Web3 is just beginning to drive a radical change of the Internet as we know it. This is the third iteration of the Web. It’s providing players with true ownership of their digital assets while developing new and experimental economic structures within the gaming space. PC games such as Illuvium and Star Atlas are raising the bar with AAA-level graphics and immersive 16x gameplay. Together, these three major developments are redefining the ways players engage with both virtual worlds and virtual economies.

Defining Web3 Gaming

Web3 gaming represents a broader movement toward decentralization, transparency, and player empowerment that has the potential to transform the gaming industry. Web3 games leverage blockchain technology to give players real ownership of their in-game assets. This drastically differs from the traditional gaming model, where a game developer has slight to no control over any of the assets. Sometimes these things are in the form of non-fungible tokens (NFTs), which guarantee uniqueness and limited quantity.

Web3 innovators are experimenting with new economic models, including Play-to-Earn (P2E). In such models, players are given the opportunity to earn cryptocurrency or NFTs just for playing the game. We find that this implementation maximizes creative participation and opens up new forms of revenue generation for active participants. The use of blockchain technology further increases security and transparency, as all transactions are stored on an immutable public ledger.

Key Web3 Gaming Platforms and Their Economies

There are a number of platforms that help showcase what Web3 gaming is all about, and each is taking a different approach to digital ownership and economic models.

Decentraland

Decentraland is a colorful digital utopia fueled by the Ethereum blockchain. Through this immersive platform, users can buy, sell, and build virtual property as well as an array of digital goods. The MANA token is the fuel for the Decentraland economy. You can use it to purchase plots of virtual land, which exist as NFTs. Players have incentives to expand their land, craft immersive experiences like concerts, and make real-world money from what they create.

The platform helps to create a dynamic community environment where users can go to new virtual events, enjoy immersive games, and meet new people. Decentraland's decentralized governance model allows MANA token holders to vote on key decisions, ensuring that the community has a say in the platform's direction. Among these virtual reality platforms, Decentraland shines as an impressive Web3 platform. Its unusual mix of virtual real estate, user-generated content, and decentralized governance truly makes it unique.

Axie Infinity

Axie Infinity has risen to become one of the most successful Web3 games to date. In Southeast Asia, thousands of players use the app as their main source of income. It is among the pioneering Web3 games to mainstream the Play-to-Earn model. It makes the game appealing to players since it allows them to earn real money for playing the game.

In Axie Infinity, players need to own a minimum of three Axies to be able to battle. Each one of these creatures, known as Axies, is an NFT with decentralized properties and dynamic abilities. Players can pit their Axies against each other in player-vs-player (PvP) combat to earn rewards. The game's economy relies on two tokens: AXS (Axie Infinity Shards) and SLP (Smooth Love Potion). AXS acts as a governance token, giving players more influence on the direction of the project. On the other hand, SLP acts as a utility token used for breeding Axies, and players can earn SLP through playing the game.

The breakout success of Axie Infinity is proof enough of how Web3 games can provide a new economy for players to benefit from. Through compelling gameplay and exciting blockchain-backed incentives, Axie Infinity has built one of the most vibrant and engaged communities in the world.

AAA-Level Web3 Games

While many early Web3 games focused on simple mechanics and blockchain integration, newer projects like Illuvium and Star Atlas aim to offer graphics and gameplay that meet AAA standards.

An open-world RPG developed on the Ethereum blockchain, Illuvium boasts incredible graphics and intricate gameplay including auto-battler mechanics. Players are immersed in a beautiful expansive world, capturing and NFT-ifying unique creatures called Illuvials and eventually battling them out against each other. In ILV, the gameplay’s economic activity, governance and staking token, all in-game assets are represented as NFTs on Polygon.

This exhilarating, strategy-centric, space-exploration-themed world is built on the Solana blockchain. With gorgeous graphics and a deep economic model, it…Players can endlessly travel throughout the galaxy, mine resources, and create their own empire. The heart of the game’s economy lies in ATLAS token, used to buy and sell in-game goods as well as governance across the star system. AAA-quality Web3 games aim to bring bigger audiences into the blockchain gaming space. They’re able to do this because they deliver breathtaking visuals paired with riveting gameplay.

Overcoming Scalability and Cost Challenges

Another significant challenge for Web3 games is scalability. Ethereum is currently the dominant blockchain for Web3 games. However, it is frequently slow and costly, especially during peak demand periods. Excessive transaction fees and long confirmation times are the result of this problem. Unfortunately, this means players may find it difficult to experience all that the game has to offer.

To offset these hurdles, many games use different blockchains or Layer 2 technologies to lower transaction costs and make them more accessible. Blockchains such as Solana, Polygon, and Binance Smart Chain provide significantly faster transaction times and much lower transaction costs compared to Ethereum. Innovations like sidechains and Layer 2 solutions, like Polygon, help to reduce costs and make transactions much quicker on the blockchain. Far surpassing other transaction alternatives, these technologies allow for quicker and less expensive transactions to take place.

These solutions improve UX and quickly onboard folks on-chain ➡️ These solutions let Web3 games scale to a mass audience_DISPLAY_MODE_3As blockchain technology matures, new scaling solutions are becoming available, making Web3 games increasingly accessible and user-friendly.

The Future of Web3 Gaming

We recognize that Web3 gaming is still nascent but see it as a fertile ground to transform the gaming industry. One of the ways that Web3 games put the players in control is through real ownership. When married with pioneering economic models, this approach presents exhilarating new experiences for players and developers alike.

Now, with blockchain technology improving and new scaling solutions developing, Web3 games are getting easier and more user-friendly. AAA-level Web3 games, such as Illuvium and Star Atlas are drawing a bigger crowd to the blockchain gaming arena. They show the tremendous promise of Web3 to deliver truly engaging gaming experiences. From the introduction of NFTs, decentralized governance, and Play-to-Earn models, the way players engage with online universes and economies is rapidly evolving.