Online Gaming Has Issues That Only Web3 Can Solve

web3 gaming

For over 30 years, video games have captivated minds, both young and old. In fact, I love gaming — as you can tell from my gaming name Pink Mamba – and along with Phaedra Boinodiris, we built Innov8, a highly successful “serious game” that explains business process management to non-technical people.

Now, recent technological developments have given rise to what is known as Web3 gaming. Web3 gaming titles build on top of established gaming formulas by leveraging blockchain technology and Non-Fungible Tokens (NFTs) to incorporate benefits such as verifiable digital ownership and tangible rewards.

The Web3 gaming market has undergone rapid expansion in the past few years. Reports from DappRadar found that from 2021 to 2022, activity in Web3 gaming exploded by 2,000%. As of Q1 of 2023, the gaming sector accounted for a whopping 45% of all blockchain activity. Moreover, decentralized gaming projects have seen a 12.95% rise in investment this year, reaching $739 million.

Gaming is considered one of the most exciting use cases for all of the benefits that Web3 can offer. This is largely because it can address some of the long outstanding issues with Web2 gaming.

The shortcomings of Web2

Despite its massive success, Web2 online gaming has its share of issues. For starters, in Web2, every game generally has its own login and password requirements. The need to remember so many credentials has become overwhelming for some users, especially those who access many different services. The result is “subscription fatigue,” discouraging potential customers from trying out new platforms as they don’t want another account to manage.

Another significant issue is security and privacy. Based on a study by Kaspersky Labs, from 2021 to 2022 alone, there was a 13% increase in the number of gamers affected by attacks. While this could result in a loss of funds, user data is even more sensitive. Most modern online games gather multiple types of information from their users, including geographical, behavioral, and social. Anything from data breaches to unethical business practices could put gamers at risk and compromise their sensitive personal information.

What makes security and privacy even more relevant is the ongoing rise of bots and AI deepfaked accounts. Even on social media, deepfaked accounts and scams are on the rise. Bots have long been an issue in Web2 games, with this situation only worsening given the recent releases of AI platforms like ChatGPT. Given the amount of real value hosted in these virtual worlds, new and existing users must be aware of the potential dangers that this technology can create.

Web2 problems, Web3 solutions

Web3 technology can help solve the underlying problems in Web2 and make for a better gaming experience in the future. This is possible by offering players cryptographically secured identities that overcome many of Web2’s shortcomings. These IDs not only act as your wallet but provide a single point of access to all Web3 gaming titles, as well as serve as your profile, credentials, and a tool for gamer protection.

Instead of managing a unique account for every game, these Web3 IDs can act as a login key for any game or service. This significantly reduces the barriers to entry and means that users are encouraged to try out new titles with minimum effort, thus improving reach. This could in itself present a risk if it didn’t come with top-notch security. This is why Web3 IDs come in, offering a very high degree of reliability in this field. Thanks to the immutable and cryptographic nature of blockchains, it is almost impossible to compromise a decentralized identity. All funds will stay securely in the wallet, being moved or accessed only at the player’s discretion.

Player control also extends to data privacy, so while these IDs store credentials and private info, any user is free to determine which platforms can access what data about them. They are free to revoke that permission at any time, too. This will eliminate or severely limit the ability for third parties to scrape personal information, again improving the autonomy and security of the user.

Lastly, bots can be addressed by performing a one-time “humanity check” that can be implemented when the Web3 ID is set up. Biometrics, a personal video chat with an approved validator, or other credentials can be used to confirm a human identity. What’s important is that once a Web3 ID has this certification, it will be a trivial matter to prove it to any platform accessed. Even the most convincing deepfaked bot accounts would struggle to falsify such information, leading to a reduction in attacks.

The paradigm shift is already underway

Axie Infinity is a play to earn game. Their active users have grown in 2023 by 59%. In a conversation with Axie Infinity Head of Growth and Community, Jeff AKA “Jihoz”, said ” Our identities are becoming increasingly digital. Web3 gaming offers the ability for people to form social and economic relationships pseudo-anonymously. In meatspace, people must give up their privacy in order to engage in most economic relationships due to the need to build trust. Trust-less exchange through smart contracts bypasses this necessity for intrusion of privacy”.

Multiple titles are beginning to implement Web3 IDs to simplify onboarding and create a safer and more user-friendly experience for everyone. One example comes from Immutable X and their recently unveiled Immutable Passport. Already, Immutable Passport is being implemented into the company’s flagship title Gods Unchained, as well as their upcoming AAA release, Guild of Guardians. Moving forward, Immutable has vowed to use its passport as an all-inclusive point of access for its entire ecosystem of titles.

Even robust Web3 metaverses that host a myriad of gaming experiences are getting involved. Recently, The Sandbox, one of the most advanced and promising platforms in the industry, announced that they would be utilizing PolygonMATIC 0.0% ID to enhance their existing KYC program to improve user security and authenticity.

Uplandme, Inc. is a globally distributed organization. Its headquarters are in Silicon Valley, and it is focused on a game where people not only play but also socialize and eventually be able to earn money. According to the CEO and founder of Upland Inc., Dirk Lueth, “The power of Web3 gaming shines through platforms like Upland Inc. With almost 300,000 landowners, we stand as the largest metaverse blockchain-based community today. While our daily active user count may seem modest in comparison to traditional games, within the blockchain realm, we are a formidable presence, boasting between 30,000 to 50,000 daily active users. Even more telling, over 60% of our users return within seven days, a testament to the enduring appeal and potential of the Web3 gaming experience.”


It’s becoming clear that even though Web3 identities are in their infancy, there are so many benefits that they stand to offer to the gaming world. Decentralized games offer players even more exciting possibilities, but they also raise the stakes when it comes to user support and protection. Web3 IDs are ushering in a new era where hacks and data mining become a thing of the past — it’s your data, your choices, and your story.

Source: Forbes

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