Web3 technology is accelerating the evolution of the gaming industry. In 2024, Web3 gaming will change the way we play and earn.

Unlike traditional games, Web3 games leverage blockchain technology to build decentralized and transparent platforms. This implies that users may own their in-game things and earn real money while playing.

In this blog, we’ll go into the future of decentralized play, specifically how Web3 is transforming gaming. Learn how Web3 gaming is creating new revenue opportunities and player-driven economies, paving the path for a more engaging and lucrative gaming experience.

What is Web3 Gaming?

Web3 gaming is a new type of online gaming that utilizes blockchain technology. Unlike traditional games, Web3 games allow users to fully control their in-game assets, such as characters, weapons, and virtual land.

These items are kept on the blockchain as digital assets or NFTs (non-fungible tokens), which distinguishes them as unique and valuable. These assets can be traded, sold, or used to earn money.

Web3 gaming platforms also encourage decentralization, which means no single firm controls the game. This provides gamers with greater control and security. Overall, Web3 gaming combines fun with real-world advantages, generating intriguing potential for players.

Recent DappRadar data highlights the trend, with about 1 million unique active wallets engaging with Web3 games every day in recent months. However, these figures might be only the beginning of a much greater movement. Siu anticipates an influx of up to 100 million gamers by next year, fueled by the transfer of various titles from alpha and beta phases in 2022 and 2023 to full commercial debuts in 2024.

Key Trends About Web3 Trends in 2024

Web2 game major figures move into Web3

Traditional gaming firms are switching to Web3 gaming as they evaluate its potential and advantages. This move is a result of Web3 gaming’s transparency, interoperability, player governance, and in-game asset ownership. Several game firms have made significant investments in Web3 gaming. 

The following year, more established Web2 gaming behemoths will migrate to Web3. Already, industry veterans like Nexon, Netmarble, Krafton, and Come2uS, as well as Western powerhouses such as Square Enix, Konami, Ubisoft, CCP Games, Scopely, EA, and Zynga, have begun to investigate the Web3 market.

In this regard, Dmitrii comments: The entry of these behemoths is a clear indication of the untapped potential in Web3 gaming, signaling a paradigm change in the industry.

Mobile Gaming Dominance

Mobile gaming has surpassed Web3 gaming in terms of active users. This growth pattern is projected to continue until 2024, with a focus on NFT owners and play-to-earn players. Furthermore, as desktop games seek to appeal to a larger audience, mobile concentration will increase, as will mobile game quality. Mobile gaming, known for its widespread appeal, is anxious to leverage blockchain’s transformational potential to expand its gaming supremacy. 

Despite the dominance of PlayStation and Xbox, mobile gaming contributes the majority of video game income, and this trend is likely to continue and expand. Mobile gaming’s emergence will alter the gaming industry in 2024 as Web3 gaming advances.

Policies on key platforms such as the Apple App Store, Google Play Store, and Epic Games Store are shifting, allowing for more Web3 games. In light of the EU Digital Markets Act, it is expected that mobile games on these platforms would begin to accept stablecoins as a payment method, primarily benefiting European players. Similar patterns are expected to emerge in the United States market as a result of occurrences such as Epic’s triumph compared to Google.

Growth in the Gaming Token Market

The market capitalization for gaming tokens is presently over $18 billion. Given the current growth rates in the gaming business, this amount may rise to $40 billion or more by 2024. This increase would represent not just the rising monetary worth, but also the growing interest and investment in Web3 gaming.

Integration of NFTs with Blockchain Technology

Blockchain technology and non-fungible tokens (NFTs) are transforming ownership, value, and economic structures in the gaming sector. NFTs use blockchain technology, which is a decentralized and immutable ledger, to validate in-game asset ownership and transaction history.

This integration has made it easy to develop secondary marketplaces for buying and selling digital assets by using cross-platform interoperability and optimizing the usability and value of digital assets across several games and virtual worlds. Furthermore, by providing free play-to-earn games and ensuring that NFTs are optional rather than needed for participation, the integration of blockchain technology with gaming provides immutable evidence of ownership and tackles the issue of exclusion. This strategy encourages Web2 gamers to explore blockchain games, hence increasing inclusiveness.

NFTs are important in Web3 gaming because they enable new income streams, play-to-earn game structures, and decentralized gaming economies. Smart contracts are another aspect of blockchain integration that regulates digital assets like virtual money and items, allowing for safe and open in-game asset management.

Play-to-Earn: It’s Time for a Natural Evolution

Play-to-earn gaming became a prominent trend in 2022, enticing a wide range of consumers with the promise of earning real-world money through in-game activities. However, this approach drew criticism since both game creators and gamers were unduly focused on the ‘earn’ part, often at the expense of true gaming experiences.

A paradigm shift is now ongoing. According to a 2023 report by the Blockchain Game Alliance (BGA), increasing game quality should come first before adopting P2E mechanics. This perspective is shared by Oasys Games director Daiki Moriyama, who recognized the importance of P2E in an interview but underlined its overemphasis in today’s scene. Moriyama believes that using well-known IPs and greatly improving user experience might shift the focus.

Can Azizoglu, CEO of Web3 business incubator Coinoxs, agrees with this growing viewpoint “The Web3 gaming scene is expanding. Players want diverse gaming experiences, not simply P2E,” he said. While P2E remains popular, the sector is expanding to include a greater range of gaming experiences.

The move from P2E to more diversified gaming experiences represents a maturation of the Web3 gaming business. Players choose games that promote interesting gameplay, signaling a shift toward more sustainable and player-centric gaming models in the future.

Player Empowerment

Web3 gaming can empower individuals and open up new economic opportunities in the game business. Introducing Web3 gaming will make gamers more than just customers. They will own in-game assets and have an impact on game development through decentralized governance. Web3 gaming allows players to trade, sell, and utilize their digital assets both within and outside the game. 

Web3 gaming projects also enable players to use their digital assets across several games and platforms that adhere to the same standards. A weapon acquired in one Web3 game, for example, may be easily transferred to another compatible game, enhancing the overall user experience and adding depth to virtual worlds.

DePIN Integration

In 2024, Decentralized Physical Infrastructure Networks (DePIN) will transform Web3 gaming by providing decentralized hosting for game assets, services, and operations. This change improves security by lowering the risks associated with centralized servers and delivering a more stable and robust gaming environment. The decentralized infrastructure allows games to function more effectively and grow without relying on traditional data centers.

DePIN enables users to actively donate resources such as storage and processing power, therefore decentralizing control and promoting a more player-driven environment. This not only builds game networks but also incentivizes participation, fostering a more sustainable and decentralized gaming future.

Play-to-yield Transformation

Play-to-yield models represent a fundamental shift in Web3 gaming, replacing the classic play-to-earn strategy. In this concept, users not only receive incentives for playing but also produce constant payouts by staking or employing in-game assets, much like financial investments. This adds a more strategic aspect to games, with players benefiting from owning and using assets within the ecosystem for long-term profits.

The transition to play-to-yield encourages players to stay involved in a game’s economy, resulting in deeper engagement. By combining staking and yield-generation methods, players may build up real-world wealth over time, linking their success with the game’s growth. This paradigm also creates new investment opportunities, allowing players to actively determine the game’s future while earning reliable profits.

Gaming Interoperability

Interoperability is a key feature of Web3 gaming in 2024, allowing players to effortlessly move assets, characters, and awards between other games and platforms. This functionality improves the game experience by allowing players to carry over their progress and investments across several ecosystems. By removing the requirement for isolated content, players can make the most of their in-game purchases and accomplishments.

Furthermore, interoperability fosters collaboration among game initiatives, resulting in a more expanded and linked gaming universe. Developers may innovate by leveraging existing infrastructures, while gamers get a richer, more dynamic experience. This increased accessibility not only draws a varied range of players but also creates the possibility for cross-game collaborations and new gaming possibilities.

Web3 Gaming Challenges for 2024

In terms of adoption and attractiveness, Web3 gaming has various problems, including the following:

User Accessibility

Complex blockchain technology and wallet onboarding impede Web3 gaming. A smooth and user-friendly experience is critical for growing your audience.

Scalability

Scalability concerns arise in web3 gaming, notably in transaction speed and cost, as players and transactions grow. Overcoming these challenges is critical for widespread adoption.

Regulatory Issues

The laws governing Web3 games are rapidly evolving, potentially causing legal and compliance issues. Ensuring that different rules are followed is an important component of attracting a large number of people to play Web3 games. Industry stakeholders and regulators must establish clear regulations to promote innovation and compliance. Web3 gaming must strike this balance to grow sustainably in 2024 and beyond.

Engaging Game Experiences

Web3 developers must design interesting, engaging games that complement rather than define blockchain technology. Maintaining casual and serious gamers’ interests necessitates striking a balance between innovation and accessibility.

Monetization Opportunities

The play-to-earn paradigm creates new income options, but they must be appealing and accessible to a wide range of players. Web3 gaming must strike a balance between income and user experience.

Closing Thoughts

To summarize, Web3 gaming is expected to transform the game industry in 2024 and beyond. With the emergence of decentralized technologies such as blockchain and an increasing need for player-centric experiences, Web3 games provide a look into the future of gaming. Whether it’s earning real-world money through play-to-earn mechanisms, exploring immersive metaverse worlds, or owning rare virtual items via NFTs, Web3 gaming offers exciting options for both players and developers. As the business evolves, we should expect even more innovation and originality in the realm of Web3 gaming.