Why Web3 Could Be the Future of Competitive and Reward-Based Gaming
Gaming is one of the most fun activities in today’s digital society. The latest statistics show that there are over 3.2 billion video gamers across the world, a third of whom play online. This level of adoption can be attributed to the excitement that modern games spark in us , especially those that tap into our competitive nature by including in-game rewards as part of the incentivization model.
The Reward Model: A Success in Competitive Gaming
Games have always been competitive, but it wasn’t until recently that more people started to embrace the idea of gaming as a sport where one can be compensated. Let’s take the example of some of the popular video games; Fortnite, PUBG Mobile and Call of Duty (CoD). All these titles feature in-game rewards in the form of cosmetics, battle passes and badges, to mention a few.
There are also competitive tournaments held by the game publishers behind these games where participants compete for millions of dollars in prize pools.
This trend can be better explained by the rise of esports, a niche gaming market whose revenue is projected to hit $4.3 billion by the end of 2024. Popular esport games such as League of Legends hold annual million-dollar tournaments, with this year’s championship prize pool set at a cool $2.225 million.
That said, the Web2 structure for incentivized gaming still has room for improvement. Game publishers currently control the show given that they provide the platform for playing, host the tournaments, determine the reward models and limit how much gamers can monetize their in-game rewards.
How Web3 Could Level the Playing Field
Web3, otherwise known as the decentralized web, is the latest iteration of the internet. While most people probably know it from cryptocurrencies like Bitcoin (BTC) and Ether (ETH), this new version of the web is already playing a major role in transforming the gaming industry.
Unlike centralized gaming platforms designed by the likes of Epic or Riot Games, Web3 introduces a decentralized infrastructure that is run through automated smart contracts. What this means is that there are no middlemen to dictate what type of games can be created, the incentive model, or where gamers can sell their in-game assets.
So, how exactly does Web3 enhance the competitiveness in gaming through rewards? The idea is simple; instead of creating in-game rewards whose economy is reliant on centralized game publishers, why not design blockchain-based rewards that can be bought or sold in borderless and decentralized markets? The concept of integrating in-game assets with blockchain economies is what is referred to as tokenization.
Moreover, with permissionless smart contracts, Web3 gaming ecosystems are providing an opportunity for any interested developer to build unique games, scalable tournaments and borderless in-game assets for their on-chain games. In Web2, one would have to go through the original game publisher, not to mention the fact that all the in-game collectibles are mostly owned/copyrighted by the game publisher.
Funtico - A Case Study of Web3 Gaming Ecosystems
There are quite a number of Web3 gaming platforms but only a few standout. One of such projects is Functico, a full stack chain-agnostic Web 3.0 gaming platform. This incentivized gaming platform launched in 2020 as a self-funded initiative with the goal of bridging the gap between games as an entertainment and the reward model.
Funtico’s incentivized Web3 gaming platform introduces a unique reward system that is built on three fundamental principles; big rewards, engaging play and tournaments. Although still a nascent ecosystem, Funtico’s already launched Web3 games such as Formula Functico has held several tournaments where the winners were rewarded with prize pools of up to 100k USDT among other assets which include unique or rare NFTs.
Before jumping into conclusions that there’s no difference with Web2 gaming tournaments, it is worth highlighting that Functico’s in-game assets can be sold through the platform's NFT marketplace in exchange for the game’s utility token, $TICO, as well as other valuable digital assets. This means that the gamers in this ecosystem have the flexibility to monetize their assets without relying on a specific game publisher or third party to dictate the rules.
Funtico’s incentivized approach is not only targeting gamers but also developers in Web2 that are looking for a seamless avenue to deploy their Web3 games. The platform features a Publisher-as-a-Service (PaaS) function, supporting the diverse needs of game developers, whether a small studio or big teams.
Moreover, with a chain-agnostic infrastructure, it is possible for game developers building on Funtico to scale their innovations as well as customize modules such as tournament hosting to include more people or better reward mechanisms.
Looking Ahead
Gone are the days when we played games for the pure fun of it. What if one could make a living of the gaming reward models as was the case in the Philippines when a majority of the population were playing Axie Infinity? That’s where the future of gaming is headed, not just a matter of engagement but compensation on the sidelines.
Of course, it will take a few more years before the Web3 incentivization narrative wins more gamers compared to already established Web2 games, but that’s beside the point from a long term perspective. The Web3 gaming innovators have been at work, with all types of games now available, from strategy, play-to-earn, card games, RPG, Action and GameFi.
It is only a matter of time before more gamers come to appreciate the value that Web3 introduces; permissionless gaming ecosystems, borderless in-game markets, and fair reward models.
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