The past few Reddit AMA with Polygon’s co- founder Sandeep Nailwal explores the promising vistas for the crypto-gaming industry. Weaving together Nailwal’s responses with industry facts and figures, it comprehensively analyzes the burgeoning relationship betwixt gaming and the Web 3.0 sector.
In the lively labyrinth of the Reddit AMA, Sandeep Nailwal, the co- founder of Polygon (MATIC), painted a grand vision of an opportunistic future for cryptocurrency in the gaming sector.
Polygon, an Ethereum (ETH) (ETH)-based layer-2 network, has been making waves in the gaming sphere with its recent notice of scalable Web 3.0 gaming infrastructures.
Although while digital currency’s mainstream applications are often confined to trading and payments, Nailwal suggested that gaming can potentially be the real dark horse for blockchain tech technology.
Gaming, as he aptly put it, “adopts new technology in hoards.” His excitement is palpable as he announced that some top games are launching in Web 3.0 in the coming 6-18 months.
Polygon’s grand vision appears to have captivated the financing world as well. Over $2 Billion was poured into financing Web 3.0 games over the past year alone. Polygon and its ecological system partners received a major share of these funds.
Nailwal’s optimism doesn’t end at the intersection of cryptocurrency and gaming. Reports by him, Polygon is as of now one of the largest projects and could potentially claim the top spot regarding developer traction across all segments.
He likewise spoke of Polygon’s ongoing work on innovative solutions in the zero-knowledge (zk) space, which would enable scalability on a monumental scale.
On the decentralized finance (DeFi) front, Polygon houses 417 protocols locking a whopping $982.78 Million in value, making it the fifth- largest network by total value locked (TVL), reports by DefiLlama.
Bridging gaming and crypto
The synergy betwixt Polygon and the gaming industry is becoming increasingly evident. Polygon Labs and zkMeta recently joined forces to create a dedicated gaming rollup on the Polygon network.
With the South Korean mobile game company launching Delabs Games on the network and the partnership with AQUA, a Web 3.0 marketplace for gamers, the gaming ecological system on Polygon is thriving.
The gaming industry, as a whole, is on a rocketing growth trajectory. A recent study by Zion Market Research estimated the gaming market to reach around $435 Billion by 2028, growing at a CAGR of approximately 12.1%.
The “wrapper” phenomenon in crypto
Sandeep Nailwal concurs that centralized applications, such as certain exchanges and yield generators, have unfortunately given cryptocurrency a somewhat tarnished reputation.
This is because these applications, which he distinguishes as fintech rather than genuine cryptocurrency, are often perceived as integral to the cryptocurrency landscape.
They are stated as ‘wrappers’ over cryptocurrency owing to their nature of encapsulating cryptocurrency assets while not adhering to the principles of decentralization, transparency, and immutability.
Nailwal emphasizes the need for education between policymakers to comprehend the difference betwixt these ‘wrappers’ and actual cryptocurrency and Defi applications.
Enhancing engagement through NFTs
Nailwal expresses his enthusiasm for using non-fungible crypto tokens (NFTs) as collectible avatars in the Reddit community.
He sees Reddit as a leading big tech company that has successfully harnessed the capacity of Non-Fungible Token (NFTs) to drive user engagement. To further bolster the traction of this initiative, Nailwal suggests additional features such as a secondary marketplace for trading these Non-Fungible Token (NFTs) and a launchpad for artists to debut their collections.
The balance betwixt web2 and web3
Regardless of the excitement around the shift to Web 3.0, Nailwal does not envision it completely replacing web2. He claims that there are numerous applications where decentralization, trustlessness, and censorship resistance, the hallmarks of Web 3.0, may not be necessary.
Nonetheless, in domains like finance, gaming, social media, and media more generally, where these features can significantly benefit, he predicts a dominance of Web 3.0 applications over their web2 counterparts.
Progressive decentralization in crypto
Addressing doubts about the present level of decentralization in cryptocurrency, Nailwal accepts that aside from Bitcoin (BTC) and ethereum (ETH), most blockchain tech ecological systems are not fully decentralized.
He further introduces the concept of “progressive decentralization”, emphasizing that it’s not imperative for protocols and applications to be fully decentralized from the onset. Instead, they should gradually decentralize as they grow in significance.
Nailwal’s responses during the Reddit AMA underscored Polygon’s longstanding vision of becoming the “value layer of the internet.”