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It’s clear that the future of gaming will be built on the foundations of distributed ledgers (i.e. blockchains). Gamers are realizing that they deserve to be rewarded for the time spent on a given platform. In response, developers are designing games with fair tokenized rewards as a core feature as opposed to an additional bonus.

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Only distributed ledgers offer these tokenized rewards and people can even earn a full-time income from Web3 gaming. eSports is already a **__[billion dollar industry](https://www.statista.com/statistics/490522/global-esports-market-revenue/)__** that grew 50% in 2021, and can grow even bigger when these competitions, and their audiences, move to a blockchain.

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And with a VR component that is likely to be incorporated within the next 10 years or so, the experience will be much more visceral and immersive.

## All Games Moving To The Blockchain

The benefits of decentralized gaming are obvious. Information is secure and anonymous and there is no tracking and **__[selling of data](https://knowledge.wharton.upenn.edu/article/data-shared-sold-whats-done/)__** to third parties. Blockchains eliminate the double-spending problem, meaning that there are no fraudulent payments as seen with the legacy credit and debit system of fiat payment.

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Moreover, Google, Microsoft, Apple, Steam, and other large centralized names charge **__[upwards of 30](https://www.pcgamer.com/most-game-devs-dont-think-steam-earns-its-30-revenue-cut/) percent__** to allow developers the “privilege” of selling games through their platforms. Most developers believe this percentage is unjustified.

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Ultimately, this goes to the heart of the issue. Profits in Web2 gaming were characterized by large actors who dominated the market and gathered a disproportionate share of the rewards. The gaming developers did not see enough rewards for their work while the end-users were charged a premium and had no real authority. This is all changing as Web3 games have minimal fees for development and end-users are given tokens or NFTs with which to grow their holdings and make governance decisions on the future of the game.

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With all this in mind, it’s no wonder that developers are **__[moving to Web3](https://blockworks.co/four-former-facebook-developers-launch-web3-startup/)__** in droves. It’s a place to build gaming communities as opposed to gaming monopolies. Collaboration is the hallmark of decentralized gaming development.

## Overcoming Existing Hurdles

Despite the manifold benefits, there are still hurdles to overcome. The tokenization rewards system has to be spot-on to prevent a small number of users from becoming too powerful. It also has to strike a balance between all parties - developers, gamers, investors, and publication outlets. It’s important to remember that the problem is not simply investors or marketers - it’s when these groups have too much influence. They are still needed for truly successful games.

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It’s hard to strike a balance between rewards and an excellent gaming experience. Ultimately, games like Axie Infinity are more about investment than gameplay, and that’s certainly not an avenue that developers will want to take. Rewards should come as a byproduct of activity in an entertaining game, not the primary cause of the activity itself. The difference might seem subtle, but it should be play-and-earn as opposed to play-to-earn.

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There are also technical problems. Games like Crypto Kitties suffered from huge gas fees due to network congestion on Ethereum. Other blockchains like Solana and Polygon might prove to be faster, cheaper, and more scalable. For all the hype about scalability and efficiency, many blockchain games are relatively slow due to existing smart contract limitations.


:::tip
*The rewards are lucrative, but Web3 games need to be well-thought-out and worked at over a number of years to gain mainstream adoption.*

:::

## Effortless Integration Of Web3 Games

Due to the continued popularity of online gaming, it was only a matter of time before we saw solutions that would bridge the gap between Web2 and Web3 gaming. This is being largely done through APIs that connect established game development environments with blockchains for ease of production.

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But some providers are going further. **__[Ankr](https://www.ankr.com/)__**, a decentralized infrastructure provider for developers, enterprises, and stakers in Web3, is launching its own **__[blockchain gaming Software Development Kit](https://dailyhodl.com/2022/03/23/ankr-launches-new-blockchain-gaming-sdk/)__** (SDK). The Ankr blockchain SDKs allow developers to build on the Unity and Unreal engines.

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This is a dream come true for many passionate developers who can build on engines they are familiar with and easily make games compatible with Web3. This has many benefits, including the easy integration of crypto wallets, Non-Fungible Tokens, decentralized marketplaces, multi-chain interoperability, mobile optimization, and alternative fundraising through tokenization.

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Ankr is further promoting the adoption of subnets, which allow developers to build their own games on their own (sub) chain. This feature is likely to become more prominent as the Web3 gaming environment grows and develops, as it confers many benefits including efficiency, scalability, and customization.


:::tip
*The future of Web3 gaming is likely to feature dedicated blockchains that are optimized for a given game. These can be called subnets or application specific blockchains (ASBs).*

:::

## Getting Involved With Web3 Gaming

While the ability to develop on Web3 might seem daunting, it’s a lot easier than you might think and specialized knowledge is not required - patience and interest are the essential ingredients. For instance, you can build an NFT-based browser game through **__[BuildSpace](https://buildspace.so/nft-game)__**, whether you are a developer, engineer, or just a student. It will get you familiar with dApps and the wider ecosystem of NFTs and cryptocurrencies.

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The best part is that you can work alongside developers in a fixed communication channel. Games development is always done as part of a team. You can also use traditional engines like Unreal or Unity and connect them to Web3 through the available SDKs (which are currently very limited in number).

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Another route would be to get started with your own decentralized application on Ethereum. You can do this through the **__[Web3.js application](https://web3js.readthedocs.io/en/v1.7.1/)__** which allows for smart contract interaction via Javascript. As dApps run off smart contracts and you need to learn to code them (typically through Solidity) to get started in Web3 Development. All dApps will have a front end, a wallet, and smart contracts as the three core components.

## The Future Of Decentralized Gaming

It’s also important to keep in mind that while Ethereum remains dominant in the NFT and gaming market, this may not always be the case. It has been proven to have scalability and pricing inefficiencies even if it remains a solid place to get started.

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Solana could be an improved chain with better speeds, efficiency, and scalability. Polygon is also known to have made a **__[number of acquisitions](https://altcoin-charts.com/polygon-studios-ushers-in-group-of-top-level-gaming-hires-from-web2-firms/)__** and partnerships in the Web3 gaming world.

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Regardless, the future of Web3 gaming is going to involve interoperability between blockchains and subchains that allows developers to work on very specific and customized games for their target audiences. Both gamers and developers will see more equitable rewards and a higher caliber of published games through distributed ledger technology.

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