Source: news.google.com
By Abhay Aggarwal
With the development of technology, Web3 has transformed the gaming industry. According to grandviewresearch, it has significantly demonstrated a paradigm shift in this industry with an estimated market size value of $220.79 billion by 2022 and is expected to reach $583.69 billion, with a CAGR of 12.9 % over the next eight years, from 2022 to 2030. .
The terms “web3” and “metaverse” are currently very popular in the technology community. According to Crunchbase, citing recent funding rounds like Polygon Technologies and Alchemy for a combined $650 million, investor hunger has led to a “cascade” of investment in blockchain platforms. Gaming is a sector of the industry that is receiving more attention than most.
This tsunami of investment, however, goes beyond the mere creation of more, bigger and better games. With the promise of token-based rewards, Web3 is revolutionizing the way games are created and developed by motivating and engaging consumers and developers. In just a few short years, we will stop referring to gaming as an industry and start talking about gaming as an economy, as the paradigm shift from traditional gaming is so profound.
Now let’s take a closer look at what the Web3 game is, its main features, how it can be monetized and how it affects the economy.
A state-of-the-art method of decentralized gaming is known as “Web3 gaming.” Web3 gaming is the term for digital games with blockchain technology integrated into their economies (also known as play-to-earn, play-to-own, crypto, blockchain, or NFT gaming).
Players playing Web3 games often hold non-fungible tokens (NFTs) or fungible tokens (FTs), depending on the game (stored in custodial wallets). NFTs are distinctive cryptographic tokens that can be used to prove ownership of information, including music and photos. Users can acquire ownership of game assets using NFTs in blockchain games. These can include weapons, outfits, settings, vehicles, locations, planes, characters, and more.
NFTs allow players to own the assets they earn or buy while playing the game, unlike regular games where game components are completely controlled by developers or companies. An NFT is yours once you buy it, and you can sell it anywhere, even off the platform where it was initially formed. With Web 2.0 games, it is impossible to include this feature.
The practical implication of this innovation is that player properties are real and can be bought, sold and traded on markets like any other commodity. The system typically runs in a restricted environment that prohibits users from exchanging in-game items for money or other resources in the real world. The adoption of blockchain technology in the early creation of web3 games, including games like Axie Infinity, has resulted in astronomically high retention rates.
A new era in gaming is beginning with the new model of web3 gaming. Players can now own, sell, and trade in-game goods, and can also earn rewards while playing the game. Decentralization is primarily what gives web3 games their appeal and enjoyment. Web3 in games offers many other benefits, including increased security.
Authentication and Interoperability
In games, proof of ownership is the new face of web3. Real ownership and interoperability in games is growing as a result of the exponential rise in popularity of NFTs. Through NFT, players can fully control their possessions in the game.
Web 3 gaming interoperability also allows for the transfer of assets outside of the gaming industry. Players can benefit from these things without incurring any financial loss.
Opening in the democratic gaming industry
The success of the web3 gaming ecosystem depends on its ability to function autonomously with little central government intervention. Consensus voting is used in these games to make game adjustments.
DAOs, or Decentralized Autonomous Organizations, are a product of this. Currently, most blockchain games are based on this governance structure, which improves transparency. Furthermore, these games give control to the player and do not involve third parties.
player centric games
Restoring true decentralization and giving players more control is web3’s main goal in gaming. In addition, it guarantees a personalized environment for your needs.
For gamers, conventional games are nothing more than expensive forms of entertainment. Shortly after the game ends or the player quits, the game items they have won completely lose all value. In addition, there are other problems with the traditional revenue approach for games.
With blockchain and NFT as its underlying technologies, Web3 in Gaming has created a whole new monetization model. Players have the opportunity to generate passive income through gambling and other means. In addition, they are paid for the time and work they put into the games.
Web3 games, on the other hand, have created an unlimited source of income for game developers. They can run in-game markets, offer in-game purchases, and give players trading freedom that has never been seen before. In short, web3 in games has completely changed the way monetization works.
By 2025, the online gaming business is expected to expand to $256 billion from its current value of $180 billion. attracting more than 2.3 billion players worldwide. With an expected growth rate of 9.2% by 2025, it is also one of the fastest growing industries in the world, with an annual growth rate of 7%.
Today, web-based gaming is a vital sector of the global economy. This industry has boosted profits, tax revenues, and the job market, benefiting nearby communities in the process.
Games are some of the most data-intensive applications available today, which is why they also drive the development of innovative technologies. Many states are already benefiting from online gaming, which is likely to have a significant economic impact.
Improved economic performance
The online gaming sector generated a staggering US$155 billion in revenue in 2021, with the online gaming sector accounting for the lion’s share at around US$85.9 billion. The recent COVID-19 epidemic caused a significant change in consumer preferences and opened new doors for the online gaming industry.
Large audiences have been attracted by the growth of online gaming platforms that offer a wide variety of games such as UFO games, gala games, etc. This has had a positive impact on the economy.
Labor market growth
Particularly for game developers, coders, and animators, the online gaming business has helped the job market grow exponentially, with some game companies reporting a 20% increase in employment.
The online gaming industry has also helped advance the careers of audio engineers, game testers, and even professional gamers. The growing demand for these occupations has resulted in commendable pay rates.
Higher tax revenue
Every year, the Web3 gaming industry generates large amounts of tax revenue. State governments have been able to balance their budgets, cut taxes, and withhold public services like healthcare and education by using additional revenue from online gaming.
The growing demand for online games, which leads to a larger audience and consequently higher profitability for the gaming industry, is the main cause of the increase in tax revenue. The high tax rate imposed on Internet gaming is another important consideration.
The author is CEO of Colexion
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