The biggest challenge facing Web3 (commonly referred to as the future internet domain utilizing decentralized blockchain technologies) is mass adoption by mainstream internet users. History has shown us that mass adoption helps foster momentum in improving new technologies and creating new economic opportunities – the adoption of smartphones and web apps being one example.
It is proven from the various study and research, Gaming is the real use case for building massive ecosystem of gamers through mass adoption of Web3, where users can experience the internet in a new and familiar space, with games and other entertainment platforms supporting the embrace of this new technology.
While the prospects of Web3 are numerous, several critical roadblocks hold Web3 back from mass adoption:
Web3 seems complicated to those who are not in-the-know. The most significant barrier to the mass adoption of Web3 is the general lack of understanding of the technology. Crypto enthusiasts easily understand Web3, but it presents a steep learning curve for the average user. Web3 can revolutionize the digital economy for those well prepared and well informed.
Learning to use dApps and smart contracts is complex, and mistakes can be costly. The overall user experience for Web3 lacks simplicity, interoperability is still a challenge, and the existing innovations of Web3 are more complicated to use than the base protocols. With the mainstream struggling to grasp Web3, they also have little to no patience to put the needed effort to get started. As the mainstream tends to use things that are familiar to them, Web3 needs to be easily used as Web2.
The limitations in understanding and usability limit the access of Web3 to a technological elite which goes against their intent of a more decentralized and fairer world. Web3 becomes too hard, complicated, and out of reach, rendering it inaccessible to the mainstream. There is no point to Web3 if the technologically elite are the only ones able to access it.
The advent of Web3 (especially cryptocurrency and non-fungible tokens) challenged those with the technical ability, entrepreneurship, and capital to find viable use cases for this technology. The actions of certain players (such as speculative market movements, fraudulent schemes, Ponzi-scheme, scams, and rug-pulls) have created a negative reputation for Web3 projects, practitioners, and believers to the public at large.
Trust and popularity in the old gaming model where only big influencers earn money are decreasing. Fairness, transparency, and much more opportunities are the signature features of blockchain technology. One solution to overcoming the challenges presented by the old gaming model is synergising online games with blockchain technology using non-fungible tokens (NFTs) and many other in-games assets.
Significant growth trends exist in the gaming market and the blockchain industry. Every day, about 1 million internet users come online, yet there are still 3.2 billion people globally who still lack internet access.
The computer gaming industry (which includes games delivered via desktop computers, dedicated gaming consoles, and mobile devices) still has much room for growth and is estimated to have a total value of USD 200 billion by the end of 2021. It is expected that the number of gamers will rise to 2.9 billion worldwide by the end of 2021, with one in three people being gamers worldwide. Mobile is the fastest-growing segment, accounting for over 50% of all gaming revenue.
The blockchain industry is also a large and rapidly growing industry, with a forecasted growth of up to US$60.7 billion by 2024. Likewise, with how the internet became a catalyst for the creation of the online gaming sector, blockchain may prove to be a similar technological catalyst to create a new gaming sector in the global game industry.
NFTs are digital blockchain-linked assets that are unique and not interchangeable with other assets. An NFT is unique and cannot be replicated, which allows them to bridge the gap between the virtual and physical economies, offering a vast market of valuable digital goods that can be scaled, collected, and traded. The total value of all NFT transactions increased from US$62.8 million in 2019 to $250.8 million in 2020.
The current sales value of NFT games is up to US$76.7 million, and NFT metaverse up to US$106.5 million.
Play To Earn
With the proliferation of blockchain technology worldwide, new game economic models are starting to emerge. In 2020, The Philippines saw a massive number of non-traditional gamers migrate to crypto-based video games as a way to earn income during the COVID-19 lockdowns. The country saw grandparents, single mothers, and taxi drivers all turning to video games to supplement income - playing, crafting, and trading digital assets, which they could then sell on public blockchain exchanges to transfer into cash. What makes these games different from MMO Gold Farming are games designed around open economies, the elimination of restrictive ToS, and new technology utilising NFTs operating on the blockchain. These new models give power back to individuals by facilitating the ownership of assets they purchase and earn.
Play-to-earn games are the latest innovation in the blockchain gaming industry. It will revolutionise how people interact with the economies of their favourite games. It has ensured and embraced the concept of an open economy, ensuring players who bring value to the gaming world are rewarded financially. This has, in turn, seen a domino effect on the crypto markets as many people are trooping to these games (regardless of how gaming-oriented they are) to play and make money for themselves.
The markets are upward because these games get investments from prominent institutions and retail investors. We expect it to be so for a while as more games keep getting recognition and traffic. This would lead to more investment which ultimately depends on the market. The immediate future is green, and you’d be wise to participate in these play-to-earn games.
COG is fully aware of these challenges and already building and supporting a gaming platform that embraces a measured approach toward the future of gaming, ensuring that we properly educate gamers on the benefits of Web3.
Supporting the Web2 to Web3 transition
Currently, standard gamers are Web2 gamers; for every 1 Web3 gamer, there are over 5,000 Web2 gamers.
This is no surprise, as Web3 is still very new and would require some time for gamers to transition to Web3 gaming. To help onboard gamers onto Web3, COG will release a Web2 game to help introduce our game and our world to gamers around the world, which will be released via mobile and web. COG allows Web2 players to enjoy the experience of Web3 games without any prior knowledge of cryptocurrency or tokens. Over time, our ongoing mission will be to educate our user base on the benefits and risks of Web3 and assist them with the transition.
Commitment to COG through delivery
COG Team is entirely committed to build a world-class, state-of-art gaming platform, which gamers will love to play and create wealth. We are aware that the crypto-gaming space is full of bad faith actors designed to extract funds from users and investors. Other projects are only focused on raising funds with no fixed plan on how they will deliver a project that meets or exceeds expectations.
Our approach is Unique and different – within first 3 months of concept design, we released our multi-player/multi-gaming platform with multiple games integrated, and continue to make regular improvements on platform and integrating more games. Our Roadmap lists our priorities for future expansions of COG through the release of new games and optimized platform.