Gaming has long been one of the most potential markets for Web3 technology, with advantages such as asset ownership and interoperability, transparent gameplay, and token incentives. However, the path to acceptance and adoption is rarely straightforward.
Following the 2021 crypto boom, which increased interest in Web3 games and, in particular, play-to-earn, there was pushback from certain members of the established gaming community, who complained about low-quality gameplay and NFT shills spoiling the experience.
According to an Interpret survey, 56% of 1,500 console and PC gamers want to earn NFTs through gaming. And if you clicked on this page, you’re probably interested in the uses of NFTs, blockchain, and, ultimately, Web3 in gaming.
What exactly is Web3 Gaming? What is the difference between web3 games and traditional games? How does it apply to gamers? You’ve undoubtedly got these and a thousand other questions. Take heart: this blog is meant to assist you in better comprehending the developing Web3 world and be better equipped to face it on your own!
Traditional gaming at a look
Video games have emerged as the world’s most popular form of entertainment. The sector is currently valued at more than $200 billion and increasing at a rate of more than ten percent each year. By the end of 2023, they predict 3 billion gamers out of a total population of 8 billion.
Gaming includes dozens of genres and three key platforms: PC, mobile, and console, both online and offline. However, there are only two primary monetization strategies. The first category is premium games, which charge a set amount for full access. Second, free-to-play games attract a wider player base and generate revenue through in-game purchases and adverts.
As the gaming industry expands, its drawbacks become more apparent. There is an impact on consumer spending because acquired items are only valuable within the game’s environment. Nonetheless, gamers do not genuinely “own” anything, from in-game assets to personal data; instead, game publishers make the decisions.
That is why the idea of Web3 was developed: to allow the power shift from producers to players.
P2E Gaming: A Modeling Approach
With the development of play-to-earn gaming, gaming has expanded beyond its conventional borders and become a profitable activity. At the heart of Web3 gaming, P2E has taken the industry by storm, allowing gamers to earn real-world value while immersing themselves in virtual worlds. Gaming is no longer just leisure; gamers can now turn their expertise and effort into concrete benefits, making gaming a legitimate source of money.
The worldwide gaming market has grown significantly in recent years and is expected to continue rising. According to Fortune Business Insights, the gaming market was valued at $249.55 billion in 2022 and is projected to reach $665.77 billion by 2030.
So, what exactly is Web3 Gaming? Web3 games vary from typical games in that they enable players to earn cryptocurrencies and non-fungible tokens (NFTs) using blockchain technology. Players can own their acquired assets, which can later be exchanged on marketplaces for virtual or real-world currency, blurring the distinction between the two worlds.
As of now, almost 1000 games have been released and created by web3 development businesses, with notable titles like Gods Unchained, Decentraland, CoinFantasy, The Sandbox, Alien Worlds, and DeFi Kingdoms (updated January 2023). Web3 mobile games are still the most popular technology on the market, but PC-based titles are also on the increase.
How Web3 Gaming Created an Impact among Players?
Ownership: In Web3 games, objects earned or purchased are represented by Non-Fungible Tokens (NFTs) and other digital tokens, which are unique digital assets kept on the blockchain. These NFTs or tokens may frequently be exchanged, sold, or utilized in many games, allowing players complete control over their virtual assets.
Decentralized marketplaces: These platforms allow participants to exchange NFTs directly with one another, eliminating the need for an intermediary. This technique assures fair pricing and minimizes the possibility of fraud.
Interoperability: Favorite in-game assets or abilities may occasionally be transferred to a new adventure, increasing the worth of digital assets and allowing for previously unattainable flexibility.
Transparency: Blockchain keeps a public record of all transactions, allowing anybody to verify ownership claims. Being transparent improves the system’s security and reliability.
Community-driven development: Decentralized Autonomous Organizations (DAOs), which make choices based on member votes, allow players a direct say in defining the game’s future, including stories, weaponry, and prizes.
Mechanisms for Web3 games
Web3 and blockchain’s increased control and ownership create genuine chances for gamers to profit while they play.
Here’s how.
By earning in-game tokens: Many Web3 games enable players to earn in-game cash by performing chores, winning fights, or reaching certain milestones. For example, in “Axie Infinity,” users gain Smooth Love Potion (SLP) by defeating their Axies (digital pets). This cash may be spent in the game or converted into real money.
By collecting NFTs: In “Gods Unchained” and other Web3 games, players accumulate NFT cards representing various characters and goods, which can then be sold on multiple marketplaces, giving real-world value and providing a feeling of permanence and security for these digital assets.
Staking and yield farming: Some Web3 games include DeFi (Decentralized Finance) aspects like staking, in which players lock up their assets to support network operations and receive incentives, and yield farming, in which players provide liquidity to DeFi protocols in exchange for returns. In “Alien Worlds,” users may earn prizes by staking the game’s native cryptocurrency, TLM, which generates passive revenue as they play.
The Incorporation of Traditional and Decentralized Gaming Platforms
The combination of traditional and decentralized gaming platforms has already begun. Several conventional game companies are experimenting with Web3 technology, with some even launching their own Web3 titles. For example, Ubisoft has launched many NFT-based games, and Epic Games has stated that NFTs would be supported in its Unreal Engine game engine.
There are several reasons why conventional gaming businesses are shifting to Web3 gaming. First, Web3 gaming has several advantages over traditional gaming, including ownership of in-game assets, transparency, interoperability, and player governance. Second, Web3 gaming is a quickly expanding business, and conventional gaming companies want to be on the front lines.
Legacy gaming firms move to Web3
A lot of traditional gaming firms are transitioning to Web3 gaming. These firms include:
- Ubisoft
- Epic Games
- Square Enix
- Take-Two Interactive
- Activision Blizzard
These firms are investing in Web3 gaming because they believe it is the future of the gaming industry.
Below are some particular examples of legacy gaming firms shifting to Web3:
- Ubisoft has released many NFT-based games, including Sorare and Rabbids Coding.
- Epic Games has announced support for NFTs in their Unreal Engine gaming engine.
- Square Enix has joined with The Sandbox to create a metaverse experience.
- Take-Two Interactive has bought Zynga, a mobile gaming business that creates Web3 games.
- Activision Blizzard has revealed plans to create a Web3 game based on its successful Call of Duty franchise.
Closing Thoughts
Web3 gaming is a fast-growing sector that has the potential to transform the game industry. Play-to-earn gaming has several advantages over traditional gaming, including ownership of in-game assets, transparency, interoperability, and player governance.
A lot of traditional gaming firms are now transitioning to Web3 gaming, seeing the possibilities of this new technology. P2E gaming is predicted to have a huge influence on the gaming industry by granting gamers greater ownership and control over their gaming experience.
Overall, Web3 gaming is a very exciting new development in the gaming industry. It can provide a more player-centric and fair gaming experience for everybody.
