Why Web3 is a natural evolution for Gaming
The world is ever changing, and faster than ever before mainly due to ever-increasing advances in technology. With these changes in technology, a person or businesses ability to adapt and learn is more important than ever. It is often a case of evolve or die. With this thinking in mind, it makes sense that the gaming industry makes the natural evolution from Web2.0 to Web3.0. The gaming industry now exceeds a staggering $300 Billion per year, this is according to the latest Accenture report Gaming - The new super platform. This $300 Billion value means that the gaming industry Is now bigger than movies and music.. combined. But if the industry fails to adapt they could find themselves with a similar fate to BlockBuster, Kodak and Nokia who were super successful, failed to adapt and innovate and ultimately died
“Web3.0 sees the Metaverse come into being, blending the real physical world together with virtual and augmented reality.”
Looking at the key differences between Web2.0 and Web3.0, will help showcase how this shift is a game changer for the gaming industry. One of the fundamental differences is Web2.0 is centralised in the sense that all aspects are governed and operated by centralised authorities (generally large corporations), where as Web3.0 is decentralised, makes use of edge computing, peer-to-peer and distributed consensus, basically no one corporation or person as control. Another key difference is how crypto-currencies can be use to purchase items in Web3.0 whereas Fiat currency is used in Web2.0. In Web3.0 special characters, items and in game advantages often make use of NFT’s which are able to be traded meaning players are able to not only earn money via trading NFT’s but also recoup money when they no longer play the game and choose to sell their “owned” items. Another difference is how AI technology is used in Web3.0, as well as blockchain technology, which is immutable ledger technology. Web3.0 sees the Metaverse come into being, blending the real physical world together with virtual and augmented reality.
Gamers and game creators both stand to benefit from this transition to Web3.0, as it shifts from free-to-play to play-to-earn. Looking at the benefits and reasons why Web3.0 is the future, these reasons include: 1) Ownership of Assets Almost all games have in-app items for purchase, accounting for over 50% of gaming revenue. While typically infinite and sold to the players through In App Purchases, these are never owned by players in Web 2.0 gaming, but rather the game publisher. In Web3.0 these are sold as NFT’s creating actual ownership of these items, whose supply is finite, that can generally be traded within the game marketplace. Players therefore become investors as they own the assets purchased. 2) P2E or Play-2-Earn In Web2.0 games, players don’t typically earn while playing games. Players can however try to monetize their gaming skills through streaming and e-sports. In Web 3.0, players can earn money while playing, through in-game rewards and can monetize their gaming skills within the game itself. Games in Web3.0 will give players real monetary incentives, depending on how good they are at a game. As players complete levels or tasks, they earn cryptocurrency that they can exchange for other crypto-assets or even fiat currency.
3) Interoperability In Web2.0 most gaming eco-systems are closed, and one game does not interact with another. The assets purchased are game specific, and cannot be used in another game. But in blockchain-based eco-systems like Web3.0, there will be projects that will have portability features and users will be able to move between different games and bring their digital assets, such as NFTs in the form of skins, avatars, or weapons, with them to other games. As game creators and publishers consider how they need to adapt and learn so that they can evolve not die, they will know that gamers are always demanding something new. Utilising Web3.0 blockchain technology within the gaming space adds a much-needed layer of interaction and ownership that has never existed before. It is now possible through technology that creates a global gaming ecosystem, places Web3.0 blockchain technology to create a more rewarding, and connected experience. Games that evolve can create a powerful P2E experience that earns players cryptocurrency, and the ability to become investors in the NFT marketplace and not just cost them money. Being a gamer is no longer about being passive, but gives agency to the gamers to control how and why they play and choose games to play.