About how crypto and NFT can reduce gamer's fun

How Cryptocurrencies are distributed

Arcada Games work together in a partnership with proof of stake pools, this is required to fund servers and diverse operations regarding online private custom servers. These operations have costs, the income provided by the pools is a necessity but, these can't work without the support of their delegations. The present document presents you briefly how Proof of Work and Proof of Stake cryptocurrencies work, this is not a full description of them, therefore I recommend you to read more about it check our sources at end of the document.

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Proof of Work

Bitcoin is considered the first successful cryptocurrency to exist, it was established in a way that everyone can integrate the network and mine directly its own coins. The idea behind it was to provide proof that somebody actually used a machine in some complex operation randomly executed to mine blocks. The reward for the block is a new bitcoin and it serves as an incentive for new miners to keep running their machines.

At the present moment, Bitcoin is one of the most expensive and energy resource-hungry operations in the cryptocurrency world. Not accessible in a profitable way to anyone who wants to mine it because of the monopoly on the long-term established mining pools. It's not a cheap operation to set a new mining rig in the Bitcoin network and it requires a large amount of investment due to the hardware needed and the energy.

Proof of Stake

Because of the obvious limitations in the PoW model present in Bitcoin, there have been proponents for new models. One of the most successful is the Proof of Stake. In the concept of PoS, a pool operator sets up a machine and registers its node in the network. When they mine a block they receive as an incentive the same coin, in our case Ada and they can fund their operations.

The most important part of the PoS model is that won't require powerful machines and way less energy than Proof of Work mining. At the same time, there's a problem, the pool operator needs to have a big stake to have a chance to mine their blocks otherwise they can't be profitable in any way.

To survive the competition against larger pools and even institutions, the small independent pool operations started issuing their own tokens and offering them to their supporters as an extra reward. You can check some of them on DripDrops website.

The tokens we are using as rewards must be tradeable and have enough liquidity, that way gamers can always sell them for any coin they want using decentralized exchanges.

About NFT's

The concept of tokenization of an item emerge early when the cryptocurrencies became smarter, it allowed artists and creators to lock their inventions in a blockchain and provide legitimacy together with new forms of income. The NFT isn't the image or file attached itself but the token which represents them. Those can only exist in one address, can be sold or bought in auctions sometimes for large amounts of real money.

Proof of Game

Games are a form of energy, people spend hours playing and having fun. Some individuals tought about having direct income from these games and happened even before cryptocurrencies became mainstream. Some examples of monetized games are Runescape and World of Warcraft. Several players started hunting for rare items to sell for another player. Publishers always tried to take them down and prevent that to happen, but the fact is today many people depend on gaming income for a living.

A game that is monetized can fall for issues, many of them cause disruption in the game's main goal is to entertain and help people build entire communities around them. Some of these aspects can be the pay-to-win formula, bots, hacks, and scams that happen in order to lure players to steal their possessions in-game and even outside of it.

The gaming community overall hated the idea of the NFT games because they created a niche when only the ones who possess the rarest and most expensive piece can win or play. This situation alienated most of the players not interested in the hassle of holding their wallets, connecting and synchronizing with the state of the game. It remains the main issue for big publishers because they already have their own marketplace places they can control and revert transactions as they wish. In the case of the NFT, they can't just shut down the network, nor revert potential hacks. Everything that happens in a blockchain is decentralized and can't be controlled by a single entity.

Arcada games want to make a new type of PoG when players are at the center of the solution and at the same time, provide safety to all participants, investors or not.

A new Play to Earn

It's not acceptable that only gamers with cryptocurrency wallets having a certain token can play and have fun.

Games need to be fun first profit comes at second.

A player decides if they wish or not to earn something back outside the game by token redemption.

A player shouldn't feel forced to buy items to play with their friends or be part of a community.

Tokens issued may not be distributed to hackers or to reward cheaters, these individuals must always be taken down and their tokens burned before redemption.

The token distribution method must adapt to the game, not the opposite. It means that's not the same as MMORPG distribution in comparison to RTS or MOBA, they work in different ways and that must be respected.

The game economy can't be replaced by the use of tokens, therefore it's worthy they can't be traded inside the game. It's disincentivized the trading outside that can hurt the economy inside the game, even though not possible to prevent.

Partners and GMs must actively listen to the game community in order to fix discrepancies in-game potentially caused by token issuing.

Read more here: https://arcada.games/white-paper.php