What is Web3 Gaming: A Beginners Guide

As a beginner, you maybe wondering what is web3 gaming? The web3 gaming industry is a new revolution powered by blockchain technology the same technology powering crypto currencies.

What is Web3 Gaming? 

Web3 gaming supports blockchain technology to create a decentralized gaming experience where players have unprecedented control and ownership over their ingame items.

Here’s the gist:

• Blockchain: This digital record tracks ownership and transactions securely and transparently. Think of it as a giant, tamper-proof record book for your in-game goodies.
• NFTs (Non-Fungible Tokens): These unique digital items represent ownership of your ingame assets  like weapons, avatars, or even land within the game. They’re like one-of-a-kind trading cards on the digital level.

Origin and Evolution of Web3 gaming 

Web3 gaming is still young, but it was rooted in the early days of blockchain technology. CryptoKitties, launched in 2017, was one of the first movers, allowing players to collect and breed virtual cats stored on the blockchain.

Since then, the web3 gaming ecosystem has expanded. New game concepts like “play-to-earn” has come into existence, where players can earn cryptocurrency or in-game tokens through gameplay, adding a whole new economic layer. The rise of the Metaverse has equally improved interest and reach of Web3 games and has made it a more captivating experience.

How Does Web3 Gaming Work? 

Game Development: Web3 games are built on blockchain platforms, with the game logic and assets stored on a distributed network. This decentralization removes control from a single entity and spreads it across the network.

In-game Assets as NFTs: Weapons, avatars, lands, even virtual pets – anything can be an NFT. These NFTs represent ownership, allowing players to freely buy, sell, or trade them on NFT marketplaces, just like physical collectibles.

Play-to-Earn (P2E): This model rewards players with crypto or game tokens for their time and effort. Imagine earning money while conquering quests or battling other players! 

Key Considerations and Milestones

Web3 gaming has achieved some key milestones:

2017: CryptoKitties sparks the initial interest in blockchain-based gaming.

2021: The play-to-earn model explodes in popularity, with games like Axie Infinity reaching millions of players.

2023: Major gaming companies begin exploring Web3 integration, indicating potential mainstream adoption.

Challenges of web3 gaming

Security: The world of cryptocurrency and NFTs can be complex, so be cautious of scams and do your research before investing.

Sustainability: The play-to-earn model has faced criticism for potentially becoming unbalanced or “pay-to-win.” Developers are working on solutions to ensure long-term sustainability.

Accessibility: Entering the Web3 gaming world often requires a crypto wallet and some understanding of blockchain technology. As the space matures, user-friendliness is expected to improve.

Web3 vs Traditional Gaming

Here’s a quick comparison to understand the key differences:

Feature Traditional Gaming Web3 Gaming

Ownership of In-Game Items Owned by the game company Owned by players as NFTs

Trading of In-Game Items Limited or non-existent Freely tradable on NFT marketplaces

Earning Potential Limited to in-game rewards Potential to earn crypto or tokens

Control Over the Game Controlled by the game developer Potential for player-driven governance

Top Web3 Gaming Projects

Axie Infinity: A monster-battling game where players breed, raise, and battle adorable Axie creatures. Axie Infinity is a pioneer in the play-to-earn model.

The Sandbox: A virtual world where players can create, own and monetize their experiences using NFTs. The Sandbox is a prime example of how Web3 integrates with the Metaverse concept.

Decentraland: Another Metaverse project built on blockchain, Decentraland allows players to purchase virtual land parcels, construct buildings, and interact with others in a social setting.

Illuvium: An open-world RPG featuring beautifully designed creatures called Illuvi. Players capture Illuvi, build teams, and battle strategically. Illuvium emphasizes high-quality visuals and engaging gameplay.

Guild of Guardians: A mobile RPG with a focus on auto-battler mechanics. Players collect NFT heroes, build teams, and compete in various game modes to earn rewards.

Opportunities and Challenges: 

Opportunities:

• True Ownership: Players finally have control over their in-game assets, fostering a sense of investment and potentially increasing their value over time.
• Earning Potential: Play-to-earn opens doors for players to potentially generate income through gameplay, especially in developing economies.
• Community-Driven Games: Decentralized governance allows players to have a say in the development and future of the game, fostering a more collaborative environment.

Challenges:

• Complexity: Blockchain technology and NFTs can be hard for newcomers. User interfaces and educational resources need improvement.
• Sustainability: Play-to-earn models need careful design to avoid becoming unbalanced or overly focused on short-term gains.
• Environmental Impact: The energy consumption associated with some blockchain platforms raises concerns about the environmental footprint of Web3 games.

The Future of Web3 Gaming:

The future of Web3 gaming will see:

• Mainstream Adoption: As technology becomes more user-friendly and games offer engaging experiences, Web3 gaming could become a major force in the industry.
• Interoperability: Imagine using your NFT weapons across different Web3 games! Interoperability between games could unlock new possibilities for players.
• Metaverse Integration: Web3 games are likely to be a cornerstone of the Metaverse, creating interconnected virtual worlds where players can easily socialize, play, and own digital assets.

Conclusion 

The evolution of Web3 gaming is based on addressing current challenges and fostering innovation. It’s a space filled with potential to redefine the way we play, own, and interact within virtual worlds.