French start-up and mobile games developer Voodoo, which is backed by Goldman Sachs and Chinese tech giant Tencent, has announced that it will invest $200 million in 2022 on studios that develop blockchain-based mobile video games.
Voodoo is best known for its hyper-casual games, with 5 billion downloads and 300 million monthly active users. Voodoo games include Helix Jump, Crowd City, Hole.io and Paper.io 2.
The blockchain technology, which has underpinned the recent rise of digital assets such as cryptocurrencies and non-fungible tokens (NFTs), is now drawing the interest of the booming video game industry.
Alex Yazdi, CEO of Voodoo, said.
“Blockchain will especially disrupt gaming, as players are already used to buying digital assets.
This technology will give players true ownership of their digital assets, creating deeper interactions between players – collecting, trading, selling in-game digital currencies and game assets – which will increase fun and engagement.”
What is Blockchain?
A blockchain is a digital platform for recording and verifying transactions. It traces its roots to bitcoin, the best-known digital cryptocurrency.
It can also be defined as a database that is shared across a network of computers. Once a record has been added to the chain it is very difficult to change. To ensure all the copies of the database are the same, the network makes constant checks.
In addition to Voodoo’s existing stack, the company plans to work on a reusable blockchain stack to manage tokens, create NFTs, create wallet addresses and integrate with layer 1 blockchains (like Ethereum) and layer 2 solutions to reduce transaction costs.
Crypto Gaming Shines in 2021
2021 has been an important year for crypto gaming, with Axie Infinity surging across the world with millions of players enjoying the play-to-earn model. Crypto role-playing game MIR4 successfully launched in 170 countries this year has and on the front of fantasy sports NFT games, Sorare has made its mark after a $680 million Series B round leading to a company valuation of $4.3 billion.
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