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Mar. 6 (NBD) -- Chinese mobile game company Hero Entertainment will join force with Shenzhen-listed internet firm KingNet to launch a blockchain-based project targeting overseas users.

While KingNet declined to comment, Hero Entertainment confirmed the news with NBD.

Wu Jihan, chairman of Bitmain, the world's largest producer of bitcoin mining hardware, admitted that his company has invested in this blockchain project initiated by Hero Entertainment and KingNet.

Wu said that blockchain is to bring profound changes and reforms to the game industry and he is pleased to have participated in the project as an angel investor from the very beginning.

It's noticed that unlike earlier blockchain projects focusing on cryptocurrency exchange and virtual pet trading, Hero Entertainment and KingNet are seeking for the application of blockchain technology in specific scenarios. This project rises above simple technological experiments.

This blockchain project is aimed to build a comprehensive service platform, providing information flow, game platform and content community as well as promoting game products in overseas markets.

Zhang Shule, an industry critic, said it is a desirable way for game companies which want to shed off its dependence on local franchised agents and promote their game products to the world by using the blockchain technology.

Ever since the end of last year, blockchain-based games have embraced explosive growth. Companies including China's second-largest gaming operator NetEase and search giant Baidu successively released their blockchain-based games.

Zhang believed that game or game-related companies venturing into the blockchain sector aim to make the most out of their game servers. Plus their rich experience in gaming services, such companies are likely to have some edges over other firms.

Shi Qingwei, founder of a blockchain news website, said to NBD that the blockchain technology is most likely to be applied first in areas like games, social network and media.

With regard to the reason why game companies are eyeing blockchain, Shi held a different opinion from Zhang. Shi said that a large amount of virtual properties demands blockchain-based solutions, explaining that the blockchain technology can help traditional game companies solve the problem of managing, controlling and protecting virtual properties.

Shi further pointed out that although the blockchain technology is readily available, yet the biggest obstacle may lie in the policy risks.

But Shi acknowledged the advantages that game companies have in entering the blockchain business. Firstly, the combination of blockchain and games is appealing as there are a lot of game players, which makes product marketing easier. Secondly, game companies house a large number of game developers, which means they have the framework and talent pool to develop blockchain, Shi noted.


Email: gaohan@nbd.com.cn