As games migrate to the blockchain and become increasingly complex, Ludos Protocol is set to capture this new market. It’s creating a solid ecosystem of DApps and toolboxes that provide Blockchain as a Service for developers to build and maintain sidechains.
Ludos Protocol solves one of the biggest issues that has given investors qualms about blockchain gaming: scalability. An overcrowded mainchain is a perennial problem that has hindered the progress of even the best-funded blockchain gaming applications. Thanks to a hybrid of Proof-of-Work and Proof-of-Stake consensus algorithms, Ludos Protocol is able to implement a multi-sidechain system. This allows any populated game to deploy its own sidechain of transactions while keeping the mainchain throughput at a minimum.
This is why Ludos Protocol has attracted investment from fund behemoth Softbank, whose previous ventures include Uber and Alibaba. Ludos Protocol is the fund’s third-ever foray into blockchain.
Industry trends attest to Softbank’s interest in Ludos Protocol. Gaming produced a global revenue of over $200 billion in 2017, according to the latest report by Digi-Capital. It is a figure that is expected to grow to $300 billion by 2021, making the industry one of the most lucrative in the digital economy. It is also one of the ripest for change by blockchain technology. The development of a comprehensive blockchain infrastructure that suits the evolving needs of the gaming community is the perfect use case and seasoned investors know it.
In fact, some of the earliest prototypes of virtual currencies were born out of the necessity of MMORPGs to run an internal economy. These are sustained by a trade of non-fungible digital assets such as skins, items, and perks, as well as fungible in-game currencies. They amount to billions of transactions every year. It is no secret that blockchain can become an important technological boon to these digital gaming economies with added benefits in security and decentralization.
Tokens that power the digital economy
Investors and gamers who hold Ludos Protocol tokens, LUD, are given priority in this ecosystem. Once they invest or acquire in LUD tokens they will be able to acquire corresponding digital assets whenever game developers launch ICOs, which will comply with a DAICO protocol that protects investors’ interests. These assets can then be traded on the Protocol’s decentralized exchange, converted into other digital assets, or used to pay at certain retail stores in Japan thanks to Ludos Protocol’s partnership with Japan’s FullPay.
It’s important to note that LUD tokens form the basis of any operation the blockchain, as they are required to pay transaction fees, purchase games, and participate in voting processes. The supply will be stabilized at around 15 billion tokens with a controlled inflation rate that will start at 10% and work down to 1% over 10 years. These measures guarantee sustainable value for the token as its price is based on true utility, not market speculation.
More so, the Protocol’s Proof-of-Stake consensus algorithm applies a concept of Coin Age, which is designed to benefit long-term investors. This mechanism will reward token holders with an interest for the amount of time they have held onto their Ludos Protocol investments.
Altogether, the ecosystem sustained by the Ludos Protocol caters to every role in the gaming industry, from publishers to gamers. However, it does so by protecting the interest of investors, who are the parties with most at stake. Further inspection of Ludos Protocol’s whitepaper explains in detail the mathematical reasoning behind a token economy designed by professionals with post-graduate degrees in cryptography, computer science, and finance, as well as experience working for some of the world’s top game developers.
About Ludos Protocol
Ludos Protocol is a purpose-built blockchain infrastructure project for the gaming community. As only the third blockchain project to be backed by Japanese investment giant Softbank, Ludos addresses numerous shortcomings in the existing gaming landscape. Its main chain + multi-sidechain architecture allows games to run entirely on their own blockchain, preventing scalability issues that have plagued previous blockchain-based games. Additionally, the Protocol seeks to create a gamer-friendly ecosystem whereby game developers and gamers can come together to easily crowdfund and build on the platform. The use of non-fungible tokens (NFT’s) within the ecosystem will allow gamers to swap assets in one game for assets in another. Finally, through their partnership with FullPay Japan, Ludos will give gamers the chance to use LUD tokens that are earned in-game to shop and buy at a range of retail stores in Japan and later the world.
Ludos Protocol Links
Telegram Channel: https://t.me/LudosProtocol
Medium Blog: https://medium.com/ludos-protocol
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