Web 3: The Future of the Gaming Industry
Over the past several decades, technological advancements have completely transformed the gaming industry. We are currently on the verge of another exciting development in the gaming sector as it transitions from free-to-play to play-to-earn, which will fundamentally alter the structure and revolutionize the industry. Thanks to Web3.
The third generation of web technology, known as Web3, uses the blockchain platform and is an established internet innovation that enhances machine learning and artificial intelligence (AI) applications. Web3 is dependable and quick, offering more user-relevant data, given its decentralized design. The internet is about to experience a significant change as virtual assistants are introduced with Web3.
According to experts, the gaming industry is predicted to be worth $125.7 billion by 2025. This value is predicted to rise even higher if Web3 is fully adopted, as Web3 will be an innovation that will enable players to play and participate in games in unusual ways by enabling users to own in-game assets. In the existing gaming industry structure, gamers spend a lot of money on in-game purchases to build characters, increase their game levels, etc. Yet they are unable to directly monetize their abilities or assets in the game. However, these restrictions are surmountable because Web3 offers stronger potentials, such as;
GameFi & Play-to-Earn (P2E)
The gaming industry is harnessing Web3’s potential and combining gaming with finance under the term GameFi. GameFi is a platform that allows game players and creators to generate value for themselves through games in the form of cryptocurrencies and non-fungible tokens (NFTs). These games are typically hosted in online spaces known as “metaverses.” Play-to-Earn (P2E) is a phrase and a model frequently utilized by GameFi platforms, and it rewards you for simply playing, in contrast to play-to-win games where users must pay to enter and progress through gameplay. Players typically need to finish tasks, such as completing daily missions and winning battles, to receive rewards because the further you advance, the more cryptocurrencies and NFTs you will gather as digital assets. These assets have worth and can be bought, sold, and traded in the market. One of Metaguild’s partners, Axie Infinity, was the first gaming metaverse project to successfully implement the P2E model on a significant scale. Aside from this, a gamer can enjoy and earn money from other Play-to-Earn games. According to Metaguild, some of the best Play-to-Earn Games in 2022 are; Cometh, Skyweaver, Spider Tank, Immortal Game, etc.
Walk-to-earn games are also available on GameFi. The primary idea behind these games is based on the seemingly simple idea that you walk around while collecting virtual assets, instead of actually playing the games. This is another creative technology for paying gamers for something as simple as walking. Several examples of walk-to-earn Web3 games include Sweatcoin, Walken, STEPN, and others.
As a result, Web3 has the potential to fundamentally transform the gaming industry because it will allow players to earn money while participating in their favorite games. With new gaming models such as play-to-earn, if players spend money on an item, they become the owner of it and have the option to sell it to other players within or outside of the game.
Interoperability
Games could not communicate with one another earlier, and the gaming industry was fragmented. This meant that assets from one game could not be used in another game. Utilizing non-fungible tokens (NFTs), including avatars and skins, Web3 enables gamers to quickly exchange digital assets. As a result, this improves player-to-player interaction in the game as well as in other external applications
Decentralization
Blockchain technology links assets to players rather than games, giving players ownership rights to these assets. This protects investments and ultimately ensures fair play in gaming environments. Additionally, it is difficult to manipulate games by exploiting user card information. Its blockchain-based systems provide complete transparency in all transactions, as blockchain enables digital scarcity, access to the digital market, and ownership of in-game assets. There will be a finite supply of assets, and independent game creators can now defeat the dominance of big studios thanks to Web3, which also makes it easier to set up their games in virtual worlds.
In practice, this means that, in contrast to classic games, game developers aren’t the only ones with the power to influence gameplay and the range of the assets within it. You may be confident that once you are the rightful owner of an NFT, you get to determine what to do with it both inside and outside the game. Another advantage of incorporating NFTs into gaming is that your assets won’t be worthless if the game fails or when the developers update the game because you will be able to transfer them to another game.
Game modification and diversity
Web3’s primary goal is to promote game modification. This helps players adjust the game to suit their preferences and requirements. In Web2, it wasn’t feasible, and this advancement in the third generation allows for game modification. With the use of blockchain technology, consumers can participate in the development of game features. In terms of gaming diversity, Web3 game designers will entice people from all over the world, even in underdeveloped countries, enabling them to make money from the gaming industry.
Over time, these players from around the world will be able to earn by playing games, and in addition, games that implement Web3 sooner than their competitors will benefit more.
Finally, it should be noted that the gaming industry is not only predicted to experience significant change but also witness growth. It is projected that the gaming sector will adjust to Web3. As a result, gamers and everyone involved in the gaming industry will gain from this. As the ecosystem continues to expand for more advanced types of game investing, there will be a period of significant improvement to nurture it to support actual gaming acts.
About Metaguild
Metaguild is the first and largest self-funded hardcore gaming guild. We invest in games to secure guild positions and facilitate our players’ success. At Metaguild, we take the best from traditional gaming and speedrunning to the next level: games with open economies backed by blockchain.
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