The journey of gaming began with basic simulations in the 1950s, but it was brands like Sony, Nintendo, and Sega that truly transformed the industry. What started with simple pixelated screens has now blossomed into the high-definition, fast-paced experiences we can’t get enough of today.
The online gaming world never stays the same, and Web3 is the newest kid on the block. It all kicked off with crypto payments in the early 2010s, and now blockchain is making its way into the fray. We saw the first signs of this with games like CryptoKitties, but it’s evolved past casual games.
The betting world is also embracing blockchain technology, with online casinos already benefiting from its secure, tamper-proof transactions. Although traditional, land-based casinos have yet to fully adopt these innovations, it’s only a matter of time before even your local casino integrates Web3 solutions to enhance player experience and transaction transparency.
This shift presents multiple benefits for both players and developers. However, before seeing how Web3 has evolved the gaming sector, we first need to understand what it really is.
What is Web3?
Our modern-day internet wouldn’t exist without its earlier versions, Web1 and Web2, laying the foundation. Web1 was the “read-only web,” where computers and the people using them could only exchange basic information. Then came Web2 in the 2000s, making the internet far more interactive.
This was the era of platforms like Facebook, Twitter, and Tumblr, where everyone could share, post, and engage. However, as Web2 flourished, there were issues like privacy concerns, censorship, and centralization. That’s where Web3 steps in.
Web3 is the internet’s way of fixing its past mistakes. It is designed to be decentralized and put users back in control. It’s a whole new philosophy built on the foundation of blockchain and distributed ledgers that will change how we connect and share online.
How Web3 Will Evolve the Gaming Industry
With every passing day, Web3 unlocks new possibilities, paving the way for gaming to evolve in ways never thought of before.
- Ownership of Digital Assets
Gamers have long aspired to truly own in-game objects. Thanks to Web3, this dream could very much come true.
With blockchain technology, items that you acquire in the game such as skins, characters, and weapons, can be tokenized into NFTs, allowing you to hold digital ownership of them.
This makes them tradeable, sellable, and even usable across various platforms. The Sandbox and Decentraland are leading the way in offering players this kind of digital ownership.
As of 2024, these virtual worlds have already seen millions of dollars in transactions, with players buying and selling land and assets as if they were physical property. You can actually make a profit by selling your rare items or land, this allows players to turn their hobby into a potentially lucrative venture.
- Fairer Gameplay
Web3 gaming will also enhance fairness through smart contracts. These are self-executing contracts with terms predefined in the code.
In the past, players would complain about biased algorithms, cheating or unfair mechanics. Web3 came along to address these issues by using smart contracts to ensure every action within a game is transparent and can’t be tampered with.
For instance, Gods Unchained, a blockchain-based trading card game uses smart contracts to verify card ownership and ensure fair trades.
- Monetizing Through Play-to-Earn Models
Web3 is shaking things up in the gaming world, making play-to-earn (P2E) games more than just a fun pastime. Now, gaming can put real money in your pocket. By completing challenges, topping leaderboards, or winning matches, you earn crypto or NFTs that hold real-world value.
Games like Axie Infinity are leading the charge. In this game, you collect, breed, and battle digital creatures called Axies, each a unique NFT. This means you truly own your in-game assets, no strings attached.
The game runs on two main tokens, Smooth Love Potion (used to breed Axies) and Axie Infinity Shards (AXS), both of which you can trade on crypto exchanges. The tokens are tradable on various crypto exchanges, translating in-game success into real-world gains.
- New Business Models for Developers
The gaming economy today mostly relies on selling games and offering in-game purchases. But with Web3, a whole new world opens up, allowing players to invest directly in a game’s economy and even profit from its growth.
Developers now have the chance to create token-based systems where your participation helps shape the game’s future, and in return, you earn tokens that could skyrocket in value.
Take Illuvium, for example, built on the Ethereum blockchain, this game has its own token that fuels the entire ecosystem. Players can buy, sell, and trade these tokens, with the game’s profits partially going to those who hold or stake these tokens.
More to Come from Web3
Web3 gaming is still finding its footing. The technology is in its early days, with scalability, accessibility, and user experience still major hurdles. But remember, the internet has faced much bigger challenges and always found a way forward. Web3 is no different. With time, it’s sure to figure it out and make its impact.
