Web3 will disrupt the transformative and positive environment of Internet. In particular, it’s bringing a new era of digital ownership and innovative economic models to the gaming industry. This third generation of the web empowers players by granting them real ownership of in-game assets, fundamentally altering the dynamics between developers and gamers. With pioneering projects like Illuvium and Star Atlas, the future of Web3 gaming has begun. They’re all very focused on delivering AAA-quality graphics and AAA immersive gameplay experiences. At the same time, platforms like Decentraland are creating full-scale virtual economies on the blockchain. Axie Infinity is the pioneer behind the Play-to-Earn model. It’s a shining example of what Web3 gaming can be, particularly in regions such as Southeast Asia. By leveraging blockchain technology, Web3 games are setting the stage for a future where players truly own their digital experiences.
The Dawn of Web3 Gaming
Web3 represents a truly disruptive change in how the Internet will be architected. It moves the competition landscape away from the big, centralized platforms and towards a decentralized, user-centric model. This evolution, hailed as the third generation of the Web, holds the potential for increased transparency, security, and control with users. In the metaverse and gaming world, that means Web3 allowing players to truly own their in-game assets.
Ownership often occurs through Non-Fungible Tokens (NFTs). These one-of-a-kind digital assets are distinguished by their specific blockchain address, which makes them easily purchasable, sellable, and tradable across blockchain networks. Unlike traditional in-game items, web3 assets have an unprecedented versatility. Unlike traditional assets that are limited to one game, these assets can move freely between games on different platforms, creating a more connected gaming environment. This new paradigm is making powerful new economic models possible. Consider everything that Play-to-Earn has transformed by letting players earn real-world value just by playing the game.
AAA Ambitions and Virtual Worlds
Many Web3 projects are committed to providing cutting-edge graphics and AAA-level gameplay experiences that compete with legacy AAA games. Illuvium, for instance, is an open-world exploration and battling game developed entirely on the Ethereum blockchain. With the goal of delivering breathtaking graphics and an intricate play-to-earn gameplay loop, it looks to lure legacy gamers and crypto investors alike.
Star Atlas is another highly ambitious project that imagines an expansive, space-themed metaverse with complex, layered economic and political systems. With their play-to-earn mechanics, these games are more than just the future of digital asset ownership. They engage players in unique and compelling experiences that compete with the best content found in the presumed “real” video game sector. Decentraland is a great example of what virtual worlds are capable of, especially in the Web3 ecosystem. Powered by its own cryptocurrency, the MANA token, the in-world economy of Decentraland is completely opened to speculation.
Users inside Decentraland spend MANA to purchase individual parcels of virtual property, all of which are each displayed as NFTs. This digital real estate can then be built upon and profited from, forming a creative and user-created virtual economy. These three examples are just a small sampling of the immense potential that is being built on Web3. They range from established gaming categories to futuristic, innovative forms of interactive entertainment.
Axie Infinity and the Play-to-Earn Revolution
Axie Infinity was one of the first Web3 games to reach mainstream success. In Southeast Asia, it’s become a perniciously important line of business for many operators. Not only did their game popularize the Play-to-Earn model, but it proved that players could be rewarded with real-world value for their in-game activities. In Axie Infinity players need to own at least three Axies to battle and do a variety of other tasks.
Each Axie is an NFT with specific traits and skill sets, which creates valuable assets on the game’s ecosystem. This iteration of the game is centered around a dual-token system. AXS (Axie Infinity Shards) acts as the governance token and SLP (Smooth Love Potion) is the utility token. AXS holders directly influence the future direction of the game through their votes. At the same time, SLP is an important resource in Axie breeding. SLP is earned by playing the game.
Since being released last year, Axie Infinity has started a wave of Play-to-Earn games. Each new game introduces an entirely new economy and set of mechanics. The long-term sustainability of these models is unclear. Yet, Axie Infinity has undeniably proven the case for how Web3 gaming can create new economic opportunities for players across the globe.
Overcoming Blockchain Limitations
One of the major obstacles to the adoption of Web3 gaming is the scalability and cost of transactions on blockchain networks, such as Ethereum. Additionally, high gas fees and slow transaction times add unnecessary friction for players and can lead to a lack of accessibility in Web3 games. To tackle some of these concerns, many Web3 games have moved to different blockchains or Layer 2’s.
Sidechains and Layer 2 solutions— such as Polygon —allow for cheaper, faster transaction times. They cut fees significantly in contrast to the Ethereum mainnet. By leveraging these technologies, Web3 games have the potential to deliver a more seamless and cost-effective experience for users. The adoption of other blockchains and Layer 2 solutions has become the norm in the Web3 gaming arena.
This trend provides developers the opportunity to build their games with a primary focus on performance and accessibility while still enjoying the advantages of blockchain technology. The Web3 ecosystem is young and dynamic. As it matures, and especially with the advent of new scaling solutions, blockchain gaming will be able to reach even more people.
