Web3 is a hot topic of discussion in the technological world. The transition from web2 to web3 is one of the most significant breakthroughs in how we use the internet. Web3 has transformed many industries, and gaming is one of them. Web3 gaming provides a new way of playing games while also giving an opportunity to earn.
Many entrepreneurs are willing to leverage the power of web3 and integrate web3 gaming into their web2 strategy. What are things that they should take into consideration? Let’s understand in detail.
Before understanding web3 gaming and its implementation, it is essential to understand what web3 is. Web3, also known as Web 3 or Web 3.0, is the third generation of the internet, which promotes decentralized protocols and aims to shift the power from big tech companies to individual users.
The first generation of the internet was merely a collection of links and homepages. The websites were non-interactive, and you could only read things and publish basic content for others to read.
Later, with the advent of web2, people could not only open and read the content but also edit and upload their own content for others to consume. Social media platforms like Facebook, Instagram, and Twitter also gained popularity.
Web3 is the latest version of the internet where the users can not only use free platforms in exchange for data but participate in the governance and operation of the protocols themselves.
But what’s the role of web3 in gaming? Let’s elaborate.
Web3 gaming is a field of web3 that offers users the opportunity to earn while playing. Web3 games (also called play-to-earn, P2E, blockchain, crypto, or NFT games) are virtual games that use blockchain as the underlying technology.
These games have in-game assets that the players can earn and own in digital assets like NFTs or cryptocurrencies. These games differ from traditional free-to-play (F2P) or pay-to-play games as it offers asset trading for real-world value.
Web3 gaming is a one-of-a-kind digital experience that offers the players assets having actual value. These assets act as incentives for the users to engage with the games.
A few critical features of crypto gaming distinguish it from traditional gaming. Those features are listed below:
Ownership and interoperability are two features that distinguish web3 gaming from traditional gaming. Blockchain gaming offers the players self-sovereignty over the in-game assets and collectibles they can store as NFTs. Traditional gaming also allows players to own in-game assets, but they lose ownership once they change the gaming platform.
Blockchain gaming solves this problem by providing interoperability between several platforms. The players own the in-game assets and can carry them to the next gaming platform.
Crypto gaming integrates and upgrades older games into the metaverse, thus making them decentralized in nature. It also provides personalization where players have their preferred games. It upgrades the old games by bringing them to the metaverse, enabling players to make their avatars and own and trade digital assets.
As stated earlier, crypto gaming offers personalization and a player-driven gaming experience. The players benefit from this gaming experience in many ways. One of the most important aspects is the play-to-earn concept, allowing players to earn profits from their game performance. Another aspect is the old game integration that helps the players to play their favorite old games in a new way on the metaverse. The third benefit that the players get is self-sovereignty over in-game assets.
Web3 games are decentralized and distributed over a network of computers, making them immune to hacking. As these games are blockchain-based, they rely on voting consensus to improve or modify the gaming process, and all the players in the network have equal accessibility to the games. Thus, web3 games ensure a high degree of transparency.
Web3 game ecosystems operate autonomously, requiring minimum upkeep costs and no interference from any authority. Blockchain gaming provides negligible downtime and is highly scalable due to block minting and large game data storage capacity.
There has been a lot of confusion regarding integrating web 3.0 into web2 business models. However, the gaming industry is considered the primary focus for mainstream adoption of web 3.0.
Here are a few things you need to consider while incorporating web3 gaming into web2 business:
Gaming has a lot of potential to improve brand awareness among the younger generation. Non-gaming brands have realized this potential and started integrating gaming into their strategies. Fortnite x Balenciaga collaboration is a prime example.
But what distinguishes web3 games from traditional ones is that commercial activity is already a core part of them. Thus, these games can take the player from brand awareness to conversion with minimal deviation compared to the standard gameplay.
Companies looking to integrate blockchain gaming into their strategies should take baby steps and expand the experience over time. They should understand how their brand can exist within a traditional gaming environment. Understanding the audience, the games they play, and design activations adding value to the player experience will be helpful steps in the transition process.
Many web2 companies face a challenge in creating awareness for their physical product in a wholly digital environment. But, the financial infrastructure integration in the web3 games and the same NFT marketplace for both physical and in-game item sales has made the user journey from digital to physical smoother.
A thing to note while transitioning your customers from digital to physical is to design an NFT collection with real-world utility. While some brands may find it easier to assign real-world utility to NFTs, others may find it challenging. But it is an essential factor that shouldn’t be ignored because the NFT would be an ordinary image without a real-world value.
A game can remain financially stable only through token and digital assets sales while the number of players consistently rises. Once this number reaches a point of no change, the token value drops, and players start leaving the platform.
Companies can avoid this situation by implementing a skill-to-earn gaming model that rewards players based on their skills and genuine achievements instead of participation rewards. In this scenario, a small proportion of players will make profits, while others will be the net contributors.
Companies must be prepared because web3 games face a backlash because of blockchain’s environmental impact. As a result, blockchain selection, clear communication, and education around the same become essential.
Another concern is the over-commercialization of gaming. Many players in the traditional gaming community criticize the rising number of branded content and monetization strategies integrated into modern games. A similar trend was seen at the inception of the F2P games. But eventually, the number of players opposing the web3 games will reduce. All it needs is exciting in-game activations that do not detract the players from the overall gaming experience.
Selecting the suitable blockchain for the game is crucial because it determines the performance, scalability, transaction cost, etc. Web2 companies with limited knowledge of web3 may find it challenging to understand the technicalities and make the proper selection.
For most blockchain games, organizations can prefer a fast, cheap, and scalable blockchain. Organizations should also pay attention to the blockchain community before choosing the blockchain.
Alien Worlds is a blockchain-based metaverse existing on multiple blockchains like Ethereum (ETH), WAX, and Binance Smart Chain. It relies on NFT and decentralized autonomous organizations (DAO). The primary goal of the game is to travel to different planets and mine Trilium (TLM), the game’s utility token that is also a multi-chain token.
You can stake the token to participate in the governance, i.e., the planets in the metaverse. The more the players staking their TLM on the planets, the higher the reward pool for everyone to earn.
|Founded by||Sarojini McKenna and Michael Yeates|
|Blockchain||Ethereum, WAX, and Binance Smart Chain|
Axie Infinity is a monster-battling game where you combat teams of cute creatures called Axies. The game runs on the Ethereum blockchain along with Ronin, a sidechain helping minimize fees and transaction delays. The game focuses on turn-based battles, either against computer-controlled Axies or the players over the internet.
NFTs are used to represent in-game objects. These cryptographically distinct tokens can be linked to digital content; in this example, the Axies and land plots that occupy Axie Infinity. Unlike traditional in-game products, the NFT grants the buyer ownership; Axies can be traded for real money on the game’s marketplace. You can also breed Axies, which allows you to create potentially more powerful teams and generate more NFTs to sell on the market.
|Founded by||Sky Mavis|
Splinterlands is a blockchain-based collectible card game. You can own every card in the game as an NFT and trade the same using cryptocurrencies like Bitcoin and Ethereum. Winners can earn real money and buy and sell the cards via third-party online marketplaces.
The game works on the Ethereum blockchain and requires players to create an account or connect an existing Web3 wallet like MetaMask to get started.
|Founded by||Matthew Rosen|
Farmers World is a popular crypto game that runs on the WAX blockchain. The game has three in-game tokens: Farmers World Wood (FWW), Farmers World Food (FWF), and Farmers World Gold (FWG). While playing the game, you spend most of your time using NFT tools to get the three tokens, buy NFT plots to cultivate food, and raise NFT animals.
Additionally, you can sell your earned NFTs on the secondary market for WAX. Farmers World is set in the early stages of the strange, ancient civilization. As a player, you must construct your civilization by chopping wood, collecting fish, farming, and mining gold.
|Founded by||G.JIT JAPAN|
|Native token||FWF, FWW, FWG|
The Sandbox is a blockchain-based game that uses several token types to ensure a circular economy between all the types of users interacting with the platform. These users include players, creators, curators, and land owners, and the tokens are SAND, LAND, and ASSETS.
In the game, the user assumes the role of “Deity apprentice” and begins creating their own world by exploring resources such as water, dirt, lightning, lava, sand, glass, and many more complicated elements such as humans, wildlife, and mechanical contraptions. Players must complete chores such as mixing water and dirt to generate mud and obstacles such as building a battery or an electrical circuit. Players can store their worlds and also publish them in a public gallery.
|Founded by||Arthur Madrid, Sebastien Borget|
|Native token||SAND, LAND, ASSETS|
GameFi, referring to the integration of blockchain in gaming for monetization purposes, has seen an explosive growth recently. Its market saw a 194.19% increase in 2022 Q1 funding as compared to the data in 2021. More and more individuals in developing nations are gaining internet access and attempting to escape poverty by earning money online; advances in AR and VR are bringing the metaverse closer to reality – all of this indicates that crypto gaming is positioned for long-term growth.
The gaming industry is experiencing a shift with the advent of web3 games. Their play-to-earn concept has resonated with many, and their demand is steadily increasing. The web3 gaming industry also has the potential to market the brand in novel ways. Many companies are looking to bank on this sector to grow their brand. But integrating crypto gaming into a web2 strategy requires a deep understanding of blockchain and its related aspects. It can be complicated for companies with little or no expertise in the web3 domain. As a result, it is better for them to outsource the service to experienced tech companies.
Idea Usher is a leading technology company that assists businesses in developing and deploying effective blockchain solutions. Our development team has in-depth knowledge of the various blockchain technologies and their applications.
Contact us to witness a smooth integration of web3 into your business.
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Here are a few exciting FAQs about web3 gaming.
Web3 games are video games built on blockchains and work on the play-to-earn model, enabling the players to earn in-game assets while playing.
No, web3 is the third generation of the internet that allows the users to not only read and write online but also own the protocols. Blockchain is a part of web3.
Blockchain-based games have been getting a lot of attention lately. This blog discusses how you can integrate blockchain into gaming.
Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.