How Web 3.0 has Obliterated Traditional Gaming

How Web 3.0 has Obliterated Traditional Gaming

Welcome to Web 3.0

Since the arrival of Web 3.0 in 2021, the growth of Web3 has had a profound effect on several sectors, including gaming. In this short space of time, it has provided a new framework for technological development. It's fair to say that Web3 has found some of its most responsive audience and developer pool in gaming, and Web3's decentralized approach to gaming is especially prominent in game creation.

Web3-based games allow for new forms of decentralized gaming participation, marking a substantial shift away from traditional gaming platforms. For example, players are now able to play and earn using cryptocurrencies and non-fungible tokens (NFTs). In addition, by giving the user control over the game instead of relying on a central authority, Web3 is democratizing every aspect of gaming.

What are Web 3.0 Games?

Web3 games are online video games with an economy built on blockchain technology. All game assets in Web3 games reside in custodial wallets. These assets may be fungible or non-fungible tokens (NFTs).

Participants in P2E (play-to-earn) Web3 game economies hold ownership over in-game assets, in contrast to traditional free-to-play games, which have largely remained within a closed ecosystem and blocked players from trading in-game products for their real-world value.

P2E games enable players to earn a sizable revenue just by taking part in their preferred game. In addition, some games also allow players to profit by exchanging in-game items for NFTs.

The utilization of decentralized technology to facilitate creative monetization options demonstrates the importance of blockchain gaming as one of the top web3 use cases. The ownership of in-game objects, including avatars, skins, tools, and upgrades, is distributed in blockchain-based games via NFTs. Players can also transfer assets between games and sell NFTs for fiat money.

How Gaming Monetization is Changing with Web3

In the past, video game publishers made most of their money by selling their games and related merchandise. However, because players never truly owned anything they acquired in the game, these games (and any related objects purchased) frequently lost all value once the game ended.

Today, the conventional monetization structure for games is being turned upside down with the introduction of Web3. NFT-based game items can now be transferred between platforms using Web3 and sold on other digital marketplaces. Furthermore, many Web3 games are introducing cryptocurrencies to a brand new audience while also giving players the chance to generate passive revenue.

However, there are still some challenges when it comes to accessibility. It is likely that many Web3 applications will only be adopted by those who are already crypto-natives due to the multi-step processes involved. For example, it is necessary to obtain a cryptocurrency wallet before accessing Web3. Even this process can be daunting for those who are most comfortable with Web2 applications, especially the older generation of players.

In addition to the challenges that dApps present for non-crypto users, the transactions are notoriously expensive, especially on the Ethereum blockchain. As a result, those who wish to make modest investments in DeFi protocols or hold their own assets must pay a significant portion of their capital in gas fees.

How Web 3.0 Improves on Traditional Gaming

The multi-billion dollar video game industry has millions of consumers worldwide. The decline of traditional gaming led to the demand for Web3 games. Some of the biggest limitations of Web 2.0 gaming were:

·       Difficulty Trading In-Game Assets

Players could buy game assets with fiat money. However, those assets had no worth outside of the game's environment. Players did not have the option to exchange their in-game goods on any other platform except the in-game marketplace.

·       Ownership of In-Game Assets

A blockchain game economy provides for actual ownership of a digital product. An immutable blockchain records each digital item with the respective owner. Traditional games effectively lease digital goods to players. However, players hold property rights when they truly own the assets. The distinctive characteristics of blockchain technology can aid in establishing and enforcing property rights and building a trustless system.

·       Centralized In-Game Information

Traditional video games save all of their game-related data on their own servers. However, the drawbacks of centralized servers result in digital asset risks and insufficient security measures.

The premise of Web3 gaming in the cryptocurrency industry developed primarily to alleviate these issues in the traditional gaming sector.

The Rise of Web3 Gaming & P2E

Users from all around the world can now earn cryptocurrencies or digital assets by playing video games. These assets can then be exchanged for real-world money thanks to innovative economic models like P2E.

The globe witnessed this during the summer of 2021 as the first blockchain game exploded on the scene and rapidly gained popularity. Players in South East Asia were able to earn a lot more playing the game compared to working their day jobs. Today, many P2E games are vying for players' attention, and those who have experienced what Web3 games are returning for more.

Today, Rainmaker Games is one of the best P2E platforms available to players. Gamers can begin playing P2E games using NFTs they own or borrow from Rainmaker. The sponsored wallet of Rainmaker Games will hold any tokens and NFTs that players obtain while gaining. Although there is a daily earning cap, the site has devised a loophole that enables players to keep playing after they have reached their daily limit.

Once a user hits the daily earning cap, gamers have the option to switch to a different account and continue playing. 

Using NFTs for Extra Income

The possibility of putting digital assets to work is another significant improvement to gaming made available by Web3. The numerous digital assets that players are gathering in the market and within the game are giving rise to a new sub-industry in addition to P2E.

Those who can acquire NFTs also have the option of renting out those same NFTs to players who would otherwise not have them, as Web3 games frequently require players to have certain NFTs before they can begin playing (for example, a player character).

So, if a player cannot afford to put significant capital upfront in order to acquire a certain character, they will have the option to rent instead.

Not Just About the Money

Although Web3 games generate new income sources for investors, game developers, and players alike, there is more to Web3 than earning alone.

Web3 is bringing about a paradigm shift in how we play and see games; it is transforming the gaming industry. Not only are income opportunities in games enabled by Web3, but an open gaming economy is also available.

Games with closed economies and solely virtual assets are centralized games. These games feature a low entrance barrier, are free to play, and rely on players purchasing in-game items to speed up their advancement.

By offering a transparent, immutable, and consensus-based means to exchange virtual assets between fellow gamers and enabling interoperability between games via decentralized mediums of exchange, blockchain gaming is restoring free markets to the gaming industry.

Final Thoughts

In 2021, the gaming sector made close to $179 billion. With traditional gaming, players invested time and money into their favorite games with hardly any financial reward. They accumulated many in-game items and grew their characters but never had the opportunity to monetize their abilities or assets in the game. As a result, despite putting in a lot of effort and spending real money, gamers never actually get to take possession of any in-game items they worked hard for.

In 2022, P2E blockchain games from the Web3 gaming industry now provide players and investors from over the world with an engaging method to generate money online.

Safe to say, Web3 is here for the long haul.