide range of industries and projects. Keep an eye out for exciting games and projects being built on Polygon and the broader crypto ecosystem. Remember, crypto is risky, but the potential rewards make it an exciting frontier to explore. For more information, check out the Crypto Unicorns game and other crypto gaming episodes in the show notes.
![Gabriel Leydon - How Web3 Onboards a Billion Users - [Web3 Breakdowns, EP.37]](https://www.podcastworld.io/podcast-images/invest-like-the-best-with-patrick-o-shaughnessy-3pmywn1q.webp)
