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Polygon Co-Founder Emphasizes Crypto’s Gaming Opportunities in Reddit AMA

source-logo  beincrypto.com 25 May 2023 05:49, UTC

Polygon co-founder Sandeep Nailwal took to Reddit to respond to a bunch of questions and expressed an opportunistic future for crypto in the gaming sector.

Polygon, a Layer 2 network built on Ethereum, has grown in gaming with the recent announcement of scalable web3 gaming infrastructures.

Role of Gaming in Web3

In response to the Reddit user’s question about real-life industry use cases for blockchain beyond trading and payments, Nailwal said gaming is the largest scale opportunity for crypto.

He noted:

“And gaming adopts new technology in hoards. There are some top games launching in web3 in the next 6-18 months, and it would be very interesting to see if some of them are able to crack the crypto code.”

The Polygon co-founder mentioned that in the previous year, there was over $2 billion in funding specifically for web3 games. He also pointed out that Polygon and its ecosystem players received the “lion’s share” of the funding among the funded games. This thus highlights the significant investment in the web3 gaming sector.

Nailwal said, “Fingers crossed for some of them to go big!”

The executive further stated that Polygon is currently one of the largest projects. According to him, Polygon could potentially be even the largest in terms of developer traction across all segments. Polygon has gained significant attention in the past two years. Nailwal mentioned that the network is working on innovative solutions in the zero-knowledge (zk) space to enable scalability at a large level.

In the decentralized finance front, Polygon houses 417 protocols that lock $981.95 million in value. This makes it the fifth-largest network by total value locked on DefiLlama.

Gaming Segment on Polygon

In March, Polygon Labs and zkMeta announced a partnership to create a dedicated gaming rollup on the Polygon network. The scalable web3 gaming infrastructure developer zkMeta was prepared to integrate dApps with a sizeable user base on a daily basis.

In the same month, a South Korean mobile game company launched Delabs Games on the Polygon network. It said Delabs Games would aim to enhance the gaming ecosystem by integrating blockchain features. In the blog post, the network also said that the partnership seeks to advance decentralized gaming on Polygon. It underlined utilizing on-chain interoperability and decentralized mechanisms in game development. To encourage gaming projects, Polygon Labs also collaborated with AQUA, a web3 marketplace targeted at gamers.

The web3 gaming sector has grown quite large, according to a recent study by Zion Market Research. It claimed the market garnered an approximate revenue of $201 billion in 2021. The study estimates that the gaming industry will reach around $435 billion by 2028. Therefore, the gaming market is expected to develop at a compound annual growth rate (CAGR) of roughly 12.1%.

Meanwhile, Nailwal suggests that the best way for beginners to enter the web3 space is by actively participating in hackathons.