TL;DR
- The gaming economy has changed in the last decade and gamers are now able to make a living playing game.
- Web 2.0 gamers can purchase in-game items for accessories or in-game items to give them a competitive advantage but lacks the ability to convert into fiat.
- Web 3.0 games integrate cryptocurrencies with games, allowing users to earn them by completing tasks or selling their items for crypto.
- Web 3.0 games are decentralized where players get to vote on important decisions on the game’s development but in Web 2.0, the game developers make the decisions.
Gaming has been a pastime of many for decades now, with the advent of Web 3.0, game developers are seeking out new ways to make gaming experiences as interactive and innovative as possible. This has given rise to many new alternatives in the industry, most prominently, play-to-earn games like Axie infinity, Town Star, Spider Tanks, and many more. These games feature numerous components that can’t be found in the Web 2.0 games that we’ve grown so accustomed to, but how exactly do these differ, and in what aspects are they similar? Let’s break it down!
Web 2.0 Games
Many are familiar with popular games like Valorant, Fortnite, Call of Duty, DOTA, League of Legends, and many more. Although these games give users one-of-a-kind experiences that capitalize on the exciting lore, however, there are certain limitations to the game.
Purchasing In-Game Items
One commonality between these games is the presence of virtual in-game currency, marketplaces for weapons, cosmetics, accessories, and other valuable in-game items. These Web 2.0 games often require some sort of in-game currency that you have to purchase with a credit card in order for you to get in-game items that can provide a competitive advantage over the rest. These currencies can also be earned by completing challenges, quests, and daily tasks within the game. Some developers also come up with unique strategies like Season Passes or intriguing limited-time offers to further incentivize players to purchase these products.
The Crux of Web 2.0 Games
However, these virtual currencies that you trade within Web 2.0 games aren’t necessarily tradeable on other platforms. For example, once you convert fiat to in-game currency to Fortnite’s V-Bucks or Valorant Points, you cannot swap either of the in-game currency back to Philippine Peso or US Dollar. And Web 3.0 games offer a great solution to this.
What are Web 3.0 Games?
Web 3.0 games are built on the blockchain and often integrate the use of their own native cryptocurrency, which is used as the official in-game currency. In addition to in-game use for purchasing items, Web 3.0 gamers often view this as a source of revenue as well because these in-game currencies can be traded for fiat via cryptocurrency exchanges like Coins.ph.
For example: Whenever Axie Infinity players earn SLP from their PvP battles, they can easily transfer SLP from their Ronin wallet to their Coins wallet and swap it for Philippine Pesos. This allows players to earn money from gaming which can then be used to pay for their daily expenses.
Decentralizing the Gaming Economy
The development of Web 2.0 games is often limited to the ideas and minds of those in power, particularly, the game developers. Surely, they take into consideration the sentiment of their players and fanbases, but only to a certain extent. At the end of the day, they have the final say in the future of the brand. Web 3.0 games take a different approach with the presence of a governance token, which essentially provides for extended community participation in the game.
Through the ownership of a governance token, token holders will have the ability to propose certain features in a game, which can result in better services and community sentiment in the long term.
These tokens also play a significant role in the gameplay itself, as it also acts as another incentive for users to engage. For example, Axie Infinity’s primary governance token is known as AXS, tradeable on Coins.ph, according to Axie Infinity’s website, Axie Infinity Shards (AXS) are the glue that binds all Axie community members together. AXS holders can claim rewards if they stake their tokens and participate in key governance votes which decide how the game develops moving forward. Players can also earn AXS when they play various games within the Axie Infinity Universe and through user-generated content initiatives.
The possibilities of Web 3.0 gaming are endless, and the fact that these developers are just getting started is all the more impressive. Many Web 2.0 game developers like Epic Games have already made some early investments and commitments to building on the blockchain in the near future, so the gaming industry could look extremely different in the next ten years should these developments continue. How about you? Have you made the jump to Web 3.0 gaming yet?
Disclaimer: The information and publications in this article are not intended to be and do not constitute financial advice, investment advice, trading advice, or any other advice or recommendation offered or endorsed by Coins.
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