The Power of Web3 Gaming in Fostering Global Inclusivity and Financial Wellbeing

The significance of games as a gateway to economic empowerment cannot be underestimated.  Games combine familiarity with a medium that billions of people already understand. Add to this a rewards-based system where people generate revenue from what they love the most - and you have Web3 gaming.

Web3 gaming took off in 2021, with Investment in blockchain games equaling $4 billion. Since then, the market has experienced significant turbulence, with the collapse of FTX, Voyager, and Celsius marking a somber end to 2022.

Despite market conditions, investment in the Web3 gaming industry shows no sign of halting. Beyond the rewards for investors,  Web3 gaming is opening up economic opportunities for millions of gamers who choose to participate in this space.

More than just a buzzword, Web3 gaming has the potential to radically alter the traditional job market and change the dynamics of the whole gaming industry - moving from “free to play” to “play-to-earn” with the potential to change lives for the better.

Play-to-Earn Games - the Potential for Higher Income for Billions of Users

The shift from “free-to-play” to “play-to-earn” games has transformed the gaming industry forever.  What would have once been unthinkable has now become a reality. As the founder of a Web3 gaming platform, games are a part of my business. But beyond this, they have supported me and even those around me - providing me with the opportunity to work doing something I am passionate about. It is not an exaggeration to say that games saved me – financially and psychologically at a specific moment in my life.

Through my journey as both a gamer and the owner of a GameFi company, I have seen firsthand that the gaming industry brings far more good than bad. It goes beyond mere entertainment; it has the potential to uplift countless lives. By leveraging blockchain, we can create unique and valuable in-game assets that players truly own, enabling them to earn real income from their gaming endeavors. This opens up new doors for economic growth and financial independence for gamers around the globe.

Moreover, Web3 games provide a strong sense of community and collaboration. Players can engage in play-to-earn mechanisms, participate in decentralized autonomous organizations (DAOs), and shape the direction of the gaming worlds they inhabit. This level of player involvement not only enhances the gaming experience but also fosters a more inclusive and rewarding ecosystem for everyone involved.

Gone are the days when financial rewards were solely reserved for a select group of professional gamers. Today, the gaming industry's paradigm shift towards "play-to-earn" games is reshaping the way we perceive and participate in virtual worlds.

As the play-to-earn revolution continues to gain momentum, it is not only transforming the gaming landscape but also unlocking new economic opportunities for billions of users worldwide. This gaming revolution can democratize wealth and empower individuals across different socioeconomic backgrounds by providing a new avenue for users to earn income.

How Web3 Games Empower Developing Economies

Another element to consider in this debate is how Web3 gaming opens opportunities for real cash flow within developing countries by removing the need for external intermediaries. Web3 gaming brings fresh air to the donation economy, empowering individuals within these economies rather than relying on charitable organizations and donations. If people are able to generate new forms of income themselves without third-party interference you also remove the political impact or influence that often accompanies so-called “handouts”.

Games have the potential to play a transformative role in developing countries, possibly even surpassing the impact of traditional charities. While money from charities can often be misused and diverted to benefit powerful individuals, the earnings from Web3 games directly benefit individuals, offering a means to enrich local economies without intermediaries.

In many developing nations, traditional job opportunities may be scarce, and while gamers may find it hard to find a job in the real world doing what they love, Web3 gaming offers an alternative path. This is particularly pertinent in South Asian nations, which contain a large concentration of people and highly talented gamers and who may face high levels of competition in the traditional job market.

The Indian gaming industry leads the way in NFT-based gaming, with a study by Finder reporting that out of 420 million global gamers, 34% of users are Indian. A study by Statista demonstrated that out of the 421 million online gamers in the year 2022, 90 million of these gamers reportedly paid for online games that year.

Barriers to Participation

While it is becoming more and more evident just how the emergence of the Web3 gaming industry is transforming local economies, it is undeniable that there are significant barriers to this industry.

One of the largest obstacles in the path of web3 gaming adoption is the mainstream attitude towards these games, which, tied to blockchain technology and the crypto space, leads many potential gamers to see some web3 games as a means for unsavory characters to pump their projects or engage in speculative practices. And even on a basic level, simplifying onboarding and building trust are also fundamental to the adoption of Web3, especially given so many web3 gaming projects are difficult to interact with.

In the face of these hurdles, user-friendly gaming platforms are needed, as are simple tutorials and breakdowns of these games. Educating people in a way that feels genuine, without constantly trying to sell them something, providing unbiased facts and education about the benefits of DeFi and web3 gaming in general. This is what the industry needs in order to start breaking down the barriers to adoption.

Game Addiction - Real Problem, Myth, or Exaggeration?

Understandably companies that talk about their own industry are inevitably going to try to downplay some of the more problematic elements of what they do. While the Web3 gaming industry may bring countless real-world opportunities, the gaming industry as a whole also carries its own controversy. When it comes to game addiction, many people are divided - is it a real problem, a myth, or an exaggeration? The way I like to make sense of this issue is by comparing it to other industries.

For instance, the confectionary industry is arguably a key player in global obesity, but that doesn't mean we should ban chocolate production companies. Similarly, gaming companies should not be halted in their development of the Web3 gaming space due to addiction concerns. It is, at the end of the day, down to individual responsibility. Regulation will inevitably place constraints on the industry, but this doesn’t have to be to the detriment of individual gamers. Instead, this can be a good thing.

The Role of Governments and Stakeholders in Blockchain Gaming Adoption

The power of blockchain is such that people are willing to invest in a technology that has not yet reached its full potential.  In Q1 of 2023 blockchain gaming projects saw $739 million in investment. Among the top investors, Singapore’s state-owned investment company Temasek led the way, marking a milestone in global Web3 adoption, and a shift in the entire gaming industry.

That a state-owned investment company would invest heavily into the Web3 gaming industry is a clear marker of the global recognition of the value of the gaming industry.

Over the next several years, blockchain games are expected to develop and mature, onboarding millions of mainstream gamers into Web3. A proposition that has driven the likes of Temasek and other major investment entities to invest so heavily in this space.

Conclusion

Despite the challenging market conditions of the past year, investors continue to pour into this nascent space. While investment remains strong, participation from gamers themselves is critical in developing this industry. Healthy regulation, education and individual participation is just as important as investment, without which the economy will not be able to thrive.

The true impact to the global economy and the benefits to millions of gamers is yet to be seen. What is evident, despite the current barriers,  is that Web3 gaming will only continue to develop and grow as the benefits themselves make themselves increasingly apparent.