What are web3 games?
Web3 games (sometimes called play-to-earn, play-to-own, crypto, blockchain or NFT games) are digital games which use blockchain technology as an underlying component of a game’s economy.
Web3 games are defined by having game assets that are owned (held in custodial wallets) by players in the form of Non-Fungible Tokens (NFTs) or Fungible Tokens. The functional implication of this innovation is that player assets are tangibly owned, and liquid markets exist to enable assets to be sold or traded much like a physical goods.
The fact that players in play-to-earn web3 game economies own in-game asset draws a stark contrast to traditional Free-To-Play (Freemium) game economies, which have largely exist within a closed ecosystem preventing players from trading in-game items for real world value.
The incorporation of blockchain infrastructure in games has sparked massive adoption and insanely high retention rates in early web3 games like Axie Infinity (an upptic growth services client).
Web3 games are currently the most heavily invested sector of the games economy with billions of dollars being invested in web3 games and gaming infrusture technology companies in the early months of 2022.