Convergence Of AI And NFTs Is Unlocking A New Era For Gaming Industry, Says BreederDAO CEO Renz Carlo Chong

BreederDAO, a startup focused on creating NFT characters and in-game items for play-to-earn games such as Axie Infinity, Sipher, Cyball, and Crabada, is offering its services to players and game guilds. These services involve customization of certain traits within the playable NFTs, ultimately enhancing the chances of winning in the game for a fee.

Recently, Benzinga caught up with Renz Carlo Chong, CEO and co-founder of BreederDAO, who shared his thoughts on how AI empowers Web3 creators in developing unique characters and how DeFi tech empowers creators in and outside of gaming. Chong also spoke about his perspective on the impact of the intersection between AI and NFTs on the gaming sector.

What is your perspective on the impact of the intersection between AI and NFTs on the gaming sector?

The convergence of AI and NFTs is unlocking a new era for the gaming industry. From my vantage point, I’ve observed that this intersection is not just about creating new assets or more innovative NPCs — at the core, it’s about redefining the very fabric of gaming experiences. AI, with its capability to learn and adapt, combined with the immutable and unique nature of NFTs, is challenging the traditional centralized game design and distribution models. We’re moving from static, predefined gaming worlds to dynamic, ever-evolving universes where players have a tangible stake and ownership. Gamers are transitioning from mere participants to active contributors and stakeholders, shaping the narratives and economies of the games they love. It’s a cultural shift, and I believe we’re just scratching the surface.

How does the fusion of AI and NFTs expand the possibilities for NFT-based gaming experiences?

The fusion is expanding the horizons of what’s possible within games. At BreederDAO, with tools like AI Skins, we’ve seen firsthand how AI can help its users generate unique NFT assets in just a few clicks, even those without technical design capabilities, from wearables to in-game items, tailored to individual player preferences and automatically bring them to whichever digital universe they choose. But beyond asset creation, imagine dynamic in-game economies where AI algorithms adjust market dynamics based on real-time player interactions or NFTs that evolve based on in-game achievements, creating a truly personalized gaming asset. The fusion also paves the way for richer interactions. 

How can AI serve as a bridge between 2D and 3D art, potentially unlocking new avenues of creativity?

The leap between 2D and 3D art has always been a challenging one, primarily because creating 3D art requires an entirely different set of skills than creating 2D art. Historically, designers and artists would only focus on one or the other. However, AI can serve as the bridge between these two styles. With AI, artists aren’t confined to one art style alone. Specific AI tools can take 2D artwork and transform it into its 3D version without requiring any intervention from the original 2D artist. Also, with AI, you can remix your 2D artwork or image into a completely different format but still be inspired by the original. With AI Skins, we take 2D images and remix them into multiple versions to serve as the skins of the 3D model you want to create.

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Could you share some examples of how AI technology enhances the creation of dynamic and interactive NFT-based gaming experiences?

AI’s integration into the NFT gaming realm is a testament to the boundless possibilities technology can bring. Imagine a game where the environment evolves based on its players’ collective decisions. Using AI, game terrains can adapt and change, reflecting the NFT assets introduced by players. For instance, a rare NFT artifact might influence the game’s storyline or unlock a previously inaccessible region. An NFT representing a creature might evolve its appearance and abilities using AI, based on player interactions, battles won, or milestones achieved. In strategy games, AI can analyze the NFT assets owned by players in real time, adjusting game strategies and offering challenges tailored to the player’s unique asset collection. This ensures that players are always engaged and challenged in new ways. 

What were the primary challenges and limitations in NFT-based gaming that prompted the development of AI-driven asset-creation tools?

In the early days of Web3 gaming, related explicitly to NFTs, mechanisms like breeding and crafting became popular methods for generating new assets. However, this method inherently meant that a set of predefined traits bound the resulting NFTs. The potential combinations, while numerous, were still confined to the genetic algorithms set by the game’s design. Given these constraints, the integration of AI-driven tools became a game-changer. As more projects evolve, so do the mechanics that allow for player involvement and modification. From an NFT standpoint, with the integration of AI, more players can participate in introducing a whole new set of visual traits for their NFTs that the developers might not have initially created. 

Is there potential for AI to predict and shape player-NPC dynamics based on past interactions, allowing for “learning” and “remembering” from previous player encounters with NPCs?

Absolutely. Drawing from our earlier discussions, the potential of AI in gaming extends far beyond asset creation and into the dynamics of player interactions. Historically, static scripts have bound NPCs, offering a predictable and often repetitive experience. However, with the integration of AI, this will change. Imagine NPCs that evolve based on your past interactions. An NPC that remembers you favor a particular strategy in combat or recalls a one-time decision you made in a storyline and adjusts its behavior accordingly. This enhances the gaming experience’s realism and offers players a unique journey tailored to their choices.

Share something about BreederDAO, its market position, and any plans.

BreederDAO operates at the forefront of the digital asset revolution, understanding that as our interactions increasingly shift to virtual spaces, assets like avatars and in-game items become pivotal. These aren’t mere digital representations but foundational elements of our expanding digital universe. However, as digital experiences evolve, so does the desire of its users to be more in control of their experience. With their assets, it’s not enough to legally own them, but to hold them is to be able to shape and transform them to their liking. BreederDAO is focused on enabling players to do exactly that — we ensure users don’t just possess these assets but can truly shape and define their experiences in the virtual world, using one digital asset at a time. In line with this vision, our primary focus is on asset creation and customization, participating in economies and spaces that assign value to digital assets through buying, selling and crafting of support, as well as providing tools and services that allow users to create and customize their holdings to their liking.

How does AI empower Web3 creators in the development of their unique characters and digital realms?

AI is revolutionizing the creative process in the digital world in two significant ways. First, AI is accelerating the content creation cycle. Tools like Midjourney and ChatGPT can lay down the initial layer of an idea, serving as a brainstorming partner or a creation partner, allowing creators to bring their vision to life or flesh it out at a speed they couldn’t before. Secondly, it also democratizes creation. Because AI is closing the technical and creative gaps present in creating in the digital world, a whole new set of creators is unlocked because more people can now partake and contribute their creativity and ideas and bring them to life.

In what ways does DeFi technology empower creators within and beyond the gaming industry?

The most significant impact that DeFi technology has had on creators is empowering creators to bypass centralized platform barriers, which eradicates biases or financial institutions toward individuals based on set criteria and ensures they have true control over their content and its value. Furthermore, DeFi allows them to have direct control over the monetization of their content through tokenization. Instead of relying on ad revenues from platforms that take a significant portion, creators can issue tokens/NFTs tied to their content or access to them. This direct financial link between creators and their audience ensures better compensation and fosters community engagement. 

Centralized platforms like YouTube and TikTok, while offering vast reach, often impose restrictive monetization structures. Many creators face hurdles like unpredictable algorithms, sudden account closures and content bans. These challenges hinder fair compensation and actual ownership of their work.

NFTs offer a different set-up. They allow creators to sell their unique digital assets, such as art or music, to their audience and community while harnessing blockchain to verify ownership. 

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