Almost fourteen years ago, the world was getting acquainted with the concept of digital currencies and trying to make sense of their real-life utility. Despite the initial reluctance, which comes along with any technological innovation, people started to buy Bitcoin driven by a combination of curiosity and FOMO as news about the massive returns amassed by early investors went around the world.
Little did we know back then that Bitcoin and cryptocurrencies as a whole were just the tip of the iceberg and the revolutionary blockchain technology that underpins them would lay the groundwork for a new iteration of the internet (the third one, if you want to keep count) commonly referred to as Web3.
The popularization of blockchain and its expansion across a vast number of fields has paved the way for envisaging a better version of the internet with crypto, NFTs, DAOs and decentralized applications at its core. For a while, that was seen as a distant vision, but now we’re talking about Web3 not as a mere possibility but an imminent reality, and the rise of Web3 gaming serves as proof.
The gaming industry has always been a space open to innovation, relying on the latest tech advancements to expand its reach and ensure a more immersive experience for players. So, the merger between the aforementioned Web3 technologies and the gaming sector comes as a natural step in its evolution and is poised to bring more groundbreaking transformations in the future.
More than entertainment
Everyone who has ever played video games knows they hold huge entertainment value. They give players the possibility to take a break from real life and step into a world of exciting adventures, serving as a relaxing pastime or a form of escapism. However, there’s more to games than fun and thrill-filled experiences. The possibility to earn rewards and gain a sense of achievement is just as compelling to players as the idea of escaping the daily routine.
The play-to-earn (P2E) model is not a new concept in the gaming sector, as many video games were already using a reward system to encourage engagement and participation and build player loyalty. This goes as far back as the Super Mario Bros. games where players earned coins as they advanced through the different stages of the game. Unfortunately, these rewards were confined to each game’s realm and had no value outside of it. That’s where Web3 gaming changes the paradigm of in-game economies by giving them real-world applicability.
Popular Web3 games like Axie Infinity, Decentraland or The Sandbox give players the possibility to earn digital assets like tokens and NFTs that are recorded on a blockchain. These assets are valuable both in the gaming space, where they can be used to complete different actions and beyond it, as they can be bought, sold and traded on decentralized marketplaces. Therefore, Web3 games are not just an easy way to have fun but can also turn into a legitimate revenue source as they allow players to monetize their skills.
True ownership of in-game assets
Another major improvement that Web3 gaming brings to the table is related to asset ownership. The assets one would earn in a conventional game could be used by players but they would remain the property of the game developers. By contrast, in Web3 games asset ownership is transferred to players due to the decentralized nature of the technology that powers them. Whether we’re talking about experience, skins, avatars, weapons or any other asset that is earned in the game, the players get complete ownership and can use them as they see fit.
The innovative framework of Web3 games also contributes to financial inclusion. In developing countries with large unbanked or underbanked populations, playing blockchain-based games gives these individuals the chance to access financial services that would otherwise be unattainable and thus take part in the global economy.
Interoperability
Web3 technologies are not just providing perks for players but are changing the very architecture of gaming as we know it. Since the decentralized nature of blockchain technology removes the need for a central governing authority, there are more opportunities for game developers to collaborate with one another and create a network of interconnected platforms.
This means that tokens and assets that are earned in one game can be transferred seamlessly to other gaming platforms. With players having full autonomy of their assets and the possibility to use them in more than one realm, the gaming experience becomes much more immersive and engaging.
Community driven games
Beyond entertainment and economies, video games have always had the power to bring people together and create a sense of community and belonging. With Web3, the influence of communities on game development is stronger than ever. In this new gaming model, there’s a new take on gaming guilds which were once the catalyst for social interaction and community building – the Decentralized Autonomous Organizations or DAOs.
DAOs are new types of organizational structures where there is no central leadership but the power is spread between community members who employ blockchain technology for the decision-making process. Therefore, the evolution and future of Web3 games are largely dictated by the changes that are proposed and voted on by the gaming community. This gives more power to players and ensures a more transparent, inclusive and democratic approach to game development. Lastly, this also opens up numerous opportunities for experimentation, creativity and the use of imagination in shaping digital experiences.
Final thoughts
Web3 emerges as the new frontier in the gaming sector where play-to-earn models, genuine asset ownership, real-world value, interoperability and community involvement become pivotal in providing a unique and rewarding gaming experience that both versed and beginner players can enjoy. The rise of Web3 games is ripe with endless possibilities that are bound to change how we view and understand the role of gaming in our lives.