Web3 & The Future of Gaming
As blockchain technology and decentralized finance (DeFi) continue to evolve, the concept of Web3 has emerged as a new paradigm for the internet. This article explores how Web3 has transformed the gaming industry, from enabling new forms of ownership and monetization to creating more open and accessible gaming experiences for players around the world.
Web3 gaming is one of the most exciting new industries that has already revolutionized gaming experiences, although it has not yet reached its full potential. Web3 gaming is a gaming model based on value exchanges that allows users to own and exchange virtual items and collectibles built on unique digital tokens, cryptocurrencies and NFTs. Through the integration of blockchain technology, NFTs, and Defi into virtual gaming, Web3 games provide a platform where players and game designers can collaborate and take control of their experience.
A report released by DappRadar, a leading provider of decentralized application data, estimates that the Web3 gaming industry will be worth $1 billion by 2025 as the number of players increases rapidly. In addition to its expected growth rate of 9.2% by 2025, the industry is growing at one of the fastest rates globally, growing at 7% annually. In response to the rise of Web3 gaming, the industry is attracting funding from venture capital companies and gaming organizations who have recognized the potential for this sector. This is no different when it comes to mobile gaming.
A new survey reveals developers believe that incorporating Web3 will help them acquire and retain users, which points to them adopting it sooner than later. But the advantages of Web3 games for developers and gamers do not stop there. With blockchain technology, games can provide gamers with actual ownership rights, financial opportunities, and an interactive feedback loop with studios, among other things. No data is tracked or sold to third parties, and everything is encrypted and non-identifying. Web3 concepts such as sovereignty and collaboration also offer gamers the opportunity to maximize the value of their time and effort invested in games.
With that, one might wonder, what does the future look like for Web3 gaming? And will it continue to impact what we know as traditional games? More importantly, will gamers embrace Web3 gaming?
The Future of Web3 Gaming
At this point, we are certain that blockchain technology will undoubtedly play a large role in gaming in the future. In particular, gamers are starting to understand that they should be compensated for their time investment, which is encouraging them to lean towards Web3 games more.
The blockchain has been hailed for its decentralization and ability to eliminate the need for intermediaries in online transactions. Giving people control over their online activities and securing their data on decentralized platforms is an obvious choice for gamers wanting to immerse themselves in games without being tied to their creators.
Another key characteristic of blockchain technology is immutability, which ensures that the network will stand the test of time unaltered. Even though the technology is still in the early stages, it assures creators that they will not have to remodel and rework games just so they can keep them on app markets.
Blockchain entertainment firm Coda Labs conducted a survey targeting game developers and gamers in separate groups to find out what they think about Web3. The results of this survey showed that a majority of the developer survey participants believe Web3 gaming is coming to their firms, with 75% planning on working on Web3 projects in the future. Additionally, over half of those who responded to the survey believe Web3 will revolutionize gaming.
Yet, barriers remain. When asked about the main challenges of Web3 games, players pointed to practical issues, such as not being familiar with the way Web3 games work. People most familiar with Web3 were also concerned about scams and the high costs of participating in Web3 gaming.
It’s undeniable that some things require improvement over time in order to achieve widespread acceptance. However, because Web3 games offer so many benefits, the technology is gradually changing the way we play games, earn points, and take ownership of them much sooner than we expected.
Once Web3 infrastructure catches up to Web2 capabilities, blockchain-based gaming will return to the market with a new face. However, in order for these games to become popular, they will need to build communities of players, which is why they should examine the current bull market for a lesson in how not to communicate.
Now, as we move into the next era of technological advancement, the Metaverse, NFTs, and Digital Asset Organizations (DAOs) are all integral parts of Web3 gaming, but it is the notions of decentralization, privacy, cryptography, and ownership which are attracting the gaming industry to Web3 technologies and opening up new markets.
Tapping Into The Lucrative Web3 Gaming Market
For the players, traditional games are merely costly (yet popular) entertainment options that lose their meaning and value as soon as the game ends or the player quits. Additionally, the in-game items they’ve acquired become completely worthless. That is not to say, however, that the Web2 gaming industry is not worthy of attention, since its global market is larger than movies and music combined and Web3 is already transforming the sector, though it is a long way from reaching its full potential.
Whether it is through the possibility of earning money while playing or providing novel mechanics, companies are using the technology to create new experiences for gamers. Although, transitioning from Web2 to Web3 is not as straightforward as it might sound.
As blockchain technology slowly brings gaming into the Web3 era and offers gamers and players previously unimaginable benefits and opportunities, game components, such as development, financing, distribution, internationalization, and design also change.
While it is true that games built on Web3 are meant to create an environment that allows Web2 developers and players to seamlessly transition to Web3; every day, new trends emerge for the best Web3 games, complicating the decision-making process for creators even further. Nevertheless, as decentralized gaming platforms like Ajuna intervene to facilitate the development and adoption of top-notch decentralized games, it will not be long before the entire gaming industry migrates to them.
Ultimately, game development studios strive to assist game developers in creating excellent blockchain games for the gaming community, a vision that may not be far off.
Web3 is the future of gaming, and it’s here now. Developers seeking to enter the decentralized gaming market can contact our team at Ajuna and develop decentralized games of the highest quality.