Web3 is often mistaken for Web3.0, both of which, though interrelated, are actually different aspects of the development of the future iteration of the internet. Web3 is the blockchain-based foundation of the internet of the future, which will act as a decentralized infrastructure providing immutable retention of information, the control of personal data, and the complete transparency of all processes within the environment.
Gaming is a gigantic industry, which is being slowly transferred onto the tracks of Web3 to utilize its potential as a basis for the launch of new and innovative types of gameplay. In the given material, we will explore the impact of Web3 on the gaming industry at present and the potential that gaming as a whole can capitalize on by making use of the advantages offered by the decentralized foundation of the internet of the future.
Web3 and Gaming Now
At present, the gaming industry is very slow and reluctant to adopt Web3 as a full-fledged basis for the implementation of grand-scale entertainment projects. Though many Web3 games have been launched since the introduction of such concepts of Play-to-Earn and GameFi, few, if any, have gained sufficient critical mass to be called anything but one-time wonders for a short period of time.
The lack of a proper and compelling storyline, poor and unimaginative gameplay scenarios, lackluster gamer experience, and the insufficiency of funding were the main causes of failure to date. However, another major reason is the inclusion of the overly economy and profit-driven focus of such games, which detracted gamers from the gameplay itself, making them resort to the games for their revenue-generating potential, not the entertainment value. Such a state of affairs automatically leads to the shutdown of the project the moment its native tokens lose value or the game becomes unprofitable by virtue of the appearance of a more attractive competitor.
Other reasons for the current failure of Web3-based games include:
- Lack of player’s knowledge and understanding of the technology, which means users have to be adept at using cryptocurrencies to take full advantage of the Web3 game. In addition, pool education regarding blockchain also means that such games are still seen as profit-generating instruments, rather than as valuable stepping stones in the gaming industry’s development.
- Poor scaling and lackluster performance of blockchains means games based on such networks will experience lag, making them uncompetitive compared to traditional Web2-based games.
- High vulnerability means that Web3 games are susceptible to being hacked or compromised in a variety of different ways, leading to loss of user funds.
- No common standards within the industry means that Web3 games are not compatible and can hardly exchange data per default, thus nullifying one of the main selling points of Web3.
Potential of Web3 for Gaming
Web3 means an automatic incorporation of such technologies as artificial intelligence, virtual reality, and machine learning. Combined, these innovative technologies would allow games to undergo a revolution in terms of gameplay and the diversification of user experience and interaction. The following are some of the main advantages that Web3 can offer gaming:
Graphics Quality
Web3 means that players have access to more entertainment scenarios via the use of virtual reality. The transition to such a visual style would mean that gaming worlds can become virtually unlimited in scale and their graphical quality would surpass anything seen to date.
Blockchain Basis
Player involvement becomes a core element of the gaming industry with the introduction of Web3, since the blockchain basis would mean ownership of in-game assets. Furthermore, players would be able to create in-game assets and sell them on an open market within the gaming world, effectively turning the game into an economy, creating multiple opportunities for capitalizing on creativity, effort and invested time and resources.
The fully transparent and immutable nature of the blockchain would also negate any possibility of fraud. Use cases for blockchain in gaming have already been proven to be viable with the advent of NFTs, which not only allow users to create their own in-game assets, but also provide proof of ownership.
Player Involvement
The decentralized nature of Web3 games means that players not only have agency in the gaming world, but can also participate in game development via DAO-style voting or direct asset creation. With the introduction of designer software into the game, players can create their own styles and offer, or sell, their creations to the developers. Voting on game changes will also be decentralized and user-driven, giving players the chance to not only receive game features they desire, but also get rewarded for their efforts and contributions.
The Economy
Since Web3 is being viewed as a user-focused economy framework, the presence of an in-game economy becomes a central element of the gaming world. Entire gaming ecosystems can thus be established, with data movement protocols facilitating the transfer of assets between economies along with the flow of funds in the form of cryptocurrencies.
Interoperability
The blockchain, once deployed as a basis for Web3, will become fully interoperable, meaning players can transfer assets between games and thus maximize the value of their creativity. Interoperability also means that assets from one game can be used or sold within another ecosystem, with their characteristics transferred in full.
Player-Centricity
Since Web3 is fully decentralized, it means that the players are handed the reins of power over game traction after the developers launch the project. The use of DAOs becomes pivotal at this junction, as players will have the ability to shape the game in the way they please through voting. Such an approach not only enhances the value of the game as an engrossing and engaging activity, but also means players will have a vested interest in it both from a creative and economic standpoint.
Integration and Porting
The blockchain is also a platform that supports porting. This means that old games from Web3 can be converted and ported to work on the blockchain with a host of new functionality. Existing games can be ported to include tokenized assets, thus revitalizing them and reigniting player interest with an entirely new flare and replay value. Such a seamless gaming experience provides new opportunities for players who have the necessary skills and have invested much time in playing specific games.
Key Takeaways
Web3 is an innovative set of technologies that has much to offer both the gaming industry and individual players. The key advantages of a blockchain-based gaming environment extend to a greater degree of security, which would mean that players’ personal data is maintained and they have full control over it, as well as over their funds. Web3 also offers new gaming experiences through the application of virtual reality and the use of NFTs as proof of ownership.
The advent of Web3 can be a game-changer for the entire gaming industry, effectively giving players complete control over the games they play. Such a transition would mark a paradigm shift, opening up thrilling new opportunities for both gamers and game developers, considering that the latter will have near-unlimited resources for turning even the wildest of game premises into virtual reality.
