Web3 will be the gamer’s favorite technology as it will revolutionize the gaming industry.

Web3, also known as the decentralized web, is currently one of the most discussed topics within technology circles. In a nutshell, Web3 presents a transparent Internet ecosystem based on three main foundations: the blockchain that hosts all the data on asset ownership and historical transactions, the smart contracts that act as intermediaries through the logic of pre-encoded application and digital assets that can represent in-string or off-string value. Web3 is going to be the favorite technology for gamers to work with.

Although it is still in its early stages, innovation in Web3 is happening at a faster rate compared to other technology niches. First it was the crypto mania that made leading currencies like Bitcoin and Ethereum gain huge popularity. Then came decentralized finance (DeFi), a relatively new niche designed to decentralize financial services. Currently, more than $42 billion is locked up in various DeFi protocols.

Blockchain entertainment firm Coda Labs commissioned a survey targeting game developers to take a look at their thoughts on Web3. The researchers found that the majority of respondents believe that Web3 games are on the way to their companies, and 75% expect to work on Web3 projects in the future.

Apart from this, more than half of the survey participants believe that Web3 will revolutionize the gaming industry. Forty percent anticipate that the Web3 implementation will bring in more new users, while 36% believe that Web3 integration will allow games to better retain users.

Sekip Can Gökalp, Founder and CEO of Coda Labs, commented on the survey results, noting that while the potential of Web3 games is debated, the benefits for developers are obvious. He explained:

“This survey shows that the majority of developers have already jumped right into developing Web3 games, driven by benefits like additional funding, new revenue streams, and player retention.”

Changing the dynamics of the gaming industry

And now to the fundamental impact, Web3 as an upcoming space has generally greatly changed the nature of gaming infrastructures. Gone are the days when game publishers kept all the profits; in Web3 games, even players are incentivized through ecosystem rewards that can be monetized through NFT markets.

So how exactly does it work? Take the example of Axie Infinity, a Web3 game that rose to popularity at the height of the covid pandemic. The game simply consists of buying cute NFT monsters and pitting them against each other, winning players get Smooth Love Portion (SLP) tokens which can be exchanged for money on various exchanges.

While the returns on SLP tokens have declined due to difficult market conditions, Axie Infinity has become a source of livelihood for players in developing countries like the Philippines. What is more interesting is that the Web3 gaming ecosystem is now much larger and features popular card games like Splinterlands and Sorare.

As for the intersection between traditional games and Web3, there has been increasing interest from traditional game publishers, including those who were initially reluctant to adapt to Web3 infrastructures. For example, Epic Game Stores recently stated that they would allow other producers to implement NFT games as long as they comply with the regulations.