The days when gaming was all about bragging and maximum scores are gone. Gamers appreciate the ability to transform experiences via smart contracts and tokenization, get rewards for investing in a game, and make money from in-game items.
In the past, players would spend hours collecting items and attaining goals that had no value outside the game. With the advent of Web3 and blockchain technology, resources are worth something beyond the gaming ecosystem.
The limitations of Web2 platforms don’t stop with the lack of applications outside games. Web2 games don’t allow the use of characters across games.
By contrast, blockchain applications in Web3 gaming address these issues by establishing a decentralized system in which no single entity controls the assets or data. This decentralization ensures that game assets are stored in digital wallets rather than on a single server, allowing players to access them whenever needed.
Blockchain Is Anything But Simple
Benefits aside, blockchain technology and the corresponding terminology can be complicated, and many aspiring ecosystem members face a steep learning curve.
Smart contracts govern Web3 game rules. These self-executing contracts entail agreement terms written into lines of code, which Web2 users struggle to comprehend. The concepts of gas fees, consensus mechanisms, and swaps are equally hard to grasp.
The idea that smart contracts, once deployed, can only be changed with consensus is unfamiliar and in stark contrast to Web2’s flexible software update models.
Web2 users are familiar with centralized systems that involve trusted intermediaries, while the concept of decentralized and trustless smart contract execution may seem unfamiliar. Non-technical users might struggle to understand how lines of code can translate into enforceable rules.
The Best of Both Worlds: Hybrid models
Funtico’s hybrid model is optimal in the inevitable transition from Web2 to Web3. Funtico is a viable platform for Web2 game publishers that offers developers a robust and streamlined solution to launch games on Web3.
It utilizes the concept of Publisher-as-a-Service, lowering the entry barrier for traditional game developers and making their transition to Web3 as seamless as possible with help from in-house game studios and infrastructure.
Players can purchase game items and assets through the Funtico marketplace, which combines the ownership benefits of Web3 with the convenience of Web2. Users don’t need to have any prior knowledge of crypto wallets to get started. The onboarding process to Web3 is seamless, allowing users to make payments using fiat or cryptocurrency.
The platform accepts various payment methods, including credit cards, Apple Pay, Google Wallet, over two dozen currencies, and direct deposits in its token, TICO.
Payments are processed instantly in partnership with the qualified custody provider BitGo. Currently, Funtico is the only Web3 gaming platform that offers insurance for players’ funds.
Another success story: Reddit’s Community Points
Reddit’s Community Points system is another successful Web2-Web3 hybrid approach, leveraging blockchain technology to reward user engagement. Reddit users participate in subreddits as usual, contributing posts and comments to earn points based on community upvotes.
The points are tokenized on the Arbitrum blockchain, allowing decentralized ownership. Users can manage their points in Reddit’s “Vault,” a custodial wallet integrated into the app, with the option to transfer to external wallets.
Reddit simplifies the process, ensuring actions like tipping and voting feel familiar, without requiring users to grasp complex blockchain concepts.
It Hasn’t Always Been Smooth Sailing
Early Web3 adopters faced challenges in mainstreaming the model due to complex requirements. For example, Axie Infinity overwhelmed users with the need to create wallets, purchase cryptocurrency, and buy in-game NFTs. High initial costs and volatile prices made it hard to retain non-native players who viewed Web3 as riskier than traditional games.
The Ethereum Name Service offered valuable human-readable names for wallet addresses, but the registration process involved smart contracts and unpredictable gas fees. Users were often surprised by fluctuating costs and the notion of “leasing” names instead of owning them outright, unlike Web2 domains.
Meta’s integration of NFTs on Instagram showcased another hybridization challenge. While users could connect wallets, mint, buy, and sell NFTs, confusion arose among the platform’s Web2 audience.
Many users didn’t understand what NFTs were, how to create or purchase them, or their intrinsic value, creating confusion and skepticism among Instagram’s predominantly Web2-focused users. The process of setting up and connecting external crypto wallets and managing private keys was worlds apart from the simplicity prospective adopters expected from Instagram.
Meta retained control over the platform’s environment, which clashed with Web3’s decentralization principles.
Final Thoughts
The transition from Web2 to Web3 in gaming brings both challenges and opportunities. Web3 technology, through blockchain and smart contracts, offers gamers real-world value for in-game assets and decentralized control. However, the complexity of blockchain technology and its terminology can be a barrier for new users.
Hybrid models, like Funtico and Reddit’s Community Points, aim to bridge this gap by combining the benefits of Web3 with the user-friendly aspects of Web2, making the transition smoother for both developers and players. Despite early challenges, these hybrid approaches show promise in mainstreaming Web3 gaming.
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