Though the idea of Web3 is less than ten years old, it is rapidly becoming popular as a foundation for technological advancement. The gaming business, which is growing on its own merits, has provided Web3 with its most receptive customer base and development pool. However, the Web3 decentralized gaming model is particularly vibrant where blockchain technology and web3 game development company meet.
The expansion of independent game studios is one indication of a gaming comeback. As many as 25 new games may be found on Steam every day in 2022, a year of intense game development. Although more than 2,500 game companies exist in the US, game creation is no longer confined to a few gaming behemoths and regions. Instead, several creative teams are exploring various growth paths.
Create a Sandbox Experience with Web3
Gamers may now access user-generated content due to the Web3 idea. For example, modding has proven profitable for developers and quite alluring to players. Microsoft had great success with the need for novelty items and built on the popular gaming structure of Minecraft. Since 2017, Minecraft modification has resulted in a billion official downloads and an increase in revenue of $350M. Then there is an unofficial modification that is free and open-source.
Web3 enhances the pleasure of creating and truly controlling your universe. Several blockchain-based metaverse games that emphasize giving construction options and enabling users to develop unscripted, unique 3D locations already include this idea. The idea worked well for popular metaverse games like Decentraland, The Sandbox, and other virtual settings.
With the correct abilities, practically anybody can create a Web3 world for free, and there is no upper limit to their ability to make money or gain notoriety. The studio would get all the accolades and money in conventional gaming, but Web3 now distributes those things to a new ecosystem of artists.
The co-founder and director of Reddit, as well as a seasoned Internet businessman, Alexis Ohanian, has seen the potential of developing Web3 initiatives. In a recent interview, Ohanian emphasized that content, or the so-called read-and-write element of the Internet, was the reason for Web2’s rise. “The third aspect, ownership, is the subject of all the Web3 gibberish we see.” Ohanian views gaming and NFTs as the foundation of an infrastructure that will have far-reaching effects in the future.
Web3: The Ownership Value Formula
Owning your resources and value is one of the principles of Web 3. In video games, there are several methods for the player to produce a limited resource. Decentralized records may include information on developing new worlds and metaverse land plots, crafting, equipment improvements, and character levels. Even the amount of time a player spends playing the game could affect his or her balance.
Playing video games already results in endless hours spent honing one’s skills. Consider the recent blockbuster Elden Ring. Nearly 500,000 players spent hundreds of thousands of hours learning the game and trying out different tactics.
In 2021, gaming activity rose by 14%, according to a recent poll. Players play video games for almost eight hours and twenty-seven minutes per week. With more than 8.8 billion hours of streaming games seen annually, some players attempted to monetize their gaming using Web2 channels and social media.
However, there are many more approaches to reap the benefits of gaming and monitor one’s development. The blockchain is the ideal technology for securely encrypting gaming accomplishments, so they can’t be changed or deleted. Players can start their streams to earn money from their playing time. Instead, users may use several strong technologies to tokenize them on the blockchain and transform their gaming progress into an asset. Numerous game genres now have the potential to be tokenized, including chess competitions using NFT and tokens, riddles, and simulated sports.
What Equipment Will Be Used for Web3 Gaming in 2022?
Web3 gives enough capabilities for you to carry your worth and accomplishments with you, so it is no longer simply vaporware. In return for your typical online activity, lightweight cryptocurrency wallets may now connect to the app you use and virtually effortlessly raise your balance. Blockchains operate continuously, and smart contracts can listen to events and distribute money. Thus the infrastructure is already in place.
There are two main ways that a blockchain might reward users. One is via disbursing tokens, which function as virtual currency and provide the game some intrinsic worth, additionally, by producing one-of-a-kind NFT products influenced by gameplay. For instance, a rare or special non-fungible token (NFT) may be created from the hours spent improving your gaming character’s gear, enchantments, talents, or other stuff. This NFT can then be sold or preserved as a store of value.
What is the Problem With the Play-to-Earn Model?
Developers of blockchain-based games already have all the necessary tools to transform a user into a source of wealth creation. This led to compensated video game playing. The model had tremendous promise for a few months and inspired a lot of excitement, particularly for the Axie Infinity game. At one time, earning a respectable monthly income from playing Axies might spark a gold rush.
This quickly caused a few issues. Players received bitcoin tokens to exchange for cash. However, all of the selling upset the ideal economic model, and the token price dropped.
The second issue is that some conventional players have reservations about utilizing cryptocurrency. Even in the best-case scenario, there may be a high learning curve before people fully understand how to use cryptocurrencies. Therefore, companies must be proactive in their user cultivation process rather than putting their prospective customers on a difficult route that requires them to study cryptocurrency first and then return to the game. Projects like EVOS.gg already provide a smooth onboarding process, with a dedicated wallet created for the player to collect tokens and NFT rewards. No need to go to a cryptocurrency exchange, comprehend networks and fees, or make any upfront purchases.
The most crucial thing to avoid is copying a model where individuals play to extract as many tokens as possible by devaluing the game. This is not feasible for the game, and there are several instances when the P2E model has already run out while the game development team is just beginning to expand its offering. Adding value should be the main focus of Web3, as opposed to trying to get as much as possible out of a game until it becomes unplayable.
What the DAO Changes for Gamers: Web3 and Voting
Web3 may develop a new community. Let’s talk about the Decentralized Autonomous Organization, or DAO. Here, the community may choose the project’s course on its own. There are currently several successful DAO instances where asset owners may cast votes and control the enterprise.
This new style of governance replaces the corporation’s secretive decision-making process with a technology center where every decision is transparent and available to the whole community. This structure’s entry point is, again, ownership. As a result, there is two-fold participation—once via ownership of a portion of the project and again through decision-making authority over it.
Blockchain voting parallels shareholder rights in certain ways, but DAO is considerably more democratized, with nearly no restrictions on ownership due to location. Additionally, shareholder votes need human intermediaries and do not naturally occur on the blockchain. A DAO requires a well-designed collection of smart contracts with clear and predictable code.
The answer to the query of individual involvement is DAO. One of the key elements for Web3 is the need to purchase assets, which are sometimes expensive, without a real game in development. Investors in Web3 development companies have expressed great concern about this, and some of the projects raised money before turning out to be nothing more than money-grabbing schemes. Others, however, provided the benefit of early access before developing a sophisticated, breathtaking center of value and enjoyment. The early investors received reasonable compensation for their foresight, perseverance, and, of course, assuming an asymmetric risk with a high potential gain.
It’s optional to take part in a DAO with an expensive NFT. Token ownership is sufficient in certain cases. However, it brings up an intriguing point: on Web3, every user has some stake in the outcome. Fans who are willing to give value up front and make their own niche in Web3, whether it’s a DAO, a metaverse location, or a gaming economy, are an important part of the curation and decision-making process.
Players may also demonstrate their allegiance by staking or voting when they generate NFT or tokens depending on their gaming. They will not only be game consumers in Web 3 games but also share in-game ownership.
Does Web3 Require Players to log in?
Many initiatives attempt to position themselves as exclusive club and demand a large buy-in. And for some people, it fostered a feeling of exclusivity in a crowded information economy. However, it is possible to leverage Web3 capabilities without making a substantial initial expenditure.
Players may begin developing while having fun and attaining goals. After that, they may finish the content, own it, update it, and sell it if they want. Games can be made better for how tokens work and how much they’re worth. Still, they may adopt a play-to-earn strategy that converts the gaming experience into NFTs, instant rewards, and long-term voting rights.
The significant upfront expenditure gained a “cool” component due to initiatives like the Bored Ape Yacht Club. BAYC avatars, which can be bought for more than 100 ETH, are one of the most important crypto societies. The effect of the NFT collection was also boosted by ApeCoin (APE), which tied everything together with a metaverse-based game.
Another option is to put the game first, with the value following naturally from the competition. There’s no need to create a buzz since every game has the potential to develop a loyal fan base that will eventually be able to employ Web 3 components. The blockchain gaming industry has all the necessary resources to attract players unfamiliar with or perhaps slightly wary of cryptocurrencies.
And even if Web3 could be the future wave, providing many consumers with a great onboarding experience is crucial. Users may only be clear about the project’s vocabulary and meaning in this manner. Our strategy is to create an entertaining game with the possibility of rewarding success and then provide the chance to complete that progress and engage with the greater Web3 ecosystem.