Web3 gaming is also known as Blockchain gaming. The term refers to games that provide increased security, transparency, user control and democratisation of in-game assets via distributed ledger technology.
How Do Web3 Games Work?
These types of games use Blockchain technology to allow decentralised ownership of in-game currencies and assets. This means that players can earn, trade and use assets outside of the game. Web3 games also typically incorporate smart contracts and cryptocurrency payments to facilitate secure transactions.
Features Unique to Web3 Games
Features unique to Web3 gaming include greater control and increased transparency compared to traditional, centralised gaming platforms. This type of gaming can also create innovative in-game economies where players receive rewards for their gaming skills while at the same time offering opportunities regarding new methods of monetisation.
In P2E games, for example, players have the chance to generate income and earn real money while playing. This contributes to the creation of a more reliable and resilient ecosystem for both developers and gamers.
What Are Some Examples of Web3 Games?
CryptoKitties was one of the first Ethereum-based games that achieved huge widespread popularity. The game was designed to allow players to breed, collect and trade digital cats – with Blockchain technology used by the game to guarantee the uniqueness and confirm the ownership of each cat.
The Sandbox offers a virtual environment where players can create and monetise their own virtual worlds, digital currencies and in-game assets using Blockchain technology.
God Unchained is a digital collectible card game. It uses Ethereum-based Blockchain technology to give players the opportunity to both own and trade cards.
Are There Any Risks Association with Web3 Gaming?
Blockchain entrepreneurs such as Volker Hartzsch understand that Web3 gaming is still in its infancy, and there are currently some challenges associated with this space. For example, Web3 can lack user-friendly interfaces, making the technology potentially difficult to use for those without experience using cryptocurrency. There’s also the risk that Web3 game developers will put too much emphasis on financial incentivisation to the detriment of the ‘fun’ elements of the game.
Plus, while Web3 games are inherently more secure than their traditional counterparts, there is still the possibility of hacking or a cyber attack. Finally, the regulatory and legal framework surrounding Web3 games is still in a state of evolution, meaning there is still the possibility of uncertainty around issues of, for example, taxation, anti-laundering regulations and licensing.
Take a look at the embedded PDF for more information about Web3 gaming.