Web3 Game Development

Web3 gaming is considered by many to be the next evolution of gaming. This is because Web3 integrates blockchain and other decentralized technologies into the gaming space. As a result, Web3 has the potential to transform the way we play games. 

On a broader spectrum, Web3 is the future of the internet itself. It aims to make the internet better than it is now. Web3 gaming is just one aspect of this. 

There are two reasons for the sudden demand for Web3 game development. 

One is NFTs. Non-Fungible Tokens, better known as NFTs, are tokens verifying digital assets’ ownership. The ownership data is stored on the blockchain and is immutable and secure. This technology has opened up the possibility to radically alter how we manage digital assets. 

Second is the advancement of technology itself. The rise in blockchain and the wide availability of high-speed internet and other similar advances have been vital contributors to this. 

Features that Differentiate Web3 from Other Forms of Gaming 

A few key features set Web3 gaming apart from other forms of gaming. Below are some of them: 

1. Ownership of Assets 

In today’s gaming ecosystem, if a player purchases an asset in-game, the asset has no value outside of what it has in the game. 

Suppose the player buys a mighty sword in a combat game. The sword can aid the player in battles, helping them become victorious over competitors. But beyond that, the sword has no value. 

Now imagine if the player could sell the sword to another player in return for some in-game tokens, which they can use to buy other items or convert to cryptocurrency. 

This is precisely what Web3 game developers make possible with NFTs. The digital assets in Web3 games will be NFTs. Because of this, players will be able to transfer ownership amongst each other without issues, and the record of this transfer will be recorded forever on the blockchain. 

2. Interoperable 

The game assets in the current ecosystem have another problem: they exist solely in that particular virtual world. 

For instance, if a player purchases an asset in one game, that asset would only be available for use in that particular game. Even if the transfer is possible, it would only be to other games from the same publisher. 

Web3 game development services meanwhile would have interoperability as a central aspect. Under this, players could transfer the assets they have bought from one game to another and continue using them there. This means even if the player stops playing the first game, they can still transfer the asset to another one and continue using it. There would be no loss of the value invested. 

3. Play-to-Earn 

Web3 gaming system also allows players to earn money through playing. It helps people monetize their attention and time by doing an activity they enjoy. 

One way players would be able to do this is via the sale of NFTs. Players can buy NFTs at a lower rate and then sell them when their demand and prices are higher. And since each NFT would have different in-game attributes, there would be collectors who are willing to spend on this. 

4. Community-Driven 

The current gaming ecosystem is centralized. The power is solely in the hands of the game publishers.  

Web3 gaming will alter this. It would return the power to the community, including game developers and players.  

This would make games better. For instance, the community can decide on the features the team will implement. The feature that has the most demand will be the one that gets implemented. It would hence make the games more catered towards the collective preference of the player base. 

Several technologies are used for Web3 game development. Below we list some of the top ones: 

Game Engines and Development Frameworks 

Game Engines are tools that developers use to create games. Game engines have their own set of features that helps game developers create their games faster and with minimal effort. For example, a game engine would have an Animation Editor that helps developers integrate animations with only a few steps. Contrast that with its absence, where the developers will have to manually write so many lines of code to integrate a single animation. 

There are several top game engines that Web3 game developers use. Below, we list a few of them: 

1. Unity 

Unity is the most used game engine on the planet. The biggest reason is the list of features that the game engine has, which helps novice and experienced game developers create games with ease. 

Furthermore, Unity uses the C# language, one of the most powerful languages for game development. It also has a feature-rich editor, dedicated render pipelines, and support for deployment to multiple platforms. 

2. Unreal 

The Unreal Engine is renowned in the industry for being the preferred engine for creating high-fidelity games because this powerful engine from Epic has all the right features a game developer would need to make a game with rich 3D graphics, such as Lumen, Nanite, and The World Partition System.  

3. PlayCanvas 

PlayCanvas is a web-first game engine. It has advanced support for WebGL, a crucial API for creating web games and experiences that need to use the device’s hardware to the maximum. 

The game engine is equally suited for creating games and other different immersive experiences. 

Blockchain 

Blockchains are decentralized networks that rely on modern cryptographic methods to store data securely. The data in the blockchain is stored as blocks and then shared across different nodes spread across the world. As a result, anyone can verify the data in the blockchain, and it remains immutable. 

Blockchains are crucial in Web3 games as many infrastructures, including NFTs, rely on the blockchain. 

Below are some of the top blockchains that are used for Web3 game development: 

1. Ethereum 

Ethereum is known for its smart contracts feature and support for creating dApps and games. It is a peer-to-peer network that is also the second-largest blockchain system in the world. It has its cryptocurrency called Ether. In addition, it is a programmable network and hence one of the favorites of Web3 game developers. 

2. Tezos 

Tezos is an open-source blockchain and one of the first in the world to switch to a Proof of Stake method of blockchain validation. In addition, it has support for smart contracts, which makes it an ideal blockchain of choice for Web3 game development. It also has a low carbon footprint compared to other top blockchains. 

3. Binance 

Binance is a cross-chain compatible blockchain. It is compatible with Ethereum. In addition, it also has some of the best transaction speeds among blockchains. Binance also uses the PoS method of validating PoW. 

4. Solana 

Solana is a blockchain that can process thousands of transactions per second due to its bandwidth. It uses Proof of Stake and Proof of history to validate transactions in its blockchain. 

Solana is written and built using the RUST language. 

Wallet 

Wallets are repositories that store the private keys of cryptocurrencies. These wallets do not contain cryptocurrencies but hold private keys in encrypted formats. Nevertheless, these are essential for selling and trading crypto. 

Below are two of the most widely used crypto wallets. 

1. Coinbase 

Coinbase supports 150+ cryptocurrencies and is a top wallet for Web3 game development. One of the reasons for its usage is high-security standards. In addition, it is also easy to use for regular users who are not even crypto-savvy. 

2. Metamask 

Metamask is another top crypto wallet. It supports multiple platforms and is an open-source solution with a vast community of developers. Among the features is its support for various sub-wallets and support for storing NFTs. 

Storage Platforms 

Crypto storage solutions store data across multiple nodes using cloudflare in web3. Because of this, it is much more secure compared to centralized forms of storage, where the data is often stored in a single server, the loss of which can lead to permanent data loss. 

1. IPFS 

IPFS is a decentralized storage protocol and a peer-to-peer network. IPFS splits data across multiple users within the network. Each data split will also contain information about the location of the other data that combine to form the entire file. Because of this method, the data stored in this method is resistant to tampering. 

2. Filecoin 

Filecoin is an open-source, decentralized storage option. It supports the storage of NFTS and is a reliable solution resistant to different types of censorship. 

There has been a spike in Web3 game development in recent times. The spike is because of the numerous benefits one can get from Web3 game development.  

Below are some of these benefits: 

Monetization 

Recently, game development has been recognized as a great way to generate revenue. As a result, many game companies and solo developers reap millions from their top games every year. The gaming industry at the moment is bigger than other entertainment industries, such as movies and music. 

Web3 game development can also provide the same benefits of monetization. So, substantial monetization opportunities are waiting to be explored in this new technology. 

These opportunities are directly related to In App Purchases. IAPs are purchases one makes inside the game environment for the return of different in-game benefits. These benefits depend upon the genre of the game and, as such, include consumable and non-consumable items. 

Because of comparatively smaller purchases, players would be less reluctant to make in-app purchases. As a result of this lack of inertia, IAPs have risen as one of the best methods of game monetization. Even console and PC games, two which upfront payments have dominated game monetization, have started to experiment with IAPs. 

Web3 game development companies can take IAPs to the next level with the help of NFTs. Many in the industry consider NFTs to be the successors of IAPs. Because IAPs and NFTs have similarities, such as being purchasable inside a game’s ecosystem. 

However, NFTs have one marked difference which doubles down as an advantage. NFTs are items that can be purchased, traded, and sold. Hence, players are even more likely to buy them. As a result, the monetization potential for Web3 game development is also higher. 

Being Ahead of the Competition 

Web3 game development is still in its infancy. Most game companies haven’t even breached the realm.  

This puts the early Web3 game developers at a unique advantage. The early developers can explore uncharted domains and be early adopters. Furthermore, these people can lay down the groundwork that later Web3 game developers can benefit from. 

Because in almost all technologies, the first one to the market receives immense benefits. They get to enter a market that has little to no competition. In such an environment as the current Web3 environment, it is easier to gain authority as a leader in the domain and be ahead of the entire competition. 

Brand Recognition 

Web3 game development is an excellent method for brand recognition. Because games, in general, have immense and unexplored possibilities in the realm of branding. Some of these have been tried by companies to promote their products. 

One method of this is called Advergaming. Advergaming is the creation of a complete game with the sole purpose of promoting a product or a brand. The game acts like an advertisement that pulls customers in.  

Advergaming is an excellent method for promotion as the medium in and of itself is engaging to the audience. Better engagement naturally means the brand itself will have a positive perception in the player’s mind. 

Web3 game development, a new and unexplored technology, can be the perfect avenue. Brands and companies can create games and target their customers and reap the benefits of better brand recognition. 

Web3 gaming is still in its earliest stages. Because of this, the monetization models are not fixed. How these games can be monetized is an equation that the developers are still figuring out.  

However, certain monetization models are possible with the current Web3 ecosystem. We list them below: 

1. Hosting an NFT Marketplace 

Many Web3 games have an in-game marketplace that allows players to trade assets with each other. Players often have the option to sort and filter the available NFTs to find and buy the right assets. 

The platform owners generate revenue through a percentage cut. For instance, if a sale happens for a set amount between two players, the platform owner would take a certain percentage of that sale as their fee.  

This is important. Because it incentivizes the platform owners to increase sales, the more the sales, the more the platform owners can generate revenue. Conversely, if sales fall, so does their income. 

2. Sell Assets Directly 

This is related to the NFT marketplace example, but in this case, the transaction will not be between players but between the game and the player. 

This is also more similar to in-app purchases in mobile and web games. The game will have its own in-game store where there will be assets, such as weapons, items, skins, etc. The players can buy these with the in-game tokens they have.  

All the revenue generated through the sale would belong to the game admin. However, unlike in a player-reliant NFT marketplace, the platform owners don’t get a minimal share. Instead, they receive the whole amount. 

3. In-Game Advertisements 

Another monetization method is similar to in-game advertisements in mobile and web games. 

Under this method, the game shows advertisements inside the game to the players. The game developers can designate specific ad formats that appear, and the game would trigger these ads once the player performs a particular action in the game or the state of the game changes. 

Different ad formats can be included. Banner ads are a common one. Interstitial ads are another popular one. Rewards ads are a third option that is gaining popularity. 

4. Hybrid Model 

The hybrid model is not specific but is instead the combination of any two or more monetization models. 

Because none of the models above are exclusive, web3 game development companies can combine two or more models to develop a novel monetization model. 

For instance, one can combine the NFT marketplace with the direct sales model. Under this new model, platform owners can sell NFTs directly to the players, and the players would be able to trade with each other. The revenue generation would also be on similar lines, with platform owners getting the percentage cut from player-player transactions and the entire fee from direct sales. 

Developers can also integrate ads in this way. Although using ads in tandem with others requires extra care. Because the players should not feel that the game is bombarding them with needless advertisements while they are already making purchases within the game. 

Web3 game development has a lot of factors that determine the overall cost. Because of this, it is not possible to provide a rough figure on how much a project would cost. It would depend on the requirements of the individual projects. 

So, below are some of the chief factors that do determine the overall cost of developing a Web3 game project: 

• The Stage the Team Takes Over the Development From 

The cost depends on the stage the developing team is taking over from.  

Because cost is directly related to effort. The more effort, the more the cost. 

For instance, if the project is in the early stages, the team has to do a lot of work, particularly in pre-production. The team has to work on the idea, create a game design, sketch the concept art, and more. All this would add up to the overall cost of the game as it requires more effort. 

In comparison, if the project already has a Game design document and all the pre-production is completed, the team has to put in a lesser effort. This is because the team does not have to worry about the pre-production stage as it has already been covered. 

However, the situation is not always true all the time. Sometimes taking over a project already underway can take more effort if the team that did development prior had made some bad decisions. It would require the team to start certain things from scratch and also re-work other things.  

Both these things can drive up the cost. 

• Game’s Complexity 

The game’s complexity means the number of features the game has and the number of assets required. 

The number of features can drive up the cost as it would require the programmers and other team members to work on each module. First, the designers have to design the feature considering different aspects. Then, the programmers have to implement it in the game. Finally, the testers must ensure the features are in working condition. 

So, the more the number of features, the more the effort and cost. 

Assets also follow the same pattern. An open-world game with numerous locations, characters, and items would require the team to work on many assets. The team would also have to create the concept art and polished work and do quality analysis. All this can drive up the effort and cost required. 

The cost can further increase if the game is in 3D. This increase is because 3D art assets generally take more time to be produced than 2D assets. So, if the game is entirely in 3D, the development cost of a Web3 game can become higher. 

• Change in Scope 

Cost can similarly go high if there is a change in the original plan because the team would have prepared the estimate of effort and time after considering the scope. So, any changes to the scope would mean the cost would go further up. 

The impact of this price change would vary depending on what stage the scope change is initiated. For instance, if the change is initiated while the game is in the pre-production stage, the cost change would be minimal. On the other hand, if the change is initiated in the last stages, the cost change would be drastic, as it would require the team to do a lot of re-work. 

As a result, it is better to fix the scope as much as possible at the beginning stages. Some alterations will be inevitable, as new ideas will pop up as the team commences production. However, the team must carefully analyze each change, and then the decision should be taken depending on how much additional effort and cost it would require.