Over the past decade, the gaming industry has gained considerable momentum. The gaming industry generates greater revenue than the film, music, and entertainment industries combined. By 2021, the gaming industry had generated revenue of $198.40 billion.
Increased smartphone usage is a significant contributor to this rise. Consequently, this enables the gaming community to reach previously inaccessible demographics. Due to these factors, iOS and Android are the most lucrative platforms for the gaming industry.
What is Web3-based Gaming?
Web3 is the next generation of the internet, fueled by blockchain and other decentralized technologies.
Web3 will attempt to modify these regulatory mechanisms’ operation. As there is no central authority, there will be no management. Towards this end, users will regain control.
Web3 Gaming combines the decentralized internet with Gaming. To make Gaming more accessible to a larger audience, Web3 game developers incorporate play-to-earn mechanics, NFT assets, and decentralized user data.
To develop a successful Web3 game, you will require the following three elements:
Blockchain is comparable to a decentralized ledger. Distributed ledger technologies such as blockchains cannot be hacked like centralized servers, so they can store data in decentralized blocks.
Consequently, data stored in the blockchain is more reliable. Additionally, it is less susceptible to downtime and security issues.
Tokens are a form of digital currency derived from existing cryptocurrencies.
Similar to “in-app coins” in mobile games and applications, these can unlock additional features and levels. Tokens can be used to purchase weapons and power-ups or to unlock previously inaccessible content.
Most tokens can be exchanged for digital currency (this plays a massive role in Web3 gaming). In some instances, tokens can be directly exchanged for fiat currency.
NFTs are utilized as proof of ownership (mostly digital assets.) Since this evidence has already been added to the blockchain, it cannot be altered.
For instance, the blockchain will record your purchase as proof of ownership if you purchase a digital work of art created in the NFT format from an artist. Anyone on the blockchain can view proof of ownership of the artwork you just purchased.
Three primary factors will cause the widespread adoption of Web 3.0 games:
Web3 will transform the gaming industry for numerous reasons. There are three examples listed below.
Regarding Web 2.0, a handful of powerful institutions wield enormous influence (mostly developers and shareholders.) These bodies determine the fates of the people.
Once Web 3.0 is implemented, everything will drastically change.
Consider the example of gaming DAOs to illustrate this concept. Gaming DAOS refers to Web3 projects administered by player communities. The authority in these groups is shared rather than held by a single individual or group. Governance tokens are used to make decisions, and token holders have a say in how these tokens are utilized. Thanks to intelligent contracts, most transactions are crystal clear and simple to comprehend.
Web 3.0 will restore user autonomy by implementing systems such as Gaming DAOs.
The majority of a game’s earnings come from IAPs. In-app purchases (IAPs) are a tremendous boon for developers.
In-app purchases, on the other hand, diminish the player’s enjoyment of the game. After purchasing an IAP, a player is only permitted to use it once. It cannot be transferred to another individual. However, money is not everything.
In Web3, however, the “play-to-earn” system permits the player to retain the in-game assets they purchase.
The assets will be NFTs, or non-fungible tokens, which users can trade. As a result, earning money while actively playing the game is now possible.
In this game, only virtual items can be purchased. It is not possible to transfer items from one game to another. So, if a player quits the game, they lose all their assets, including time and money.
With Web3, however, resources will be interoperable. Players can use their accumulated items from one game in another. Since the investments are held over time, the value for the players does not depreciate.
Two Reasons Why People Don’t Want to Make Web3 games
Despite Web3’s promising future, the gaming and game development communities are generally unsupportive.
Two reasons in particular:
The Fight Against Progress
Most businesses are resistant to change. This helps explain why the gaming industry is so hostile to Web3.
Because of the radical nature of Web 3.0, games are frequently used to illustrate this point. In doing so, it will introduce players to a fresh gaming experience. One that allows them to experiment with a different play style.
Therefore, many individuals resist new technologies because they represent change, which is natural.
There have been many scams and poorly executed projects on Web3, leading to widespread criticism of the platform. This has caused a lot of people to lose faith in Web3 games.
However, many promising Web3 gaming projects are currently in development. These Web3 development projects use cutting-edge, industry-standard security protocols. This ensures that the assets and personal information of the players remain safe.
The popularity of playing games online via Web3 is increasing. It’s doing very well for such a young venture.
Both the world and technology are receiving a great deal of attention. Many people have firm convictions about what the future holds.
Some have high hopes for the platform’s future growth because of its play-to-earn mechanics, decentralization, interoperability, and other distinctive features. However, some see this as nothing more than a fad.
However, how things change doesn’t matter because the Web3 development firm is here to stay. It has the potential to drastically alter the way we access the web and engage in online entertainment.