Web3 gaming has emerged as the hottest sector in the crypto world, raising over $7 billion in funding over the past 18 months. This is more than any other crypto sector in the industry, highlighting the immense potential and popularity of the gaming sector in the crypto ecosystem.
Web3 gaming is a relatively new concept that combines blockchain technology and gaming to create a new form of gaming experience. This innovative approach allows gamers to create, own, and trade in-game assets using cryptocurrency, adding an extra layer of excitement and engagement to traditional gaming.
The Rise Of Web3 Gaming
The $7 billion in funding has been raised by a diverse range of web3 gaming projects, from massive multiplayer online games to decentralized gaming platforms. This funding has enabled these projects to develop and expand their offerings, bringing new and innovative gaming experiences to players around the world.
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According to Trissy, a web3 researcher, gaming will be the primary driver of crypto mass adoption due to its ability to gamify financial incentives. While decentralized finance (DeFi) is already making significant strides in disrupting traditional finance, he believes gaming is expected to be the catalyst that takes crypto to the next level.
Web 3 gaming has raised over $7 billion in the past 18 months, more than any other sector in Crypto 🎮
I’ll uncover the key to it going mainstream 👇
1/25 🧵 pic.twitter.com/OO203e1sar
— Trissy (@Cryptotrissy) April 30, 2023
However, according to Trissy, the development of Web3 gaming infrastructure is facing several challenges, particularly when it comes to the availability of skilled developers and regulatory compliance.
The Roadblocks Ahead For The Gaming Sector
One of the main challenges facing game developers is the shortage of developers with expertise in Solidity, the programming language used to build smart contracts on the Ethereum blockchain. As a relatively new language, fewer developers are currently available with the necessary skills to build complex Web3 gaming solutions. This can lead to longer development times and higher costs for Web3 gaming projects.
Another challenge is the fact that working in DeFi or on layer 1 or 2 solutions is often more profitable for developers than working on Web3 gaming infrastructure, which leads to a shortage of skilled developers in the Web3 gaming space, making it harder for projects to find the talent they need to succeed.
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In addition, AAA game development and porting are notoriously challenging, often taking 3-6 with large teams and many bugs and glitches at launch. The integration of Web3 incentives and blockchain technology only adds to the complexity of game development, making it even more challenging to deliver high-quality, bug-free games.
Regulatory compliance is also a significant challenge for game developers. There is currently a large grey area when it comes to launching Web3 games on mobile and PC platforms. Developers must navigate complex regulations to ensure that their games comply with local laws and regulations.
Despite these challenges, Trissy believes that the potential rewards of Web3 gaming are “worth the effort.” By integrating blockchain technology and real-world financial incentives into gaming, Web3 gaming has the potential to revolutionize the gaming industry and create new revenue streams for game developers and players alike.
Overall, by gamifying financial incentives, crypto platforms can make finance more accessible, engaging, and fun, driving adoption and usage and bringing the benefits of crypto to a wider audience.
Featured image from Unsplash, chart from TradingView.com