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Anyone who has been online in the last year has probably encountered the term Web3. For those unaware, Web3 is essentially the next generation of the Internet. Along with other emerging technologies such as blockchain, artificial intelligence (AI), virtual reality (VR), augmented reality (AR), 5G and the Internet of Things (IoT), it is a key aspect of the much-touted metaverse.
Web3 proponents believe the technology will usher in an era of decentralization, marked by user-owned content and permissionless transactions.
Of course, there is still a long way to go before Web3 is fully functional and available to the public. But the technology’s impact is already showing in some areas.
The gaming industry is already feeling the impact of Web3
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One of the areas where Web3 is expected to have a profound impact is the gaming industry.Video game and digital gaming spaces with Web3 characteristics already exist, the best examples being Axie Infinity and decentralization.
Decentraland is a 3D world where players can explore museums and art galleries, buy and develop virtual real estate.
Another example of a Web3 game is the increasingly popular fantasy football game Sorare. In this game, players can use cryptocurrency to buy cards of professional football players from major leagues around the world. The cards in the game have different degrees of scarcity, and the rarer the card, the higher the value.
The game also has a marketplace where players can buy and sell cards.Recently, a rare card depicting Manchester United striker Cristiano Ronaldo Sell Spend over $400,000 on Sorare.
Web3 will change monetization in games
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Previously, video game publishers made money mostly by selling physical or digital copies of their games and any related merchandise they could think of.
For players, the only benefit they get from the game is largely the fun they get from the game. Gamers spend a lot of money on game titles, in-game items, and even additional downloadable content (DLC).
However, these games and any in-game items a player buys tend to lose any value as soon as the player finishes the game or gets bored with it because they never actually own anything they bought in the game.
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With the advent of Web3 and its related technologies, such as blockchain, cryptocurrencies, and non-fungible tokens (NFTs), the traditional game monetization model will be upended.
Blockchains are immutable ledgers that securely record every transaction on the network and allow for the creation of NFTs.
NFTs represent unique and verifiable data related to almost anything, including in-game assets Examples include weapons, clothing, avatars, and virtual lands. With Web3, NFT-based game items can be moved across different platforms and sold to other players on the secondary market.
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Some Web3 games can also offer players the opportunity to earn passive income through in-game cryptocurrency staking and yield farming.
Real financial rewards for the time and effort players put into games is a profound premise that will offset longstanding inequalities in gaming. It will also represent a relatively risk-free route to introducing millions of people into cryptocurrencies.
For developers, revenue streams in Web3 will become more diverse. Developers will be able to offer a range of in-game purchases and run in-game marketplaces and peer-to-peer transactions. Activity in these markets will provide game developers with a steady stream of revenue streams. Web3 game developers can increase game revenue by continuously releasing new NFT assets into the game as the game evolves.
Web3 gaming community is the future
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As we enter the age of the metaverse, the next stage in gaming evolution will be an expanded, customized game distribution platform that will bring game developers and gaming communities together.
While the concept is still developing, several projects are emerging to get a head start on what promises to be a lucrative space for gamers, developers and investors.
One of the projects that laid the foundation for this merged gaming community is Iskra.This project in South Korea is building a Web3 Gaming Ecosystem This will support game developers and game lovers on their Web3 journey. With emerging platforms like Iskra, Web3 promises to be home to the gaming community rather than gaming monopolies.
New principles guiding the Web3 game space
It is now the responsibility of game developers to create games that are fun and exciting, because players don’t flock to tedious games with or without the opportunity to make money. As we progress, game developers in the Web3 space should consider design principles that uphold the Web3 spirit, which is based on the belief that all stakeholders must be fairly valued and rewarded.
Only by designing games to be free, fair, transparent and inherently decentralized can the loot be distributed fairly between gamers and developers. Web3 games should decouple gaming from consumption as a condition of making money.
related: Here’s what content creators and entrepreneurs need to know about Web3
The Web3 era should see more games move away from the old pay-to-win model, where players spend real money to gain an in-game advantage. This mode makes the game less fun and discriminatory, as players without access to funds are forced to work harder and longer to progress through the game. At the same time, their paying counterparts pass them handily.
The advent of Web3 should also bring unprecedented transparency to games. All key financial data about gaming platforms should be shared publicly. Information about how the system generates funds and distributes revenue should also be clear.
The fair distribution of rewards between gamers and developers that Web3 promises should build trust, increase engagement, and create new revenue opportunities for the gaming community.
Decentralization is Base Web3, therefore, games based on this technology are expected to utilize blockchain to record and verify game results and in-game transactions. Web3-based games can build themselves as decentralized autonomous organizations (Dao) engage their communities meaningfully in ownership and governance.
