Web3 not only creates a whole new kind of game, but in creating new opportunities and new business models. In this article we will introduce you to web3 game development.
Web3 and gaming
Web3Games (GameFi) has transformed the crypto world and is responsible for 49% of blockchain usage in the industry. By 2021, more than 1.4 million active wallets will interact with blockchain games, and venture capitalists have invested more than $4 billion in GameFi. Below is a summary of the findings.
The growth of non-fungible tokens (NFTs) over the past year has accelerated GameFi’s development: In 2021, revenue from game with support for NFTs exceedeed USD 4.5 billion, representing 20% of total NFT revenue in 2021 Much of thisdriven by the rapid growth of P2E (play-to-earn) tokens, and in one particular game, Axie Infinity, that was the inspiration for many others.
The rise of Web3 is changing the entire gaming landscape, introducing , not only and non-fungible tokens (NFT) , but also new and innovative ways to play and new technologies as blockchain and cryptocurrencies, .
But what is Web3’s biggest impact on this new world of gaming? It democratizes many aspects of gaming and offers players entirely new ways to succeed. We’ve never seen a model like this, where players are given a lot of power and that power can be leveraged across many games in the ecosystem, rather than concentrated in a single game.
What is Web3?
How Web3 creates a successful environment for gamers before …. . what exactly is Web3?
Web 3 stands for Web 3.0 and encompasses a new idea of a version of the Internet that operates in a decentralized, quasi-anonymous source. Instead of all the power being in the hands of giant technology companies, it is distributed among users.
Web 3, as its name implies, follows Web 1 and Web 2, and let’s look at the key features of each stage of development.
- Web1: the prototype of the World Wide Web, which was based on open source and open standards;
- Web2: which focused on user-generated content and ushered in the era of blogs, wikis and social networks;
- Web3: the new Web3 is not just an information exchange, but a value exchange model characterized by self-reliance and the massive decentralization of the Internet.
Now that we have that out of the way, let’s get back to the game.
Self-reliance and interoperability
The biggest opportunities for players in the Web3 metaverse come from the ability to realize true ownership and interoperability in the game, which is enabled by blockchain and NFTs.
NFTs are the new face of Web3 gaming, and their popularity has grown exponentially recently because NFTs offer something that previous gaming models could not – the ability to truly own almost any type of unique asset and item in the game.
In traditional games, players buy game-specific goods. But what happens when that player moves on to another game? The item or multiple items they purchased all go down the drain. Have you ever experienced such a situation? This is how countless game items are wasted in the virtual world.
Web3 Games has the perfect solution to this problem: interoperability. Players no longer have to lose money on these items as they can be moved between multiple games. Players can now freely switch between multiple games, giving them more control and freedom.
And if a player doesn’t want to take the item with them or no longer has a use for it, they don’t have to worry. In-game NFTs can be used as an investment rather than a one-time purchase.
Merging with the past
Every player has a title that they are drawn to. It may be a game they are good at, or a game they played as a child, for a variety of reasons. Games are personal. It would be tragic to throw away all the existing titles that have entertained generations.
Fortunately, the Web3 ecosystem listens to gamers and enables the transition by moving existing titles to a new in-game commerce model. Imagine if all your favorite games expanded into the metaverse. Web3 not only creates an entirely new type of game, but also enables integration with games from the past.
The new capabilities offered by Web3 allow gamers to find an ecosystem that fits them as well as Big Tech. In particular, there are many new opportunities to earn and win through the ecosystem’s promise of digital assets and interoperability. It also makes room for the past, rather than wiping it away, and strikes the right balance between the familiar and the new.
In the Web3 environment, the role of games will be to return true decentralization and power to the player
What is web3 technology?
Web3 is the next-generation Internet based on blockchain technology. Compared to the previous Internet known as Web2 or Web2.0, where data and content were in the hands of a few companies known as “big tech,” Web3 gives end users more options and decentralizes control.
The future of gaming will be shaped by Web3, it is the next evolution, just as mobile and free-to-play were paradigm shifts for gaming. Players today are familiar with in-app purchases in battle royale games like BGMI, but they have no value beyond the scope of the game. This is where crypto gaming helps changing the concept and allow the player to take part in the game’s economy.
What are WEB3 games?
We could say that Web3 games are games that use the web3 protocol and blockchain technology. They are mainly games of chance, but there are also games of skill.
History of WEB3 games
Web3 games are a relatively new genre of video games that utilize the capabilities of the web 3.0 platform. These games allow players to interact with each other and digital assets using blockchain technology. However, this is only one aspect of what makes these games so unique.
One of the most important features of these games is that they can be played using any device or browser. This makes them perfect for mobile platforms as well as desktop computers. Additionally, many game developers are working on creating versions of their games that can be played on virtual reality headsets.
Because these games rely on web 3.0 platform, developers have been able to create very intricate and engaging storylines. As a result, players are often drawn into the world of these games and become invested in its characters and plotlines.
How WEB3 games work
Web3 games are a type of online game that uses a blockchain decentralized networks (like Ethereum , BSC , Polygon, Avalanche and others) as their platform.
One of the most popular web3 games is CryptoKitties. CryptoKitties is an online game that uses the Ethereum blockchain to store and manage the digital assets of the players. Players can buy, sell, and trade CryptoKitties with each other, and they can also earn rewards by playing the game.
CryptoKitties was created by Jeremy Liew, a venture capitalist and entrepreneur who is also the co-founder of BitAngels, a venture capital firm that invests in bitcoin and cryptocurrency companies. Jeremy Liew is also a member of The Bitcoin Foundation, which is an organization that promotes bitcoin technology.
Advantages of WEB3 games
WEB3 games are gaining popularity because of their advantages. They use the power of web3 and blockchain to create innovative gaming experiences. Here are a few reasons why they are popular:
- Secure: All game data is stored on the blockchain, which ensures that games are tamper-proof.
- Transparent: Players can see all game transactions and data on the blockchain. This makes cheating virtually impossible.
- Rewarding: Players can earn tokens and other rewards for playing games. These tokens can then be used to purchase in-game items or services.
- Interactive: Games often feature complex mechanics that require players to make decisions quickly. This makes them challenging and fun.
Disadvantages of WEB3 games
Web3 game platforms are becoming increasingly popular as a means of creating and playing games. However, there are some disadvantages that should be considered before using web3 game platforms.
First, web3 game platforms are not as widely supported as traditional gaming platforms. This means that not all devices can be used to play games on these platforms, and some games may not be available at all. Second, because blockchain technology is used in these games, players must have an understanding of blockchain concepts in order to participate.
Finally, crypto-based economies may present risks for players who do not understand the risks involved.
Five criteria to evaluate the potential of Web3 games
Here are five criteria we propose to evaluate the long-term potential of Web3 games.
1. The nature of the game world.
Factors to consider.
Why is this important?
Originally, the blockchain gaming ecosystem consisted mainly of MMOs, RPGs, card games, and strategy games with simple gameplay and graphics. However, game developers are now experimenting with more graphically elaborate and complex game mechanics, and the upcoming Star Atlas is a good example of a game that will make some jaws drop.
By offering a richer experience, Web3 games that previously targeted the crypto-savvy will likely become more appealing to the “traditional” gaming community and increase sales.
Speculation is a legitimate part of the business, but creating meaningful engagement, particularly through the ability to co-create game assets and worlds, will be key to reaching the mass market. When it comes to blockchain-enabled UGC, native Web3 studios have a technological advantage over their predecessors, and this should be leveraged to the fullest.
2. Business Model.
Factors to consider.
Is there an F2P element? Can this game be purchased right now? This has a direct impact on the mass market potential of the game. Revenue streams: Does the game combine multiple revenue streams? As a rule of thumb, the more, the less risk to the overall model. Token: Does the game have truly smart tokenomics that are interoperable in the real world and in other games? How has the value of tokens evolved so far? Are there luxury NFTs that are collectible and can be used in the game, or are they derivative jpgs? And what is their utility? Partnerships: High-profile partnerships can maximize brand awareness and appeal and enhance the reputation of native tokens. Merchandise (physical/digital): do studios partner with major brands and designs, especially for merchandise? Advertising: if present, is it tastefully integrated into the game or could it be distracting to players? Markets: are there marketplaces for acquiring assets inside and outside the game? Maintaining the value of digital assets purchased/acquired as part of the game mechanics: how much can players lose?
Why this is important.
There are many hurdles to entry into Web3 gaming, such as obtaining cryptocurrencies, creating wallets, paying gas bills, etc. Not to mention the general information asymmetry associated with the blockchain. This is not to say that “free-to-play” is always the way to go, but the higher the cost of entry for players, the harder it is to democratize Web3 games. An expensive purchase should be justified.
The sustainability of a Web3 game is based on a) accessibility and attractiveness, which determine how quickly the player base grows, b) meaningful content inside and outside the game, and c) strong partnerships. Multiple revenue streams make the project more stable and serve as a safety net in case one of the revenue streams fails.
3. Quality of the Team.
Factors to consider.
Is the team publicly available (doxed)? This is not always the case in the crypto sector. What is the size of the team? The size of the team should be proportionate to its ambitions and the scope of its roadmap (see #4 for more details). Do key members have relevant backgrounds? You need the best and brightest from a range of disciplines, including product development, games (especially top-tier studios), finance, crypto/tokenomics experts, marketing, and community building.
Why it matters.
This is about analyzing how well equipped the team is to execute the larger vision. This is similar in logic to assessing the core team of a startup by looking at the background of the founders and their complementarities.
Why this is important.
The point here is to analyze how well equipped the team is to implement the larger vision. This is similar in logic to evaluating the core team of a startup, looking at the background of the founders and the complementarity between them. However, the chief economist is a key asset for Web3D because of the additional need for expertise in conversational economics. A key member with experience in the games industry is also a great asset, especially for a studio that wants to reach a broader target audience.
4. Funding and roadmap.
Factors to consider.
Previous funding: Have you raised significant dollar/cryptocurrency amounts through venture capital (or otherwise) to realize your dream? Quality of venture capitalists: are they backed by Sequoia, a16z, etc.? Financial stability: is the game profitable in terms of business model, with multiple revenue streams and minimal risk? Or is there no funding and no corporate support? Ambitious + realistic roadmap: Is it visionary and ambitious or is there no roadmap? How detailed is the action plan? Frequency of updates: Does the project communicate regularly and transparently about all of the above?
Why this is important.
Ambitious projects with detailed roadmaps are encouraging. However, you need solid financial information to back them up. Studios with solid financials will want to promote them publicly – if they have any. Note: Many projects have big names on their websites, but may not yet have established specific partnerships with future significance. They may have simply used their platform to complete the project and then repurposed it as a marketing tactic.
As mentioned earlier, the same is not necessarily true for Web3 projects when it comes to funding. Some are basically avoiding traditional venture capital structures, opting instead for alternative and more community-driven methods.
Factors to consider.
Social media following and engagement: is there a safe, active, and organically growing Telegram/Discord/Twitter community? Are they patchy? Do they exist? Project DAO: If there is a DAO, is it an active and intelligent DAO? If so, is it enabling progress on its roadmap? Or is it slowing down and becoming a distraction?
Why this is important.
Games with strong communities have an advantage over other games. Ideologically, the Web3 is all about communities, and social media is where those communities meet. A strong social media presence is an indicator of the potential to sustain hype and increase a project’s reach.
Telegram, Discord, and Twitter (also known as Crypto/NFT Twitter) have become the epicenter of web3life; other social media channels such as TikTok, Instagram, Twitch, and YouTube have been a source of inspiration for the project and its community. As a beacon of connection, DAOs will play a central role in fulfilling web3’s promise to create a truly decentralized and thriving community. Therefore, those who do it must do it right.
Frameworks and game engines available
Here are some frameworks and engnes that you can use to start making games for the web3.
WEB3 games are an innovative new way to play video games. They offer a more immersive and social experience than traditional video games. WEB3 games are still in development, but they are sure to revolutionize the gaming industry and could be a good opportunity for game developers wanting to differentiate its portfolio of projects and looking into something that become the mainline of games for years to come.
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