Overcoming physical challenges, keeping in step with the song’s rhythm, exploring different worlds, strategic warfare, sports games, and solving complex puzzles are just among the many gaming types out there.
About three billion people were playing some kind of video game in 2022; gaming can help you feel mastery or control over something, improve mental dexterity, stimulate creativity, help you become a better problem solver, develop social skills, and even help you earn money through streaming or pay-to-win games. Amidst all this, people are now engaging in web3 gaming. Let us help you understand what web3 games are and if you should invest in them.
What is Web3 gaming?
Web3 is the new internet; an extension of cryptocurrency, using blockchains to reach new ends and goals. Web3 gaming, also known as blockchain gaming, on the other hand, uses blockchain technologies to decentralize your ownership of in-game currencies and assets, such as character skins or rare items. Decentralization also gives rise to pay-to-earn gaming models, as you earn cryptocurrency upon playing or leveling up in-game.
In traditional gaming, developers own digital assets and rights on centralized servers and permit you to use them based on their discretion. However, with web3 gaming, You can trade and use these assets or currencies outside the game. Cryptocurrency payments, distributed ledger technology, NFTs (non fungible tokens), and smart contracts ensure transparency, secure transactions, and user control over in-game assets.
Smart contracts manage the transfer, ownership, and trading of in-game assets. They are programmed to automatically execute specific actions when conditions are met, such as selling an asset, while digital currency wallets house your assets and collectibles.
Web3 gaming allows digital scarcity, meaning you can make your asset rare, unique, and valuable. As you store items on the blockchain, they cannot be tampered with or replicated, so there is no inflationary pressure, unlike in traditional gaming, where developers print more copies of rare assets or items.
Trending Web3 Games
Here are a few examples of Web3 Games.
- Stella Fantasy
Stella Fantasy, set in the fantasy world of Verania, is a pay-to-earn action-based RPG developed by ring games. Here, the second princess goes on an adventure to find an answer to “What do I need to make people happy?” It features over 120 unique characters with special abilities. Players can collect, own, trade, and earn rewards through NFTs or in-game tokens.
- AlterVerse: Sky City
A virtual world, set in the immersive Altverse metaverse, was built using the unreal engine 5. It is an MMOSSG (Massively Multiplayer Online Social Sandbox Game) where you can engage in multiple minigames or activities, such as buying land, shopping for unique items, customizing homes, socializing with other players, and crafting and trading NFTs.
- Tiny World
Tiny World combines NFTs, DeFi (decentralized finance), and gaming to create the stunning Arronian empire and isles. You can collect over 100 tiny hero NFTs and battle your way to the top of leaderboards. You can earn in the tiny world through the following:
- Tiny NFT yield farming
- Asset yield farming
- Collecting tiny NFTs and selling them on the marketplace
- Staking toke
- Trading items
- Playing tiny games to win leaderboard prizes
Why You Should Join Web3 Gaming
Here are some benefits of investing in Web3 Gaming.
- Transparency and Fairness
In Web3 gaming, blockchain technology lets you record every transaction, trade, and in-game activity on a public and immutable (records remain unchanged) ledger. This means somebody will verify all your transactions, and you can quickly identify and address any manipulation, theft, or cheating.
Because of its decentralized nature, developers cannot change or manipulate game rules or the economy without community consensus. Players play a significant role in shaping or contributing to game updates, development, and ecosystem improvement as smart contract changes require agreement from the community, typically in the form of voting mechanisms.
- Monetization Opportunities
Pay-to-earn models have created income-generation opportunities, an alternative to traditional employment models. Players can earn tokens by completing quests, winning battles, and achieving milestones that have real-world value.
Developers can also monetize their games by selling their in-game assets as NFTs, offering premium services, or introducing transaction fees for trading. Its decentralized nature allows you to share revenue equally among contributors such as artists or creators, making it more inclusive.
- Innovation and Creativity
Creators are no longer bound to constrictive licensing agreements and can build on existing games and assets. This, along with its decentralized platform, allows collaboration and creativity. As you can easily exchange ideas on projects, it encourages innovation and helps community building. Blockchain technology also allows developers access to data and insight to improve their games and implement advanced gaming features.
- Sustainability
Web3 gaming prioritizes sustainability over short-term profit as the platform is community driven; it ensures a stable gaming future by reducing the risks of the game being shut down or abandoned because of a centralized company.
It also includes environmentally friendly practices, such as using proof-of-stake (PoS) consensus procedures instead of energy-intensive PoW algorithms used by traditional blockchains.
- Interoperability
Interoperability allows different technologies to communicate or work together regardless of their platform. In web3 gaming, it enables players to quickly exchange or transfer their in-game assets between other games and platforms. It encourages new earning opportunities because it expands the decentralized marketplaces. You can also reduce costs as you no longer need to own multiple game copies on different platforms and can transfer data without losing your progress.
Challenges to Web3 Gaming
A core issue with Web3 gaming is technical complexity; you need a thorough understanding of blockchain technology which can complicate the onboarding process. As the use of blockchain technology in gaming is a new concept, few resources and guides are available for players. It is also challenging to build and maintain a decentralized platform.
The high cost of entry, such as the cost of purchasing NFTs, also deters many players. Players often don’t understand how these games generate revenue, so they cannot make sustainable business decisions. Because of its short-term value extraction economic model, the gaming economy collapses when all the participants’ earnings increase.
Another challenge is scalability. Servers must handle massive data and transactions while running the game cheaply and efficiently. The performance is often slow and expensive, with long wait times for transaction fees, high transaction costs, and bugs and technical issues due to evolving technology negatively affecting gameplay and user experience.
Endnote
Web3 gaming has already made leaps in the gaming industry by integrating blockchains, decentralization, and metaverse while also empowering the financial aspect of gaming. As blockchain technology continues to grow, so does Web3 gaming. For every challenge that arises, new solutions are developed. By using innovative and creative ways to address these challenges, developers can enhance your gaming experience.
