Opportunities in Web3 for gaming projects
Web3 gaming is on the rise, promising to reshape the gaming landscape. However, at the recent Binance Blockchain Week in Dubai, executives highlighted the need for the industry to overcome certain structural challenges. Pixels CEO Luke Barwikowski and Farcana Founder and CEO Ilman Shazhaev, both prominent figures in Web3, offered insights into the sector's current state and the significant opportunities it presents.
Web3 gaming, though still “immature” as Barwikowski describes it, offers a unique pathway for developers and companies to enter an established but competitive gaming market. The decentralized nature of Web3 is attracting interest due to its potential for rapid development and simplified fundraising. However, the space still requires targeted solutions to address issues like bot activity, user identification, and establishing a reliable reputation system.
Tackling the Core Challenges in Web3 Gaming
Barwikowski, representing Pixels, a company active in the Web3 gaming sector, underscores that one of the industry’s biggest hurdles is user verification. “Web3 gaming is a lot more immature than people realize. Still, there’s a lot to figure out, and there’s still a long way to go,” he explained. Currently, Web3 gaming faces challenges such as identifying genuine users, preventing bot interactions, and ensuring quality in the user experience.
Unlike traditional gaming ecosystems, where user data and interactions are centralized and controlled by the game developers, Web3 gaming operates in a decentralized model. This structure, while promoting autonomy and player ownership, complicates the ability to control and verify user identity. Pixels has been working on implementing solutions, like a scoring system based on user actions, which uses on-chain data to determine a user’s behavior patterns and identify potential bot interactions. This system is part of a broader effort to build credibility and trust within the Web3 gaming community.
The use of on-chain data allows for tracking user activity transparently, which Barwikowski believes is key for creating a reliable gaming experience. The reputation system, for instance, offers users a score reflective of their in-game behavior, helping developers filter out bot-like activities and providing an added layer of user quality assurance.
Opportunities for Gaming Projects in Web3: Rapid Development and Market Entry
Despite its challenges, Web3 gaming offers a range of unique opportunities. Ilman Shazhaev, the founder and CEO of Farcana, sees Web3 as a faster, more efficient model for developing gaming projects. “In one thousand companies, maybe up to ten can have success. All games are dying because it’s very hard to thrive and develop in this industry,” Shazhaev noted, describing the conventional gaming industry as tough and saturated.
In contrast, Web3 gaming enables a faster pace of development and simplifies critical processes such as fundraising and business growth. Shazhaev shared that, thanks to Web3’s agile infrastructure, Farcana—a shooter game developed on the blockchain—managed to reach in two years what would typically require four to five years in traditional gaming.
The blockchain-backed nature of Web3 allows smaller companies and startups to access resources and exposure that would otherwise require significant financial backing. This creates a more level playing field and a competitive advantage, allowing even relatively small gaming studios to make a mark in the industry.
Moreover, the decentralized framework offers an alternative revenue model. Unlike traditional games that rely heavily on in-game purchases or advertisements, Web3 games leverage tokenomics, which lets players gain ownership over in-game assets. This model can attract more users, as it creates tangible value for their time and investment in the game. For companies entering Web3, this financial model opens doors for faster, more sustainable revenue generation.
Conclusion
As Web3 gaming evolves, the industry must tackle its immaturity through strategic innovation and technology-driven solutions. Leaders like Barwikowski and Shazhaev emphasize that addressing bot-related challenges, streamlining user verification, and leveraging blockchain-based user reputation systems will play a vital role in the sector's success.
At the same time, the opportunities for rapid development, streamlined fundraising, and new revenue models give Web3 a compelling edge over traditional gaming. For companies looking to break into the gaming market, Web3 represents a promising avenue for sustainable growth and competitive differentiation.
Reference
https://cointelegraph.com/news/web3-gaming-challenges-opportunities-binance-event
