The Convergence of Real-World Asset Tokenization, Intellectual Property, and Video Games

5
mins read
October 17, 2023
NATHAN O

If you’ve been doing your homework about Web3 trends, you’ve probably read about the absolutely insane potential of how Real-World Assets (like real estate, bonds, or even fine art and wine) are being tokenized.

If you haven’t, take it from Citibank analysts who’ve released their projections of tokenized digital securities being valued between $4 trillion to $5 trillion by 2030.

But today, we’re exploring something new. We’re going to focus on the tokenization of Intellectual Property (IP), a realm so rich and expansive that it's become a cornerstone of modern economics.

And when it comes to the digital world, what better place to apply this than in Web3 gaming—a sector that's not just booming but revolutionizing the way we interact with digital environments?

We’re standing at the cusp of a paradigm shift, one that could turn gamers into investors, fans into stakeholders, and developers into pioneers of a new digital economy.

Whether you're a gamer, a developer, or an investor, what you're about to read could very well change the way you think about digital assets, ownership, and the future of gaming.

What is Real-World Asset Tokenization?

Real-world asset tokenization represents a seismic shift in how we interact with assets, both tangible and intangible (as you’ll come to see later on, when we talk about tokenized Intellectual Property).  

At its core, it involves converting real-world assets into digital tokens on a blockchain. These tokens act as a digital representation of ownership, making assets easily transferable, divisible, and manageable in a secure and transparent ecosystem.

What’s the point of tokenization?

  • Transparency: Tokenization leverages blockchain technology to create a tamper-proof, transparent record of all transactions associated with an asset.
  • Democratizing investments by lowering barriers of entry. It allows for fractional ownership, enabling smaller investment amounts and unlocking high returns usually associated with traditional investments requiring substantial upfront capital.
  • Efficiency: It offers real-time updates on asset performance and holdings, fostering informed decision-making.

  • Smart contracts automate the custody, transfer, and administration of these assets, significantly reducing costs and expediting trade settlements. This automation leads to lower fees for investors and increased returns for asset managers.

What Can Be Tokenized?

The simple answer is almost anything. The scope is vast, from real estate properties and precious metals to intellectual property and even fine art.

Take real estate, for example; tokenization has made it possible for properties to be sold in under three minutes. A tokenized Bali penthouse allows on-chain landlords to earn rental income.

Traditional assets are ripe for tokenization too. Cost-effective and transparent settlement processes can pave the way for more fluid international capital markets, and tokenized assets can be used to interact with smart contracts to enable new kinds of complex trustless transactions.

But the really cool stuff happens when we think about tokenizing the intangible - intellectual property.

Intellectual Property: The King In The Shadows Of Our Information Economy

In an era where data is the new oil, intellectual property (IP) stands as the king in the shadows, orchestrating the flow of innovation and economic growth.

While we've been quick to tokenize tangible assets, the intangible yet invaluable realm of IP has largely remained unexplored as a tokenizable asset. Until now.

The growth of our modern economy can broadly be divided into two categories: tangible and intangible assets. The former is responsible for nearly 90% of growth in the United States and other developed countries, with intellectual property forming the lion’s share of that figure. As early as over a decade back, the value of intellectual property in the US reached a level where it’s worth more than the GDP of any other sovereign state.

Tokenizing IP of Games

We’ve shown that intellectual property is a monster market. What happens when we’re able to turn it into a security? And what happens when we’re able to apply this concept to one of the world’s fastest-growing segments, gaming?

Tokenization and Web3 gaming already go hand-in-hand (in fact, that’s the whole concept of Web3 gaming, with NFTs and in-game currency tokens), but that’s not what we’re talking about.

Instead, the real treasure lies not just in in-game assets but in the very intellectual property that powers these digital realms. We're talking about tokenizing the IP of games, and the implications are nothing short of groundbreaking.

The Value of Video Game IP

Today, the IP of video games is immensely valuable. From Netflix and Hollywood, our favorite video game characters have made their way into content.

“Today, it’s clear that video game IP is absolutely dominating content - from box-office monsters like Detective Pikachu (US$433 M) and Sonic the Hedgehog 2 (US$405 M), to critically acclaimed Netflix series like Arcane (with 3 Emmy awards), Dota: Dragon’s Blood, and Castlevania.”

Find out in this article why Hollywood executives are laser-focused on getting intellectual property rights to video games.

H2: Who Can Benefit From Tokenised Game IP?

Let’s say that you start playing an indie game, and you think it’s great. Being a seasoned gamer, you’re confident that with its loyal community and great gameplay it will do well. Why not invest in it?

It doesn’t just have to be for a profit either. It’s incredibly difficult to monetize a game today (especially for indie developers), without resorting to bombarding players with advertisements or getting them to gamble on lootboxes.

You don’t want to see the game you like go down the route? Help to bootstrap the game, by investing in these IP tokens - and reap your reward later on.

Developers can also take these tokens to lenders, and use them as collateral for loans. Things like paying for art and music, marketing, or even bug-testing don’t come cheap. With the increased liquidity received from using these IP tokens as collateral, developers can truly polish their games and make them a hit for players.

How Acxyn Revolutionizes IP Tokenization in Gaming

Acxyn is a platform that allows all games to seamlessly plug into Web3, and enjoy a new dimension of value creation - tokenized Intellectual Property.

Seamlessly connecting all games to Web3 through its plug-and-play platform, Acxyn unlocks brand-new channels of liquidity with the tokenization of video game Intellectual Property.

The Acxyn Advantage

Acxyn’s capabilities include assigning a fair token value to games based on an algorithmic scoring of its in-game economy’s potential.

How is a game’s potential measured and assigned a token value?

In a nutshell, Acxyn’s predictive algorithm employs data analytics to gauge the economic momentum of games. Games are scored based on their velocity and viability, metrics that capture the real essence of player experience. The data here is able to reflect how engaging and enjoyable a game truly is - in other words, the fun it gives to players.

Real-Time Index Pricing: The Future of Liquidity

Once a game's economic potential has been assessed, Acxyn assigns a real-time index price to its tokenized IP. This is a dynamic valuation that reflects the game's actual worth.

What does this mean for developers? A brand new avenue for liquidity. Community members can now purchase these tokens, not just as a form of investment but as a way to partake in future revenue streams, such as IP licensing deals.

IP Tokenization: A New Frontier in Monetization

With this, the vast majority of talented but resource-lacking indie game devs now have the tools to compete with the dominance of major gaming studios.

By tokenizing their game's IP, developers can raise funds even before hitting mainstream popularity. These funds can then be channeled into vital areas such as game improvement and marketing, setting the stage for future success.

The Dawn of a New Digital Renaissance

There’s a market with incredible untapped potential, and Acxyn’s pioneering solution is set to solve the problems of multiple stakeholders in this market.

By providing a platform that seamlessly integrates games into the Web3 ecosystem, Acxyn is leveling the playing field for indie developers and is also setting the stage for a more inclusive, transparent, and rewarding gaming experience for all.

So, whether you're a gamer, a developer, or an investor, the future is bright, and it's tokenized.

The question is, are you ready to be a part of this new digital renaissance?

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