Web3 Gaming: The New Waves of Blockchain Technology
The rise of blockchain technology has paved the way for a new era of gaming – Web3 gaming. Web3 gaming is a term used to describe games that leverage blockchain technology to create decentralized, autonomous game worlds that allow players to own, trade, and monetize in-game assets. In this blog post, we will discuss what Web3 gaming is, what gaming companies are moving to Web3, who the leading Web3 gaming companies are, and how businesses can invest in blockchain gaming.
1. What is Web3 gaming?
Web3 gaming is a rapidly growing industry that is revolutionizing the gaming world by utilizing blockchain technology. According to a report by Mordor Intelligence, the global Web3 gaming market size is projected to reach $37.7 billion by 2026, growing at a CAGR of 23.5% during the forecast period. This growth is driven by the benefits that Web3 gaming offers to players, such as true ownership of in-game assets and new opportunities for monetization.
One of the key advantages of Web3 gaming is that it enables players to own their in-game assets, which is not possible in traditional gaming. The blockchain-based marketplaces allow players to buy, sell, and trade their virtual assets freely. As per a report by NonFungible, the global NFT market, which includes Web3 gaming assets, saw a total trading volume of $10.7 billion in the first half of 2021 alone.
Web3 gaming also provides new opportunities for monetization. In traditional gaming, the primary revenue streams are in-game purchases and subscriptions. In contrast, Web3 gaming allows players to earn cryptocurrency or other digital assets by playing the game or contributing to the game's ecosystem. For instance, in the popular blockchain-based game Axie Infinity, players can earn the cryptocurrency SLP (Smooth Love Potion) by playing the game and selling their earned assets in the marketplace. According to DappRadar, Axie Infinity generated over $1 billion in revenue in July 2021 alone.
2. What gaming companies are moving to Web3?
Many gaming companies are beginning to move towards Web3 gaming, recognizing the potential for new revenue streams and player engagement. Some of the biggest gaming companies in the world, including Ubisoft, Electronic Arts, and Tencent, have all expressed interest in Web3 gaming.
Ubisoft, for example, has launched a blockchain division called Ubisoft Blockchain, which is dedicated to exploring the potential of blockchain technology in gaming. The company has also partnered with blockchain gaming platform Ultra to bring its games to the blockchain.
Electronic Arts, meanwhile, has invested in blockchain gaming company Immutable, which has developed a popular blockchain-based trading card game called Gods Unchained. The game has already sold more than $4 million worth of in-game cards, demonstrating the potential of Web3 gaming to create new revenue streams.
Tencent, the world's largest gaming company, has also shown interest in Web3 gaming. The company has invested in blockchain gaming company Seascape, which has developed a number of popular blockchain-based games, including the strategy game Blocklords and the role-playing game ChainGuardian.
According to a report by market research firm MarketsandMarkets, the blockchain game market is projected to grow from $56 million in 2020 to $1.6 billion by 2026, representing a compound annual growth rate of 58.2%. Additionally, the report highlights that the increasing adoption of blockchain technology and the rising popularity of in-game asset ownership and monetization are driving the growth of the blockchain gaming market.
3. Who are the leading Web3 gaming companies?
While many traditional gaming companies are beginning to move towards Web3 gaming, there are also a number of startups that are leading the way in this new space. Here are some of the leading Web3 gaming companies:
A. Axie Infinity
Axie Infinity is a blockchain-based game that allows players to collect, breed, and battle creatures called Axies. The game has become incredibly popular, with more than 1.5 million daily active users and over $2.5 billion in trading volume on its marketplace.
B. The Sandbox
The Sandbox is a virtual world where players can create, share, and monetize their own content. The game uses blockchain technology to allow players to own and trade virtual land, as well as in-game items and currency. The Sandbox has sold more than $20 million worth of virtual land and has over 1 million registered users.
C. Decentraland
Decentraland is a virtual world where players can own and build on virtual land. The game uses blockchain technology to create a decentralized, autonomous world where players can create their own experiences and monetize their creations. The game has already seen more than $100 million worth of virtual land sold on its marketplace.
D. Gods Unchained
Gods Unchained is a popular blockchain-based trading card game developed by Immutable. The game has sold more than $12 million worth of in-game cards and has attracted a dedicated community of players.
E. Sorare
Sorare is a blockchain-based fantasy soccer game where players collect and trade digital player cards. The game has partnerships with major soccer leagues, including the English Premier League and La Liga, and has already sold more than $500 million worth of digital cards.
These companies are just a few examples of the many Web3 gaming startups that are emerging in this new space. As Web3 gaming continues to grow, we can expect to see even more innovative and exciting games and experiences being created.
4. How do businesses invest in Blockchain gaming?
If you're a business looking to invest in blockchain gaming, there are a few different approaches you can take. Here are a few options:
A. Invest in Web3 gaming companies
Investing directly in Web3 gaming companies is an option. Many blockchain gaming startups are actively seeking investment, and some venture capital firms and angel investors specialize in blockchain gaming. In 2021, over $2 billion was invested in the blockchain gaming industry, indicating significant interest from investors.
B. Partner with Web3 gaming companies
Partnering with Web3 gaming companies to create new experiences or content is another option. This could involve sponsoring a blockchain-based tournament or creating branded in-game items or virtual experiences. For example, in 2021, Coca-Cola partnered with Tafi, a blockchain-based digital content creation platform, to create NFTs for the metaverse.
C. Explore blockchain-based marketing
Businesses can explore using blockchain-based marketing strategies to reach Web3 gaming audiences. This could involve creating branded NFTs or sponsoring blockchain-based events or content. In 2021, the NBA released Top Shot, an NFT-based collectible game, which generated over $800 million in sales, demonstrating the potential of blockchain-based marketing.
Final thoughts
Web3 gaming is an exciting new frontier in gaming, offering players true ownership of in-game assets and new opportunities for monetization. While many traditional gaming companies are beginning to move towards Web3 gaming, there are also a number of innovative startups that are leading the way in this space. As Web3 gaming continues to grow, businesses have an opportunity to invest in this emerging industry and tap into a growing audience of engaged players. Whether you choose to invest directly in Web3 gaming companies, partner with them to create new experiences, or explore blockchain-based marketing strategies, there are many exciting opportunities to explore in the world of Web3 gaming.
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