Web3 Gaming Report: A World of Changes

The blockchain gaming sector, nonetheless in its infancy, has been going by means of many transformations and challenges within the final 2 years. Many video games on this trade have both ceased improvement or have been placed on maintain by their creators. Moreover, there’s a development of those video games switching to completely different blockchain networks.

In a recent report by Game7, a decentralized autonomous group (DAO) that advocates for blockchain gaming, it’s famous that the trade noticed 157 blockchain video games halt improvement in 2022 and an extra 43 in 2023. George Isichos, a key contributor at Game7, identified that many of those video games, significantly these established pre-2021, struggled financially, resulting in their improvement being stopped.

Game7 is happy to share our State of Web3 Gaming Report

Take a deep dive into –

1,900 Blockchain Video games
1,000 Funding Rounds
170 Ecosystems
2018 to October 2023

Insights on –
Fundraising
Aggressive Dynamics
Blockchain Networks

And far more!

Let’s… pic.twitter.com/oFLz9UcadP

— Game7 DAO (@G7_DAO) November 13, 2023

The monetary side is a essential issue within the challenges confronted by blockchain video games. Most of those video games come from small studios, with bigger “AA” or “AAA” studios, outlined by Game7 as these with funding above $10 million and $25 million respectively, being much less affected. Regardless of this, the majority of Web3 video games are nonetheless indie initiatives, with 42% labeled as such, developed by small groups or people with out main monetary backing. In distinction, solely 5% and 1% of blockchain video games fall into the “AA” and “AAA” classes, respectively.

We have to consider, nevertheless, the truth that all the crypto trade has been in a bear market. This has affected all sectors, not simply the Web3 sector.

The blockchain gaming panorama can be changing into extra aggressive as a result of improve within the variety of gaming-focused blockchain networks, which rose from 37 in 2022 to 53 in 2023. This has led to extra builders switching chains. A good portion of blockchain video games, about 81%, nonetheless function on non gaming-focused layer-1 blockchains like Ethereum’s mainnet, however many at the moment are choosing Ethereum-compatible sidechains or scaling networks.

The Most Common Networks for Blockchain Video games

The Ethereum Digital Machine (EVM) is essentially the most most popular community for blockchain video games, utilized by 74% of them, with Solana’s digital machine following at a distant 10%. In 2023, essentially the most used networks for blockchain video games are Ethereum sidechain Polygon, adopted by Binance’s BNB Chain, Ethereum’s mainnet, Solana, Immutable, Avalanche, and Arbitrum.

2023 marks a major 12 months for recreation migrations inside the blockchain house. A complete of 65 video games have switched networks, a noticeable improve from the 48 in 2022. Video games are primarily migrating to networks like Polygon, Immutable, and Arbitrum, with 60% of the video games transferring from a layer-1 to a layer-2 community.

The explanations for these migrations fluctuate. As an illustration, Reinhardt Weyers, the indie developer of “Untitled Platformer”, moved his recreation from BNB Chain to SKALE, a gasless chain, resulting in elevated participant engagement.

Equally, video games like “Mighty Motion Heroes” and “Pirate Nation” moved from Polygon’s Ethereum facet chain to Arbitrum Nova as a result of scaling points and excessive operational prices on the Polygon community. Amitt Mahajan, CEO of Proof of Play, the developer of “Pirate Nation”, mentioned in an interview that this transfer was necessitated by the excessive prices on Polygon reaching hundreds of {dollars} each day in transaction charges.

Pirates, we have been heads down making ready plenty of huge upgrades to Pirate Nation, and the @ProofOfPlay recreation suite.

The primary of which is able to be revealed:

We’re delighted to announce our migration to @Arbitrum Nova.

1/4 pic.twitter.com/befQBE8QrB

— Pirate Nation (@PirateNationNFT) March 21, 2023

In September, Proof of Play  introduced they’d secured $33 million in funding to develop new video games which are completely different than the outdated “play-to-earn” gaming idea. By showcasing Pirate Nation as a “Ceaselessly Sport”, Proof of Play highlighted its functionality to operate autonomously, impartial of exterior servers or creator intervention.

Arbitrum vs Polygon

For these not acquainted with these applied sciences, Polygon and Arbitrum, each scaling options for Ethereum, supply distinct approaches and options of their community designs, catering to completely different wants inside the blockchain ecosystem.

Polygon, beforehand often called Matic Community, operates as a multi-chain system. It’s primarily a sidechain that runs alongside the Ethereum primary chain, providing a framework for constructing interconnected networks. One in every of Polygon’s key options is its flexibility, permitting builders to create scalable, Ethereum-compatible blockchains with adaptable consensus mechanisms.

This flexibility facilitates a variety of functions, from DeFi to NFTs, with enhanced scalability and decrease transaction charges in comparison with Ethereum’s mainnet. Furthermore, Polygon maintains a excessive diploma of safety by means of its Plasma framework and a decentralized community of Proof of Stake (PoS) validators, making it a preferred selection for builders trying to stability scalability with Ethereum’s strong safety mannequin.

Arbitrum, however, is a layer-2 scaling answer that makes use of Optimistic Rollup expertise to enhance the scalability and effectivity of Ethereum transactions. In contrast to Polygon’s sidechain strategy, Arbitrum operates on high of the Ethereum mainnet, bundling or “rolling up” a number of transactions right into a single batch.

This course of considerably reduces the load on the Ethereum community, resulting in sooner transaction occasions and decrease charges, whereas nonetheless leveraging Ethereum’s safety. Arbitrum doesn’t introduce a brand new consensus mechanism however depends on Ethereum’s safety, making it extremely safe however considerably much less versatile than Polygon. This design is especially interesting for functions that prioritize safety and Ethereum’s decentralized ecosystem, whereas nonetheless looking for to mitigate points associated to excessive gasoline charges and community congestion.

Total, the blockchain gaming trade is experiencing a interval of flux, with monetary challenges, aggressive pressures, and market dynamics influencing the selections of recreation builders and the path of the trade.

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