The future of Gaming in Web 3.0 is Exciting
Blog: Think Data Analytics Blog
Over the previous several decades, technological advancements have changed the gaming business. We are on the verge of another huge leap in the game business, and I am thrilled about it! The transition of the gaming industry from free-to-play to pay-to-win will drastically alter the industry’s dynamics. This is why I’ve decided to begin writing down my opinions on it.
While we will discuss the benefits and drawbacks of a Web3 game development sector in another blog post, let me briefly explain what blockchain-based gaming offers and how it may alter the industry.
Quick Peek Into Legacy Gaming Ecosystem
In 2021, the gaming sector was expected to produce about $160 billion in revenue. In the existing gaming business structure, gamers invest time and energy to play games for little to no monetary reward. They buy many in-game things, level up their characters, and reach the zillionth level, but they need the option to monetize their talents or assets in the game. If they stop playing the game, they will be able to do something with the money and time invested in it. So, despite putting in a lot of effort in-game and spending real money, players don’t get to own anything.
Web 3.0 has the potential to alter the gaming business significantly. Gaming in the Web 3.0 environment may allow gamers to earn money while playing the game. In this new era of gaming, if gamers spend money on purchasing an asset, they will own it. They will also be able to sell it to other players inside and outside the game.
Methods for Gaming to Succeed in Web 3.0
1) Asset Scarcity & Ownership
Almost all games now sell in-app utilities, which account for more than half of all gaming revenue. These in-game assets are often limitless and are sold to players via In-App Purchases, or IAPs. Even after paying for these assets, players in Web 2.0 games do not own them in any meaningful sense.
The use of blockchain technology will make it possible to own in-game assets and create a sense of digital scarcity. When Web 3.0 is fully implemented, each asset will have a finite supply, and the participants will own it after the transaction is complete. When a player purchases an investment, the technology ties the item to the player rather than the game, effectively making them investors. Players should be able to sell these precious digital assets to others within and outside the game since they own them.
2) Earn Money While Playing
Players only sometimes make money when playing games on Web 2.0. Instead, players attempt to monetize their gaming skills through streaming and e-sports, both of which entail significant investment. Web 3.0 allows users to earn money while playing and commercialize their gaming talents within the game.
Games will become economies, with players receiving real economic incentives based on how well they do in a game. Players gain bitcoin as they progress through the stages or perform activities, which they can exchange for other crypto-assets or fiat currency.
Traditionally, gaming ecosystems have been categorized with one game not interacting with another. Typically, elements from one game cannot be used in another. However, in the blockchain-based ecosystem, there will be projects that complement one another with portable characteristics, and users will be able to switch between games. They can transfer their digital assets to other games, such as NFTs, in the form of skins, avatars, or weapons.
Underlying Technologies/Utilities in Play
NFT is a technology that permits digital asset scarcity and ownership like any other digital money. NFTs can be saved in the wallet and transferred between wallets. In-game assets will be transformed into NFTs in blockchain-based games, allowing asset ownership. Similar to RPG or role-playing games, assets are categorized into common, special, rare, epic, and legendary. NFTs can define rarity in Web 3.0. The best players in the game will collect the rarest NFTs and sell them to others.
Tokens will be the currency upon which the entire game’s economy will be structured. These tokens will encourage every member of the gaming ecosystem, whether it is the team that creates the game, the community that helps support it, or the people who play it. As the token’s value rises, everyone benefits. This, in turn, would lead to the game’s expansion. Players can trade their tokens for real money via trading platforms after earning and reaping the advantages of their hard work in the game.
3) The Blockchain
Blockchain is often open, permissionless, and immutable. Anyone can interact with it and develop on top of it. Building bricks, similar to Legos, can be stacked on top of one another. Similarly, the nature of openness and freedom allows one to create a game over another, making the gaming ecosystem interoperable.
Metaverse itself will be driven by Web 3 technologies such as blockchain. The metaverse can also be viewed as a virtual representation of the real world. Avatars are virtual representations of players that allow them to interact with places, things, and other players. Items might be transferred between multiple games and game universes via blockchain, resulting in a digital multiverse. Simultaneously, the game business will expand with the number of Web 3.0 users. If you are looking for a web3 development company? Then feel free to contact us.