The gaming industry is poised for a major transformation due to the growing impact of web3. Blockchain technology has already revolutionized various sectors, such as finance and music, and now it’s set to make a massive impact in Web3 gaming.
Web3 gaming has seen a lot of attention recently, with investing and backing going through the roof. Games such as BLOCKLORDS, CCP games’ Project Awakening, and more have seen 8 figure investments!
To brace ourselves for this upcoming wave, we need to first understand the concept of Web3 Gaming.
What is Web3 Gaming?
Web3 gaming, also known as blockchain gaming, is a gaming experience that operates on a blockchain, allowing gamers to have complete control and ownership of their assets. This unique feature enables gamers to participate in truly peer-to-peer in-game economies and steer away from the clutches of centralized authorities.
At the core of Web3 is the ideology of empowering people, granting them ownership of their data and assets, and putting an end to big data companies’ exploitation of personal information for profit. With the advent of blockchain technology, gamers can now own their assets outright, with no centralized authority holding any rights over them. In the realm of Web3 gaming, power is truly in the hands of gamers.
What is the difference between web3 and web2 gaming?
In Web2 gaming, the developer holds all the power and controls the in game economy through microtransactions and pay-to-win models. But the landscape has shifted, with gamers now sitting on the throne, thanks to Web3 gaming’s mechanisms of true ownership of in-game assets and decentralized economics.
This unique feature of 100% asset ownership offered by Web3 gaming is a major draw for the gaming community, as players who invest their time and effort will be rewarded with items that they can truly call their own. Additionally, in-game currencies and tokens now have tangible utility, as players can use tokens earned to vote on decisions regarding the game’s future direction. After all, nobody knows what the game needs more than the gamers themselves. Check out the diagram below to get a clearer understanding.
Describing the integration of blockchain technology into gaming as a mere “positive step” would be an understatement. The advantages of Web3 gaming go far beyond just ownership.
Since Web3 games operate on blockchains, there is minimal maintenance required and no centralized authority to interfere. Additionally, decentralized nodes supporting the network mean that blockchain games are less vulnerable to hacks and experience little to no downtime, allowing players to enjoy uninterrupted gameplay.
With the advent of dedicated gaming chains like Polygon, which have created a seamless, low-latency gaming experience with negligible gas fees and Ethereum-grade security, gaming in Web3 is set to improve even further. The use of blockchain technology also provides transparency and security for online transactions, which is crucial for the sales and trades of in-game assets that can be worth a significant amount.
Features of web3 gaming
Until recently, the notion gaming could be decentralized and self-sovereign was unheard of; the Web3 revolution has turned the tables as we sit on the edge of a new age.’
- Total Ownership
A key theme throughout the piece is the concept of total ownership. As Web3 moves data into the hands of users, the branch extends into gaming, where gamers now have full ownership of their in-game assets.
- Power to the players
As Web3 brings in total ownership of assets, gamers can now exchange them for real-world value! Tokenizing in-game currencies means gamers have a say in how their favorite games evolve and increase involvement in gaming communities. As is the case in Web2, the games with the strongest fan bases survive and prosper, and allowing gamers to contribute to the games they love to play is a key component in longevity.
- Transparency
Transparency is a fundamental trait of blockchain technology that fits seamlessly into the world of gaming. The possibility of having an open view into the inner workings of the system for verifying transactions or contracts fosters trust, which is a vital element of any Web3 project, including games.
Demonstrating a trustworthy environment can increase player retention and attract skilled gamers, leading to the development of a robust gaming community.
Gaming DAO’s
Communities play a crucial role in both the gaming industry and Web3. With the use of DAOs in Web3 gaming, communities can govern themselves and actively participate in the development of their favorite games while also earning a portion of the profits. Gaming DAOs are the result of this.
Individuals who hold governance tokens are considered members of the DAO and have the ability to influence decisions related to various aspects, such as new items, game mechanics, and features. Take a look at the chart above for a better understanding of how it all functions.
There are a couple of types of gaming DAOs:
- Incubators and Accelerators
Typically these DAOs support Web3 games through funding, network connections, and other sources; they act similarly to VCs. They also tend to fund and aid in developing new implementations in Web3 games and tending to the growth of the community and the project.
- Gaming guilds
Gaming guilds have been around in the traditional gaming sector since gamers can remember and consist of communities of gamers who earn a living from gaming. Notable examples would be esports teams, such as TSM, FaZe, and more.
In Web3, gaming guilds play a different role and aim to advance GameFi, to achieve wider adoption. These guilds also engage with communities to establish connections within GameFi, provide scholarships and assistance to players, act as quality controls for other GameFi projects, connect investors to the Web3 gaming market, and serve as a bridge between Web2 and Web3 gamers.
Essentially, they function like venture capitalists but with a focus on smoothing out the challenges associated with blockchain gaming, supporting gamers, and propelling the Web3 gaming industry forwards.
Web3 gaming models:
Blockchain technology and smart contracts allow for endless possibilities when it comes to the structure of games and their mechanics. on the whole; there are 2 frameworks
- Play-to-Own (PTO)
Play to Own is a web3 gaming model, which is much better aligned with the intention of Web2 games. With a focus on creating self-sustaining games to last a lifetime, Play to Own games encourage players to hold onto their in-game assets rather than flipping them for a quick profit by using a range of game mechanics that give assets unique and dynamic traits that change over the course of the games, and decided by players actions. The result being an experience is totally different from player to player and gives genuine value to the time and effort invested.
- Play-to-Earn (PTE)
The play to Earn model is the original gaming model in web3, where players earn tokens/cryptocurrency for simply playing! The model works only when significant time and effort are invested into creating an economically sound token economy, otherwise, players will only sell their rewards, leading to negative price action
Final Remarks
Web3 gaming is still young. According to a study done by Coda Labs, 52% of gamers do not know Web 3.0 gaming terms, and 41% of gamers aren’t sure how Web3 gaming works. We are sure the Web3 gaming revolution will be a turning point in the history of gaming as we move towards a future where gamers have the power! Keep watching the space, and you don’t want to miss a beat.
