Game developers, especially small developers, face a dilemma when considering the 3 forms of monetization: (1) paid downloads, (2) ads, (3) in-app purchases
The developer’s dilemma and the needs of gamers are two sides of the same coin. Gamers don’t want to have to pay to play casual games, they do not want to be interrupted by incessant ads, nor do they want to be taken to the cleaners with in-app purchases. In short, gamers dislike every tool available to developers (especially small developers) for monetization.
Since the year 2000, the amount of revenue generated from video games has increased from approximately $40 billion to $140 billion as of 2018. Here's a breakdown of how much various game industries make.
Notice that mobile gaming produces the most revenue with 48% coming from in-app purchases, 14% from ads, and 38% from paid downloads. Most of the money generated from games flows from in-app purchases.
Bitszer is designed to provide the financial rewards of in-app purchases for developers without harming the gamer. Bitszer is an innovative platform that enables game developers to build and integrate an Ebay-esque auction house into their games. Funds earned by the gamer via the auction house in one game are instantly available in all Bitszer powered games. Bitszer is the first to offer a central platform that unifies game resources across any participating game. This platform is the Bitszer Auction House.
Items on the Bitszer Auction House are purchased using a cryptocurrency called “Units”. Units are a minable ERC20 instance on the Ethereum network. Bitzser chose the Ethereum network to host Units because of the credibility and security the Ethereum network provides. It has maintained a hashrate of approximately 175 GH/s for over a year, rendering it an incredibly secure blockchain.
Being a mineable cryptocurrency means that Units are rewarded to miners who solve a proof-of-work (PoW) problem. The size of the mining reward is on a decreasing schedule similar to Bitcoin and Ethereum. Unlike Bitcoin, which continues to half the reward it provides miners, Units will be rewarded to miners at a rate no lower than a specified minimal rate.
By enabling users to trade video game items with a cryptocurrency and use the funds to make purchases in any game they desire, gamers can feel comfortable trading, buying, and selling items in the Auction House without developers emptying their wallets. In fact, when gamers play Bitszer-powered games, they monetize their game time. This has not been possible on any gaming platforms until now.
In 2017, we released a minimal viable product (MVP) to test Bitszer's concept for Android and iOS. We made a simple game called Bitszer Battle where players could train warriors and acquire weapons and armor to help them defeat mobs. The game was simple, but unique in one way: Bitzser Battle implemented an Auction House that was seeded with a small amount of Bitcoin. Gamers could buy and sell items with each other for some amount of Bitcoin, and they LOVED it. In less than a week, Bitzser Battle received over 2,000 downloads per day. Bitzer Battle's success far surpassed our expectations and overwhelmed the infrastructure our game was built upon.
We realized two ideas following Bitszer Battle's release: (1) Bitszer could truly revolutionize the way games are monetized and (2) we needed to learn more about data structures and database management to make Bitszer a lasting success. Over the last three years, we've researched and consulted with experts to learn how to make Bitszer just that. We've done that, but recognize that we can't stop there, so we are now pursuing Masters degrees at Brigham Young University in Computer Science to ensure that Bitszer's success is scalable, and can keep up with increasing demand.
What’s surprising (and amazing) is how much revenue a small 5% transaction fee can generate for developers. A transaction consists of 1-buy and 1-sell. Consider a game that has 20,000 daily active users relatively early in its life. If each user makes 20 transactions a week and the items traded average out to a value of 1 Unit per transaction, assuming Units are worth 50 cents, that amounts to $10,000 of fees going to developers each week. If Units are worth a dollar a piece then that’s $20,000 dollars a week going to developers.
The revenue generated from Bitszer is linear with respect to number of transactions, price of Units and number of transactions. If Bitszer-powered games experience an exponential download rate, the engaged developer can expect the number of transactions occurring each day to also increase exponentially. This implies an exponential increase in revenue.
Monetizing your game could never be easier or more successful than through Bitszer. As is true for any relevant technology, early adopters have the most to win.
The complementary and coexistent relationship between Bitszer and Units is summarized in the following figure.
Though Bitszer has mined many Units, it must be understood that Bitszer is not a Units company. Units are no more than a vehicle for funding Bitszer in its early stages. Units provide necessary resources for Bitszer to run various promotional programs, provide hype events, and to hire additional Bitszer employees. At this stage Bitszer values growth above all else.Unit Giveaways and Hype Programs
For Bitszer to grow as fast as possible, all who are interested in Bitszer's platform must be able to obtain Units. Since not everyone knows how to mine cryptocurrencies, Bitszer sponsors the following programs.
As part of our rapid expansion and growth phase, we have a generous program for developers whose games we find especially promising. For qualified developers we’ll seed their games with the Units we’ve accumulated. Our typical program is to provide 1,000,000 Units over the course of a year, contingent upon how the game is progressing. If you’re interested in this program, please contact us.Scalability
Bitszer is built on AWS. AWS is known for its security and availability. By taking advantage of its many features, Bitszer will have the infrastructure needed to scale during the massive growth we expect to occur over the next weeks, months, and years to come.
Bitszer is at the forefront of the largest revolution in game monetization to ever occur. Bitszer is a forward thinking company with plans for extraordinary growth for years to come. Bitszer has already accomplished many of its preliminary goals and is ready to help developers monetize their game time as Bitszer moves into beta phase.