Modern Technology and Video Games — How Web3 and the Metaverse Impact Gaming

When everyone thought VR and AR could be the pinnacle of gaming technology, a new frontier came to gaming — Web3 and the Metaverse. The combination of Web3 and the Metaverse has already unlocked exciting possibilities for the gaming industry, including unprecedented levels of immersion, true ownership of assets, and a focus on community-driven content.  

But what is Web3? What is the Metaverse? It can be confusing for everyone, so let’s briefly define Web3 and the Metaverse, then discuss how they can impact video games. 

What is Web3? 

Web3, short for Web 3.0, refers to the “next phase” of the internet that aims to revolutionize the way we interact with digital platforms. It is characterized by the integration of blockchain technology to provide decentralized systems for developers to utilize, advanced ownership of digital assets, and cryptocurrencies, enabling enhanced security, transparency, and user ownership – unbeatable cocktail!

This will enable users to truly own the content they purchase and use it in all affiliated games – not just the game they purchased it for. Using blockchain and NFTs smartcontracts, players can have verifiable ownership of in-game items, characters, or other virtual assets. This enables players to gain real-world value from their in-game activity by trading, selling, or transferring assets – hopefully, as time progresses across diverse games or platforms.

Web3 is all about empowering both developers and players by eliminating centralized intermediaries, hence the focus on the community. Web3 encourages collaboration between developers and players, fostering community-driven content creation, modding, and customization, enhancing player agency and game longevity. With the integration of cryptocurrencies or tokens, players can earn real-world currency by participating in gameplay activities, it also introduces the concept of play-to-earn mechanics in video games, which can bolster the community aspect of games even further. This can include earning tokens as rewards for achievements, selling rare in-game items or assets for cryptocurrency, or even monetizing their gaming skills by offering services to other players. 

According to data provided by GDC the current reality tells a different story as the majority of game developers are still hesitant to explore the blockchain: This past year, about 14% of developers said they were in favor of using blockchain technology in games, while 61% said they were opposed — and these figures were about the same from last year’s report.  

The above said, I have a strong belief that within the next couple of years, we will witness the release of triple-A games incorporating these features and technologies which will reverse this trend.

Practical Applications of Web3 in Video Games 

How is Web3 practically applied in games? There are many games that utilize Web3 technologies effectively to create a dynamic, cohesive gaming experience. It's important to consider that the games began their development around two years ago, and their appearance and gameplay still seem far from being groundbreaking new games. However, the following examples are just the predecessors of the upcoming triple -A titles that will be released in the coming years -as the typical development time for a triple-A game is around five years-:

"Axie Infinity" is one of the largest Web3 games on the planet and lets players collect, breed, and battle digital creatures called Axies, which certainly sounds like another game we discussed earlier. The gameplay combines aspects of “idle battle” games and traditional RPG elements while also allows players to earn cryptocurrency by participating in the play-to-earn economy. The game has lately been plagued by controversy due to its questionable business model (tokenomics) and recent crypto market inconsistencies but is still a pioneer in the Web3 gaming space. 

Axie Infinity: Raylights Gameplay Tutorial 

"Alien Worlds” is another popular Web3 game that is part card game, part world-builder and utilizes NFTs to complete tasks and develop planets. The game puts a major focus on the community and hosts plenty of events where users can interact with one another, even letting players build their own planets to create games of their choice. Planets across the Metaverse can feature games with different genres and levels of investment, from the casual to hardcore and everything in-between. Each individual planet can also offer their own NFTs to customize their gameplay experience. 

"The Sandbox" is another blockchain-based platform that allows players to create and monetize their games within a metaverse-like environment with an aesthetic somewhere between Minecraft and Roblox. Players can own and trade virtual land, NFTs and SAND, the game’s cryptocurrency, and other assets in a game.

Lastly, “Decentraland” is yet another 3D virtual world-building platform where players can own and build on land, create unique experiences, and monetize their creations through NFTs. Decentraland’s token MANA is built on the Ethereum blockchain.

What is the Metaverse? 

Providing an actual definition for “The Metaverse” is challenging, because the medium is being debated, defined and evolving almost hourly. With that in mind, If we had I had to provide a definition, though, we’d say that in its full vision, the Metaverse is the latest iteration of the concept of the digital space which will become the gateway to most digital experiences, an essential element of physical ones, and the great next major labor platform.

Nevertheless, creating an expansive immersive metaverse of this magnitude is expected to take several decades, and the prevailing belief within the community is that it should not be owned or controlled by a single company, but rather emerge through collective collaboration.

A notable characteristic of this metaverse is the ability to seamlessly navigate between diverse virtual worlds, akin to accessing various websites, services, and applications on the internet. It’s impossible to predict how exactly the pieces will come together but projects such as “Fortnite”, “Roblox” and maybe “Minecraft’ appear to be promising candidates in the quest to materialize the metaverse into reality. The first two offer more immersive and interconnected gameplay experiences where Players can navigate seamlessly between their worlds, while the latter is primarily a game centered around exploration, building, and creativity.

Fortnite has gone one step further and quickly embraced the concept of the Metaverse through interactive events, concerts, and shared experiences that transcend the boundaries of a traditional game world. It’s not just massive in-game events that take place in Fortnite, though there are plenty of those. We’ve seen appearances by Travis Scott, Marshmello, Ariana Grande, and others take place within the Fortnite universe, allowing players to switch between attending concerts and trying to beat all the opponents at its battle royale concept. 

FULL Fortnite x Travis Scott Astronomical Concert 

On the other side, Roblox  provides a very interesting concept to its platform, where users can create and share their games, fostering a Metaverse-like environment where players can explore a vast array of user-generated content.

Finally, while Minecraft, which was acquired by Microsoft in 2014, is not commonly classified as a metaverse in the same way as other virtual worlds or immersive platforms (although some individuals may argue otherwise), its ability to enable users to build their own worlds technically aligns with the concept of a "metaverse." Its multiplayer capabilities and emphasis on user-generated content demonstrate the elements of shared virtual spaces and community-driven experiences that have been central to our discussion.

Bringing Modern Technology to Gaming 

In conclusion, the constantly evolving landscape of gaming technologies offers exciting possibilities for developers to create immersive experiences that captivate their audience. From VR and AR to the emergence of Web3 and the Metaverse, the options are vast and varied. No longer constrained by the limitations of the past, developers now have the ability to craft truly engaging worlds that invite players to be an integral part of the experience.

Curious about how to leverage these technologies? Our Gaming Guild is here to help!