Web3 Technologies in iGaming

Web3 is a trendy concept nowadays, filled with confusions and misconceptions. We have already written articles dedicated to Web3 in general, affiliate marketing, and social media — check’em out if you want more info. Here, we will focus on how Web3 complements the world of gaming, gambling & betting included. We will also provide some app examples and see if they make bang for their buck. But first, let’s recap briefly what Web3 is — just to make sure we’re on the same page.

Web3 definition

Web3 = stack of technologies, concepts, and phenomena. It’s an umbrella term for blockchain, artificial intelligence (AI), virtual reality (VR), augmented reality (AR), crypto incentives, decentralized finances & apps (DeFi & dApps), internet-of-things (IoT), and some other elements of cryptology on par with high-tech stuff. What you need to know is that blockchain is the cornerstone for the majority of them.

As per our previous article, Web1 = “read-only” internet, Web2 = “hive mind” of social media creators, Web3 = “anti-authoritative” network. Web3 aims at excluding any forms of moderation in favor of decentralization and empowerment of average users. This is where blockchain plays the pivotal role, since it enables peer-to-peer connection, where users interact directly with no moderation (in a distributed fashion).

Centralized vs. Decentralized vs. Distributed networks

By definition, blockchain eliminates the problem of the middleman, subject to hacking, since all the information flows there. Once the central server is hacked, the sensitive data is siphoned and the whole network is in danger — that’s why it’s called a single-point-of-failure.

A distributed network, on the other hand, does not store all the data on a single server. Instead, it is distributed among all the nodes involved, hence the name. Or better yet, each node stores a copy of the same database — basically each node is a server. These servers are synchronized with each other to prevent fraudulent activities, like information rewriting. Blockchain is not flawless and tends to be suboptimal in terms of energy and management efficiency. But it does remedy the single-point-of-failure problem and empowers ordinary users (for better or worse).

Web3 applied to iGaming

Web3 ideas have found their implementations in many spheres of life: healthcare, social media, finances — (i)Gaming is no exception. Web3 gaming is also labeled as GameFi (Gaming + decentralized Finance) or play-to-earn (P2E) games. Compared to the traditional payment models, like free-to-play (F2P), buy-to-play (B2P), pay-to-play (P2P), this is a unique case (in theory) of players earning compensation for playing, e.g., crypto tokens or unalienable in-game items.

Theoretically, the items obtained can be used elsewhere, provided the underlying blockchain, or the related token, is widely adopted and not used solely for the game. Basically, this item is a non-fungible token (NFT), which is an exclusive piece of code, i.e., there is no second NFT just like that.

Currently, any in-game assets have no use outside the game itself. Moreover, the player is at mercy of the developer’s goodwill not to confiscate the asset, replace it with something else, or straight up close the game. Besides empowering the humble players, blockchain offers other advantages to the table too:

1. Players’ engagement in game development — voting or straight up participation in creating the game helps players to create their dream game, which is good for retention rate (theoretically).
2. Project financing — fully blockchain-based games are bound to be transparent by design, which adds credibility and spurs crowdsourcing. If blockchain is applied to the monetary component only, then blockchain might actually become a hindrance, due to its poor regulation and vulnerabilities.
3. Rewards for playing the game — enjoying the game and getting paid feels like paradise, except without passing away.
4. Earning and selling digital assets — turning a game into a hat-grinding simulator is not a new story (say hi to Team Fortress 2). However, blockchain can make it easier to trade items, because the aforementioned TF2 does not allow selling items and withdrawing cash directly. Blockchain might prove to be a different story, but if you think about it, blockchain is not really needed to make it possible 🤔

Via: KnowYourMeme

Blockchain, by definition, keeps all the activity and transactions transparent and, somewhat, secure. Hacking the central server, storing all the info, becomes futile, since all the blockchain copies are synchronized with the vast majority of the network. Furthermore, blockchain can serve as cloud storage, simplifying data transferring from one device to another. Finally, Web3 goes beyond blockchain and capitalizes on AI, VR, and AR too. By 2027, blockchain-based games are expected to grow up to $65.7 billion ($4.6 billion in 2022).

Critique of Web3 iGaming

Web3 is not perfect — far from it. Many proponents believe in fair play when giving control over in-game items, skins, cosmetics, and other stuff like that to the player. However, blockchain does not automatically make these items useful on the second market. Besides that, we should ask ourselves a question — why bother at all? Traditional methods like word-of-mouth, online ratings, and forums keep the developers at bay already — nobody wants to risk their reputation over someone’s cosmetics.

Regarding the idea of letting the players take part in game development — it is not always a good plan. First, professional developers have experience, shared vision, resources, and knowledge of how the industry works. Second, beside lack of common vision, gamers can be very toxic and even ruin a good game or two for personal gain or just joy. Third, no blockchain turns a player into a stakeholder of the game automatically, unless the developers are nuts or just want to troll everyone.

At the end of the day, blockchain can simply add unnecessary complications to the already working process of game development. Finally, blockchain is subject to hacking, an example of which will be given later on.

Also, let’s not forget that blockchain, and Web3 as a result, is a complex technology, requiring a special kind of knowledge. More than 50% of the gamers haven’t even heard about blockchain-based games. Blockchain, once again by definition, takes time to confirm a transaction, which can lead to bottlenecks, delays, and other performance hiccups. Blockchain is still subject to code vulnerabilities and forks, rendering it still under development and unregulated.

On top of that, gamers themselves are against the widespread adoption of blockchain-based games, since they don’t like microtransactions in general. Electronic Arts and Ubisoft reneged on their plans to integrate blockchain into their games, and Steam updated its license agreement.

Examples of Web3 Gaming Apps

Most of the Web3 apps try to revolutionize the market by compensating the player for playing — to some degree, this can be compared to coin minting. As mentioned earlier, this gives rise to a new payment model — play-to-earn (P2E). But, earnings are not limited to just playing. Some apps offer financial incentives for other activities too, e.g., walk-to-earn. Sounds like a dream came true? Well, there ain’t nothing in this world for free, but more on that later.

Credit to the band “Cage the Elephant”

Top 5 play-to-earn apps

Here we have gathered 5 of some of the most prominent apps out there, based on blockchain and NFTs. They strive to revolutionize the market by rewarding players with unalienable assets for playing.

Alien Worlds

• Metaverse game on the WAX blockchain.
• Involves capturing lands and obtaining resources.
• Over 3 million registered users and 333 million transactions in November 2022.
• Game’s native token: Trillium (TLM) with a market cap of $49 million.
• Ways to earn include selling NFTs, mining TLM, staking NFTs, renting land, completing missions, and participating in battles.

Benji Bananas

• A multiplayer action game where players control a monkey named Benji.
• Developed by Animoca Brands on Ethereum.
• UAW of over 503,000 users in November 2022.
• Game’s native token: BENJI, as a response to a security breach on September 20, 2022.
• Earnings based on participation in seasons, challenges, and referrals.

Splinterlands

• A multiplayer card game based on NFT collections.
• Developed on the Hive blockchain.
• UAW of 319,650 users in November 2022.
• Game’s tokens: Credits, Dark Energy Crystals (DEC), and Splintershards (SPS).
• Earnings from battles, selling NFT cards, renting cards, tournaments, quests, and SPS staking.

Trickshot Blitz

• A multiplayer competitive pool game on the Flow blockchain.
• Released in August 2022.
• UAW of 277,880 users in November 2022.
• Game’s native token: Rally (RLY).
• Ways to earn include winning matches, completing challenges, referrals, and watching ads.

*Besides Trickshot, the website also offers Solitaire, Blackjack, Carrom, 8-Ball, Darts, Bingo, and is awaiting Archery to arrive.

Upland

• A Metaverse economic simulation game on the EOS blockchain.
• UAW of 149,700 users in November 2022.
• Game’s native token: UPX.
• Earnings from renting NFT real estate, daily bonuses, completing missions, selling digital properties, and exploring new territories.

Top 3 walk-to-earn apps

Not only playing can earn some money. Blockchain developers wash away the boundaries between healthy lifestyle and monetary incentives. That’s right, it pays off to stay fit (sort of)!

Sweatcoin (SWEAT)

Via: CoinMarketCap

• Sweatcoin is a popular walk-and-earn app.
• Users are rewarded for physical activity, such as walking or running.
• The app tracks your steps, and for every 1,000 steps, you earn 0.95 coins.
• These earned coins can be redeemed for rewards, often fitness-related gadgets.
• Daily login bonuses also provide additional opportunities to earn coins.
• Sweatcoin is available globally and is compatible with Android and iOS devices.

Stepn

Via: CoinMarketCap

• STEPN is a fitness app that rewards users for their physical activity.
• Users earn cryptocurrency based on their daily step count, making it unique among move-to-earn apps.
• The app offers a variety of tasks and missions to increase earning potential.
• Activities like walking, running, cycling, and household chores can earn users cryptocurrency.
• It features challenges for additional benefits.
• STEPN includes a unique gaming aspect where users can buy NFT sneakers with varying prices and features.
• The platform’s governance token is GMT (Green Metaverse Token), granting access to premium features and rewards.
• NFT sneakers in STEPN gain levels as players use them, and the app uses GPS tracking and motivational techniques to keep users engaged in a healthy lifestyle.

Fightout (Fight Out)

• Fight Out is a fitness platform that combines gamification with innovative features to motivate users in their health and wellness routines.
• The platform utilizes a train-to-earn approach, positioning itself as a leader in the play-to-earn domain.
• During its presale phase, Fight Out raised over $5.9 million USDT, with $FGHT tokens selling at a rate of $0.0333 USDT.
• Unique features include the creation of Soulbound NFT avatars in its metaverse, enhancing user engagement and enjoyment.
• Soulbound NFTs, linked to users’ physical fitness data, increase in value as users improve their fitness levels, allowing for competitive gameplay within the metaverse.
• The Metaverse health and fitness sector is projected to reach $6.57 billion in 2023, providing growth opportunities for Fight Out.
• Users earn digital currency called REPS by completing in-app challenges and daily workouts, which can be used to purchase NFTs and subscriptions on the platform.
• Collaboration with mixed martial artists enhances Fight Out’s credibility and appeal as a fitness platform.
• Tokenomics and bonuses, including a 67% presale bonus, make Fight Out attractive to investors in the play-to-earn sector.
• Early investors can access 13.5% of the total 10 billion tokens during the presale.
• The $FGHT token will be listed on CEX starting April 5th, providing liquidity for investors.
• The new bonus system eliminates the previous minimum vesting period requirement, and current investors receive a 10% airdrop on their holdings.
• Fight Out’s innovative approach positions it as one of the promising altcoins in the play-to-earn sector.

Findings & conclusion

Theoretically, you can participate in the aforementioned games yourself, but, as W2E apps show, the returns are… humble, to put it mildly. But if you are a die-hard walker or a connoisseur of NFTs…why not? It is always good to start earning at least something on what you are already doing anyway.

The blockchain gaming market emerges, and it is expected to reach more than $65 billion. Hence, it is forecasted for the users to continue joining, meaning we’re most likely witnessing the emergence of a brand-new niche, crossing the gap between health, gaming, and finances. Considering its well-rounded character, the niche is more than likely to appeal to many people. As a result, game publishers are more than likely to look for the advertisers — affiliates to bring in more users.