Powered by Blockchain technology, gaming ecosystems are experiencing explosive growth. Various games utilize the current blockchain ecosystem’s play-to-earn (P2E) concept.
COVID-19 accelerated the expansion of the gaming industry, which, according to Newzoo, is expected to generate $200 billion in revenue by 2024. The conditions for play-to-earn games and decentralized applications (dApps) are favorable, given the expanding user base and the market size for game-centric dApps.
Blockchain-based games are transforming the world. With the introduction of the play-to-earn model pioneered by Axie Infinity, the gaming industry is on the cusp of a Web3 revolution fueled by modern technologies, notably blockchain. Find out how Web3 game development differs from the Web 2 gaming world.
What is Web3 gaming?
Continuously, new technologies spawn new waves of transformation across industries. When the world first encountered the internet and Google, no one could have imagined how it would revolutionize global business and technology. But the world is now undergoing a new revolution — a transition to Web3, a decentralized web. And Web3 gaming is just the beginning of this lengthy transformation process.
Web3 is a new era of the internet because it takes advantage of the advantages of blockchain technology, such as decentralization, immutability, and transparency. Any central authority will not govern this new internet. The first Web was static, the second was dynamic, and the third was decentralized. And while we are still in the Web 2 era, it is only a matter of time before decentralization takes over and Web3 becomes the norm.
Web3 will continue to gain traction and become more accessible over time, especially in the gaming industry. What is Web3 gaming, then?
No one, not even the game’s creators, is the central authority in Web 3 gaming. The player maintains full ownership and control over their in-game assets. This implies that when a user obtains a new in-game item, it can be used outside the game and even traded for other investments or fiat currency. In conventional games, players lose all of their assets if they switch platforms.
Web3 lays the groundwork for developing play-to-earn games by providing asset trading, tradeable game tokens, and opportunities to earn cryptocurrency while playing. All assets are stored in the form of gaming NFTs and are, by definition, unique.
Web3’s interoperability enables cross-platform connections between game assets and players. The interoperability of Web3 games is primarily determined by the blockchain technology employed in game development. Solana and Polkadot, for instance, have cross-chain communication bridges for interoperability.
Blockchain in Web3 gaming
Blockchain has laid the groundwork for the next generation of video games by incorporating a financial element. What purpose does blockchain serve in Web3 games?
- Public databases
Blockchain keeps track of all alterations and logs every transaction in distributed ledgers. It is shared across every user’s system and is impossible to forge. With blockchain, you obtain an immutable public database of stats, NFTs, user progress, and game tokens.
- Play-to-earn game logic
You can implement a play-to-earn logic into your Web3 game using blockchain technology. While playing games, players can win tradable assets, obtain valuable skins, and then trade them with other players or simply earn crypto coins.
- Ownership and interoperability
Due to blockchain and NFTs, users are the legitimate owners of in-game assets and tokens. Web3 gaming is limitless; players can transfer in-game purchases from one platform to another.
Blockchain-based gaming keeps track of all in-game progress, relies on a voting consensus, and is accessible by all networked players. Due to blockchain, Web3 games achieve greater transparency and player confidence.
Top challenges of Web3 game development
There is no doubt that Web3 marketplace development offers numerous opportunities, but the industry is still in its infancy. Many developers still lack proficiency and technical knowledge in Web3 and dApp development. At Suffescom Solutions Inc, we can identify the following pitfalls of Web3 game development:
- Open-economy design
The majority of games are intended for closed economies. Players can play and earn money but cannot trade. Once tradable NFTs or tokens are added, the previous design principles become ineffective. Creating an intuitive UX is difficult.
It is one of the most complex issues with blockchain technology and one of the most significant obstacles to widespread Web3 adoption. In 2022, however, layer-2 blockchains such as Polygon can offload most transactions from the primary blockchain.
- Game economy inflation
The game economy must account for inflation. If handled properly, your game can gain advantages. However, your game can become the virtual Weimar Republic if mishandled. In-game assets can lose value.
Take, for instance, Axie Infinity. The platform provided enormous welcome bonuses in the form of in-game tokens at the start of the game. A combination of an increase in the number of players and the retention of the same bonus policy resulted in expensive in-game assets that were only affordable to a select few players. To save the game’s economy, Axie Infinity had to alter its policy on welcome bonuses.
How to build a Web3 game with Suffescom?
Planning, prototyping, design, development, quality assurance testing, release, and maintenance are similar phases in the development of a Web3 game as compared to a typical blockchain project.
However, one aspect of Web3 game development requires special attention: the in-game economy model. Web3 games are susceptible to inflation, resulting in a decline in user interest and revenue loss.
At Suffescom Solutions Inc, we pay special attention to constructing a game’s economy mechanism to guarantee a functioning play-to-earn economy in which players are rewarded for their gaming skills. When working on this issue, we pay special attention to the following:
- F2P components
- Revenue streams
- Value retention of in-game assets and tokens
With blockchain technologies, NFTs, and the metaverse, Web3 provides games with financial benefits and a superior gaming experience. It is the initial step toward a next-generation gaming industry and decentralized internet.
Web3 game development presents several difficulties for programmers, despite its many advantages for players. With more than ten years of blockchain experience, our developers know how to navigate the treacherous waters of Web3 game development to maximize the benefits of modern technologies.
In search of a blockchain development firm for your upcoming Web3 project? Contact our specialists for a free consultation on getting started.