Adem Yetim FBCS discusses how web 3 technology is changing the gaming industry with a play to earn model.
We've all been involved in the gaming industry in some way throughout life. Recently, games have become more than just a means of enjoyment with newer games which are much more multifaceted. Games are no longer only about passing levels; they have new, diverse stories to tell. More importantly, they have created a significant economic market and have a brand-new economic model.
Growing NFT market
According to a recent report1, the global non-fungible token (NFT) market is expected to grow from USD 3.0 billion in 2022 to USD 13.6 billion by 2027, indicating a compound annual growth rate (CAGR) of 35%. Many key factors fuel the growth of NFTs, including the influence of celebrities and the steady increase in demand for digital artwork. People everywhere are devoting more time and resources to games.
Birth of the metaverse
One example is the metaverse, which allows switching between different gaming universes. The results of metaverse development have taken exciting shapes, with companies bringing new projects to the sector. The metaverse marks the convergence of physical and digital worlds – a market where virtual world revenue is forecast to grow from USD 180 billion in 2020 to USD 400 billion in 20252.
The rise of web 3.0
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The most important breakthrough was the transition from web 2.0 to web 3.0. Web 3.0, or web 3, encapsulates a new version of the internet that runs on decentralised resources.
It spreads among users instead of concentrating the power in the hands of tech giants. Web 3.0 has become a platform with a value exchange model rather than simple information exchange and a large degree of decentralisation of the internet.
Web 3.0 is changing the gaming landscape, introducing new concepts like blockchains, cryptocurrency and NFTs. But the most significant impact of web 3.0 is the democratisation of games.
Never before have we seen a model that puts so much power in the players’ hands and allows them to carry it across ecosystems.
Opportunity for interoperability
The greatest opportunities for players within the web 3.0 metaverse come from item ownership and interoperability, enabled through blockchains and NFTs. NFTs offer the chance to own any type of in-game asset.
Traditionally, a player would purchase an asset unique to one game. However, with interoperability, players can move items around multiple games, allowing them to transition seamlessly between metaverses. Players can sell NFTs on secondary markets, turning them into an investment instead of a one-time purchase. Above all, Web 3.0 will bring power back to the gamers.
The P2E model
Web 3.0 uses a play to earn – or P2E – model, which requires a player to make an initial investment by purchasing unique NFTs. NFTs are digital collectibles that have real-world value, allowing users to earn money as they play and leading to their continued growth in popularity as a way to generate income. P2E offers clear advantages over previous play to win (P2W) models in older Web 2.0 games.
Leveraging mentorship for web 3.0 technologies
The gaming industry is undergoing radical changes with web 3.0 and many people now use cryptocurrencies for both investments and payments. This market is growing exponentially; the need for engineers who develop web 3.0 software is increasing daily. To keep up with this fast-changing technology, mentoring can be a two-way street.
Mentorships are a great opportunity to diversify your ideas and bring a fresh perspective to these evolving industries. Having an experienced mentor could help you to unlock the next level of your career; likewise, becoming a mentor to a young professional could help you see the industry through a new lens.
If you are interested in these cutting-edge technologies and want to take your place in this exciting world, we recommend you look into our BCS Career Mentoring Network (CMN).