How Web3 is Revolutionzing the Gaming Industry

One area in particular that has profited tremendously from Web3 is the gaming business.

Blockchain-based games are a radical departure from traditional gaming platforms because they provide players greater flexibility to engage with the games in original and decentralized ways.

This is one of the reasons why these games have become so popular. 

The proprietors of the game continue to own copyright ownership over all user-generated content, regardless of whether or not it can be bought with real money or is awarded as a reward in a particular game.

To put it another way, the digital assets a player obtains while playing do not legally belong to the person who acquired them.

At this time, game producers do not have the personnel or the experience necessary to monitor and authorize player-to-player transactions, such as selling and purchasing virtual products.

These types of transactions may include real-world trading items for in-game currency. 

Development of the Web3 gaming ecosystem

An important part of Web3 gaming is the ecosystem behind it, and Xternity is one platform that is working to build on this aspect. In anticipation of its full release this year, the Web3 games platform Xternity has closed a new fundraising round to capitalize on the current interest in blockchain-based gaming.

NFX spearheaded the $4.5 million financing, which was joined by a slew of notable crypto venture capital companies. Jibe Ventures, Flori Ventures, Secret Chords, and Vgames are among the investors.

Xternity intends to use the cash for product and business development, game creation, and new staffing and has been collaborating with several renowned crypto technology suppliers, like Fireblocks, in the meanwhile. According to the company, the backing of experienced and knowledgeable crypto venture investors is a huge boost for the platform and the industry.

According to the company, Xternity has released its open BETA, which enables game creators with a multi-chain API, an integrated and customizable wallet, and a large-scale NFT platform. It also includes a Web3 CRM solution that has already been connected with prominent blockchain networks such as Polygon, ImmutableX, Solana, and Celo.

The gaming platform promises to build a Web3-powered community in which gamers who want to go further into the game may get access to extra characters and enhancements. In addition, Xternity focuses on developing no-code solutions to assist game producers in increasing player engagement, particularly among Generation Z. Xternity functions as a meta layer that can be smoothly integrated into any game.

Despite the bitcoin market's difficult start to the year, blockchain-based gaming has risen in popularity.

Xternity Games initiates blockchain activities straight from the game engine code, including the creation of new NFTs and token awards. The startup, founded earlier this year in Tel Aviv, Israel, makes data-driven choices based on blockchain transaction insights to boost security and meet KPIs.

Sagi, the CEO, and Ex-Playtika, says: "Xternity continuously strives to define and build a long-term solution with valuable utility for the user. We believe that mass adoption of Web3 is possible only with simple, safe, and scalable technology built upon a sustainable engagement economy."   

On the tech side, "Xternity platform enables game developers to work with many blockchains simultaneously at scale while having a unified code experience. They also can add NFT assets and game economy layers while focusing on their core mission," Says Shahar.

"Xternity's founders are utilizing their unique perspectives of both game monetization and scalable platforms to build the ultimate web3 ecosystem for games", said Gigi Levy Weiss, General Partner at NFX.

"By understanding game developers' need for scalable infrastructures and sustainable economic models, they were able to create a seamless solution that safely onboards web2 games to web3, and the current framework is just the first milestone".

Blockchain Gaming

Blockchain-based games enable players to have true ownership over the in-game assets they earn. In some cases, players even have a say in how the game is updated and developed after release.

The development of crypto games involves integrating blockchain technology into the gaming system.

Blockchain technology makes it possible to pair in-game items with blockchain-based tokens, making it easier to own, transfer and trade these assets.

Play-to-Earn (P2E) gaming is a good example of this, where players can earn tokens or NFTs by playing and completing missions.

Players using Web3 gaming have access to and full ownership of all digital assets used in a game. The assets are unique and stored as non-fungible tokens (NFTs) relevant to the game.

Since blockchain-based assets can be freely transferred between user wallets, Web3 gaming adds a layer of interoperability to traditional gaming.

For example, a player can earn a new skin for their weapon or a vehicle and transfer it to their wallet, another player, and even another compatible game.

Players also get the feeling of autonomy that comes with having complete possession of their virtual goods and collectibles in the form of digital NFTs in blockchain games.

In traditional gaming, in-game assets are locked to the game and cannot be used or carried over to different games or platforms in most cases.

Blockchain gaming solves this problem by offering cross-platform compatibility and complete game ownership.

If a game supports cross-platform play, the player may maintain their in-game property from one system even if they transition to a different one. Of course, this only applies to games that enable cross-platform play.

Gaming in the Web3 era adds new dimensions and layers to traditional games.

For example, players can earn an income via P2E games by earning NFTs and in-game cryptocurrencies that can be sold and traded for fiat currency. Players can also join communities that govern how a game is developed, updated, and expanded upon. 

In Conclusion

Web3 gaming adds ownership to traditional games while democratizing how in-game assets are acquired and traded.