Web 3.0 technology is changing the face of the gaming industry by offering several benefits to game developers and players alike. Web 3.0 is the next generation of the internet, where decentralised applications (dApps) are built on blockchain technology. The use of blockchain technology has several advantages, including security, transparency, and immutability.

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The Indian gaming market is expected to grow from $2.8 billion in 2022 to $5 billion in 2025 at a CAGR of 28-30 percent. This growth is aided by the rise of online gaming platforms, affordable smartphones and increasing internet usage.

“As users continue to spend time and resources playing games, Web3 allows them to own in-game assets and consequently unlock the monetary potential of such assets. Even if one were to keep the revenue potential aside, for an Indian user, it will be particularly relevant that decentralization makes the system resilient to cyber-attacks and the infrastructure's robust security and verification measures keep the in-game assets secure,” said Rajshree Sharma, Senior Legal Counsel, MPL .

Further, having smart-contract-based operations makes a game’s ecosystem transparent and safe from tampering.

“This is useful in preventing instances of fraud and cheating. While still early, it will be interesting to see Indian gaming DAOs formulate mandates for community ownership, reward distribution, and game rules,” Sharma said.

Suraj Sharma, Head of Public Policy & Government Affairs at BNS anticipates transformative effects on India's gaming industry due to Web3 technologies.

“These technologies will democratize the gaming landscape, offering players ownership and earning potential through their gaming efforts. The increased use of blockchain, NFTs and play-to-earn models will fundamentally redefine player experiences and interactions. Collaborative efforts from gaming companies, blockchain developers and crypto projects are essential to navigating this new era. As we progress, the Indian gaming industry is expected to evolve into an empowering, player-centric, and economically vibrant ecosystem,” he said.

Community building and interaction, which are key features of Web3, need to apply not only to customers but also to stakeholders from gaming, blockchain development, NFT and crypto segments to come together to provide a unique outset.

First Published:Aug 4, 2023 11:16 AM IST