Entertainment-focused Gala (GALA-USD) is so intriguing it’s tied to something we can all appreciate: video games.
Underlining the Gala network is Gala Games, a blockchain platform that purports to give power back to the gamer.
Under a traditional digital entertainment paradigm, consumers spend countless hours playing their favorite titles while spending hundreds of dollars per head on in-game assets.
Yet the developers could give a hoot about them. Plus players can be kicked out for whatever reason.
Under Gala Games, the balance of power is much more equitable. People vote on the direction of their most-played games through a consensus mechanism similar to other cryptocurrency projects.
Participants can even influence what type of games are created next for the ecosystem. In other words, developers ignore players’ desires at risk of suffering irrelevance.
While non-gamers might view such control as frivolous, they must remember video games represent a multi-billion-dollar industry.
According to Grand View Research, its analysts project that by 2027, sector revenue could exceed $291 billion. For developers, getting the largest piece of this already massive pie means catering to what your fans want.
Indeed, not listening to your consumer base can result in severe consequences. For instance, Electronic Arts (NASDAQ:EA) is facing a community-wide petition for refunds regarding its latest Battlefield title. Turns out, players are unhappy with the game’s myriad glitches among other issues.
Gala and the concept of blockchain-driven games forges a cooperative mechanism to this entertainment segment, thus drawing considerable intrigue.
Centralization and Gala
A core appeal for Gala is that its consensus mechanism is akin to other popular cryptos. It’s just that with GALA the underlying platform is tied to digital entertainment rather than peer-to-peer (P2P) transactions, smart contracts or other decentralized applications.
Advanced blockchains can get pretty wonky with their protocols and processes. With Gala, the thesis is readily accessible. It’s all about bringing players closer to the sourcing of their favorite digital endeavors and thereby promoting a participatory framework.
While the idea sounds compelling on the surface, Gala also faces competition from legacy centralized developers.
Primarily, centralized outfits usually command greater resources than decentralized startups.
If there’s a particularly talented developer available, it’s hard to imagine that person not wanting to take a deal from a major company as opposed to a blockchain-based startup.
More critically, major centralized corporations are basically the only entities that can buy certain lucrative licenses.
Speaking of Electronic Arts, its EA Sports division owns the licensing for the NFL and FIFA. If you want a truly authentic digital sporting experience, you have no choice but to play EA games.
Here, the gaming community has been up in arms with the hegemony that EA imposes.
For example, I’ve long listened to complaints that the gameplay in FIFA titles were inferior to non-licensed soccer games. But if you want to play with “real” teams and players — at least from a licensing perspective — you’ve got no choice but to submit to the EA cabal.
That’s where something like Gala starts to hurt. It just doesn’t have the firepower of an EA to command popular global licenses.
Worthy of a Wager
Still, on balance, I appreciate what the team behind Gala is doing. It’s leveraging lofty technologies but for a purpose that’s accessible and meaningful to potentially billions of players.
I’m not going to say it’s going to usurp EA or any of the centralized powerhouses, just like I don’t expect stablecoins to usurp the dollar, euro or yen.
But is there a niche demand for such a platform? When it comes to gaming and related digital entertainment, there’s always hope for upside. So for what it’s worth, I think it’s worth checking out. Just be careful about not going too overboard.
Gala is a crypto, after all, and cryptos are inherently volatile.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
