The Web3 gaming ecosystem has grown into one of the most active niches within the larger crypto market in a span of three years. According to the latest quarterly report by DApp Radar, blockchain games accounted for 26% of all on-chain activity, with over 4.4 million unique wallets interacting with this sector on a daily basis.
While this figure is still nowhere near the activity on popular Web2 games like Fortnite and Call of Duty (CoD), one thing is for sure; blockchain technology has brought the gaming industry forward in more ways than the average person realizes.
With Web3, it is now possible for gamers to monetize in-game assets through NFT marketplaces such as OpenSea and other emerging Web3 gaming economies like the Functico marketplace, in exchange for other digital assets or fiat currencies.
One might argue that this is also the case with Web2 games, including Fortnite, where gamers can sell their in-game items through third-party platforms like Gameflip.
However, that’s not entirely the case; Web3 grants gamers full ownership of their in-game assets – one is not limited to a specific marketplace or required to have a license from game publishers such as Epic or Activision Blizzard in order to sell their in-game assets.
Let’s dive into the details.
The Power of Player-Owned Assets
There have been several arguments about the control that Web2 media platforms such as Google, Meta, and Twitter wield in today’s digital landscape. Most of the individuals or entities who are against these tech giants believe that social media users ought to be compensated for the data they share. Why? Because these companies are making a killing by simply putting their users’ data to use.
It’s not any different for the gaming ecosystem. While it is commendable that most of the ninth generation games have included more types of in-game assets, including currencies such as Fortnite’s V-bucks, there are some limitations to which extent the owners of these assets can use them. In other words, the centralized game publishers have a say on how much players can generate from the in-game assets.
Well, it’s different in Web3 where in-game assets are fully owned by the players:
More Economic Possibilities for Gamers
For starters, player-owned assets in Web3 gaming have opened up serious earning opportunities for both avid gamers and newbies. Instead of waiting for seasonal tournaments to compete against other players or teams, this nascent gaming niche has introduced a model that is not only focused on rewards but also value accumulation and the generation of a passive income.
Some players have in fact yielded astronomical returns by selling their Web3 in-game assets; for example, in one instance, an NFT owner sold the famous Dragon Crypto Kitty for a whooping 600 ETH (around $1.5 million as of writing). This is not a unique case, other notable transactions include the sale of Voxie and Unchained NFTs, which sold for 80 ETH and 137 ETH, respectively.
What’s even better is that gamers who do not want to sell their in-game assets can stake them for a passive income through notable exchanges such as Coinbase and Binance, alongside decentralized platforms such as NFTX.
A Full Gaming Experience
The Web3 gaming model does not only empower players to have maximum control over their in-game assets, but also access more blockchain functionalities. A good example of a Web3 gaming platform that’s focused on bringing a wholesome and incentivized gaming experience is Functico. The games built on this chain-agnostic platform will be based on three fundamental principles; incredible rewards, smooth play, and tournament-centered activities.
Unlike the Web2 gaming ecosystems where players have to rely on centralized game publishers for more innovation, Functico also includes a Publisher-as-a-Service (PaaS) framework, allowing traditional developers to seamlessly launch Web3 games. At the core, this gaming ecosystem is supported by a utility token dubbed $TICO which enables in-game operations such as buying relevant in-game items from the Funtico marketplace.
But more importantly, the gamers who interact with Funtico’s gaming portfolio and are rewarded with in-game assets will have full control. What this means is that on top of the blockchain-powered gaming or developer experience, there are opportunities for monetization without necessarily going through a third party or being limited on the in-game assets one can sell.
Interoperable and Borderless
With Web3 gaming, some of the player-owned assets are interoperable or can be hosted on different blockchains. For example, World of Dypians, the leading Web3 game with over 700k unique active wallets (UAWs) is compatible with over five major blockchains, including Base, BNB Smart Chain, Ethereum, Immutable zkEVM and opBNB.
What’s even better is that a leading NFT marketplace such as OpenSea supports more blockchain networks. This simply means that Web3 player-owned assets are trading in a borderless economy where owners have more than two monetization options. If selling one’s in-game asset through Ethereum costs more, why not opt for cheaper ecosystems such as Solana or Optimism? This is the true value of not only decentralizing ownership but also access to valuable markets.
Conclusion
The gaming industry has indeed come a long way over the past four decades, we are now entering an era where publishers will no longer go home with the lion’s share while gamers are only rewarded with the thrill of competition. Web3 is set to change this narrative to a more fair playing ground where in-game assets can be used beyond for monetary purposes and not just upskilling within a specific game. Interesting times ahead for the global gaming market!
