Web 3.0 & The Gaming Industry
The gaming industry is regarded as one of the most popular and growing industries in the global market. Technological advancements have made the industry increasingly popular, accessible, and more immersive than ever, attracting people from all societal backgrounds. Mordor Intelligence predicts the gaming industry will be expected to reach $339 billion by 2027.
With the introduction of Web 3.0 – this is the decentralized web with a fundamental infrastructure based on blockchain tech – challenging the centralized traditional gaming ecosystem with the core structure of guaranteeing fair play models and decentralized secure solutions for a wide range of functions within gaming.
For context – NFT – A non-fungible token – is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. A blockchain is a system in which a record of transactions made in bitcoin, or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
In this new eco-system of gaming, Bitcoin is regarded as one of the leading digital assets paving the way for gaming platforms. With NFTs and the metaverse in the mix, consumers in the gaming industry can adopt and join these decentralized gaming environments with the opportunity to make an extra income from in-game items – The play-to-earn model (P2E)!
Play-to-earn (P2E) games in the Web 3.0 environment allow players to make an income through buying and selling in-game assets, i.e., non-fungible-tokens (NFTs). This new eco-system allows players to monetise their time while gaming.
Axie infinity – a blockchain-based game, features a player-owned economy, where players can buy, sell and trade resources they earn in the game. Axie infinity clocked in nearly $3.5 billion worth of NFTs in 2021.
DeFi Kingdom – the largest GameFi project with over $350 million in total value locked – the overall value of crypto assets deposited in a DeFi (decentralised finance) protocol allows players and investors to ‘farm’ in its ‘gardens’ – by adding currency to the game’s ecosystem and collecting ‘JEWEL’ (in-game-tokens).
The Web 3.0 ecosystem also enables users to create their own content, and own, control and monetize it, through blockchain and cryptocurrencies. Blockchain enables users to interact with online services governed by peer-peer networks – a decentralized network of computers rather than the server of a single entity.
With the concerning issue of data privacy in Web 2.0– users registering their data for access to a service – users in Web 3.0 have complete control over their data as registration is not needed to access a service.
Although users must take complete responsibility to protect their data and assets!
The Metaverse tailors the Web 3.0 environment together by providing a 3D space where users can interact virtually, immerse themselves in a virtual space and play games as in-game avatars. Although it is not a concrete reality, it serves as a foundation for connectivity in Web 3.0 and will manifest the new and open decentralized web-space.
With all these innovations disrupting the gaming industry, it can be suggested that these disruptions in the market are evident of a paradigm shift of the industry, shifting to infrastructures that are built in the Web 3.0 space.
These changes will ultimately transform the gaming industry for consumers, brands, and professionals in the foreseeable future!