In traditional games, the players typically engage in competing with each other,
However, in the realm of Web3 gaming, the focus shifts from competing against others to challenging oneself or the game environment where players themselves become the core content. This transition represents a significant transformation in the landscape of gaming dynamics.
In this write-up, we will talk about:
Web3 Gaming’s New Recipe of Ownership
Immersive Education with Web3 Gaming
Bonus: Mission of Web3 Gaming Strategists
Web3 Gaming’s New Recipe of Ownership
Imagine this: instead of just playing, you actually own the cool (shiny ✨) stuff in the game – like, for real! With Web3, all your in-game asset is truly yours to buy, sell, or even lend. So, you’re not just a player anymore; you’re a virtual tycoon.
But wait, how and where would you trade? This is where the Non-fungible tokens (NFTs) have totally shaken things up. NFTs have given birth to marketplaces where gamers can swap digital treasures for real stuff. It’s a game-changer, especially ’cause it fixes the not-so-fair deal between players and game developers. Many traditional folks are dropping huge bucks in games but couldn’t cash in – total bummer, right?
QORPO Game Studio is doing things differently. They’ve put NFTs into their shooter game, Citizen Conflict. Imagine battling in a dystopian world where your characters, masks, and weapons are NFTs – they’re like digital gold! And it’s not just them; a big player like Animoca Brands is joining the NFT party. Other games like The Harvest and Illuvium are jumping the wave too. So, get ready ’cause Web3 gaming is turning the tables, and it’s leveling up your gaming experience like never before! 🚀
Immersive Education with Web3 Gaming
If you are thinking 👇
You might be slightly wrrr-right!
You know, gamifying education has been all the rage lately. It’s about making learning fun by adding game stuff to it. But here’s the cool part: Web3 tech, like blockchain and tokens, is taking it to a whole new level. we’ll break it down for you.
So, first things first, gamified learning is like turning your study sessions into game time. Teachers use game elements to make learning fun and interactive. But now, Web3 tech is in the mix, and it’s changing everything for the better.
A: Blockchain keeps a secure record of your progress in games. Teachers can see how you’re doing in real-time, making learning personalized just for you.
B: Tokens are like the digital rewards you earn in games, but now they’re part of your learning journey. You can use them to unlock new stuff and even trade with friends.
It’s like making learning an exciting adventure.
But there are some challenges too. Not everyone has super-fast internet or the latest gadgets. We’ve got to keep our data safe and make sure teachers know how to use these new tools. A better approach would be to introduce learning lessons into the current games and then smoothly shift to new games that are core educational experiences.
Web3 tech is making education cooler than ever. Blockchain and tokens are turning boring lessons into exciting quests. So gear up!
Psst. Taking exams in Games can look like this. 🤣
Bonus: Mission of Web3 Gaming Strategists
Two Words: Multiplayer Ecosystem
Web3 games are leading the charge into a multiplayer gaming ecosystem, and it’s a win-win for everyone involved!
Picture this: you’re not just facing off against NPCs anymore; you’re diving into thrilling adventures with friends from around the world. It’s like having a global gaming party, 24/7! Plus, these multiplayer blockchain games bring loads of benefits:
🎯 You learn to collaborate
💭 Strategize with your fellow players.
It’s teamwork and fun rolled into one epic experience. So, get ready to make friends from all corners of the digital universe in the world of multiplayer Web3 games!
Answering the ChatGPT’s Web3 Gaming FAQs
If you are a Web3 gaming enthusiast, you’ve probably got a million questions swirling around in your head about this exciting new frontier. From NFTs to blockchain to decentralized ecosystems, it can all seem overwhelming at first. But fear not, dear reader! In this blog post, we’re going to answer some of the most commonly asked questions about Web3 gaming and give you insight into everything you need to know. So buckle up, grab a snack, and let’s dive into the wonders of Web3 gaming!
What makes Web3 games different from traditional games?
Unlike traditional games where the power is in the hands of a central authority, Web3 games give players true ownership and control over in-game assets. You can buy, sell, and trade virtual items and currencies outside of the game, creating a vibrant player-driven economy. It’s like having your own virtual universe where you call the shots and earn through it.
What is the role of NFTs in Web3 games?
NFTs, are the sparkling gemstones of the Web3 gaming realm! These treasures are no ordinary game assets; they are Non-Fungible Tokens or NFTs. NFTs bestow upon players true ownership and uniqueness. They are digital assets residing on the blockchain, granting the power to authenticate, trade, and even modify in-game items.
NFTs allow players to own and trade their virtual possessions outside of the game’s ecosystem. This ownership fosters a sense of value and rarity, as players can truly possess unique items that can be bought, sold, or even showcased in virtual galleries.
How do NFTs enhance gameplay in NFT games?
These digital collectibles bring a touch of uniqueness and ownership to the gaming world, fueling players’ imagination. With NFTs, your avatar can rock dazzling attire, wield weapons forged by legendary artisans, or even summon rare creatures to aid you in epic battles. Each NFT carries its own distinct attributes and value, making every virtual asset truly one-of-a-kind.
Converting existing games to Web3? Challenges & Considerations:
Who hasn’t thought of this one yet? Converting existing games to embrace this new decentralized era is indeed a thrilling endeavour, but it’s not without its fair share of challenges and considerations.
Some of the burning challenges can be:
Compatibility with blockchain technology
Integrating smart contracts, NFTs, and decentralized storage into the game’s architecture with careful planning and development.
Maintaining a seamless user experience while leveraging the benefits of Web3
But it is still possible to switch your Web2 game to the Web3 environment. Transform your game into a thrilling Web3 experience. Include the smart contracts and NFTs, for players’ ownership and engagement in trustless transactions. Also check out the limitations in Web2 gaming tackled by Web3 gaming in our latest article!
Prepare for an adventure where gaming boundaries crumble, and the future unravels before you. So are you ready to level up? Let’s discuss your next big idea, Get in Touch!
How can Web3 improve my game’s retention?
By incorporating Web3 technology in such ways; as enhancing the player experience and creating new incentives for continued engagement, by combining blockchain-based features like NFTs and DeFi mechanisms, you can offer a more engaging and rewarding experience for players, which can increase their attachment to the game and encourage them to continue playing over time.
Can DeFi feature level up my Web3 game’s value for players?
By adding these DeFi features, you can potentially attract a larger audience of cryptocurrency enthusiasts who are looking for new and exciting ways to use their assets. By integrating DeFi protocols into your game, you can enable players to earn and use cryptocurrencies within the game, creating a more immersive and engaging experience. For example, you could allow players to earn interest on their in-game currency or allow them to stake their assets in liquidity pools to earn rewards.
How can I increase player interactions and Web3 game community-building?
Here’s the recipe to have an interactive community for Web3 game space: Add a pinch of social features, sprinkle some community events, drizzle rewards and incentives,hire a community manager to stir things up, and top it off with some social media integration. Just don’t forget the secret ingredient…a dash of humour! Because nothing brings people together like a good laugh (or a bad pun). So get cracking, and let’s bake up a community that’s as sweet as your game!
How can artificial intelligence (AI) and machine learning (ML) enhance gameplay experiences in Web3 games?
With the power of AI, the built characters come to life, adapting and learning from your every move, creating a truly personalized and immersive gameplay experience. Good thing, no more one-size-fits-all gameplay. AI algorithms analyze your unique gameplay, preferences, and performance, delivering custom challenges, puzzles, and quests that keep you on the edge of your seat.
These cutting-edge technologies not only assist in personalizing gameplay, predicting player behaviour, and generating dynamic content, but preventing fraud, and even chatting with players in natural language. It’s like having a game genie on your team, without the questionable gaming sense.
Prevent Cheating in Web3 Games with AI and ML?
Let AI and ML come to the rescue! By analyzing player behaviour and identifying patterns, these powerful technologies can detect fraudulent activity in real-time, from botting to hacking to glitch-exploiting. Plus, machine learning algorithms can adapt to new forms of cheating, making them a powerful ally in the fight for fairness and security.
What are the investment opportunities and potential returns in NFT games?
NFT games offer unique investment opportunities in the form of rare and collectible in-game items, characters, and virtual real estate. Investors can acquire these digital assets early and benefit from their increased value over time.
The demand for NFT games is growing rapidly, increasing the chances for investors to find valuable assets before they become highly sought after. Investing in NFT games combines art, technology, and gaming, creating an enticing blend of creativity and innovation. The potential returns in NFT games can be significant, with the value of certain NFTs skyrocketing in the virtual realm.
Whether it’s a mythical sword, a majestic creature, or a coveted plot of virtual land, NFT games offer a diverse range of investment opportunities. In a nutshell, it’s a kind of investment journey where imagination meets profitability. Witness the successful trends in Web3 Gaming Investments and financial market for the following year.
What future trends of development and evolution of NFT games?
NFT games will level up faster than a person being dog-chased! Get ready for mind-blowing graphics, immersive gameplay, and digital assets worth more than your home’s antique teapot.
In future, we can expect NFT games to become more immersive and interactive, with enhanced graphics and gameplay.
Additionally, we may see the integration of virtual and augmented reality, creating a truly immersive gaming experience in the Web3 space. Overall, the evolution of NFT games is set to revolutionize the gaming industry and provide players with exciting new opportunities to explore and engage with gaming content.
How to make Web3 gaming a piece of cake for mainstream players?
One way to ensure the smooth adoption of Web3 games by mainstream players is by creating user-friendly tutorials and guides that make the transition a breeze. Also, consider creating interactive onboarding experiences that teach players as they play. User Experience is the key for mass adoption of Web3 Games.
Blockchain technology can sometimes feel like a Rubik’s Cube, especially for non-technical players. To combat this, Web3 game developers can simplify the user experience by abstracting away the complexity of blockchain technology. This way, players can focus on the fun of the game rather than the technical details. This is done by using third parties or such middle platforms that take the complex part to their end and provide the players to have fun while playing.
How is blockchain platforms and technologies used to create cross-platform and multi-chain Web3 games?
The blockchain world is constantly evolving and different platforms use different technologies. This can make it challenging for Web3 game developers to create games that work seamlessly across multiple platforms and chains. However, one way to tackle this is by building interoperable smart contracts that can communicate with each other across different platforms.
Developers can also design with modularity in mind, meaning breaking the game into smaller components that can be easily swapped out or updated as needed. This approach can help create a more flexible and adaptable game that can navigate the decentralized nature of the blockchain ecosystem.
What are the scalability/security considerations for user wallets in Web3 games?
When it comes to Web3 games, user wallets need to be both scalable and secure. Developers must ensure that wallets can handle high transaction volumes while implementing strong security measures to prevent unauthorized access and loss of funds. Additionally, wallets must be interoperable, user-friendly, and compliant with relevant regulations. So, let’s design wallets that are as safe as an iron bank vault and as user-friendly as a piggy bank!
What are some popular Web3 game genres and titles to explore?
Web3 games are all the rage, and there’s a genre for every player! From blockchain-based RPGs to NFT-powered collectibles, here are some pun-tastic examples to get you started:
Crypto-Collectibles: Show off your digital swag with games like CryptoKitties, Axie Infinity, and NBA Top Shot.
Decentralized RPGs: Games like Ember Sword, My Neighbor Alice, and The Sandbox.
Blockchain-based Sports: Score big with games like Sorare, which lets you collect and trade rare soccer NFTs.
Play-to-Earn Games: Get rewarded for your skills with games like Alien Worlds, where you can mine resources and earn cryptocurrency.
So, whether you’re a crypto-enthusiast or a blockchain beginner, there’s a Web3 game out there for you. For a good childhood nostalgia, check out this arcade-based game Paper Rush now available on desktop. Let’s get playing!
What is the Role of Expedite Studio in Web3 Gaming?
Expedite Studio plays a significant role in the realm of Web3 gaming by game developers to navigate the decentralized landscape. One of the primary roles of Expedite Studio is to guide game developers in incorporating blockchain technology into their games. By leveraging their expertise. If you’re a game owner and looking for expert analysis/review of your game, reach out to us here. Or get a free report on Web3 game guide here.
Additionally, Expedite Studio assists in building a smooth user experience while harnessing the benefits of Web3. Striking a balance between decentralization and factors like scalability, speed, and cost-effectiveness. With astute design services such as Game Design, UI Development, Metahumans Integration, Web3 Integration, Multiplayer Architecture, Metaverse Dev,Gamification. Expedite Studio will soon be launching its very own Web3 game 🚀 Keep posted and reach out to us at [email protected] to get in touch!
Web3 Gaming: 2022 and Beyond
According to the observations of GameFi in 2022, the ecosystem has already risen and fallen on the back of the 2021 NFT hype cycle. Early token rises and NFT mints were rewarded by the “NFT go up” mindset for games that were still in development and solely intended to provide players with an opportunity to earn money.
Many P2E gaming projects that were released in the last 12 months include sustainable design rather than providing genuinely enjoyable play experiences. These games instead of holding the Ponzi schemes are controllable using WASD (The game controlling keys other than arrow keys).
As traditional equities and other assets saw a wider worldwide decline, the 2022 cryptocurrency market also had a severe correction. Investors have tightened their decisions to risk-on assets, such as cryptocurrencies, as a result of rising interest rates that are intended to fight inflation. With the exception of Web3 gaming, which is proving to be a significant factor in the global growth of blockchain and cryptocurrencies, venture capital funding in those industries has also somewhat decreased. Despite the weak market, blockchain gaming has been demonstrating its strength in these trying times. Blockchain games may receive over $10 billion in investments this year, more than tripling the US$4 billion raised in 2021, according to a report by market watcher DappRadar. To be precise, 2022 has been a significant year for growth, investment, and development in both web3 gaming and NFTs, indicating a fruitful crypto winter.
According to the Binance research, the situation at current leading Blockchains in Web3 gaming are:
Moving forward let’s review some of the major topics and metrics that indicate the development of these markets in this 2022 Web3 Gaming report. Read below how these turning points handled the market slump and how things are shaping up for next year after a year of significant growth for cryptocurrency markets and increasing attention to the web3 gaming field in particular.
1. Gaming Model Switch
The gaming model transformation is partially a result of the game developers switching to concentrate on the game play aspect rather than the earning part. The phrase “play to earn” also establishes certain standards for the playerbase. In some regions of the world, playing Axie Infinity used to be a full-time job. However, their faltering economy made it clear that this was an unstable arrangement.
Developers started using the phrase “play AND earn” instead of “play to earn (P2E),” suggesting that you can make money while playing. Actually, this more closely reflects what true gamers desire. They prioritise enjoyable games. Additionally, if they manage to uncover a way to earn a little money while playing their games,
The problem gap arises when the small gaming startups embracing the new economic model and the profound AAA studios with high-calibre games devoted to a premium $60 price tag and paid subscriptions. But the twist comes as the AAA studios that are now converted to the wildly successful F2P(Free-to-Play) model. The difference between the rising P2E economic model and AAA game quality will eventually close.
Many studios and developers are working to create a Web3 game that is genuinely entertaining. Businesses are exercising a formula that is entertaining, equitable, and profitable for both the gamers and their creators of them.
Web3 gaming is not readily switching back to a free-to-play (F2P) model from a pay-to-earn (P2E) model, as both models can coexist in the web3 gaming space. However, there are a few reasons why some developers and players in the web3 gaming space are experimenting with F2P and other models such as play-to-play (P2P), Factory Models etc.:
Player engagement: F2P models give players the opportunity to earn rewards for their skill and effort, rather than just spending money. This can create a more engaging and satisfying experience for players.
Fairness: F2P models can be more inclusive and fair for players, as it allows everyone to access the game without spending money.
Revenue generation: F2P models can generate revenue through in-game purchases, while P2E models generate revenue through the sale of in-game assets or currency.
Community engagement: F2P models can build larger communities, as it’s more accessible to a wider range of players.
It’s worth noting that many developers and players are experimenting with different models to try and find the best balance between player engagement, revenue generation, and fairness.
2. Newly Launched Web3 Games in 2022
The top games with the most DAUs (Daily Active Users) in 2022 are listed by collective Research as follows:
Alien Worlds is a space-themed metaverse game.
Benji Bananas is a ridiculously informal smartphone game in which players gather bananas.
Solitaire Blitz is a simple card game.
Splinterlands is a game of card accumulation.
Illuvium is an open-world RPG game that invites you to gather NFT monsters called Illuvials. In PvE and PvP arenas, the player must engage opponents using these monsters.
Legends Reborn: Essentially a deck-building game, Legends Reborn by Gala Games is enhanced with web3 concepts.
My Neighbor Alice: Similar to Animal Crossing, My Neighbor Alice is a multiplayer-building game.
3. 2022 As The Year of Alphas
An essential stage of development is the alpha release. In software development, reaching a working build that you’re ready to share with the public is a significant accomplishment. It’s encouraging to see so many alphas and betas released this year.
It is true that 2022 was the year of the alphas. Axes Metaverse, Mytheria, Everseed, Sunville Farms, Moonville Farms, Eternal Dragons, Big Time, Ancient Society, Phantom Galaxies, Star Atlas, Farsite, Spider Tanks, Mirandus, Legacy, Superior, War Park, Chicken Derby, Green Rabbit, Guild of Guardians, R-Planet: Conquest, Farming Tales, My Neighbor Alice, TreeVerse, Life Beyond, etc. are some examples of games that fall under the initial release category.
4. Web3 Gaming investments/Funding review
The Web3 gaming and metaverse sectors received a lot of investment from venture capital firms this year. But the overall amount of money invested in these sectors fell from $5.5 billion in 2021 to $3.7 billion in 2022. (Footprint Analytics).
Animoca Brands is the market leader as of the publication date of this study, having invested in 61 projects in the web3 gaming and Metaverse categories. They are followed by Shima Capital with 29 projects and Infinity Ventures Crypto with 30 projects (CoinMarketCap). Even if it is happening more slowly than in previous years, the number of Game-Fi projects is still increasing. Yat Siu, a co-founder of Animoca Brands, has also made plans to launch Animoca Capital, a $2 billion metaverse fund.
With a $50 million B round, indie gaming studio Theorycraft secured the largest investment of the month in September. The trend of well-known gaming firms and developers entering the Web3 area is evident, with the founding team including members of Blizzard, Riot Games, and Ubisoft (Cryptoslate).
In October, Ubisoft and Take-Two Interactive participated in a $40 million Series A fundraising round led by Horizon Blockchain Games, the company that created the video game Skyweaver (DappRadar). More recently, Web3 game producer Fenix Games secured $150 million in order to purchase, fund, and distribute blockchain games (DappRadar).
Despite the unpredictability and difficulty of the market in 2022, it is evident that investors are still upbeat about the future of the blockchain gaming sector.
5. Ecosystems and Web3
Even if Axie Infinity and STEPN may have been the first projects to become widely popular, they are no longer the leading initiatives in the field. Alien Worlds and Splinterlands are the current leaders in terms of active users, with Alien Worlds claiming 131K average active users and Splinterlands closely trailing at 98K. Only the players of these two games account for almost 30% of all gamers on the web3 platform (Footprint Analytics).
The best performers in terms of transactions are WAX and Hive. The popularity of Alien Worlds and Splinterlands, which account for 54.55% and 99.85% of each platform’s overall users, respectively, is crucial to both of them as a blockchain technology (Footprint Analytics). BNB, the third-largest chain in terms of gamers and gaming transactions, hasn’t yet created a standout game in the genre.
Despite this, BNB Chain is still one of the gaming industry’s most resilient chains. With 299 new projects debuting on the platform in 2022 alone (excluding December) and a 37% market share in terms of web3 gaming protocols, BNB continues to dominate in terms of both new project launches and market share (Footprint Analytics). When it comes to new initiatives, Ethereum comes in second.
It is obvious that the world of cryptocurrency gaming is continuously changing, with new players appearing and established ones fading away. Although Splinterlands and Alien Worlds may currently be the dominant powers, the future is still uncertain.
6. Rise of Metaverse
The six basic elements that make up the Metaverse—blockchain, interactivity, games, AI, networks, and IoTs—are more popular than ever. According to Goldman Sachs, the potential Metaverse economy could represent an $8 trillion opportunity by 2022, according to Gartner, which recently designated the Metaverse one of the top five emerging trends and technologies for that year (Bitcoin.com). Due to the fact that gamers have long been participating in immersive virtual experiences and creating social ties, gaming is crucial to the growth of the Metaverse.
Free-to-Own: The Limit Break gaming studio’s Free-to-Own (F2O) marketing strategy is minting a genesis NFT collection (in Limit Break’s case, DigiDaigaku) and giving them away for free in an exclusive and covert manner. A new gaming economy is being proposed as an enhancement to both free-to-play mobile games and play-to-earn business models that sell game NFTs to players up front. F2O sets the groundwork for this new economy. This model is among the most encouraging ones we’ve seen in 2022 for web3 gaming, regardless of whether F2O is fair or not.
Soulbound Tokens (SBT): SBTs are non-transferrable digital identity tokens that can stand in for a person’s or an organization’s credentials, expertise, and/or reputation. These tokens represent and publicly validate an individual’s reputation, accomplishments, and skill level in a novel way that will have broad repercussions for web3 games, guilds, players, etc. Although SBTs are still a relatively new idea, developers are actively working on SBT products that may be available by the end of the year.
Permanent Death: This refers to the gameplay mechanic in which a player’s character is reset to zero upon death. The more battles they win as they advance in the game, the more competent their character becomes, and the more the game’s owner is rewarded. However, if they lose, their character passes away for good and the NFT that represents it is burned. As it promotes talent, strategies, and more deliberate risk-taking, the idea can assist web3 gaming transition from playing for profit to playing for fun and embracing difficulty.
Physical Backed Tokens (PBT): The developers of Azuki, Chiru Labs, released this novel open-sourced token standard in October. It links a physical object to a virtual token on the Ethereum blockchain. Using physical objects to create digital experiences; tracking the ownership history of physical commodities; and decentralized verification of goods are all possible with PBT. With PBT, users may now create a collection that includes both digital and physical items, exchange authenticated goods, or take part in physical quests.
ERC-4907: Since NFT rental platforms have grown in popularity in the digital sphere, the Double Protocol-proposed ERC-4907 standard has quickly emerged as one of the most significant token standards thanks to its novel and surprisingly straightforward implementation. The ERC-4907 standard does away with the requirement for collateral in lending and borrowing NFTs thanks to its dual-role capability. NFT owners, buyers, marketplaces, and artists will have access to safer and more lucrative opportunities if it becomes generally accepted as the norm for NFT creation and programming.
Sensational Projects In 2022
Kiraverse: Built on Unreal Engine 5, is an online multiplayer game, which allows players from all over the world to participate, compete, and gain achievements to unlock or rent avatars, skins, weapons, and other items. Battle Royale and Elimination are the two game types that KIRAVERSE will debut with. To improve their gaming experience, players can acquire in-game achievements and own, buy, or rent characters, skins, weapons, and other items.
Illuvium: A collectible 3D fantasy RPG game with 343k Twitter followers that has developed a substantial and devoted fan base. In addition to concluding a virtual land deal for over $72 million this year, Illuvium also just made the auto-battler game mode’s first private beta available. The game has received overwhelmingly positive reviews so far and has AAA visuals and gameplay.
Shrapnel: The project has garnered a lot of interest from the public, particularly in the West. It is being developed by a team of seasoned developers that have won BAFTA and Emmy awards from series like HALO and Call of Duty. Shrapnel, which won “Most Anticipated Title” at the Polkastarter GAM3 Awards this year, is evidence that Web3 games’ quality will continue to rise.
Big Time: A forthcoming multiplayer action role-playing game that is now in early access. This project’s aim of creating a “second-generation crypto game” in terms of its in-game economy has been obvious this year, among other things. Big Time recently unveiled full information on its token and economy, which aspires to build a player-driven circular economy.
Tatsumeeko: A multi-chain MMORPG designed to “build communities and deepen worldly relationships” and based on the Tatsu.GG Gaming Bot in Discord. The Tatsumeeko proof-of-concept generated over $369K in microtransactions, surpassed 62K MAU, and over 4.7M virtual products sold. The well-known Discord communities of PewDiePie, Davie504, Moistcr1tikal, Mobile Legends, and Team Liquid, and the fan community of Kanye West, Ariana Grande, and Hololive Fan Server already have Tatsumeeko.
What’s in for 2023?
Cryptocurrency volatility is nothing new, and 2022 was a true rollercoaster for the entire sector. It also represents a remarkable chapter in the artifacts of crypto history. It will be a useful lesson to educate both experienced developers and beginners that cryptocurrency is still “a work in progress” while simultaneously highlighting how far it has come. Future developments in this quickly evolving industry will be shaped by innovators and visionaries who remain focused and persistent.
The two industries that are most likely to use blockchain technology to spread cryptocurrency are Web3 gaming and Metaverses. Following a bright start to 2022, economic and social unrest has had an impact on international markets, particularly tech.
Crypto and NFT advocates have had to deal with hacks, significant falls, and plummeting token prices. Web3 gaming and NFTs are still very much alive and moving forward in spite of all the FUD (Fear, Uncertainty and Doubt).
As the industry develops, there will be more obstacles and setbacks, but we also anticipate that market recovery, adoption by Web2 businesses, and significant technological advancements will serve as the catalysts for a number of innovative NFT and Web3 Gaming projects and trends in the coming year and for many years to come.
The blockchain sector may have been jolted by the bear market and other problems, but the web3 gaming alternatives are just becoming better. In 2023, It can be confidently expected that there will be even more advancements in blockchain gaming with good value returns.
What Is The Mighty Ethereum Merge: How It Will Affect GameFi
What is The Ethereum Merge?
The Ethereum blockchain, as we know it, is the foundation of numerous Web3 applications, cryptocurrency, and NFT projects. The Ethereum Merge, also known as Ethereum ETH 2.0, is essentially an upgrade to the Ethereum blockchain that will lessen its environmental impact, boost network security, allow Ethereum developers to add new features, and improve the chain’s scalability. This is due to the converging of two independent chains “Beacon chain” & “Ethereum”. The latter one will integrate the consensus mechanism of the Beacon chain into it. Let’s dive deep into it below.
When will Ethereum Merge?
The existing Ethereum Mainnet and the Beacon Chain proof-of-stake network will soon converge, indicating that Ethereum will entirely switch to proof-of-stake, putting an end to the proof-of-work. The merge is expected to be in operation in Q3/Q4 of 2022, with the tentative deadline of September 15 this year.
This will result in Ethereum’s 99.95% reduction in energy consumption.
What is Proof-of-Work & Proof-of-Stake?
Algorithms that are used to validate cryptocurrencies on a blockchain network using proof of work and proof of stake. The key distinction is in the method used to select and qualify users for adding transactions.
The Proof of Work consensus algorithm involves challenging puzzles that must be solved by powerful computers used by miners. Trial and error are used to find solutions to the issues. The right to add new blocks to the blockchain for transactions is granted to the first miner to solve the puzzle or cryptographic equation.
In Proof of Stake, before confirming the transactions, miners promise an investment in digital currency. Miners need to put up a stake with their currencies to validate blocks. Miners also provide the duration of their transaction validation history. A weighted algorithm that is weighted based on the stake and validation experience determines at random who will validate each transaction.
Integrating the Mainnet
Since Ethereum’s inception, the Mainnet has used the proof-of-work (PoW) consensus mechanism. The PoW holds each transaction, smart contract, and balance from 2015 till now.
The Beacon Chain, however, was established on December 1, 2020, and it has functioned parallel to Mainnet as a separate blockchain. Beacon Chain has not done transactions on the mainnet, but it reaches consensus on its own by agreeing to active validators and their account balances.
When the Beacon chain is integrated with the Mainnet, and then this composition is merged into Ethereum, the Beacon Chain will work as a consensus engine for all data, account balances, and execution layer processes.
The Merge Impact on Game-Fi
Now that we are fully equipped with the Ethereum merge, it can be simply put as a quick swap of the new engine for the old one of the jet mid-flight. Everything, including the games based on this blockchain, will be swapped and altered eventually in The Merge spell. The three pillars: transparency, immutability, and traceability are fulfilled via wallet, smart contract, and the game server in blockchain game architecture.
Research shows 34,200 smart contracts in blockchain games are vulnerable to attacks. The causes of vulnerability are platforms and contract programming languages. Which opens up to Calls to the unknown, Gasless send, Exception disorders, Type casts, Re-entrancy, etc.
The merge promises a better tomorrow with higher security for the game-fi industry. The upcoming updates will increase Ethereum’s security by requiring major ETH deposits from validators. In addition, the protocol has the authority to delete their ETH immediately in the event of attempted fraud.
Faster Transactions In Games
Currently, when the players make microtransactions in the games to buy any virtual assets or skins, it takes time due to the PoW consensus. The merge update, however, will not speed up the transactions. It is here to lay down the foundation for all the anticipated upgrades. The next updates planned in the Q4 of 2022 and Q1 of 2023 will bring high core speed to the chain.
Less Gas Fee
For those who wonder what is a Gas Fee? On the Ethereum network, the user must pay a set amount of gas for each transaction. So in essence, “Gas” serves as a unit of measurement for determining the costs associated with putting a transaction in the “blocks” that make up the ETH blockchain.
Since 2020, there has been a dramatic increase in Defi and NFT activity in the Game-Fi, which has greatly increased transaction volume and can also clog the network with raised gas fees during peak times.
The merger won’t directly reduce gas prices. The Merge’s technical advancements have included nothing intended to minimise fees. However, activating PoS would be the first step in allowing sharding.
Sharding is the division of a network into “shard chains” that distribute Ethereum’s load, relieving congestion and boosting transaction throughput. It is expected to start in 2023, which will allow the network to scale dramatically and eventually lower the gas fee to an exceptional level.
More Players at a Time
As discussed above, the merger will focus on security and reduce the energy consumption of the current transactions. But it will set the stage for all other areas that users have been waiting for so long. After the merge, sharding could hypothetically boost Ethereum’s transaction throughput to 100,000 transactions per second, outpacing all major credit card providers in speed and throughput. This allows more users to play games at once. Reducing the time consumption for data processing and transactions.
99.9% Reduced GPU Energy Consumption Cost
There are glad tides on the way with merge for the gamers. Game Processing Units (GPUs), which are used for mining Ethereum, are becoming less expensive as the network gets ready to convert from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) one, which would make these gaming processing components essentially useless for Ethereum miners.
According to calculations made by Ethereum experts, the GPU models on eBay have decreased by 37% since May 2021, and more are expected to drop very soon after the merge. Much more GPUs will be pushed to the secondary market when Ethereum eventually switches to PoS, which will probably cause prices to rise even higher.
The fact that the price of Ethereum has been relatively low, as mining has become more challenging, adds to the downward pressure.
Reduced Costs and Increased Speed
The major 2 upgrades after The Merge are the “Sharding update” and the “Shanghai update”. Both of the upgrades are anticipated in Quarter 1 of 2023, possibly in action by January. Sharding following the merge describes the division of the whole blockchain ecosystem into manageable units called Shards.
Sharding will assist the network in facilitating secure distribution of data storage requirements, as well as making transactions quicker and making nodes easier to operate at a reduced cost. Next, we will witness The Shanghai update. It will tackle 3 critical functionalities; EVM object format, Beacon Chain withdrawals, and L2 Fee reduction.
We are fully aware that news can be trending on the internet and still be wrong. To tackle that for the upcoming Ethereum Merge, we have busted some of the myths that went viral below.
Myths about The Merge
Myth No. 1: “Gas fee will be reduced following the merge”
False. The merge won’t lower gas prices because it only modifies the consensus mechanism, not increases network capacity.
Myth No. 2: “After the merge, transactions will be quicker.”
False. On layer 1, transaction speed will mostly not change despite minor adjustments.
Myth No. 3: “Once the merge takes place, you can withdraw staked ETH.”
False. The merge does not yet support stake withdrawals. However, withdrawals from bets will be possible after the next Shanghai update.
Myth No. 4: “The chain will increase the downtime after the Merge.”
False. Merge will provide zero downtime, as the chain will switch to proof-of-stake.
Myth No. 5: “In the dissipation of merge, new tokens will be generated.”
False. Ether will continue to be the native asset of the Ethereum network when The Merge is finished. Therefore, there will not be new tokens created.
What is “Eth 2”?
There won’t be two separate Ethereum networks anymore; there will only be Ethereum after ‘Eth1’ and ‘Eth2’ have been combined into a single chain.
The eth developer community has changed these terminologies to avoid ambiguity:
The “execution layer,” currently called “Eth1,” is in charge of transactions and execution.
The “consensus layer,” which manages proof-of-stake consensus, is now called “Eth2.”
These terminological changes solely affect naming standards; they have no impact on Ethereum’s objectives or development timeline.
A decentralized network scaling strategy and a switch to proof-of-stake have long been on Ethereum’s roadmap. Researchers initially worked on these projects independently, but in 2018 they were brought together under a single roadmap for “Ethereum 2.0.” a term coined.
The existing ethereum mainnet and the Beacon Chain proof-of-stake(PoS) network will soon converge. This will complete Ethereum’s shift to proof-of-stake and signal the end of proof-of-work. This curates the way for later scaling improvements like sharding. Ethereum’s energy use will be reduced by 99.95% due to the merge. It will also make the chain highly secure, a welcoming tide for all.
The original Ethereum developers planned for sharding in the first phase, but since gamification holds 51% of the blockchain’s transaction operations, it was viable to make the chain scalable first. For the development and popularity of layer 2 technologies to scale transaction execution, the focus of the sharding plan was shifted to enable the rapid increase in network capacity. The developers realized that this would not have been possible without switching to proof-of-stake.
Upcoming developments after the merge would be focused on sharding, modifying the EVM functionality, and reducing the beacon withdrawal delay. This means there will be a threefold surge of players onboarding on the chains. This is nothing more than a piece of good news considering the almost negligible prices of GPU and reduced gas fees for microtransactions.
What Is GameFi? A Beginner’s Guide To Blockchain Games
This guide brings the objective to restructure the way people think about the Gaming industry or GameFi, how blockchain is part of it, how it gives ownership and more control to players, brings new global friends using decentralization, and establishes the earning habit while playing games.
GameFi allows users to earn incentives for playing games and matches players with shared interests via a peer-to-peer approach. Gamers may make new acquaintances and take part in international gaming events thanks to GameFi.
First, let’s understand the few concepts to bridge the gap between conventional games and Blockchain-based games.
Conventional Games vs Blockchain-based Games
Despite not being restricted to certain platforms like smartphones and desktop PCs, blockchain games and conventional games mostly function differently. Here are four distinctions between blockchain games and conventional video games.
1.Who’s in control?
The standard video games or conventional games as we have played in the past end when the player has achieved the conquest or the character ran out of lives. Where does all the data go? What happens next? IT only starts over as a fresh game. In centralized gaming models, all player data, and game-related intelligence including player account information and all of the events and in-game items users acquire on their virtual journeys, is kept on servers that are entirely under the authority of the game producers or administrators.
In addition to the fact that players never actually own their own data or the in-game items, they spend countless hours earning, all of the aforementioned are also at risk of being taken or even lost forever in the event that the game developers themselves damage or shut down the servers. This means that the player itself is not controlling the events/happenings about his character. Whereas, in blockchain games there is a strong belief in decentralization. We will discuss that in detail below.
2.Where do the accomplished game assets go?
It is indeed a milestone for players when they win hard levels, reach the finale, and end the game with an amazing victory. After winning in traditional games, the player is bestowed with all the coins, cups, new skins, diamonds, and relevant game assets. Once the game ends all the assets are gone. And while remaining in the game, the assets are accessible on that system only with no procedure of sharing or using the swags afterward.
For obsessive gamers, it would be a dream come true to keep the items even after the game stops. The rewards acquired are limited to being used in the next level or sometimes the rewards are purely visual and have no effect on the earning and gameplay. The revolutionary gaming industry known as the Blockchain or Web3.0 gaming industry has changed its concept and put a lot more into the game assets being only static assets.
3.What’s in for the next level of game?
With traditional technology, players can not actually get info about the procedure, and activity going on behind the video game screens. It restricts the freedom of players where they can truly take a peek behind the scenes. This is a lack of transparency in the older game-plays.
The trust that players and game producers have in a game is increased by this level of openness. Gamers may observe every move done by developers and other players, eliminating the need for them to wonder what is occurring in the server of a game they have spent hours playing. However, in Blockchain gaming development, games offer expandability chances for ongoing game improvement in the industry and allow a fault-free and righteous gaming ecosystem.
4.Having permanent storage to increase reliability:
Since conventional video games are centralized, there is an enormous risk of losing everything you have played so hard to obtain. The only way to save your massive win and show it to your circle is by taking a screenshot of the final screen and framing it which does not sound like a rational approach. With blockchain games, this is not the case because of decentralization, as stated earlier.
The blockchain factor in games will store all game data on the Kronoverse/FYX platform. With Kronoverse’s Twitch-like match viewer, games that have been permanently saved may be broadcasted while still allowing for game replays. This implies that you may review earlier games to learn from your failures and achievements and advance your knowledge and skills.
What is Game-Fi?
The phrase “GameFi,” which combines the terms “gaming” and “decentralized finance” (DeFi), refers to the incorporation of blockchain technologies in the gaming industry for monetization and other uses. Particularly smaller publishers take advantage of the tokenization option to monetize their games. The tokens are often released as part of an Initial Coin Offering and are based on the ERC-20 standard of the Ethereum network (ICO). This helps to pay for the expenses spent during the game’s production. Players get automatic tokens from the publisher via smart contracts in return for a payment using currently available cryptocurrencies, and they may spend those tokens in the game that is subsequently created.
It blends cryptocurrency, blockchain, non-fiat currencies (NFTs), and game mechanics to provide a virtual world in which users may engage and make money. GameFi has a “play-to-earn” business strategy. This idea is around offering players cash incentives to play games and advance through the stages. Some blockchain games let players make a full-time living while they play.
Such gaming initiatives are introduced on the blockchain distributed ledger. This implies that any items players obtain are fully their property.
For instance, some blockchain games offer rewards for in-game achievements, while others let players generate income from the many assets they hold.
Game-Fi background -the revolution:
The end of 2017 saw the global growth of the pet-raising game CryptoKitties, which is built on Ethereum smart contracts. In the first seven days after its introduction, the game’s transaction volumes surpassed $1.9 million, and it was so well-liked that it clogged the Ethereum network. Due to CryptoKitties’ popularity, traditional and online gaming firms have flocked to blockchain gaming. AxiomZen, the firm that created the video game CryptoKitties, received $70 million in a Series A investment a month later. Numerous strategic, role-playing, simulation, and other blockchain games have since been released.
However, the word “GameFi” publicly appeared in presentations given at China’s Wuzhen World Blockchain Conference in November 2019 by the founders of MixMarvel, a blockchain game publishing platform, about how the technology behind cryptocurrencies may transform the video game business.
Numerous blockchain games with NFTs, DeFi, and other components have surfaced since June of the year 2021, under the slogan “Play to Earn.” The most notable example is the pet-game Axie Infinity, whose single-day revenue of $9.72 million quickly eclipsed that of Tencent’s well-liked mobile title “Honor of Kings” in a matter of months. Over the course of just two months, the value of its tokens AXS and SLP increased more than thrice.
Five of the top nine applications according to DApp rankings are GameFi apps. Since the summer of 2022, GameFi has had more unique users than DeFi, and as a result, it now accounts for most of all Dapp users. Game-Fi has 9.21 million weekly active users as of the beginning of December, a record number.
The two important reasons why the rise of the Game-Fi revolution happened are; The first is the freedom of trading in-game resources, which is expressed both in the freedom of trading items and the freedom of trading prices. Traditional gaming models’ transactions resemble those of planned economies to some extent.
The second element is the open pricing and trading of in-game money. Although game currencies cannot be directly monetized through official channels, it has been neglected by many experts that it is feasible to generate real money from the game currency by selling in-game objects or props for money on underground black markets. But doing so results in high transaction costs.
How does the Game-Fi system work?
The mechanics of various GameFi projects differ. In-game things often take the shape of avatars, lands, outfits, weapons, currency, tokens, and pets and are created as non-fungible digital tokens (NFTs). As a result, you can prove that any in-game stuff you buy is entirely yours.
As they play the games, users claim these things, which they can then sell for profit on NFT marketplaces or convert into well-known cryptocurrencies. Most of the time, in-game items are NFTs that operate on the blockchain and may be exchanged on NFT exchanges. However, in some circumstances, users cannot buy or sell in-game assets until they have been transformed into an NFT.
Typically, the in-game items will provide players with certain advantages so they can earn more prizes. However, some games also provide cosmetics and avatars that are entirely aesthetic and have no bearing on the game’s gameplay or revenue.
Depending on the game, players can gain prizes through completing missions, engaging in combat with other players, or constructing buildings that can be sold. Through staking or by lending their in-game assets to other players, several games can allow users to earn passive revenue without actively participating in the game.
Important Features of GameFi projects:
●Play-to-earn model (P2E)
Players may earn money for achieving game objectives in several blockchain games. The native token reserve stored within a smart contract is often where the money granted in these play-to-earn games comes from.
It differs significantly from the pay-to-play business model used by conventional video games. Pay-to-play games need players to make an investment before they can begin. Video games like Call of Duty, for instance, demand that users buy licenses or recurring subscriptions.
Most of the time, gamers of traditional video games won’t see any financial gains, since the gaming industry controls and owns all of the in-game assets. P2E games, on the other hand, may give players total control over their in-game possessions while simultaneously providing them with chances to make money.
Depending on the game, players can gain prizes through completing missions, engaging in combat with other players, or constructing buildings that can be sold. Through staking or by lending their in-game assets to other players, several games can allow users to earn passive revenue without actively participating in the game. Let’s look at a few of GameFi’s standard features.
●Ownership of digital assets
Because digital asset ownership is made possible by blockchain technology, gamers may earn money from their in-game assets in a variety of ways. Blockchain-based games provide this wonderful fortuity to gain any valuable item from the game forever in your ownership even after the game ends. Everything you win, gather, or buy becomes your property, and it is kept in your virtual wallet.
Players may own avatars, pets, homes, weapons, equipment, and much more, much like in video games. However, in GameFi, these assets may be produced as NFTs and issued (also known as NFT minting) as well. As a result, gamers may fully control their goods and ensure their validity and ownership.
This protects you from the possibility of losing any in-game stuff if a game crashes in the middle of a match or your account is suspended. In the event that you lose Internet access after triumphing in CryptoFights combat, for instance, you still have all of your armor and weaponry. You may still trade stuff even if your account is suspended, keeping you from being totally shut out. You can trace every transaction, from purchases to exchanges, thanks to blockchain technology.
The notion of land ownership is emphasized in certain well-known metaverse games, like Decentraland and The Sandbox. They let users earn money off of their virtual property. Gamers may buy digital plots of land in The Sandbox and develop them to make money.
DeFi items and functionalities are also offered by several GameFi initiatives. Players often risk their in-game tokens to get awards, gain access to premium products, or advance through the game’s stages.
The addition of DeFi components can further decentralize crypto gaming. Some Game-Fi initiatives let the community take part in the decision-making process, in contrast to traditional game companies that centralized control over their game updates. Through decentralized independent groups, they can suggest and vote on the next upgrades (DAOs).
Games on the blockchain are decentralized as said, which gives users and game producers more flexibility and security. The innovative environment that blockchain game developers build gives players more freedom to play and enjoy. Due to its decentralization, blockchain games vary from conventional video games like Grand Theft Auto and FIFA. DAO in Game-Fi gives freedom to the collection of individuals working together toward a common goal or project who, through the use of tokens and the blockchain, enable their members to cast votes. Game-Fi DAO also allows the players to team up and represent as a team like e-sports and share the reward. Blockchain games let you monitor and examine every action you’ve ever performed as well as the actions of other players
Players in Decentraland, for instance, may vote on organizational and in-game rules by locking their governance tokens (MANA) in the DAO. Their voting strength increases as they lock more tokens. This makes it possible for players to interact with game designers directly and affect how the game is made.
Making Friends Around the Globe:
Millions of gamers now have the chance to mix their gaming with partnerships. New resources are provided to developers for marketing and reimbursing NFTs and games. The selling of unique skins, things, and characteristics also brings in money for the investors.
As the gaming business becomes increasingly well-known every day, more influential players are joining forces with several top-tier GameFi and NFT initiatives to provide new, lucrative possibilities and features for the whole network.
This is bridging the gap between the global network and compiling a huge set of players into friend zones. People meet and greet at the GameFi events, and realize that they have met their virtual opponents, friends, and allies.
Following are some of the multiplayer games that let people compete, play, and fight in groups against other teams and earn a mutual reward, these made it huge into the industry:
· MMO RPGs
MMORPGs stand for massively multiplayer online role-playing games. These games provide players the chance to trade, strategize, explore, earn gold, craft, and even compete within a network pool of other players and teams.
· Battle Royale
It hit the news not very long ago that “The Next War Launches the First Blockchain-Based Battle Royale Style GameFi”.This is a great turn for all the Royale fans that they will now be joining the futuristic tech within their favorite game.
The Web3 arcade has a 5-step rule. 1. Stake 2. KYC 3. Apply whitelist 4. Buy 5. Claim and that is it. The players can play any game from the arcade using Multiplayer or solo mode abiding by these guides.
GameFi is projected to continue expanding quickly as blockchain technology continues to advance. It is incredibly well-liked, particularly in underdeveloped nations, because it allows users to buy stuff in games and profit from them.
It’s simple to understand how GameFi attracts gamers by providing both entertaining and monetary effects. It is expected that as blockchain games gain popularity, more and more significant businesses will begin to develop the metaverse. However, initiatives like Axie Infinity, Illuvium, and LOCGame will pave the path for the gaming generation by creating the subsequent ecosystems that will enable this market to reach its full potential. As we approach 2023, their creative fusion of NFT, DeFi, and traditional gaming mechanics has established GameFi as a leader in this market.