At Forte, we’re dedicated to creating new economic and creative opportunities for billions of players around the world. To accomplish that, we’re building a community-owned gaming platform using breakthrough technologies and a new business model that presents an opportunity to change the gaming industry forever. And as part of that commitment, we’ve been sharing our research and observations around key principles in economics, how they work in the real world, and how they might work better if rooted in business models that give ownership to all participants — what we call community economics. We want to hear from others who…


We’ve explored how traditional, centralized marketplaces work in the real world — and how and when they don’t work. We’ve also taken a look at how decentralized exchanges, marketplace platforms powered by blockchain technology, address some of the challenges faced by traditional marketplaces, while remaining vulnerable to certain kinds of abuse…at least for now.

But what do marketplaces look like in games? That’s the question that led us to conduct a deep-dive analysis of a sampling of 25 prominent and widely used game marketplaces, in order to better understand the different mechanisms they use, the flaws and potential evident in…


In prior articles, we’ve looked at marketplaces in the real world, how they’re organized, and how — in some cases — they can be abused and exploited by bad actors. All of the marketplace examples we shared are centralized exchanges: Trading takes place on private platforms, owned by operators, who manage those platforms, serve as gatekeepers to market participation and validate (and incentivize) trade activity.

We’ve also discussed how blockchain enables the decentralization of networks (including the Internet itself), by offering a trusted means for transactions to be validated without a governing authority — validation takes place via nodes on…


In previous articles, we’ve discussed how, by helping to ensure market liquidity, market makers are integral to the smooth operation of traditional marketplaces, and we’ve looked at how blockchain technology makes true ownership of assets possible. In this piece, we look at principal trading, the concept that underlies the practice of market-making, how it works in the “real world” and how it might work in games. In future articles, we’ll look at asset marketplaces as they operate in the present-day game industry, as well as the new world of decentralized asset exchanges, built on blockchain technology.

What is Principal Trading?

In our prior essay…


At Forte, we’re dedicated to creating new economic and creative opportunities for billions of players around the world. To accomplish that, we’re building a community-owned gaming platform using breakthrough technologies and a new business model that presents an opportunity to change the gaming industry forever. Our commitment is to develop a new and sustainable path for gaming that’s open and interoperable; that progressively decentralizes until it’s fully owned by its users; that is transparently and equitably governed by the community that has a stake in its success; and that is dedicated to the long-term health and growth of gaming, rather…


Unless you’ve been hiding under a rock recently, you’ve heard the tale of GME, the ticker symbol for the video game retailer GameStop, and WallStreetBets (WSB), the 8 million-strong Reddit community of insurgent stock investors.

You also know about WSB’s successful push to send GME soaring in just two weeks from under $20 to an all-time high price over $347 on Wednesday, January 27th, putting hedge funds like $12 billion giant Melvin Capital Management which had bet against the stock in dire jeopardy.

You also know that GME’s meteoric rise was halted in its tracks the next day by the…


In the first article of this set, we looked at the history and evolution of the gaming industry, and the design problems related to players owning digital assets. In the second, we discussed how blockchain addresses many of these design problems, making true digital asset ownership — as opposed to licensed control of a digital object possible. In this third and final article, we conclude by exploring the mechanism by which blockchain tokenization enables innovative new economic models. …


In the first article of this set, we looked at the history and evolution of the gaming industry, and the design problems related to players owning digital assets. In this second article, we’re discussing how blockchain addresses many of these design problems, making true digital asset ownership — as opposed to licensed control of a digital object possible. We’ll conclude this set with a piece about blockchain tokenization and the innovative new economic models that tokenized assets can enable. …


In this series, we’ll be exploring a critical pillar of community economics: Digital asset ownership. We’re beginning this series with a look at how game distribution has moved from physical media to digital downloads, a critical step in the path toward the emergence of digital assets. In subsequent articles, we’ll talk about the distinction between licensed control of a digital object and “true ownership” of digital assets, made possible by blockchain. Then we’ll talk about blockchain tokenization and the innovative new economic models that tokens can enable in games.

As video games have become more popular and more interwoven into…


In Part 1 of this series, we introduced the concept of the Economic Protocol Network (EPN), networks that are built on blockchain technology. In Part 2, we looked at how EPNs encourage participation by distributing network value. In Part 3, we explored an example of how EPNs operate in the wild. In Part 4, we shared a framework that can help developers design EPNs effectively and sustainably. And finally, in this article, we explore how they might be deployed in games.

Games are difficult to launch and harder to sustain, and especially in today’s competitive games industry. Players have hundreds…

Forte

Building economic technology for games using blockchain technology.

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