What is Web 3.0 Gaming?
Today, I want to demystify Web 3.0 and Blockchain Gaming from the perspective of a Game Designer. It's not an easy task, considering a large portion of the Blockchain space seems to be intentionally trying to make the technology seem abstract.
What is Web 3.0?
Web 3.0 is a term that I find needlessly vague. Web 3 is a term that was created to contrast decentralized ownership against the centralized nature of the Internet as it exists today. Web 2.0 is the Spoke-and-Wheel format where creators live on top of specific platforms, such as YouTube channels, or people gathering on Facebook as a hub. Since these are created, managed, and owned by private tech companies, there's no ownership of your content on these platforms.
Web 1.0, in contrast, refers to the very early days of the Internet. Websites were information-based hubs where users would receive information. Web 2.0 evolved this by having community hubs of content on larger platforms. Web 3.0 is pitched as individual creator-based content and relies on content being owned by individuals.
More practically, Web 3 refers to the use of Blockchain technology.
I want to avoid getting into technical details on blockchain because it doesn't matter for our purposes and because tons of resources explain the basics well. IBM has a valuable overview you can read here for specifics.
What is Web 3.0 Gaming?
Web 3 Gaming is a structure for a game economy where individual game assets are items that can be owned, independent of the game developer's control. So if you have a Web 3 game, items you collect in game can be traded to other users and sold outward for actual value in the form of other cryptocurrency.
How does this differ from games that already have trading? The difference comes from the user's ability to move their item without restriction. For example, items in the player's inventory exist entirely within the game's servers in a regular game. Since the item is listed and identified on the blockchain ledger, it can be moved and not altered by the game's creators.
Is the Video Game Industry Looking To Adopt More Blockchain Gaming?
Not at this time, at least according to the Game Developer's Conference (GDC) 2023 State of the Game Industry report, only 4% of respondents are working in blockchain-driven monetization, with 75% of respondents remaining disinterested in adopting blockchain-related technology.
The GDC 2023 State of the Game Industry Report also states that a majority of Game Developers are opposed to the integration of Blockchain in games.
It remains to be seen if blockchain will emerge as a solid alternative to other monetization systems like Free-to-Play or full purchase Game models.
So why is this? Several factors include the lack of users in the Web 3 ecosystem. While an exact number is difficult to assess, estimates range around 2 million Web 3 gamers.
While at first glance that might sound large, compare that install base against 3 billion mobile gamers or ~1.8 billion PC gamers. Consider that amongst that 2 million Web 3 gamers, there are several different blockchain platforms: Ethereum, Solana, Bitcoin's Lightning Network, etc. When creating a blockchain game, developers must develop on a particular blockchain, similar to a Console platform development. It's possible to crosschain think cross-platform), but the effort here incorporates fewer users overall.
Game studios will look for the most extensive install base possible to match their demographic when developing a title. While Blockchain games exist on top of a platform like Mobile or PC, the path to onboard users has not been successfully bridged.
That said, there are changes on the horizon. Google Play, the Android mobile application store, has recently announced they are introducing ways for Blockchain games onto the network.
“Today, we’re pleased to share that we’re updating our policy to open new ways to transact blockchain-based digital content within apps and games on Google Play. From reimagining traditional games with user-owned content to boosting user loyalty through unique NFT rewards, we’re excited to see creative in-app experiences flourish and help developers expand their businesses.”
These new regulations and guidelines could blur the lines between Web 3 games existing on one side and Mobile games on another.
The Game Designer Perspective on Web 3 Gaming
As Game Designers, our primary goal is to try and make intuitive, engaging experiences, all in the service of play.
We have all manner of tools available to us, from game engine technologies, platform, and control restrictions to how users play, such as short mobile play sessions contrasted with game night with your friends. All of these vectors change how you want to engage with a product.
How does blockchain improve the Play experience?
This is still a question that needs to be answered and answered thoroughly. So far, the main draw for Blockchain games is the concept of return on investment. If you spend time in the game ecosystem, you can sell your assets and get value back. There is some utility value here, but remember, all purchases need a seller AND a buyer. So, anyone who wants to sell their assets needs another player who wants it.
So long as the focus of cryptogames is to merely provide a return on investment on its user's time, I suspect it will fail to engage the large cohort of players out there who engage with games for entertainment value. After all, we don't choose to go find a job in our spare time (unless you're a real hustler). Instead, we try to find opportunities to make memories, find leisure, and seek connection. That's why we Play.
Looking Ahead
There are some incentives that Web 3 gaming can provide that other games can't, and we'll discuss that soon. But I want to hear from you, design-minded people! What do you think about the state of gaming with the introduction of Play to Earn and Web 3 gaming? Have you played any Web 3 games that use their blockchain mechanics for purposes other than simply selling your assets for cash? Sound off below!
Stay Design Minded!
Dave
