The video game industry is on the cusp of structural shift, as the Web3 revolution picks up steam. Web3 technology has already made waves in multiple industries, from finance to IT infrastructure, and Web3 gaming will be the next mammoth development. To prepare for the tsunami, we must first answer the question, what is Web3 Gaming?
Web3 Gaming: The What
Well, what is Web3 gaming, otherwise known as decentralised or blockchain gaming. This provides gamers with full ownership of their assets, and participation in decentralised economies which allows peer-to-peer interactions to reach their full potential!
The foundation of Web3 is to return power to the people, as people are able to take ownership of their data and assets, and retract it from big data companies, who sell our data to the highest bidder without batting an eye. In the realm of Web3 gaming, Web3 technology enables gamers to outright own their assets, without any rights being held by a centralised authority. Power to the gamers!
Why Web3 Gaming over Traditional Gaming?
In the traditional gaming industry, the developer holds all the power and controls the in-game economy, through microtransactions and pay-to-win models. Now the tables have turned, with gamers sitting on the throne. True ownership of in-game assets and decentralized economics.
The mechanism of 100% ownership of assets which Web3 gaming provides is a huge draw to those in the gaming community, as those who put in the time and effort will be rewarded with items which they can truly call their own. Simultaneously, in-game currencies and tokens can now provide tangible utility, as in certain cases, gamers can use tokens earned to vote on decisions regarding the game's evolution. No-one knows what the game needs more than the gamers. Check out this diagram below, to paint a better picture
Calling the integration of Web3 technology into gaming a “positive step” is an understatement. The benefits of Web3 gaming step a lot further than just ownership.
As Web3 games are run on decentralized networks, there is little maintenance to be had and no centralized authority to intervene. Moreover, having decentralized nodes support the network means Web3 games are less susceptible to hacks and have little to no downtime, so game to your hearts content!
With the emergence of chains dedicated to gaming, such as Immutable X, who have managed to create a seamless, low-latency gaming experience, with negligible gas-fees on Ethereum grade security, gaming will only get better in Web3. The use of Web3 technology further provides transparency and security of online transactions, which is important regarding the sales and trades of in-game assets, which can be worth a belly busting amount!
Key Features of web3 gaming
Until recently, the notion that gaming industry could be associated with decentralization, full-ownership and self-sovereignty was unheard of, the Web3 revolution has turned the tides as we sit on the edge of a new age.
A key theme through the piece has been the concept of total ownership. As Web3 shifts data into our hands, the branch extends into the realm of gaming where gamers now have full control of their in-game assets and rights thereto.
Power to the Players
As Web3 brings in total ownership of assets, gamers can now trade them for real world value! Tokenization of in game currencies enables gamers to have a say in the way their favourite games go, and increases involvement in gaming communities. Just as we have seen in Web2, the games with the strongest fan bases thrive, and enabling audiences to contribute to the game they love to play is sure fire way to build a healthy community.
Transparency is a staple characteristic of Web3 technology, and translates perfectly into the gaming space. Whether it's to verify transactions or contracts, having the ability to deep dive into the backend of the system allows trust to be created, which is a pivotal part of any Web3 project, let alone game.
Displaying a level of trust can boost retention and attract skillful players, and inturn contribute to creating a strong community.
Gaming DAO’s and their importance
Web3 gaming also brings about the disruption of DAO’s to traditional gaming communities. It’s evident that communities are a major part of the gaming industry and Web3, as people come together to support something that they enjoy and can get behind. Utilizing DAO’s in Web3 gaming allows self-governance of communities and for gamers to be actively involved in the evolution of their favorite games, whilst also receiving a slice of the pie in terms of profits.
Governance token holders are those who are considered part of the DAO and can influence decisions in a range of categories, from new items, game mechanics and game features. Revise the chart above to see how it all works
There a couple types of gaming DAO’s:
Incubators and accelerators H3
Typically these DAO’s support Web3 games through funding, connections through their network, and other resources and act similarly to VC’s. They also tend to fund and aid in developing new implementations in Web3 games, nurturing the community and general growth of the project.
Gaming guilds have been around in the traditional gaming sector for a while, and consist of communities of gamers who generate an income from gaming. Notable examples would be esports teams.
In Web3, gaming guilds are slightly different and are more focused in progressing GameFi towards mass adoption. Web3 gaming guilds also tend to engage with communities to form connections within GameFi, provide scholarships and aid players, act as quality controls for other Gamefi projects, connect investors to the Web3 gaming market and ultimately bridge the gap between Web2 and Web3 gamers.
All in all functioning similar to a VC, once again, but with a focus on straightening out the rough edges associated with decentralised gaming, supporting gamers and pushing the Web3 gaming industry towards mass adoption
Web3 Gaming Models
Web3 technology allow for a plethora of possibilities when it comes to the structure of a game. Generally, there are 2 frameworks
At BLOCKLORDS, we boast a play-to-own model, used with the intention of maximising fun! As gamers use in-game digital assets to generate digital wealth and improve their own gameplay and enrich the economy of the game, whilst also having the option to sell these assets in the secondary market for real world gain.
Stemming from the X-to Earn framework, in which indiduals perform specific actions and are rewarded for it with digital assets, Play-to-Earn is another popular model, in which players can sell their rewards or use them to further develop their in-game stats.
Web3 gaming is still in its infancy, according to a study done by Coda Labs 52% of gamers not knowing Web 3.0 gaming terms and 41% of gamers aren’t sure how Web3 gaming works, and so for us to move forward, it is important to educate gamers on the why this is the future of gaming. With the developments happening right now in the space, we are sure the Web3 gaming revolution will be a pivotal point in the history for the video game industry, as we move towards a future where gamers have the power! Keeping the intention of Web3 games on fun, is how we move towards this ideal future, and at BLOCKLORDS, we’d have it no other way!