ELI5: Web2 vs Web3 Gaming

non-tech noob's two cents Web2 vs Web3 Gaming

The online gaming landscape is in a state of flux with the introduction of Web3 technologies. Web2 and Web3 gaming are two different paradigms in the evolution of online gaming, in this article we will go through the current state of the industry and envisioning the future online gaming experience.

Web2 Gaming

Web2 gaming is the current state of online gaming that has been prevalent since the early 2000s.

Web2 gaming has dominated the online gaming scene since the early 2000s, which has centralized control. In this model, game developers and publishers have authority over the gaming experience, economy, and user data. Players access games through proprietary platforms and create accounts where their in-game assets and achievements are stored on central servers.

Features of Web2 gaming

• Centralized
  Game companies own and operate the infrastructure.

• Proprietary Platforms
  Games are often exclusive to specific platforms or marketplaces.

• Limited Ownership
  Players have restricted control over in-game assets.

• Closed Economies
  In-game economies are controlled by developers.

• Revenue Model
  Web2 games generated revenue from advertisements, in-game purchases and subscription fees.

Web3 Gaming

Web3 gaming emerged around 2017. It leverages blockchain technology to create a more open, interoperable, and player-centric ecosystem. This new wave of gaming is set to transform the industry with its decentralized ethos.

Features of Web3 gaming

• Decentralization
  Control is distributed among players and developers via blockchain networks.

• True ownership
  Players own their in-game assets as non-fungible tokens (NFTs), enabling them to trade on open marketplaces, which also create a more liquid secondary market for it.

• Interoperability
  Assets and achievements can potentially be used across different games and platforms.

• Transparency and security
  Transactions and ownership are recorded on a blockchain, ensuring a transparent and secure ledger.

• Player-driven economies
  Players have a say in the in-game economy through mechanisms like play-to-earn and governance tokens.

• Revenue Model
  Web3 introduces new monetization strategies, including play-to-earn (P2E) models and NFT sales.

Current Web3 Gaming vs Ultimate Web3 Gaming

While the market size for Web3 gaming is projected to grow exponentially, reaching $90 billion by 2031, the current landscape is still in its infancy. Here's how the ultimate Web3 gaming experience could evolve:

• User Base
  The estimated 3 billion global gamers contrast with the current 37 million Web3 gamers. The ultimate scenario envisions mass adoption, with a significant portion of Web2 gamers embracing blockchain-based games.

• Scalability and Performance
  Future blockchains must support large-scale gaming applications with high performance and low costs.

• Interoperability
  The ultimate Web3 gaming ecosystem will feature seamless cross-game compatibility and standards.

• User Experience
  User experience in many Web3 games can be complex and less intuitive compared to traditional games. This is due to the need to interact with cryptocurrencies, wallets, and smart contracts. The ultimate scenario would involve user-friendly experiences that abstract away the complexities of blockchain technology.

• Regulatory Environment
  The regulatory landscape for blockchain and cryptocurrencies is still evolving, which can create uncertainty for developers and players. The ultimate Web3 gaming scenario would benefit from clear and supportive regulations.

• Economic Models
  Many Web3 games currently rely heavily on P2E models, which can sometimes lead to economic imbalances and speculative behavior. The ultimate scenario would likely involve more diverse and sustainable economic models that provide value to players beyond financial incentives.

• Content and Innovation
  While there are innovative Web3 games, the variety and quality of content do not yet match the breadth of the traditional gaming industry. The ultimate Web3 gaming ecosystem would feature a wide range of high-quality games across different genres.

• Technological Maturity
  The underlying technologies for Web3 gaming, such as blockchain, NFTs, and smart contracts, are still maturing. The ultimate scenario would benefit from more advanced and optimized technologies.

• Community and Ecosystem
  Building a robust and self-sustaining gaming ecosystem takes time. The ultimate Web3 gaming scenario would have a vibrant community of developers, players, and content creators, all contributing to a thriving ecosystem.

Future Integration Scenarios

The future relationship between Web2 and Web3 gaming is still unfolding, but there are several possible scenarios:

1. Coexistence
   Web2 and Web3 games may continue to exist alongside each other, serving different segments of the gaming community. While some players may prefer the convenience and familiarity of Web2 games, some may gravitate towards the ownership and economic opportunities offered by Web3 games.

2. Hybrid Models
   Some games may adopt hybrid models that incorporate elements of both Web2 and Web3, such as integrating blockchain technology for certain aspects of the game while maintaining some centralized infrastructure.

3. Evolution of Web2
   Web2 game companies may begin to adopt Web3 features to stay competitive, such as integrating blockchain for in-game items or allowing players to have more control over their data and assets.

4. Integration
   Over time, the technologies and philosophies of Web2 and Web3 could become more integrated, leading to a unified gaming experience that combines the best of both worlds.

Final Thought

The evolution from Web2 to Web3 gaming represents a significant shift towards decentralization, player empowerment, and new economic models.

While the industry is still navigating this transition, the potential for Web3 gaming to redefine the landscape is immense. As technology advances and communities grow, we may witness a convergence of experiences that blend the best of both worlds, setting the stage for the future of digital entertainment.

neko x

Subscribe if you would like to learn more about blockchain and crypto, in a non-tech noob perspective! :)