What AI and blockchain mean for gaming’s future
Pentagon Games is working on web3 tools that give players more control over in-game assets
Before Idon Liu built Pentagon Games, he was making real money in gaming—long before web3 was even a concept. As a teenager, he bought and sold virtual items in Diablo II, landing him on the front page of Toronto Star's business section. Now, he's helping shape the future of gaming with blockchain, AI, and immersive technology.
As the co-founder and Chief Blockchain Officer of Pentagon Games, Liu sees web3 as the next major shift in gaming—one that gives players true ownership of their digital assets. In an exclusive interview with The Crypto Radio, he explained how his company is combining blockchain, AI, and AR to push the boundaries of interactive entertainment.
Turning digital assets into player-owned economies
In traditional gaming, in-game items exist only within a single platform, often disappearing when a game shuts down. Blockchain technology changes this by making digital assets persistent and tradeable across different ecosystems. At Pentagon Games, Liu and his team are exploring how NFTs and token-driven economies can create new opportunities for players and developers alike.
"I really think that, as a chief blockchain officer, the focus is really a combination of security for your infrastructure as well as finance,” he explained. “Because everything we do is on the blockchain… it influences your entire profitability, if your token price, either is doing well or not doing well, has a big impact on your organization."
AI enables developers to generate vast, intricate 3D environments from simple prompts—a process that once required significant time and resources. This evolution in content creation means that user‑generated content (UGC) is set to become a cornerstone of future gaming ecosystems.
"I can generate an image, I can take that image, generate a 3D model, and I can auto rig it through AI. So from a few prompts, now I can see an entire 3D space,” Liu explained. “Like inside a video game from an AI-generated prompt."
This breakthrough empowers players to design their own assets and even entire game levels, fostering a creator economy that blurs the line between player and developer.
Immersive experiences and overcoming web3 challenges
Photo: Unsplash / Fredrick Tendong
Immersive technology is central to Pentagon Games’ vision for the future. Although VR and AR once seemed confined to bulky headsets and limited experiences, new advancements are making these technologies accessible to a broader audience.
One of the key challenges in immersive gaming has been the high cost and clunkiness of existing VR/AR gear. Recognizing this barrier, Pentagon Games is developing lightweight AR glasses that integrate seamlessly with web3 wallets.
"It’s almost like the Sega phone for AR/VR glasses," he quipped—quest-level immersion, prescription-friendly, hitting the market this quarter.
Beyond technological breakthroughs, Pentagon Games is focused on building a robust ecosystem that addresses both innovation and inherent challenges in web3 gaming. The company’s efforts span the entire spectrum—from pioneering blockchain applications to integrating AI and immersive tech.
Pentagon Games has partnered with major blockchain networks, including Tron, to develop a unified web XR experience. The goal is to make immersive gaming accessible across multiple devices, reinforcing the potential of cross-platform interoperability.
At the same time, the company is tackling the complexities of token economics with its PEN token—a gas token powering transactions on its Layer 2 (L2) blockchain. Designed to reduce congestion and lower costs, L2 solutions help streamline in-game transactions. However, market volatility and speculative pressures continue to pose challenges.
“You always can be subjected to a lot of market speculation and volatility,” he said. “So I think that's the biggest challenge we're facing."
As web3 gaming evolves, Pentagon Games is positioning itself at the intersection of blockchain, AI, and immersive tech—where players don’t just play the game but help shape its future.
Listen to the whole interview on The Crypto Radio's live player or in The Pulse podcast.
