How Gaming Can Help Untangle Blockchain and Web3’s Complexity

Over thirteen years into the experiment, blockchain remains a complex and daunting topic for most people. It’s not just about the technology behind it but also the underlying philosophy of Web3 and what it means for our society. There are so many terms and concepts to understand that it can feel like an impossible puzzle.

Because it remains in its early stages, it is difficult to understand how Web3 and the underlying technology work without spending significant time and effort, representing a detrimental reality when discussing mass adoption. Moreover, most decentralized applications (Dapps) and protocols lack intuitive and engaging user interfaces. They aren’t built with user experience in mind, compounding the problem.

The existing gamut of blockchain-powered products and services, whether decentralized finance (DeFi), chains, bridges, oracles, or non-fungible tokens (NFTs), makes it even more complicated for the average person. From a user’s perspective, the learning curve needed to manage digital wallets, swap tokens, switch chains, and navigate the ever-growing ecosystem of decentralized products and services, is unnecessarily complicated and overwhelming. Without an easy on-ramp for users amid these high entry barriers, many prospective users are still sitting on the sidelines.

Accordingly, the general perception about blockchain is that it is a “new technology that promises disruptive wonders.” While an applicable statement to an extent, the general public is yet to experience the technology first-hand in their daily lives.

Games Are Enabling Users To “Level Up” Blockchain Knowledge

So, how can users experience the potential of blockchain while not dealing with the complexities and technicalities? Some believe the answer lies in gaming.

“With the gaming market valued at close to $200 billion in 2021, there is significant potential to onboard a critical mass of users onto Web3 via blockchain games,” explains David Shin, the Head of Klaytn Global Group. “Blockchain-based gaming applications could serve as good starting points to drive global mass adoption of crypto and web3 at large, but it is important to design games – blockchain-based or not – that put users first as opposed to designing games as another platform for commerce. The next factor to consider is strong infrastructure tools and middleware services, which are required to ensure that gaming projects and companies are able to deliver top-class, high-quality games on-chain.”

An increasing number of thought leaders and blockchain proponents believe blockchain gaming is the potential answer to this awareness and engagement dilemma. The emergence of play-to-earn (P2E) games has not only accelerated user adoption but also played a key role in educating people about blockchain-powered concepts like GameFi (gaming + decentralized finance), NFTs, the Metaverse, and much more.

“It is very probable that blockchain mass adoption will come first from games, especially with the metaverse gaining relevance,” according to DappRadar’s Senior Blockchain Analyst Pedro Herrera. “The ability of blockchain to enable new economies should disrupt the traditional model of games, where creators and gamers are not empowered.”

Video games have grown both as a hobby and an industry in the past decade. There are already over 3.24 billion gamers worldwide – representing almost half the world’s population and a prime market that has always embraced cutting-edge technology with open arms.

Besides, gamers already understand fundamental blockchain concepts. For instance, they know how in-game characters work, how they can upgrade their characters and their abilities, add more characters, and so on. It’s the same with blockchain-based P2E games.

Most of these elements are represented as NFTs in these games. As players continue engaging with the game mechanics, they gradually learn about the purpose of these NFTs and other in-game assets, how to use them, and other functions – all of which ultimately add to their practical knowledge of blockchain technology.

LongHash Ventures’ Chief Operations Officer and General Partner Shi Khai Wei explains, “Gaming assets have, all along, been digital in nature, from CS: GO skins to Second Life real estate to party hats and Halloween masks in RuneScape. NFTs are the new form of digital assets and digital property, and hence it’s the logical next step in the evolution of gaming assets.”

The crucial part of blockchain games is that they don’t force the technology onto users. Players don’t generally need to harbor extensive experience or knowledge of the underlying technology, even when executing on-chain transactions (like trading an in-game NFT on a secondary marketplace or swapping their in-game currency for another crypto or fiat currency).

Many P2E games follow a more DIY approach, wherein the user gains a first-hand experience and a launchpad to interact with the features and underlying technology driving it. For instance, a first-time blockchain gamer probably isn’t interested in learning about “non-fungibility” concerning tokens as long as the “non-fungible token” they own is truly theirs and exhibits intrinsic value. Once users appreciate the value, they are inclined to learn more, reflecting an easy way to spread knowledge about this ever-evolving technology.

“The “metaverse generation” (Gen Alpha & Gen Z) is being raised on video games and short-form video – think Roblox and TikTok,” notes Zach Hungate, the Head of Gaming at Everyrealm. “They will naturally become adults and seek out video game environments for entertainment. They’re consuming gaming content, learning, watching, and hanging out with their friends on these platforms.”

Hungate adds, “Crypto games are centered around user-generated content and community input. Crypto is the native currency that powers blockchain games, fueling everything from skins to weapons upgrades. As this practice becomes normalized, it’s inevitable that we’ll see more gamers utilizing crypto as part of their everyday playing experience.”

With blockchain technology and P2E infrastructure advancing toward the high bar set by the existing AAA gaming ecosystem, it is no hyperbole to claim that the learning curve for new users will continue to narrow. Between game mechanics, gamification, and tokenomics rolled up into one accessible, slick package, gaming can serve as an ongoing catalyst for waves of blockchain adoption in the years to come.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.