A6 and Z Crypto Ep. 21: What Are Web3 Gaming and Onchain Games?

TL;DR

Web3 games use blockchains and crypto to let players own, transfer, sell, or potentially reuse in-game assets beyond a single game world. A6 and Z Crypto guests Ariana Simpson and Eddie Lazarin organize onchain gaming around three properties: financialization, composability, and consensus. They also examine infrastructure constraints, design opportunities, and user onboarding, making the full discussion worth reading for a clearer map of this emerging category.

Transcript

welcome to web 3 with A6 and z a show about Bill knew the next generation of the internet from the team at Asics and Z crypto that includes me your host Donald joxie this show is for anyone whether entrepreneur developer business leader policy maker creator or gamer and today's all new episode is all about web 3 games and on-chain gaming as enabled... Read More

Key Insights

• 👾 The emergence of web 3 games opens up new possibilities for players to truly own and trade in-game assets, bringing a new level of financialization to the gaming industry.
• 👾 Web 3 games are still in the early stages of development, with ongoing experimentation in financialization, composability, and consensus.
• 👾 Constraints in scalability and user experience are major challenges for the wider adoption of web 3 games, but solutions are being developed to address these issues.
• 👾 The success of web 3 games will depend on the ability to bridge the gap between crypto-native developers and mainstream gaming audiences.
• 👤 Simplifying user onboarding and enhancing the user experience are key priorities for the future of web 3 game development.

Questions & Answers

Q: What are Web3 games and onchain games?

Web3 games are games with blockchain- or crypto-enabled components, including game worlds or assets that exist onchain. They can let players own, transfer, sell, or potentially use their in-game assets in another game context.

Q: How do Web3 games differ from traditional games?

In traditional games, players may accumulate value primarily for the game maker and can lose access when the developer changes the game. Web3 games can give players ownership of assets such as swords or tokens and allow them to move those assets outside the original game universe.

Q: What can NFTs represent in Web3 games?

NFTs, or non-fungible tokens, can represent a variety of in-game assets or elements. The episode describes them as common in Web3 games, although not a requirement.

Q: What can players do with assets they own in Web3 games?

Players may be able to sell, transfer, or move owned assets out of the game universe. The transcript gives the examples of taking a sword to OpenSea, lending it out, or potentially using it in a different game context.

Q: What are the three key properties crypto brings to games?

The episode identifies financialization, composability, and consensus as three key properties of onchain games. Financialization follows from freely trading assets, while composability enables code and game elements to be remixed or combined.

Q: What does financialization mean in Web3 gaming?

Financialization is described as a consequence of assets being freely tradable. When an asset can be moved and exchanged without a trusted third party or the game developer’s permission, financial activity can emerge around it.

Q: What does composability mean for onchain games?

Composability means developers can combine or remix someone else’s code with their own to create something new. Games already have a related practice in the form of mods and extensions.

Q: What challenges and opportunities shape Web3 game development?

The category is described as very new because infrastructure limitations prevented these experiences or game worlds from existing onchain until just a couple of years earlier. Those constraints challenge game makers, but the speakers also argue that constraints in a new medium can encourage creativity and open new design spaces.

Summary & Key Takeaways

• Web 3 games are a new category of games that leverage blockchain technology to create decentralized and on-chain game worlds.

• These games often include non-fungible tokens (NFTs) that allow players to own and trade in-game assets.

• The concept of play-to-earn has gained traction, allowing players to earn real value from their in-game activities.