DAOs, Tokens, and Decentralized Game Development – Will Web3 Gaming Ever Go Fully Mainstream?

On this page, we will start by explaining exactly what Web3 gaming is and also explain various other key elements that are associated with this modern form of gaming, such as DAOs (Decentralized Autonomous Organizations), tokens, and decentralized game development. 

We can then take a closer look at whether Web3 gaming has the potential to become mainstream any time soon. 

What is Web3 gaming in a nutshell?

The easiest way to describe Web3 gaming is that it is a modern form of video games that leverage highly sophisticated blockchain technology to grant players true ownership of any in-game digital assets that they purchase. The technology also enables those same players to trade and sell those digital items within those same [and other] Web3 games. 

Another way to describe Web3 gaming is that it is a type of unhackable video game or metaverse that uses a distributed process where games are hosted on the blockchain. These games are equally accessible to all players and rely on a voting consensus to modify the gaming process. 

In other words, these games foster the development of user-driven virtual worlds, enable digital ownership, and have, therefore, created new economic opportunities. 

The types of in-game assets (aka purchasables) that players can buy in Web3, various iconic games, such as…

• Axie Infinity

• Decentraland

• Skyweaver

• Splinterlands

• Skyweaver

• Sparkball

• The Sandbox

…include NFTs (Non-fungible Tokens), skins, upgrades, weapons, characters, health boosts, extra lives, access to new levels, etc.). Digital assets can be traded or sold thanks to blockchain technology that facilitates highly encrypted and anonymous transactions. 

The iGaming industry has also started to realize the true benefits of Web3 gaming and blockchain technology. 

In some countries where crypto-accepting iGaming sites are legally permitted, players can now top up their accounts and cash out their winnings. 

This means they can deposit and withdraw money on a growing number of online casino platforms in Canada and one or two other countries by using Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT), Ripple (XRP) and other legitimate cryptocurrencies at the virtual checkout, instead of using fiat currencies and traditional online payment methods like credit and debit cards. 

No matter what, though, top real money casinos typically reign supreme. While the industry and its userbase are keen to adopt new technologies, especially if they promise faster transactions and potentially improved security, fiat currencies will generally be the dominant option because that’s true of the wider world.

What are DAOs, Tokens, and Decentralized Game Development?

Traditional video games run on centralized networks, whereas Web3 games run on decentralized networks. Thanks to blockchain technology, players have true ownership of the in-game digital assets they purchase, which can then be used, traded, or sold across compatible games. 

This is known as interoperability, which creates a more interconnected gaming experience. Due to the very nature of this technology, Web3 games have created numerous in-game economies that also allow players to earn cryptocurrency through gameplay, for example, by completing specific tasks or challenges. 

DAOs (Decentralized Autonomous Organizations) are community-governed organizations that operate without central authority by using blockchain technology and smart contracts. 

Tokens are essentially digital assets, typically cryptocurrencies, that can represent rewards, voting rights, or ownership in a DAO. In other words, DAOs are not governed by a single entity but by their members. 

The three main types of tokens in Web3 games are reward tokens, utility tokens, and governance tokens. Utility tokens provide players access to a range of in-game features or services, and reward tokens act as incentives to participate in the game or in a Decentralized Autonomous Organization (DAO).

Community-driven decisions in DAOs are made collectively through voting mechanisms that often use digital governance tokens. The smart contracts are used in Web3 games to encode policies and rules, and they are automatically enforced. 

Finally, to ensure transparency and accountability in Web3 games, all activities are recorded in the blockchain ledger. 

With decentralized game development, players can influence game development and direction, and they can earn various rewards simply by playing, which often arrive in the form of tokens. This modern way of gaming is also known as the Play-To-Earn (P2E) model. 

Decentralized Autonomous Organizations in Web3 games foster community engagement and have helped revolutionize this sector of the digital entertainment industry. DAOs can also manage operations, funding, and the general governance of games. 

Will Web3 gaming ever go mainstream?

According to many experts who closely follow the gaming industry and the latest technological developments, such as blockchain technology, artificial intelligence, cryptocurrency, and other related digital technologies, there is a very good chance that Web3 gaming will one day be mainstream, overtaking the traditional video gaming industry. 

However, it is still anybody’s guess as to when the full mainstream adoption of Web3 gaming will take place. There are still many complex technological obstacles to overcome, and blockchain technology will require significant effort to fully integrate into the existing mainstream gaming platforms. 

In other words, the path to mainstream Web3 gaming won’t be straightforward, and the blockchain networks that Web3 games run on must be scalable enough to handle a large number of players without diminishing the quality of performance of those games. 

Final thoughts

There’s no denying that Web3 gaming has the potential to completely revolutionize the gaming industry, and many say that it will happen sooner rather than later. 

Web3 technologies, the integration of blockchain technologies that facilitate cryptocurrency payments, and the P2E model will lead to a more rewarding and engaging gaming experience, and it will open up the world of gaming to even bigger audiences, making online gaming more accessible than ever. 

Most experts say that it isn’t a case of whether Web3 gaming will become mainstream, but when. Web3 gaming is widely considered to be a significant part of the future of online gaming, and it will completely reshape what it means to play video games. 

Web3 gaming will remain focused on community-driven development, and it will continue offering new, personalized, rewarding, and integrated gaming experiences.