Web3 and blockchain are taking the gaming industry to a different dimension altogether. These platforms allow the players to own, trade, and even gain financially from the in-game assets in ways never thought possible. Blockchain promises decentralisation, transparency, and play-to-earn models that are redefining what it means to play and invest in any game. Let's look into How Web3 is shaping the future of gaming, and why these changes might just redefine gaming for both players and developers in one way or another.
Understanding Web3 and blockchain in gaming
Let's break down what Web3 and blockchain really mean in respect to gaming before getting into the nitty-gritty of it. In simple words, Web3 is similar to a decentralised internet-that is, power and control will flow from the few very large companies back to the individual users. In such a case, a game would mean that there is some kind of decentralisation in respect to the control of players over their data, in-game assets, and overall experience.
But behind Web3 is blockchain-a distributed ledger of transactions and data that are recorded securely and transparently. In gaming, blockchain enables secure, verifiable ownership of digital assets like items, characters, or currency. Because the assets reside on a blockchain, they are independent of any one game or company, which allows players to really "own" what they earn or buy.
Play-to-earn
Perhaps the most significant impact of blockchain in gaming has been a complete game-changer with the rise of the play-to-earn model. Other than time and money that players invest in traditional games to achieve some kinds of in-game progress, players can make real money or assets with real-world value in P2E games. Players can own in-game assets through tokens or NFTs, non-fungible tokens, and trade or sell them on open markets. For example, one of the earliest successful P2E games, Axie Infinity, pays gamers to fight, breed, and trade creatures called Axies.
These monsters are avatars of NFTs; hence, each is singular, unique, and owned by the owner. The popularity of Axie Infinity triggered an avalanche of P2E games in 2024. In fact, P2E games are extremely popular in countries where gaming could even be a side income. On the other hand, this model is not particularly in the good books of everybody. For one, it blurs the line between gaming and work; for those who may want to make enough money, pressure will mount on performing well in the game. But for many others, P2E is an exciting new way to monetize gaming skills, and likely here to stay.
NFTs in gaming
Another change that Web3 and blockchain has brought into the world of gaming is in the concept of true ownership through NFTs. In traditional games, one may spend money on skins, weapons, or whatever item is made available within the game, but they don't really "own" these items. When the game servers go down or when such a player's account gets banned, all those purchases are out the window. However, blockchain means in-game assets can be tokenized as NFTs that give players true ownership. NFTs give players ownership rights over items, allowing them to trade, sell, or even use their items across different games-if those games support cross-platform NFTs. Just think about having that ultra-rare sword in one game, then porting it into a completely different game as part of your character's satchel.
Admittedly, this level of interoperability is not quite here yet, but it's an exciting possibility that could make gaming worlds feel more connected. One challenge with NFTs in gaming, though, has to do with the environmental impact caused by blockchain technology. Some blockchains consume quite a lot of energy, which did raise concerns with some eco-conscious gamers and developers. Thankfully, the new generation of blockchains focuses on energy-efficient solutions, and that makes the future for NFT gaming much more sustainable.
Decentralised gaming
Web3 and blockchain are also giving rise to decentralised gaming, whereby the community has more say in developing and operating games. Rather than having big gaming studios make all the decisions, decentralised games are community-driven. This can be something like voting on new updates, changes in game mechanics, or even the story direction. This usually leverages DAOs, or Decentralised Autonomous Organizations.
DAOs enable players to share resources and make decisions unanimously. Consequently, such a decentralised game would have a community voting if they want to add a new character or change game rules, and smart contracts in turn would enforce those decisions without needing intermediaries. This completely flips the model of game development from what was considered the norm, and in 2024, more gamers are into decentralised gaming because it allows them to take part in shaping the worlds they invest time in.
Increased security and transparency of games
The basic building blocks of security and transparency in blockchain find perhaps their most natural application in gaming. Traditional games have been prey to a multitude of vices, such as account hacking, unfair bans, or even cheating during the game. With blockchain, this sets a new level of player security because of the decentralised and immutable nature of the technology. While there's a layer of information concerning items, progress, and transactions within the blockchain game, this would be stored on the public ledger. This makes it significantly harder for bad actors to alter or fake information, greatly reducing cheating and fraud.
Additionally, blockchain technology records all player transactions on the blockchain, making them independently verifiable and reducing the pains of account bans or item removals. This security and transparency build trust in knowing that the hours they invest and the assets earned are safe for players. Since players have control over their data and assets, they would be more resilient against sudden account closures or server shutdowns. If there is a game shutdown, for example, the ownership of the NFTs would still remain with the players. They can then use them, depending on the compatibility, in other games or sell them.
Challenges and concerns with web3 gaming
While blockchain and Web3 are revolutionising game development, there are accompanying challenges in their wake. This includes the ease of access in blockchain gaming. Most gamers are unfamiliar with wallets, tokens, or crypto assets, and the setup process would definitely confuse certain users. This can affect the barrier to entry, especially for younger or more casual players. There are also question marks over the more speculative nature of some blockchain games, with players able to win and trade NFTs or tokens that have a real-world value, making them seem more like investments than simple entertainment to some.
But regulation is quite another story. Many countries have been trying to work out how to approach blockchain gaming, as any time virtual assets combine with real money, sometimes that grey line into gambling laws gets blurred. Because of this, both developers and players should be aware of how the regulations may affect these games; thus, any new rules will modify the way in which the Web3 games work. Despite those challenges, the blockchain and Web 3 gaming world is developing fast-developers are making this experience more usable and accessible, and regulating it so that the big public can safely enter into those new gaming ecosystems.
A look to the future on web3 gaming
From the latest play-to-earn opportunities to actual ownership of their in-game assets, 2024 has been huge for the redefining of gaming by Web3 and blockchain. These technologies are going to change what it means to be a gamer. We have barely scratched the surface of what's possible, and as more developers explore blockchain, the face of gaming will only continue to grow and change.
The most exciting part will be to see how traditional gaming studios react to Web3-whether it is an adoption or a convention. Success of Web3 for gaming is coming-from technology down to experiences that players love and want to use and invest their time in. For now, one thing is sure: Web3 and blockchain are no fads, but here to mark their presence in the future of gaming.
