This article will explore the future development direction of the traditional gaming industry and the encrypted gaming industry by analyzing their current situations.
Author: DeMan
The encrypted gaming industry, as one of the hottest industries in the digital age, has proven its enormous potential and attractiveness in the last bull market, and the wealth economy formed by blockchain games is also one of the main reasons attracting attention. As we approach the end of 2023, with market fluctuations and evolving player demands, this industry also faces many challenges.
The concept of a GameFi project exploding every year seems unlikely to continue in 2023, but the arrival of 2024 is eagerly anticipated by many, with many predictions pointing to certain projects leading the industry's development in 2024. This article will explore the future development direction of the traditional gaming industry and the encrypted gaming industry, and will focus on introducing several platforms that can help users better participate in Web3.
Web3 games are experiencing a bear market cycle and will usher in greater opportunities for explosion in the future
In recent years, the overall gaming industry has experienced unprecedented rapid expansion, especially during the COVID-19 pandemic, leading to a significant increase in global market revenue. This growth is attributed to people spending more time at home and exploring new forms of interactive entertainment, closely related to the explosion of Axie Infinity. At the time, industry analysts predicted that by 2026, the overall gaming market could reach a remarkable $321 billion, based on the market's growth trend at the time and the increasing popularity of blockchain technology in the gaming industry, injecting an incredible force into the blockchain gaming sector.
However, according to Newzoo's 2022 Global Games Market Report, global game market revenue decreased by 4.3% year-on-year last year. This decline was mainly due to the gradual end of the pandemic, leading people to return to normal social and work lives, reducing their time spent gaming at home. Additionally, some major game brands postponed the release of their flagship projects from 2022 to 2023, such as games released by Steam, Xbox, and Playstation, which significantly impacted the overall market performance.
Newzoo's data report chart
In addition, the blockchain gaming industry, which made outstanding contributions in 2021, has been greatly affected by the alternating bull and bear markets in the crypto market, failing to bring the same positive impact to the overall gaming industry. Therefore, we can see that the development of blockchain games is also one of the new main forces affecting the market size of the overall gaming industry.
Web3 games solve many of the drawbacks of traditional games and have a more imaginative development prospect
As mentioned earlier, in the latest wave of digital gaming development, although there has been some stagnation during 2022 and 2023, it is generally believed that this sluggish situation will gradually reverse, and even welcome an explosive year in 2024. Therefore, whether blockchain games will also take off with this strong momentum is also a focus of attention.
Blockchain games use blockchain technology to provide players with unprecedented gaming experiences and opportunities for value creation, offering unlimited potential for this continuously developing technology.
In the traditional gaming world, players often face a core problem: the feeling of frustration after investing a lot of time in a game. This feeling usually stems from the limited replay value of the game, leading players to eventually give up. However, blockchain technology provides multiple innovative solutions to address this issue.
Firstly, one of the most significant innovations of blockchain games is the application of in-game NFTs. These blockchain-based non-fungible tokens allow players to truly own, buy, sell, and trade in-game items, which also have real-world value outside the game. This shift in ownership not only enhances player engagement but also brings a new dimension to the game's economic system. In-game NFTs allow players to own and resell in-game assets, such as weapons and skins, giving actual value to game assets.
Furthermore, the Play2Earn model allows players to earn assets by completing in-game tasks, providing tangible rewards for players' efforts. The Play2Earn model is changing the way players interact with games. In this model, players earn real assets by completing in-game tasks or achieving specific accomplishments, increasing the appeal of gaming and providing players with a new source of income. This economic incentive mechanism has brought new business models to the gaming industry and attracted a wider player base.
History of human game development
Another important feature of blockchain games is their cross-platform capability. The cross-platform nature of blockchain games allows PC, console, mobile, and blockchain players to seamlessly connect, enhancing the accessibility and interactivity of games. Through blockchain technology, players can seamlessly experience games on different devices and platforms, breaking the boundaries between traditional game platforms. This cross-platform interoperability not only enhances the accessibility of games but also provides players with a richer and more coherent gaming experience.
With the continuous advancement of technology, especially the integration of VR and AI, the potential of blockchain games will be further explored. AI-driven NPCs (non-player characters) provide players with personalized gaming experiences, making each player's gaming journey unique. Additionally, the integration of VR technology into blockchain games provides players with immersive virtual reality experiences. Finally, in-game advertisements provide developers with a way to generate profits while also offering players more interaction and participation opportunities. The combination of these technologies heralds the arrival of a more immersive and personalized gaming world, providing players with new ways to explore and interact. Therefore, blockchain games are not only a current hot topic in the gaming industry but also an important direction for future game development. With the gradual maturation of the market and the increasing acceptance of new technologies by players, blockchain games are expected to become a key force driving progress in the entire gaming industry. These innovative solutions work together to greatly enhance the appeal and sustainability of blockchain games.
Tokens make or break it: How to solve the development challenges of the Web3 gaming industry?
In the encrypted gaming industry, aside from gameplay, the related NFTs or tokens are the main reasons for attracting user attention, but the associated token economics pose a prominent challenge. The core of this problem lies in the fact that many encrypted game tokens have experienced devaluation in market fluctuations, often resulting from unsustainable economic models, excessive token dumping, poor game quality, and the bear market environment. This "unbreakable curse" not only affects the confidence of players and investors but also threatens the healthy development of the entire industry.
To address this issue, the industry needs comprehensive improvements in the following three areas:
Product Quality: Firstly, companies must focus on building high-quality game products. This means that games should not only have excellent graphics, engaging characters, and rich narratives but also ensure that the games themselves are sufficiently attractive and entertaining. The primary motivation for players to engage in games should be the fun of the game itself, not just for rewards.
Community Engagement: Encrypted game companies should pay more attention to the voice of the community, as players are not only users of the game but also key to its revenue and success. Companies should listen to the needs and suggestions of players, such as improvements in content, technology, and narrative that they would like to see in the game. By using blockchain voting systems, player opinions and participation can be more effectively incorporated, shaping the game's development together.
Token Economic Model: Most importantly, there is a need to redesign and improve the token economic model to ensure its sustainability and stability. This includes implementing deflationary mechanisms, allocating in-game fees to protocol stakers, providing loyalty rewards, optimizing voting mechanisms, prioritizing rewards for game quality, and imposing certain restrictions on users with large holdings. These measures aim to create a fairer and more sustainable economic environment, thereby enhancing the value of tokens and stabilizing the market.
In conclusion, by improving product quality, enhancing community engagement, and reforming the token economic model, the encrypted gaming industry can overcome current challenges and achieve long-term and healthy development. This will not only enhance players' gaming experiences but also bring more stable and sustainable growth to the entire industry.
Helping players quickly grasp industry dynamics: Overview of data platforms for Web3 games
Web3 games are developing rapidly, facing various associated issues. For user players, understanding how a blockchain game project works can be approached from aspects such as product quality, community engagement, and token economic models mentioned earlier. Today, users can use various tools and applications to better discover and analyze potential good projects, such as market analysis tools, community forums, and project evaluation platforms, all of which can provide valuable information and insights to help them make wiser investment decisions. The following platforms provide users with a direct channel to understand Web3 projects:
Galxe: Web3 task platform, users complete tasks to generate NFT credentials
Galxe, formerly known as Project Galaxy, is a highly anticipated task distribution platform in the Web3 industry. Galxe's uniqueness lies in distributing various Web3 project tasks to users, encouraging them to actively participate in on-chain interactions, and then recording and generating corresponding NFT credentials to reward their participation.
For users, these tasks include simple actions such as following project-related Twitter accounts, retweeting, liking, joining communities, as well as more specific project experiences such as token exchanges, staking, borrowing, and minting. This not only provides users with a way to earn rewards but also allows them to gain a deeper understanding and involvement in different projects.
For project teams, Galxe is a powerful channel to help them attract and reach target users, especially in the early stages of project development, which is crucial for promoting products and features.
According to information from the official Galxe website, the platform has attracted over 11 million independent users and has promoted the development of over 3,000 partners such as Optimism, Polygon, and Arbitrum through reward programs. Users can search and filter tasks released by different blockchain game projects on the official Galxe website to receive airdrop rewards and also gain opportunities to understand the projects.
Galxe has also introduced the Space application, allowing users to create community spaces without prior permission. This makes Galxe one of the largest Web3 task platforms. As of June 24, 2023, Galxe has collaborated with over 2,700 project teams/communities, launched over 10,000 tasks, and has over 11 million Galxe IDs. Additionally, project teams can issue NFTs on the platform, provide minting qualifications to eligible users, and offer customized services using the platform's data credentials. Users can easily view tasks released by various projects and find potential airdrop opportunities, participate in community activities, and explore new projects.
Galxe has also introduced a digital identity credential called Galxe ID, and OAT markers from the chain. Through the analysis of on-chain data, Galxe labels different users and generates a collection of credentials for each task, which can be exported to third-party applications for use (such as token distribution).
In summary, Galxe is not only a Web3 game task platform but also an ecosystem that promotes knowledge sharing, community engagement, and market discovery. With its expanding user base and continuous feature optimization, Galxe is expected to become a leader in the Web3 gaming field. For ordinary Web3 users, maximizing returns and seizing opportunities for high-quality projects is an important issue, and Galxe provides a rich variety of tasks and rewards to help users better discover and analyze potential good projects. Through Galxe, users can accumulate valuable on-chain interaction records to make wiser investment decisions. At the same time, this also provides project teams with a powerful channel to attract and interact with potential users, accelerating project development.
DeGame: Raised a total of $10 million+, with over 500,000 registered users and over 1.8 million users completing tasks
Since its establishment in 2021, the DeGame platform has rapidly grown into a significant participant in the Web3 gaming field. As of October 15, 2023, DeGame has attracted over 500,000 registered users and established over 2,000 communities in its community module, with over 1.8 million users completing tasks. These numbers fully demonstrate DeGame's influence and appeal in the Web3 gaming community.
On May 30 of this year, DeGame announced the completion of a second round of $6.5 million in funding, led by Folius Ventures, Kenetic Capital, and A&T Capital, with a total publicly disclosed funding of at least $10 million.
In terms of functionality, DeGame provides a comprehensive and rich Web3 game discovery and participation experience. The platform includes 4,795 games, 77 chains, and 1,356 tokens, covering almost all major projects and tracks in the Web3 gaming market. Users can easily access and participate in these projects through simple searches or clicks.
DeGame's features such as Top Communities, Quest, Leader Board, Gaming, and Event provide users with an intuitive and navigable interface. These modules not only showcase project communities, rewarding tasks, project rankings, app downloads, and online/offline activities but also allow users to easily switch and participate in different projects without the need to switch between multiple platforms.
Additionally, DeGame's Feeds and Academy features have strong user-generated content (UGC) characteristics. These features allow professional Web3 creators worldwide to share industry news and insights through text and video, helping users clear cognitive blind spots and address information asymmetry. This open and collaborative content ecosystem not only enhances community interaction but also provides users with a platform for learning and growth.
In summary, DeGame is not only an aggregation platform for Web3 games but also an ecosystem that promotes knowledge sharing, community engagement, and market discovery. With its expanding user base and continuous feature optimization, DeGame is expected to become one of the leaders in the Web3 gaming field.
As mentioned earlier, Web3 games are developing rapidly, facing various associated issues. For ordinary Web3 users, seizing opportunities for high-quality projects and maximizing returns in this immature market is a major concern. Today, users need to use various tools and applications to better discover and analyze potential good projects, such as market analysis tools, community forums, and project evaluation platforms, all of which can provide valuable information and insights to help them make wiser investment decisions. Through these tools, users can not only capture market trends in a timely manner but also mitigate risks to a certain extent, ensuring asset security.
Zealy: A task distribution platform that helps Web3 applications expand community size and activity
Zealy (formerly Crew3) is a highly anticipated aggregation platform for Web3 applications. In early April of this year, it underwent a rebranding and successfully completed a $3.5 million pre-seed round of financing. The platform's main goal is to help Web3 applications expand their community size and activity, providing users with an integrated platform for digital assets, online/offline activities, and rewarding tasks.
Zealy's product homepage gathers projects from various Web3 subfields, including startups, blockchain games, DeFi, infrastructure, NFTs, metaverse, and Web3 learning platforms, dividing the Web3 community into four major modules: new communities, featured communities, popular communities, and upcoming communities. Users can easily find various projects, especially blockchain game projects, on the Zealy official homepage and also explore potential blockchain game communities in the upcoming communities section.
Please find below the translation of the provided markdown:
**Please note that users need to bind the MetaMask wallet and complete the signature authorization to register a Zealy account in order to unlock more features. Zealy is a platform focused on community promotion, with the main goal of helping the continuous growth of Web3 communities. It positions itself with Web3 Discord and has a high social attribute. Within the Zealy community, there are various activity templates, including daily check-ins, content creation, and invitation tasks. Compared to other platforms, Zealy is more focused, with clear categorization and a points ranking system. In Zealy, some project tasks require users to complete writing, screenshots, and invitation tasks to filter out a large number of automated behaviors and ensure user authenticity.
The tasks provided by the platform are mainly related to specific projects, including following project-related Twitter accounts, retweeting, joining Discord, registering project accounts, and answering project-related questions. These tasks are mostly used by project teams for marketing and user attraction, so Zealy's business model leans towards the B-end and belongs to the traffic platform category. By providing these tasks, Zealy not only helps project teams with promotion but also provides users with an opportunity to earn rewards while maintaining task diversity and authenticity.**
QuestN: A Web3 task platform serving long-tail B-end users
QuestN (formerly Quest3) is a Web3 task activity platform incubated by Hogwarts Labs and is also one of the donation projects of GRT14. The platform's feature is to serve long-tail B-end users. Unlike most mainstream task credential platforms such as RabbitHole and Galxe, QuestN does not set thresholds and allows small B-end clients (such as KOLs, communities, DAOs, etc.) to publish tasks. However, to ensure the quality of B-end clients, the platform requires them to bind official websites and social media accounts. For tasks that provide token rewards, the platform also requires B-end clients to deposit the reward tokens into the treasury in advance for verification.
The tasks provided by QuestN are mainly related to specific projects, such as following project-related Twitter accounts, retweeting, joining Discord, and registering project accounts. As a reward, users can receive tokens, NFTs, whitelist access, etc. These tasks are mainly aimed at helping project teams with marketing and attracting new users, so QuestN's business model leans towards the B-end and also belongs to the traffic platform category.
Overall, QuestN provides a platform for small B-end clients to publish tasks, providing them with an opportunity to enter the Web3 task activity field. This open platform helps promote the development of the Web3 ecosystem and also provides users with a variety of task and reward choices.**
RabbitHole: A veteran decentralized on-chain incentive interaction platform
RabbitHole is a veteran decentralized on-chain incentive interaction platform, with its current products divided into two categories: the Web3 new user education platform Skills and the advertising placement Quests.
In the Skills category, RabbitHole offers four different skills, including Layer2, DAO, DeFi, and NFT. The tasks for these skills mainly cover basic Web3 on-chain operations, with detailed tutorials provided for each task. Upon completion of these tasks, users will receive a non-transferable "Intro to L2" NFT. These tasks are aimed at helping new users quickly get started with Web3 and understand its operations.
The other category is Quests, which are usually published by individual project teams and require users to interact with specific projects. As a reward, users can receive NFTs, and sometimes project token rewards. However, it is worth noting that tasks that provide project token rewards usually require users to undergo BrightID real-person verification to prevent sybil attacks (i.e., one user masquerading as multiple identities for operations).
Overall, RabbitHole provides detailed Web3 on-chain operation entry education, suitable for novice users. However, the number of cooperating project teams is relatively small, and the business model leans towards the C-end, classifying it as an educational project. It is worth mentioning that RabbitHole announced the completion of a $18 million Series A financing in February 2022, led by Greylock and TCG Crypto, further proving its importance in the Web3 education field.**
HyperPlay: Raised $12 million, achieving full interoperability of Web3 games
HyperPlay is a Web3 native game launcher and game store aggregator, with its main function being to automatically connect users' assets, wallets, and NFTs to every Web3 game application they participate in. The platform successfully completed a $12 million financing in June this year.
To use HyperPlay, users only need to visit its official website and click the "Store" button at the top to enter the Web3 game store page. In the store, users can search and select Web3 game projects of interest based on detailed categories, then enter the game details page to start their Play to Earn (P2E) journey.
One of HyperPlay's advantages is that it achieves full interoperability of blockchain games. Users only need to bind their personal wallet account to the HyperPlay website to easily experience various blockchain game projects. However, one of HyperPlay's disadvantages is the relatively limited number of Web3 games included, and the displayed game details are not comprehensive enough.
Nevertheless, the successful financing of HyperPlay demonstrates the platform's development potential in the Web3 gaming field, providing users with a more convenient way to participate in Web3 games, which is positive for driving the development of the blockchain gaming ecosystem.**
TaskOn: A Web3 task collaboration platform supporting marketing and operational growth of Web3 projects
TaskOn is a Web3 task collaboration platform focused on supporting the marketing and operational growth of Web3 projects. As part of the Moonbeam series of applications, TaskOn provides a range of automation features aimed at simplifying operational processes.
Among them, the API-Verified feature can automatically verify whether participants have completed operations related to specific products, helping to ensure the effectiveness of tasks. In addition, TaskOn also has an automatic reward distribution feature, allowing rewards to be immediately distributed to participants after the end of an activity, with the activity organizer only needing to create the activity and provide sufficient rewards (which can be tokens or NFTs) stored in their TaskOn account. Furthermore, TaskOn can also create activities on behalf of the activity organizer, further reducing the organizer's operational burden.
Compared to other Web3 task platforms, TaskOn stands out for its simple and easy-to-use features and is developing rapidly. The platform also takes a series of measures to prevent bot participation, making it one of the platforms with the highest proportion of real users, reaching as high as 92.9%.
Overall, TaskOn's business model leans towards the B-end and belongs to the traffic platform category. It provides an effective way for Web3 projects to conduct marketing and operational growth, and is expected to play an important role in the Web3 ecosystem.**
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