Latest / The Paul Barron Crypto Show / This Crypto Game Won't Dieš“ā ļø Pirate Nation CEO INTERVIEW
Transcript
- 0:05It's gonna be a good one. My name is Paul Baron. We'll come
- 0:07back into tech Path. This is gonna be good because we'll have a founder
- 0:11joining us. And this guy is coming over from Proof of Play. You
- 0:13probably recognize him from some of his other accolades out there. But great to
- 0:18have you on the show. Thank you for having me. I really appreciate
- 0:20it. So, I mean, let's let's learn a little bit more about
- 0:24what you have done in the past. Obviously, you know, you guys
- 0:28have had history with Farmville, so you've seen kind of the gaming you know,
- 0:32evolution, I think, the modern day gaming evolution. So kind of
- 0:37give me a little bit where you've been and what First of all, what
- 0:39got you into decentralized gaming and web three? Sure, yeah, I mean
- 0:44I actually was doing traditional gaming two before the social gaming. So I got
- 0:50my start at Epic Games, which was known for the Unreal Engine Fortnite,
- 0:56you know, these like really big triple A console games obviously for nights,
- 1:00a huge game now, but that I was there before that, and then
- 1:03I left that company because these social networks are starting to take off in the
- 1:07early two thousands, So went and basically worked on my first startup was this
- 1:15was some social games, and we got acquired by Zinga, and I was
- 1:19the lead developer and of the creators at the game farm built. But you
- 1:23know, it was the number one game on Facebook. It had three hundred
- 1:25million players, did over a billion dollars in revenue, and really kind of
- 1:30changed the landscape of gaming from being like, you know, just like very
- 1:34kind of niche thing to making it so that everyone could be a gamer,
- 1:38right, and so, you know, we really expanded the market with that
- 1:42game, and that then led to, you know, after the iPhone came
- 1:46out, that then led to kind of what you now see mobile games like
- 1:49Candy Crush and Angry Birds, and so a lot of those ideas were kind
- 1:53of formed in the in our days at Singa on social games on Facebook.
- 1:57I still believed that that Zinga may have been the birth of really how web
- 2:02three gaming began, because it has a lot of similarities in terms of culture
- 2:07and the way that you know, web three gaming has evolved, which was
- 2:10very in the early stages of social gaming. I remember when you know,
- 2:14Mark Pinkus first launched Zinga and really started moving out into the social game ecosystem,
- 2:20which really was the setting the stage for it. So I definitely see
- 2:24kind of the comparison between the two. Yeah. I mean, you know,
- 2:29if you think about these things, is like business innovations, right,
- 2:32like social gaming, you know, was There's two main things that made social
- 2:37gaming social gaming. The first was obviously, you know, you're playing with
- 2:39your friends, right, so the game, rather than be like a solo
- 2:43experience, is really kind of about connecting with other people through gameplay. And
- 2:47then the second was this idea of you know, like micro transactions, free
- 2:54to play gameplay that then you augment and you kind of ties through micro transactions,
- 3:00so you know, you're playing the game for free, you hit a
- 3:02wall, you want to play more. It's it's actually almost a return to
- 3:06our kid gaming where you put another quarter in, right. Yeah. Fundamentally,
- 3:10I think what through gaming is community first. And you know, when
- 3:15we think about like how this evolves the landscape of gaming, I think it's
- 3:20the idea that you're building together with your community. You know, your community
- 3:23is helping you steer the direction of the game. You know, we've we've
- 3:27lost game a year and a half ago and we've done like eighty updates to
- 3:31it every week, and so much of that is based on feedback from our
- 3:35players and them helping us figure out like what's what's important to work and what's
- 3:39not. And but ultimately, you know, it's it's about how do we
- 3:44create a sandbox like a Petri dish for people to get together and then see
- 3:50what comes out of it? Right, these connections, these are this,
- 3:53this is those emergent gameplay and like, how do we how do we just
- 3:57like create the conditions for people to connect with each other through gameplay and and
- 4:00so we're really pushing the boundaries on that and that to me is where web
- 4:02three is like, it's exciting, it's new, and that's the I think
- 4:06that's the opportunity in front of us is both you know, game designers and
- 4:11you know people are building something new. Obviously, you guys are talking about
- 4:14launching a chain with the apex change. That's a little bit of different challenge
- 4:18there. Why go that direction as opposed to maybe just joining into some of
- 4:21these other blockchains that have already been dominant in the gaming sector. So we
- 4:28tried that. So I think there's actually one major distinction between us versus almost
- 4:33every other Web three gaming company, which is our games are running entirely on
- 4:40the blockchain. So in a traditional game, you have, you know,
- 4:44your players download some software, they connect to one of your servers, right,
- 4:49and then they play on your servers. But you know, if you
- 4:53shut the servers down, if people, you know, the company goes away
- 4:56whatever it is, players can't access the game anymore. So this actually happened
- 5:00with with Farmville. Farmville again, you know, three hundred million players,
- 5:03it's a huge player database. The game you know, was shut down twenty
- 5:09twenty, it was sunset, and so those players can learn access that game,
- 5:13they can learn access the things they did in the game. And so
- 5:16with this company, we've actually gone and done something very difficult, very different,
- 5:21and very difficult, which is we've actually created the game itself on chain,
- 5:29which means that you know, we have no servers. Everything is running
- 5:32on you know, an Ethereum compatible network. So we started with Polygon,
- 5:39right, interesting, but in order to actually create a gameplay experience that was
- 5:44you know, like kind of easy to play, and maybe you guys hear
- 5:47us a lot, like you know, it's just what three is hard to
- 5:49use, right, So we want to solve that problem, right and so
- 5:54and so the way we did it was we basically paid the gas for everyone,
- 5:57So when players play our game, even though everything is happening on chain,
- 6:00they're never paying gas. So we very quickly started to get very high
- 6:05bills. I mean, we were spending three to four thousand dollars a day
- 6:09on Polygon and then we're like, okay, this is not going to work
- 6:12for us, so we migrated to Arbitram Nova and then that brought the costs
- 6:15down again. They have a different kind of consensus model and all this other
- 6:18stuff, and that that worked for us. And then again some other application
- 6:24got really popular on Nova, and then our gas costs increased again and we
- 6:28were spending ten to twenty thousand dollars a day. So it was just we
- 6:31had no choice. We had to actually launch our own chain exactly. Otherwise
- 6:36it's just like it wasn't like sustainable as a business. So well that's why
- 6:40we launched down. Yeah, it's so many of the studios that I mean,
- 6:44that's why we're seeing kind of musical chairs right now. It's just a
- 6:46constant it seems like it's a constant evolution of game studios that are seeming to
- 6:49try to find a home in terms of some of these blockchains within that,
- 6:54and I want to kind of follow on on the point you made, which
- 6:57is being on chain and what that means for games that do either. Especially
- 7:01in Web three, we'll most likely see a lot of games get sunset at
- 7:06and or abandoned. And to your point, a community, a player community
- 7:12is basically going to be left out on the cold. I'll talk about that
- 7:14in a second. I want to go further into your stats because I was
- 7:16looking at the Apex stats here active accounts still still growing, So I mean
- 7:23really for a fairly new project, you guys are continuing to grow here.
- 7:28Yeah, so this is not actually accurate. So basically what you're seeing here
- 7:32as accounts that are directly touching the chain. But what most players are doing
- 7:35is they're having their gas paid for them, so they're actually interacting with our
- 7:41like okay relayer, our transaction relayer. So you know, we're you know,
- 7:45like if we haven't revealed our DAU numbers, but you know, they're
- 7:49well north of fifty I would say they're they're they're well north of fifty thousand.
- 7:57Okay, So because I'm looking at account growth right now, it's up
- 8:00to around fifteen. So you're saying that could be a three X Wow.
- 8:03Okay, well that's good, good for you guys. The number of transactions
- 8:05per day, which we're doing about three million transactions per day, so like
- 8:09comparable to like Blast, I think we're just south of the base chain.
- 8:16And so like this is like real users playing the game. And a huge
- 8:20part of that is our strategy has always been build a fun game first.
- 8:24Sure, you know, build a fun game first, and then everything else
- 8:28will take care of itself, like build a product that people want to play.
- 8:31Is APEX chain an L two or is this more like an L three?
- 8:37Well explain, well, yeah, so it's from a technological perspective,
- 8:43it's actually their equivalent. The only question is is are you writing the transactions
- 8:50back to ethereum or you're writing them to an L two. So in our
- 8:56case, we're writing the transactions. If you click on it actually's funny if
- 8:58you click on the activity have on the side or you'll actually get the health
- 9:01threas. Yeah you'll see it. But long story short, yeah, long
- 9:05story short, there is proofably, so yeah, daily tps this is like
- 9:11really high and so so basically you know, with us, what you're seeing
- 9:18is instead of us, Like, people are taking actions on our chain,
- 9:24and then what we're doing is we're basically writing the results of those actions back
- 9:28to Arbitrum one instead of Ethereum. And the reason we're doing that is for
- 9:31costs and for speed, and so you know, we're built off the same
- 9:35technology as say like Arbitrum Nova or any of the other Arbitrum based al twos,
- 9:41but we just decide to to actually base ourselves off of Arbitrum one because
- 9:46it's faster, it's cheaper, and ultimately, I don't think players care.
- 9:50Do I have the ability to access my Yeah, this is this is a
- 9:54good and these these numbers are actually this looks this is an outdated image as
- 9:58well. If you should go to the site roll up at WTF you can
- 10:01see it. And those only after we moved to APEX were we able to
- 10:05actually get to Yeah, so this is real numbers, and you can see
- 10:09here that we're actually like you know, in terms of TPS, we're comparable
- 10:11currently to Arbitrum one, we're like right below base and so like you know,
- 10:16this is we're really pushing things to its limits here and the big number
- 10:20as it is right now. Oh so that's a great question, and so
- 10:26the answer is yes, up to a limit, right. And so you
- 10:31know, on Farville, we had sixty four databases because at some point you
- 10:35couldn't put all of the users on a single a single database, so we
- 10:39actually had to split our user base across multiple databases. The same thing is
- 10:43true of this, right, So we're starting to hit our limit in terms
- 10:48of the number of active users we can put on a single chain. And
- 10:52in order to do that, in order to actually like fix that problem,
- 10:56we have to start going, you know, start actually expanding horizontally. We
- 11:00mean, it means we need to add more chains and then sounds like one
- 11:03player could be on exactly. Yes, it's maybe similar to app so there's
- 11:09avalanche. Yeah, okay, yeah, all right, so multiplayer what's the
- 11:13what's the likelihood of getting that moving soon? So we already have PvP in
- 11:16the game, it's in preview mode, and we've decided to keep it in
- 11:22preview mode until you know, we're just really confident that like that we have
- 11:30a like an additional protocol that we're creating. So one of the things that
- 11:33I've just kind of caveat this with is we're building games because we're building games
- 11:37on chain, we have to actually rebuild a lot of primitives that you get
- 11:41for free in the web two world. So something like, you know,
- 11:45two players are playing each other and we want to make sure that there there's
- 11:48a referee, you know, we have to actually go and build this like
- 11:50decentralized referee system to ensure that the matches are fair. Right, So everything
- 11:56is like ten times harder and takes like a lot more like engineering like prowess
- 12:01in order to actually solve these problems. But that's also the opportunity, right
- 12:05if we go and we're actually able to solve scalability for our game, we're
- 12:11able to figure out how to do things like decentralized decentralized referee system for player
- 12:18you know, player online player matches. It starts to it starts to actually
- 12:22push the stay of the art forward, and it solves these problems not just
- 12:24for games, but for other blockchain applications as well. And so that's really
- 12:28the thing that's driving you know a lot of the people who work here is
- 12:31the ability to kind of really push the boundaries and solve tackle these really hard
- 12:35problems. Do you see, but moving outside the game sector soon or do
- 12:41you feel like this is primarily going to stay in the game. I you
- 12:43know, I see the potential for it. So you know, the example
- 12:48here is that Amazon they build Amazon dot Com and they're like, let's just
- 12:52focus on Amazon dot Com to business, and the technology is just enabling thing
- 12:54that we have to build in order to make the shop work right, the
- 12:58website, and so for us, the entirety of my focus is build a
- 13:05great game, get a lot of people to play it. And as a
- 13:09requirement to actually succeed in that, I have we have to go solve all
- 13:11the technological problems. Sure, sure, interesting. Okay, So I was
- 13:16you know, you mentioned this earlier and I wanted to jump to a tweet
- 13:20here walking Dead. This is a major title that ends up getting exited,
- 13:26so galileaid the team off. But this goes back to your point of games
- 13:30that are not on chain, they end up with these kind of these deadheads
- 13:33that you know, whether you have a lot of players or you've got a
- 13:35community built around these, and then the game just goes away. So your
- 13:39solution would solve this. Do you have any any thoughts about maybe games that
- 13:46could migrate over to something like what you guys are doing right now. Yeah,
- 13:50it's it's a great question migration. I mean, putting my engineer hands,
- 13:56very challenging. I will say that, like you know, is one
- 14:00of the primary pitches for on chain gaming or fully on chain gaming is that
- 14:05at they're forever games. Yeah, right. In fact, that was the
- 14:07that was the thing that originally led me to start this company. I was
- 14:11when I when I saw kind of you know, what happened to Farmville and
- 14:13other things. It's just it's just sad for the community, right they it's
- 14:18at some point like they've invested in as well. And so you know,
- 14:22the whole kind of promise of web three is the centralized ownership, the idea
- 14:26that you know, you know, it's no one can rug pull you,
- 14:31and so you know, that is one of the promises. The other side
- 14:35of it too, and this is this has always been part of gaming,
- 14:37is this idea of of modeling, right, of remixing games. You know,
- 14:43so really popular games like counter Strike and League of Legends came out of
- 14:50other games that you know, service the base and then someone created new game
- 14:54mode and then became huge. And so with on change games, it's actually
- 14:58possible to go and say I'm going to fork pirate Nation, for example,
- 15:03and I'm going to go create an engineation and people can do that permissionlessly because
- 15:05it's all on chain, it's all open source, it's all open data.
- 15:09I was looking at some of your just the from the token side of things,
- 15:13as many of our people always love to kind of attrack these tokens.
- 15:16Pirate Nation nears yours, and you guys launched and and this is ironic because
- 15:20you've been able to the token has been able to maintain, if not actually
- 15:24go up. Man, that's that's crazy. And then market caps also pretty
- 15:28much stayed the same. Interesting, Why so you guys went out on coinbase
- 15:31first? How did you How did you do that? You know, our
- 15:33goal is just to build great products, and so you know, I think
- 15:37that you know, whatever happens with the price is just a reflection of you
- 15:41know, the sentiment of the player base and what and what's happening in the
- 15:45ecosystem and so of which we were just like a single participant and so you
- 15:50know, with with you know, any of the exchanges, they were just
- 15:56free to make their own decisions. Interest you know, we told them most
- 15:58coming and yeah, they like mad, you know, it's there, it's
- 16:02their call and the like. It's actually very opaque to us, and I
- 16:04think that's like by design. I think that's like good for the industry.
- 16:07Honestly, it's just like you know that that they're they're working independalty, you
- 16:14know, with the token. I I can't say to like what's happening with
- 16:17the price. It's not something that we really pay attention to. But what
- 16:21I will say is that, you know, a large there's two things that
- 16:23we did that I think are really helping. One is that, uh,
- 16:30you know, players have the ability to stake their tokens immediately and as a
- 16:33way of like kind of helping you know, secure and and show commitment to
- 16:38the proof of play and Pyate Nation network. Right and so right now the
- 16:42game itself is it's like semi decentralized, but like all the notes are being
- 16:48run in like by a single provider, and so over time it makes sense
- 16:51for us to actually make it possible to have for there to be more distribute
- 16:53distribution amongst the notes. And the second thing and so like a large percentage
- 16:59of people are staking. You had that dashboard up earlier, the Dune dashboard,
- 17:03and it shows you the percentage of players staking, and it's like eighty
- 17:06percent, which is like an insane number. I like, so eighty percent
- 17:10of the people who claimed the Pirate Nation token air drop are now staking or
- 17:15close to seventy nine percent, right, And so that means that like,
- 17:21you know, there's just like not any supply right in the ecosystem. The
- 17:25second thing there is that even if you steak, you can still use the
- 17:30token within the game. And so we called the spend from Steak, and
- 17:33we think it's a pretty unique innovation because it basically means that people can keep
- 17:36their stuff staked, right, help secure the network. But then if they
- 17:40decide they want to you know, use that token and like and help you
- 17:47know, like purchase items in the game or you know, take gameplay actions
- 17:49or whatever it may be, they're able to do that without being panelized with
- 17:53this. Now, you guys are not fully launched on this. When will
- 17:56this be fully available? Uh so the game the game has been live for
- 18:00a year and a half. What we have been doing though is like basically
- 18:03making an invite based Yeah, and that's even partly because we need to.
- 18:07Oh, I think once we saw the so once we saw the multi chain
- 18:11a right, so getting into that, okay, all right, exactly think
- 18:15that's reasonable, reasonable because that I hate those kind of games unfortunately that you
- 18:19know, only parse out the amount of users that can come on, you
- 18:23know, because obviously I like to see if the capacity and and you know,
- 18:26just the stress test behind it can be there when you look at multi
- 18:32and sorry, Paul, just to see your context here. You know,
- 18:34we went from like we fifty x ra user base in like two months,
- 18:41so so like you know, it wasn't that we didn't like scale it,
- 18:44but like you know, for us, ultimately, like the entire history of
- 18:47this company has been hitting a scaling wall than breakdown, hitting our scaling wall,
- 18:52breaking it, yeah, and then so running into it exactly. Well,
- 18:56I mean you faced some challenges too, because you know, you were
- 18:59trying to work on one chain and then you're dealing with cost parameters there that
- 19:03you know that just don't work in some cases, which we've seen this across
- 19:06a lot of Web three entities. But I think you know, next steps
- 19:11obviously will be to open that up to see real scale. If the game
- 19:14is as popular as it appears to be, you could see some pretty amazing
- 19:18growth here I mean, there hasn't been an Axie Infinity again yet, so
- 19:25is there this next era? Are we going to see another explosion like that,
- 19:30you know, like an Axieinfinity came onto the Seed back in early twenty
- 19:33nineteen. I think it's certainly possible. Sure for us, that next step
- 19:40is going to multi chain, which is getting that second chain up and running.
- 19:42And just like we went from one database to sixty four databases, we're
- 19:47going to do the same thing here with chains. Yeah, gaming is in
- 19:49demand and I think this is going to continue to push innovation. So,
- 19:53I mean, it's been great having you on. Thank you so much for
- 19:56coming in on the show today. We appreciate it. Yeah, well,
- 20:00thank you for the opportunity. You bet all right, So listen. If
- 20:03you guys want more of these kind of things, the first thing you need
- 20:06to do is subscribe to the channel because we do cover a lot of Web
- 20:08three projects. We bring a variety of game companies on as well as ceo
- 20:14and founders and really dive in deep to this technology because when you look at
- 20:17the evolution of where technology is moving, blockchain is one of the critical ones.
- 20:22Obviously, what we'll see in the ARVR space AI will play into this,
- 20:25and all of this has a financial connection into these tokens and a lot
- 20:30of these markets. So that's why you come to the show. Make sure
- 20:32and subscribe. If you're not in the Diamond circle, get in on that.
- 20:34Follow me out there on X It's at Paul Baron. We'll catch you
- 20:37next time right here on tech Path