Blockchain technology and the rise of web3 gaming have the potential to revolutionize the gaming industry. Web3 gaming allows for secure ownership of in-game assets and improved player experiences, such as being rewarded for being early or loyal players, and the ability to sell or trade unused assets with earning potential. The global blockchain gaming market is projected to grow from $4.6 billion in 2022 to $65.7 billion by 2027, according to a report by consulting firm MarketsandMarkets, with Naavik and Bitkraft Ventures predicting the market to reach $50 billion by 2025.
Despite these compelling numbers, commercial success in the blockchain gaming space is not guaranteed. The problems facing mass adoption of blockchain gaming are complex and diverse, including the lack of a clear understanding of how tokenomics should work, skepticism from gamers who perceive crypto games as scams, and a lack of pin-up success stories outside of projects like Axie Infinity and MIR4.
To overcome these challenges and reach mainstream adoption, blockchain gaming needs a big win. The first big win will likely come from a game with tokenomics that are sustainable and do not detract from the player experience, according to Geoff Renaud, co-founder and CMO of Web2-to-Web3 creative marketing agency Invisible North. Kieran Warwick, founder of Illuvium, believes that blockchain gaming is the best way to onboard the mainstream to crypto, as it is easier to onboard the masses through a game than a complex DeFi product.
One of the key advantages of web3 gaming is the ability to let gamers sell or trade unused assets with earning potential and keep their assets if games are discontinued or go offline. This is a major departure from the traditional freemium gaming model, where gamers must buy or grind for skins and accessories, and pay at every turn in the game.
Open-source culture and fan ownership of games have always been a part of gaming history. In the 1980s, college students hacked Atari’s Missile Command to make the game harder to beat, creating a black market arcade and booster kits for the arcade machine. The idea of fan ownership of games makes sense in both the crypto and open-source culture, and what is happening in web3 today is an example of “a decentralized remix culture where there is a utilization of assets or traits related to those assets,” says Kishan Shah, COO of B+J Studios.
The rise of web3 gaming is an exciting development in the gaming industry, but there are still challenges that need to be overcome to reach mainstream adoption. The key to unlocking mainstream adoption is finding a game with tokenomics that are sustainable and do not detract from the player experience. Once that happens, we could see an explosion of crypto gaming and a new era of gaming where players have secure ownership of their in-game assets and improved player experiences.
Blockchain gaming and Web3 gaming are two relatively new concepts that are gaining increasing attention in the gaming industry. The idea behind blockchain gaming is to use blockchain technology to secure ownership of in-game assets, and to allow players to trade and sell these assets on a secure and decentralized platform. On the other hand, Web3 gaming refers to the use of blockchain technology and decentralized applications (dApps) to create a more player-driven and community-driven gaming experience.
The potential benefits of blockchain gaming are numerous, and include improved player experiences, increased security and ownership of in-game assets, and the ability for players to earn real-world value through their virtual gaming experiences. For example, players can earn rewards for participating in the game, trade in-game assets with other players, and even monetize their gaming experiences by selling their virtual assets to other players.
Despite the many benefits of blockchain gaming, the industry still faces many challenges. One major challenge is the issue of interoperability, which refers to the difficulty in connecting different blockchain-based games and platforms. This can make it difficult for players to transfer their virtual assets between games and limit the growth potential of the blockchain gaming industry as a whole.
Another challenge is playability, which refers to the difficulty in creating games that are enjoyable and engaging for players. Many current blockchain games are still in the early stages of development and lack the level of polish and sophistication that players have come to expect from traditional games.
In order for blockchain gaming to become more mainstream, the industry must overcome these challenges and create games that are accessible, enjoyable, and secure. This requires the development of new game engines and tools that are optimized for blockchain gaming, as well as the creation of new blockchain-based platforms that make it easier for players to buy, trade, and sell virtual assets.
Despite these challenges, the potential benefits of blockchain gaming make it a very promising industry, and one that is likely to continue to grow and evolve in the coming years. With the right tools and infrastructure in place, blockchain gaming has the potential to revolutionize the way that players experience and monetize their gaming experiences, and to create a new generation of games that are more player-driven, community-driven, and secure.