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By Dana Sydorenko
Web3 gaming is a new video game approach that is gaining popularity among players and investors. The introduction of blockchain technology allows users to have in-game items, rare weapons, and legendary characters that are equivalent to real financial assets. Players can use loot and characters on different platforms without any virtual limits. In Web3 gaming, users can earn real money in various ways.
Web3 games open up more opportunities for their creators, generating innovative ways to make money. Users remain constantly involved in the gameplay, receiving a platform to form communities and conveniently communicate with like-minded people worldwide. Web3 gaming takes the opportunity to earn a recurring income from games to a new level, providing complete security and increasing trust between players. Over the past three years, the web3 gaming market has shown a massive increase in popularity, aiming to reach about $65.7 billion by 2027.
The Web3 games boom began during the development of blockchain technology in the early 2010s. CryptoKitties has been one of the first gaming projects launched in 2017. This project allowed players to acquire, breed, and trade digital cats, representing a unique asset on the Ethereum blockchain. CryptoKitties demonstrated that in-game items could have real value by becoming a catalyst for adopting blockchain technology and NFTs in games. As the blockchain developed, more and more games began to use the technology.
Obstacles and downturn in popularity
Web3 games have faced specific challenges to widespread adoption, just like cryptocurrencies. The problems of virtual assets and Web3 games are interrelated. Web3 games frequently experience scalability issues as blockchains often have limitations in handling large transactions simultaneously. A large influx of users can lead to network congestion, slow transaction processing, and high fees that negatively affect the gaming processes. Developers are working on new solutions such as Layer 2, blockchain upgrades, sidechains, hybrid approaches, and cross-chain integration to improve scalability and provide a smoother gaming experience even with a growing player base.
The majority of players with a big audience are not interested and don’t want to go to Web3, and for developers it’s expensive and complicated technology. That is why some AAA Studios don’t see the benefits of developing games in Web3. According to GameTree data, only 7% of studios are interested in developing Web3 Games, and about 2% have already done so. However, ongoing solutions might revitalize this sector and I believe that it is a matter of time and technological progress.
Adopting Web3 games by a wide audience requires a certain level of technological knowledge. Players should understand how crypto wallets, NFTs, and blockchain fundamentals operate. For many users accustomed to Web2 games, learning new skills seems burdensome. To drive the adoption of Web3 games, developers and other stakeholders should focus on specific key strategies. The Web3 gaming space is becoming increasingly oversaturated, negatively impacting the development of new digital products. Projects with an already established user base dominate the market, leaving newcomers no chance to get promoted.
Evolving landscape
The popularity of Web3 games will continue to grow as blockchain technology develops. This process implies the elimination of scalability issues. As a result, the number of players who realize the benefits of this trend increases. The active development of Layer 2 solutions and alternative blockchain platforms can help with the scalability problem. Solutions aimed at providing faster and more cost-effective transactions will provide a better gaming experience for users.
The players’ experience of Web3 games will significantly improve due to the introduction of more convenient and intuitive cryptocurrency wallets and interfaces for the average user. The endless possibilities in the Web3 world show an ability to evolve from traditional gaming genres to innovative metaverse projects. This gaming direction will expand significantly. The play-to-earn model has the potential to improve the economic situation of gamers around the world. More and more players are realizing the opportunities for regular income offered by Web3 games that blur the line between work and leisure.
Creating a friendly environment for the interaction of all players represents one of the key contributions of the developers to the evolution of Web3 gaming. The American-Ukrainian platform GameTree develops algorithms that improve the quality of communication between players. Compared to traditional matchmaking, value systems, game lists, psychological types, gaming styles, and other factors are all examined by AI algorithms. They represent the result of combining behavior analysis with user preference self-reporting. The company surpasses the competitors in terms of comprehension of gaming relationships and communication. The most sophisticated game-recommendation system is based on extensive data analysis. This smart strategy aims for greater compatibility to foster genuine connections between players.
Web3 vs traditional gaming
There are many genres and types of Web3 games with their unique features and gameplay. They are very different from their predecessors in several crucial ways:
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Web3 games introduce the concept of “true ownership”. In the Web2 world, the game developer owns all in-game assets, and players have no physical rights to anything they mine. Conversely, in Web3 gaming, in-game items are represented as NFT tokens, ensuring that players are the sole owners of these virtual assets. This approach allows players to buy, sell, and trade their items freely within and outside the gaming ecosystem.
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Web3 games facilitate interoperability. In Web2 gaming, in-game elements are usually platform-specific, making them unusable in other games. Web3 gaming breaks down these barriers, allowing players to use their resources in different games and virtual worlds. The interoperability improves the overall gaming experience, bringing users to a new level of freedom and versatility impossible in the traditional gaming industry.
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Web3 gaming introduced the play-to-earn model that was quickly supported by the gaming audience. In traditional games, developers typically make most of their revenue from players through in-game purchases and advertising. In Web3 games, wealth is redistributed evenly, allowing players to monetize their gaming skills and time investment. Gamers can earn cryptocurrencies and rare NFTs by participating in the gaming ecosystem, effectively monetizing their love for gaming.
Developers of Web3 gaming are still exploring the potential of blockchain and decentralized ecosystems in the gaming industry. This situation leads to new technological opportunities and unique game functionality.
Building Web3 communities
Web3 gaming is not just technological progress. It is a revolution in the gaming industry, implementing sole ownership of in-game assets, innovative functionality, and many opportunities for permanent income. Web3 players can earn real money while doing what they love. Web3 gaming represents a concept that breaks down traditional barriers, making gaming more inclusive and universal.
Strong community building is a significant factor for decentralized projects to succeed and expand in the quickly changing Web3 environment. Web3 communities unite people with similar goals and interests, offering a forum for cooperation, criticism, and assistance. These teams are essential for pushing Web3 technologies’ adoption, encouraging innovation, and influencing their future. GameTree uses unique approaches to develop and improve the Web 3 ecosystem. The company actively attracts partners who want to change users’ perceptions of gaming communities. It will continue to provide cross-platform and cross-chain solutions to facilitate communication among players. It provides Web 3 games integrated user profiles, cross-web and cross-game user communication, player data/behavior analysis, and more.
Author Bio
Dana Sydorenko is the CEO and co-founder of GameTree, a Ukrainian-American startup that unites gamers with new friends and games to play. She is an ex-military and war veteran in Ukraine, an entrepreneur with experience both in the field of games and in classical business.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.