In the gaming industry, a revolutionary force has emerged, propelling the sector into new frontiers and captivating the imagination of players worldwide. Web3 gaming, powered by the integration of blockchain technology, has ushered in a paradigm shift, redefining the way we play, interact, and experience games.
In this exclusive interview with Harishkarthik Gunalan, Co-Founder and CEO, CoinFantasy, we delve into the transformative potential of Web3 gaming.
How would you define Web3 gaming, and how does it differ from traditional gaming?
Gaming has been a popular leisure activity for decades, but with the emergence of Web3 technology, gaming has taken on a new dimension. Thanks to blockchain technology, Web3 games offer players true ownership of in-game assets and rewards, setting them apart from traditional games.
Web3 games use blockchain technology to provide players with a unique, noteworthy gaming experience from traditional games. As blockchain technology continues to evolve, so does the potential of Web3 games. The decentralised nature of Web3 is breaking all odds and opening a new gaming world for players.
Recent surveys indicate that 56% of gamers are interested in earning NFTs through gaming. Despite the ongoing crypto winter, Web3 gaming recorded an impressive 85% growth in 2022 and 2023. Web3 gaming’s transparency, in-game economy, ownership and control, and decentralised nature keep it ahead of the competition.
How has the integration of blockchain technology impacted the gaming industry?
The blockchain industry is brimming with opportunities in the realm of Web3 games. These games are a unique and engaging form of entertainment and income that blends blockchain and gaming to create a new gaming economy called Gaming Finance (GameFi).
GameFi leverages blockchain technology to integrate traditional gaming and decentralised finance, providing gamers with exciting and innovative ways to earn money and revolutionising the gaming industry. The growth of GameFi is expected to propel blockchain-based gaming to a staggering $435 billion by 2028.
Blockchain technology has a wide range of useful features in gaming. It offers high transparency and security to players, giving them ultimate control over their gaming experience, including monetising in-game assets and setting game rules and mechanics. The technology is also highly beneficial to game developers and entrepreneurs, providing robust data encryption and a secure working environment. Moreover, players can effortlessly connect with each other across multiple gaming platforms.
In what ways does Web3 gaming enhance player experiences and interactions compared to traditional gaming?
Gaming companies are pushed to develop high-end games in a world where players are empowered and demanding. Fortunately, Web3 has become that one technology that mitigates traditional gaming issues and directly improves the player experience. Web3 has allowed players to rewrite and improvise games and explore endless possibilities.
If we look deeper at the gaming economy, players can monetise their in-game achievements, creations, or rare items by trading them for crypto or real money. This heralds the opportunities for players to earn income while getting a seamless gaming experience. Web3 also ensures that your assets are forever yours by providing trust and preventing fraudulent activities.
Cross-game interactions are also possible, allowing players to use their assets on multiple gaming platforms. Furthermore, players have a voice in Web3 game development, decision-making, and future implications.
While decentralised play to invest games like CoinFantasy focus on immersing gamers in the world of crypto trading, traditional games are adopting blockchain technology through cryptos and NFTs, marking a transition from Web2 to Web3 gaming.
How does blockchain technology enable the creation and ownership of in-game assets or digital items? What implications does this have for players and developers?
The biggest flex of blockchain gaming is that players can truly own their in-game assets and currencies. Data related to in-game items are stored on a distributed ledger that anyone can access and players have complete control over it. No central authority or third party can set their hand on the asset.
While traditional games limit the players to use their assets within the game, Web3 games allow them to use the items across multiple blockchain platforms. In Web2 games, players’ in-game earning does not hold any real-world value whatsoever. On the contrary, players can trade and transfer their in-game assets and gain real-world value for them in a decentralised ecosystem.
Traditional games don’t limit the supply of any gaming item. This means that there is no scarcity or value to them. Conversely, Web3 game developers ensure that their in-game items are scarce and not subject to any inflationary pressure.
What are the potential challenges or limitations in the adoption of Web3 gaming and blockchain technology in the mainstream gaming industry? How can these challenges be addressed?
Most underlying blockchain technologies are built to be futuristic and secure but are challenging to understand. Therefore, it necessitates a thorough grasp of technical knowledge. However, advancements in tools, frameworks, and availability of resources are making it easier for developers to build top-notch Web3 solutions.
Since Web3 is in its infancy, its potential to scale and store massive amounts of data and transactions is a matter of discussion. However, the solution to this lies in the question itself. Yes, it is too early to say that Web3 has a scalability issue. Ongoing research and development are working on Web3 scalability, which could soon be positive.
However, these challenges are small in the fast-evolving Web3 ecosystem. Looking back at the rise of the internet, we had similar challenges. It took us some time and a lot of research to crack the code. The same goes for Web3! We have to wait or work on it until it is correct.
How do you see the future of Web3 gaming evolving?
One thing for sure is that the future of Web3 gaming will evolve around interoperability between blockchains and subchains. It will trigger developers to work on tailored games that target specific audiences. Gamers and developers will set their hands on equitable rewards and highly customised games through distributed ledger technology.
Recently, decentralised games are also acting as a source of education. Just like play-to-earn, play-to-invest is a concept that CoinFantasy advocates. As an invest-gaming platform, we educate players on crypto investment and make them star investors. While doing so, we reward them genuinely for learning and showcasing their skills through the best gameplay.
Similarly, learning through gaming is expected to hit the mainstream in the coming years. Eventually, blockchain gaming will continue to have three essential purposes- play, learn, and earn.
