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Web3 games have received a lot of skepticism in recent years. However, the industry has seen substantial changes in developers' approach to game mechanics, reward models, and inclusion factors. The result? We are seeing GameFi emerge stronger than ever.
It is not only a theoretical observation but a statistical one. In the second quarter of 2024, blockchain gaming projects received a notable investment of $1.1 billion, an increase of 314% over the previous quarter. The positive investment sentiment is largely attributed to the growing adoption of web3 games, as they now account for 28% of all dApp activity.
So, it's safe to say that GameFi is evolving. But what comes next? How is the industry maintaining this momentum and where is blockchain gaming headed on a global scale?
From web3 niche to industry standard
One thing is clear: Web3 games are no longer a passing trend. Blockchain technology has established itself as an essential tool for the gaming industry and the reasons are compelling. The most important advantage that blockchain brings is ownership. Players can now own in-game assets such as skins, characters or items, creating real value that extends beyond a single title. Web2 games traditionally allowed players to make in-game purchases, but these assets remained tied to the game's ecosystem, with no option for actual ownership. Blockchain breaks this barrier by ensuring true ownership of assets and secure transactions, allowing players to trade or sell items on multiple platforms.
Investors have taken notice. The massive capital injection we saw in the second quarter of 2024 is just the beginning, and the strategic implications go beyond the numbers. Investors are now looking for games that offer long-term value, games where the blockchain mechanics complement the gameplay, not overshadow it. This signals a new phase for GameFi, where the focus shifts from short-term speculative profits to creating sustainable ecosystems for both players and developers.
Therefore, developers who ignore this change risk being left behind. Those who adopt blockchain and web3 technology as part of their long-term strategies are more likely to survive in a market that is rapidly becoming blockchain-centric.
Removing friction from web3 adoption
For blockchain games to achieve widespread appeal, they must get rid of the complexity associated with web3 mechanics. One of the most common criticisms from players unfamiliar with web3 is that it introduces unnecessary complications. The integration of wallets, nfts, and tokens may alienate players who simply want an entertaining experience. Games should be games first, whether they use blockchain or not. What sets blockchain games apart is that it adds layers of opportunity, not confusion, as long as developers focus on ease of use.
The solution lies in seamless integration. In successful blockchain games, the underlying technology becomes invisible to the player. They don't need to understand the complexities of nfts or smart contracts. What they see is a game where they can trade, own and invest in digital assets without any technical friction. Developers are increasingly focused on making blockchain elements a “background” technology that enhances the player experience rather than becoming the experience itself. When this balance is achieved, web3 games will see mass adoption by gamers who once dismissed them as too complicated.
The future of GameFi: long-term vision and strategic investment
As the market matures, the focus is on competitive and efficient gaming environments, moving away from play-to-earn business models. Many early P2E GameFi projects have already collapsed due to unrealistic tokenomics and shallow game mechanics.
The lesson learned here is crucial: games should not be built solely for profit. The priority should remain fun and engaging gameplay, with blockchain providing rewards and ownership opportunities as a secondary benefit.
We also learned to accept and adapt to this change in Farcana, which was initially released as a P2E game but has now been rebranded as “bitcoin Shooter”. We first focus on the competitive nature of the game. Players earn bitcoin (btc) as a reward for mastering the game, not simply for logging in or participating. This model encourages true player investment and skill development, moving away from the short-term profit-seeking behaviors that characterized previous GameFi projects.
Games that value experience and competitiveness will also resonate strongly with investors. Investors examine the technology behind games and the teams that develop them. A key component to securing investment is proving that your game can stand the test of time. Building trust through transparent tokenomics and strong community engagement is essential.
Interoperability and cross-platform potential
Another promising direction for GameFi's business is interoperability, where assets are easily transmitted from one game, platform, or even blockchain to another. This cross-platform compatibility can change the essence of the game. Esports leaders may also see a future where a sword earned in one game can be used in another or where a player can exchange in-game currency in another game, creating an additional layer of the economy. This is exactly where blockchain technology is set to advance the concept, and we are already witnessing the first attempts.
This will act as a major trend that will drive the adoption of GameFi around the world. Well, it is no longer possible to offer games as standalone applications that work isolated from other titles. People's money needs to be protected and have the ability to gain value in other experiences, and the technology for this is now available. When web developers focus on ways to make games interoperable, they will be able to capture the attention of both players and investors and reveal entirely new ways of monetization.
Safety and confidence of the players
As GameFi continues to grow, security remains a critical concern. One of the main reasons why most web3 gaming projects failed after 2021 was underlying security vulnerabilities. The decentralized nature of blockchain offers solutions to many of the traditional security issues that plague online gaming, such as fraud, hacking, and item theft. Blockchain's immutable ledger ensures that assets are tied to players, not individual games, protecting players' investments regardless of what happens to the game itself.
This ability to protect assets creates an ecosystem based on trust, a feature that will be crucial for widespread adoption. Players should feel confident that their investments in the game are safe, even if a game goes offline or a developer dissolves. Blockchain security protocols, when implemented correctly, offer this peace of mind.
The road ahead
It is now evident that as an industry we are moving towards a future where web3 technology is a standard feature of most games. Mass adoption is inevitable, but it will require strategic investment, seamless integration, and a commitment to fun, accessible gameplay.
New projects must understand that it is not just about making quick profits, but about creating immersive and engaging worlds where blockchain technology does not complicate the player experience. The key to unlocking this growth will be the industry's ability to balance fun and accessibility while seamlessly integrating blockchain elements – a balance that, once achieved, will usher in the next generation of gaming.
