Benefits of Web3 Gaming: A Complete Guide for Entrepreneurs
The advantages of developing Web3 games Gaming is just one of the many industries Web3 has revolutionized. Web3-based games offer players the opportunity to interact with the games in novel and decentralized ways, representing a significant change from traditional gaming platforms. With the aid of cryptocurrencies and NFTs, people can play to win. Democratizing all facets of gaming removes the need for a single central authority within a game and instead places the power in the hands of the player.
Although in-game items can be bought with real money in traditional gaming or redeemed for rewards, game developers still retain ownership of the in-game content. Simply put, players do not own the digital items they use in-game. Instead, right in traditional gaming merely serves as a permit for participation in the game's features.
Additionally, all game-related data is stored on centralized gaming servers, which are managed and controlled by game administrators. The ability to monitor and approve a trade in which players want to exchange their virtual goods in order to profit is not something that game developers are equipped with.
Gray markets have emerged due to the inefficiency of centralized servers and traditional gaming, giving hackers and con artists a place to operate. They take advantage of the players while providing developers and administrators no benefits—a failure on the part of administrators to protect gaming platforms and players from outages and cyberattacks. The centralized server's inability to defend itself from hacks puts digital assets at a high risk of loss, fraud, and theft.
Web3 gaming offers cutting-edge solutions to the issues raised here, including play-to-earn, crypto-secured gaming wallets, metaverse gaming, gaming Decentralized Autonomous Organizations (DAOs) with decentralized gaming ecosystems, and blockchain-based game asset ownership.
Game-specific KPIs
Four KPIs are given the most attention when discussing developers' objectives for Web3 gaming. Even though it was already mentioned, let's quickly review the four KPIs:
Installs
User Retention
Revenue
User Engagement
We decided to discuss the advantages of Web3 gaming development by examining how blockchain technology can help enhance the KPIs above. But first, let's make sure everyone is familiar with the fundamentals. So let's discuss two ideas that significantly characterize Web3 gaming:
GameFi
Decentralized finance (DeFi) simplifies integrating different financial features into Web3 games. Thus, the term "GameFi" was created. The terms "game" and "finance" are combined in the latter. You should be aware that "GameFi" has a fairly broad definition. Any dapp that combines gamification with financial features can be categorized in this way.
P2E
One of the features of GameFi is the play-to-earn (P2E) idea. When a game is designed so that players can acquire either fungible or non-fungible tokens, we refer to it as P2E. (NFTs). These assets can then be kept or converted into fiat currency, stablecoins, or other cryptocurrencies. As a result, the value gained from playing a game can be applied to the real world.
It's also important to note that decentralized finance has many advantages, which translate into benefits for Web3 gaming. As a result, on-chain games incorporate decentralization, transparency, and immutability. Therefore, a change from "pay-to-play" to "play-to-earn" is no longer a matter of "if" because it has noble aspects on its side. Trends already indicate what will prevail in our opinion, which is quite obvious.
Strengthening Leading KPIs
As we proceed, each of the KPIs above will be examined in greater detail. On these key performance indicators, Web3 gaming will benefit you in that case. Furthermore, certain KPIs are impacted by particular features. However, the overall advantages frequently span different areas and often enhance several things at once. For instance, Web3 gaming significantly improves social interaction when it comes to user installs. Users are becoming more immersed in Web3 projects, which increases user engagement. User-generated content (UGC) is very important in terms of user retention. Additionally, Web3 contributes fresh and enhanced revenue sources for user revenue. Without further ado, let's explore these features of Web3 gaming's advantages.
Web3 Gaming Advantage
Enhancing User Installations
Regarding the first KPI, it is clear that more installs translate into more players. Also, a larger community results from more players. Additionally, a game's ecosystem now exists outside of the traditional confines of the game, thanks to Web 3. The community in classic gaming is quite small; its development and monetization only start after the game launches. Active user engagement is impossible as soon as the game developers stop providing game services. This considerably shortens the engagement period:
Web3 gaming, on the other hand, adds new dimensions that significantly enhance community opportunities, as the image above clearly demonstrates. One is that we can start building a vibrant community before the launch. This can be done in a variety of ways. Offering UGC, NFTs, and governance tokens, for instance, adds a lot of value and, as a result, sparks interest from more users. In the case of Web3, the community can also be repurposed if the game ends. All assets can be easily moved to a different game or marketplace. Furthermore, that is possible across single or several titles. So, choosing this option guarantees the survival of the community.
Increasing User Interaction
The key word here is immersion; a more immersive game will provide users richer and more varied experiences. Users are, therefore, more likely to play for longer periods and more frequently. If we turn back to traditional gaming, we find that there are few opportunities for user engagement. In essence, users can only interact when they have the game open and actively play. They stop being engaged as soon as they quit their game or get up from their computer. However, there are a lot more opportunities with Web3 gaming to keep users interested even when they aren't playing. Typically, this is accomplished by engaging players in a marketplace outside of the game.
Better User Retention
Now that the first two KPIs have been discussed, you are aware of the advantages Web3 gaming has in luring users and providing rich, varied experiences. This is a great beginning, but retention is the secret to a game's success if it wants to guarantee a large number of loyal players. Fortunately, increased user retention is one of the major advantages of Web3 gaming. User-generated content (UGC) is important in this context. As a result, users are not just playing the game but actively participating by using their imaginations. This kind of contribution can be made in a variety of ways. Here are a few instances:
Developing Skins
Here is where gifted artists can significantly contribute. Furthermore, artists may even be able to make money off of those skins if programmers create sound game economics. This gives the game new cosmetics.
Developing Mods
This is where talented programmers can significantly improve things by creating new gameplay.
NFTs can be used to create either of the examples above. Games may also contain a wide variety of other NFTs. As a result, anyone can make new in-game items, effectively becoming the owner of a portion of the game. However, without UGC, it is very challenging for game developers to produce enough content when the user base expands significantly. However, there is always a ton of new content with UGC. Additionally, you can bet your bottom dollar that users will keep returning for more if this allows them to earn. Naturally, this factor has already impacted our final KPI, user revenue.
The Sandbox is a fantastic illustration of how user-generated content (UGC) can effectively increase user retention:
Increasing User Income
Development teams have more freedom to increase functionality, guarantee the top-notch quality, and release new game titles when there is more incoming revenue. You already know that Web3 gaming provides strategies for luring and keeping more users. Obviously, this results in a growth in current revenue sources. Web3, on the other hand, significantly broadens the game's conventional boundaries, opening up new revenue opportunities.
Conclusion
The switch from Web2 to Web3 will significantly disrupt every industry. However, the Web3 gaming revolution has already started. You can understand why after reading about the main advantages of Web3 gaming in the sections above. It is only a matter of "when" Web3 games become the new standard because they have the potential to improve all four major gaming KPIs. Therefore, if you want to take part in this revolution, you should create some top-notch Web3 games. You can consult a Web3 development company before investing in game development.