The Allure of Web3 Gaming
The premise of Web3 gaming, like everything in Web3, hinges on the ‘ownership of digital things on the internet.’ However, this promise hasn’t been fulfilled. Despite the buzzword soup in every pitch deck in the industry, few actually care about it. Fewer still are working to make it a reality.
A Brief History of Ownership in Gaming
Ethereum co-founder Vitalik Buterin’s imagination was sparked by his disappointment with World of Warcraft — after Blizzard took away his warlock’s Siphon Life spell. Ownership of your gaming assets has been a core idea at the center of this industry from its earliest days.
The Intuitive Appeal of Ownership in Gaming
Intuitively, for any gamer out there who spends time, money and emotional capital on their favorite digital characters and experiences, having ownership of those things and their value seems like a no-brainer. Yet, while other parts of Web3 have been making significant strides — Bitcoin as a store of value, stablecoins facilitating transactions, and real-world assets moving onchain — Web3 gaming lags behind.
The Unique Value Proposition of Web3
Web3 technology fundamentally addresses digital property rights, solving the double-spend problem and ensuring that digital assets cannot be duplicated. This is what makes Web3 unique and valuable. In an increasingly digital world, ownership of online assets — be it data, identity, currency or gaming items — matters immensely.
The State of Ownership in Web3 Gaming
Half of the world’s population engages in video games, making ownership in this space crucial. However, Web3 gaming currently falls short of its promise. Trading game items, virtual currency, and earning from playing games have been mainstays of gaming for at least 25 years.
The Problem with Ownership Without Interoperability
Ownership without interoperability is worthless. If players cannot use their digital assets across different platforms and games, they do not truly own them. Owning a non-fungible token (NFT) game item today is like owning a dog that lives in your neighbor’s garage.
The Parallel with Bitcoin
This situation parallels the arguments that Bitcoin advocates make about gold. While gold is a store of value, it mostly resides in someone else’s vault, limiting true ownership. Bitcoin, however, offers a gold-like store of value that anyone can truly own. Most gaming NFTs today are like gold in someone else’s vault.
The Dirty Truth About Ownership in Web3 Gaming
Web3 gaming claims to provide that little bit of magic that is different — ownership and interoperability. However, the current state of Web3 gaming falls short of its grand promise. Achieving this could revolutionize the industry, offering gamers unprecedented value and transforming the digital landscape.
The Journey Toward True Ownership in Web3 Gaming
The journey toward this future requires a clear focus on two main areas: technology and economics. Technologically, we must address the complexities of interoperability. This involves creating universal standards that allow digital assets to move seamlessly across different platforms, game engines and experiences.
Building a Foundational Infrastructure for Interoperability
It’s about building a foundational infrastructure that supports true ownership, ensuring that an avatar, wearable or any digital asset can be used across multiple games without losing its value or functionality. The industry needs a shift in perspective when it comes to economics.
A Shift in Perspective: From Threats to Opportunities
Developers and companies must recognize that true ownership and interoperability are not threats but opportunities to expand the gaming ecosystem. By supporting open systems, they can attract a broader audience and foster a more vibrant and innovative community.
The Challenge of Balancing Openness with Sustainable Development
The challenge we face is to create an economic model that balances openness with sustainable development, ensuring that all participants — developers, players and businesses — benefit from the value generated. Aaron McDonald, the co-founder and CEO of Futureverse, highlights the importance of this shift in perspective.
Conclusion
Achieving true ownership and interoperability in Web3 gaming requires a clear focus on technology and economics. By building a foundational infrastructure that supports open systems and balancing openness with sustainable development, we can create an industry that offers gamers unprecedented value and transforms the digital landscape.
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Note: The article is a rewritten version of the original text, with some minor changes and formatting adjustments to improve readability.
