The next revolutionary concept that goes in parallel with that of Metaverse nowadays is Web3 gaming with an engaging motto of earning while playing. Web3 games have already started to turn the entire traditional gaming industry upside down, bringing new impactful features and projects to the arena. These platforms allow players to engage with crypto games in decentralized and innovative ways. Furthermore, people can get rewards and money through play-to-earn games and monetize the in-game assets in the real world.
As a result, new revenue streams are evolving, with a promise to regularize in-game ownership through NFTs and other native tokens. And this is undoubtedly an exciting paradigm shift that brings a lot of changes and sets the revolution of the blockchain games economy on the brink of motion.
So, let’s go on and see how the mass adoption of Web3 games and technologies will change the environment of the crypto space and what awaits us in the near future.
What is Web3 Gaming, and How It Works?
Web3 gaming refers to the process of decentralized gaming where various activities of a gaming platform or ecosystem, including the property rights of crypto assets and decision-making abilities in a game studio, are taken away from any central authority or intermediary.
Web3 games are built by incorporating blockchain technology into the gaming ecosystem. Moreover, they allow players to express their opinions regarding the games and participate in the evolvement process. With the implementation of Web3 games, developers also lay down the foundation of the play-to-earn concept, slowly changing it from a pay-to-play aspect by providing tradeable game tokens, asset trading, and limitless opportunities to earn in cryptocurrencies while playing. Play-to-earn games emerging from the blockchain space started to be popularized by game studios like Splinterlands, The Sandbox, and Affix Infinity, which upgraded the entire gaming market by offering an alternative way to generate income.
Furthermore, Web3 gaming introduced various virtual markets in the past year where players can access and get full ownership of in-game assets. These crypto assets are distinctive and are stored in the form of gaming NFTs. Polkadot, Solana, and Steam are famous examples of such markets and platforms.
Key Features of the Web3 Gaming Industry
Typically, Web3 gaming is a value-exchange model where players can create and trade in-game collectibles and objects in the form of unique NFTs using cryptos. But the advantages and provided features are not only limited to this. Below we gathered some of the critical aspects and innovative features of Web3 gaming.
Interoperability and Digital Ownership
The main distinguishing feature of the Web3 gaming market is the self-sovereignty that allows players to control their digital assets within the games. Although players own collectibles and in-game assets in traditional gaming, they lose all of them when changing the gaming platform. Blockchain games solve this problem by providing interoperability between multiple platforms and full property rights. Therefore, the players can own the game’s assets and carry them out to other platforms when needed.
Old Game Integration
Another exciting aspect of Web 3.0 games is the idea of upgrading and integrating older gaming models into blockchain platforms and Metaverse, making them decentralized in nature. Moreover, the gameplay process is personal, allowing players to have their preferred game and community building. It means the Web3 industry offers to update and upgrade old and favorite games by extending them to the Metaverse, where users can create their avatars and trade their preferred in-game digital tokens and related collectibles.
The ecosystems of Web3 game studios run autonomously with zero intervention from authorities and minimal maintenance fees. Furthermore, due to high game data storage facilities and block minting, Web3 gaming is highly scalable and has negligible downtime.
As Web3 gaming uses blockchain technologies for its activity, the gaming becomes a distributed process, making them immune to hacking attacks. Thus, a blockchain-based gaming company depends on voting consensus to change the gaming process and is accessible to all the users engaged on the network. Due to this aspect, Web3 provides high-level transparency.
Gaming DAO: Concept and Types
Decentralized Autonomous Organizations, or DAOs, started to make their first moves in 2021, slowly involving various business industries in their influential circle. And gaming sector is one of the most impacted ones in terms of development.
Gaming DAOs typically function as gaming platforms based on open-source codes. The core feature of these games’ success is that they are not affiliated with any gaming operator or an administrator. It means Gaming DAOs have gamer-driven nature and focus primarily on creating communitarian games.
Furthermore, in Gaming DAOs, the play-to-earn factor rewards both the game developer and the player with in-game digital tokens.
Gaming DAOs generally can be classified into three primary categories:
One of the most popular types of DAOs is Gaming guilds. They constitute a well-organized multi-game clan, informal community of players, e-sport teams, etc., that engage in play-to-earn concept on the communitarian ground. Gaming guilds are financialized as they function like investment clubs: the players and participants share the gaming guild’s funds to purchase and acquire in-game assets and tokens. Later these assets are used for participating in popular games and collectively earned revenue is split among all players.
Another well-known type of Gaming DAO is that of developers, which venture into various Web3 game developments on a general platform. These types of DAOs define the conditions and terms of game development through smart contracts. DAO smart contracts mainly entail creating and moderating in-game voting, auctions, and gaming content policies.
Accelerators and Incubators
An evolving class of accelerators and Incubators is the next most prominent type of Gaming DAOs. They primarily focus on growing Web3 game platforms by offering their expert knowledge to its founders. Moreover, these expert accelerators and incubators provide funding to develop new gaming ventures by bringing together all gaming investors and stakeholders to expand the Web3 gaming economy and marketing value.
Good-quality and non-harmful video games can offer various benefits, especially for teens and children. For example, they can encourage teamwork when gaming with others, provide fun and social entertainment, develop technology, reading, math, and problem-solving skills, and improve motor skills and hand-eye cooperation.
Also known as play-to-earn games, a Web3 game is a digital game that uses blockchain technologies for its activity. Such games offer shared ownership and the ability to earn passive income while gaming or selling tokens they were rewarded in the play.
Web3 is the upcoming generation of the World Wide Web that is based on the blockchain platform and has publicly available distributed ledgers. In addition, it incorporates the concepts of token-based game economies and decentralization to increase the scalability, data security, value, and privacy of the gamers community.
The way Web3 games revolutionized the traditional gaming economy and concept is evident to anyone. Due to its decentralized nature, people can easily play these games via cryptocurrencies or other non-fungible tokens and receive rewards when winning or just gaming. As a result, the supreme power in this blockchain gaming concept belongs to the gamers who own and control the in-game digital assets and tokens.