A Note on China’s Approach to Cryptocurrency and Blockchain Application in the Games Industry: Coco Game Currency
(8 pages of text)
An estimated 640 million online gamers participated in China’s games industry in 2019. Their pursuit included earning points or tokens that they could redeem for prizes or gifts and in-game assets. A centralized platform allowed game operators to share the administration and management of tokens and rewards, but the system was not as transparent or immutable as stakeholders desired. In January 2019, a new points redemption system was launched based on blockchain technology. The new system, involving game operators, users, custodian banks, suppliers, and tax agents was credible and more transparent, and foreshadowed China’s growing interest in legal digital currency. How policy would shift toward digital currency was unclear; however, the fact that the blockchain race between countries had intensified was clear. The application of blockchain in China’s games industry was just one of the visible examples.
This note is suitable for undergraduate- and graduate-level courses on strategy, marketing management, and operations management, especially in sections focused on innovation and disruptive technology. The note explains the basic characteristics of blockchain technology, cryptocurrency, and digital tokens, and explores the opportunities and challenges they offer industries such as gaming. After working through the note and assignment questions, students will be able to consider the following:
- The challenges of points redemption in the online gaming industry.
- The core elements of blockchain.
- The unique functions of blockchain in the online gaming industry.
- How disruptive technology can be implemented within an ecosystem and the pros and cons of such an implementation.
Arts, Entertainment, Sports and Recreation
China, Medium, 2019
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