The concept of Web3 gaming is built around the idea of ownership of digital things on the internet. However, despite its potential, this promise has yet to be fulfilled. The lack of true ownership in Web3 gaming is a significant issue that needs to be addressed.
A Brief History of Ownership in Gaming
The idea of ownership in gaming dates back to the early days of World of Warcraft. Ethereum co-founder Vitalik Buterin’s imagination was sparked by his disappointment with Blizzard taking away his warlock’s Siphon Life spell. This incident highlighted the importance of ownership in gaming and laid the foundation for Web3 gaming.
Why Ownership Matters
Intuitively, owning digital characters and experiences seems like a no-brainer for gamers who spend time, money, and emotional capital on their favorite games. In an increasingly digital world, ownership of online assets matters immensely. With half of the world’s population engaging in video games, ownership in this space is crucial.
The Problem with Current Web3 Gaming
Web3 gaming lags behind other parts of the industry, despite significant strides made in Bitcoin as a store of value and stablecoins facilitating transactions. The lack of true ownership is a major issue that needs to be addressed.
Ownership Without Interoperability is Worthless
Owning a non-fungible token (NFT) game item today is like owning a dog that lives in your neighbor’s garage. You can look at it, but you don’t really own it in a meaningful way. This situation parallels the arguments made by Bitcoin advocates about gold.
The Importance of Interoperability
Interoperability is key to true ownership. If players cannot use their digital assets across different platforms and games, they do not truly own them. The lack of interoperability makes owning an NFT game item like owning gold in someone else’s vault.
Why Web3 Gaming Falls Short
Web3 gaming claims to provide the magic that is different – ownership of items, characters, currency, and more. However, true ownership is nothing without interoperability. If you scratch a little below the surface, you find very quickly that it doesn’t exist.
The State of Web3 Gaming Today
For the billions invested in Web3 gaming and metaverse companies, there is not a single hero example demonstrating the true value of ownership, which is interoperability. The industry needs to focus on building the technology and economic models necessary for true ownership.
A New Perspective: Technology and Economics
The journey toward true ownership requires a clear focus on two main areas: technology and economics. Technologically, we must address the complexities of interoperability. This involves creating universal standards that allow digital assets to move seamlessly across different platforms, game engines, and experiences.
Economically, developers and companies must recognize that true ownership and interoperability are not threats but opportunities to expand the gaming ecosystem. By supporting open systems, they can attract a broader audience and foster a more vibrant and innovative community.
A Call to Action
The challenge we face is to create an economic model that balances openness with sustainable development, ensuring that all participants – developers, players, and businesses – benefit from the value generated.
As Aaron McDonald, co-founder and CEO of Futureverse, notes: "Building the technology to make this work is hard, it will take a long time, and it has more risk. It would be much much easier, quicker, and cheaper to do what everyone else is doing and capitalize off the meme rather than to create something truly game-changing."
Conclusion
The potential for true ownership and interoperability in Web3 gaming remains a powerful vision. Achieving this could revolutionize the industry, offering gamers unprecedented value and transforming the digital landscape. The journey toward this future requires a clear focus on technology and economics.
By addressing the complexities of interoperability and creating economic models that support openness and sustainable development, we can create an industry that benefits all participants – developers, players, and businesses alike.
