Will the “Play2Earn” revenue model promote the development of Web3.0?

Our experience on the Internet today is very different from 20 years ago. You may read this article by following posts, email communications, or suggestions automatically made by interest-based algorithms. This interactive paradigm is what we usually call Web 2.0, which is the social era we are now in.

The Web 1.0 of 30 years ago is far from what it is today. The network we experience today is very different from that of 30 years ago, but now social technologies and platforms have become part of our daily lives. Perhaps in 30 years, we will begin to see a gradual transformation and the emergence of a new type of network interaction, which is Web 3.0 powered by blockchain and decentralization.

If we look back at the history of the Internet, we will find that these changes are very important. Just by looking back at the life before the advent of the Internet, one can understand how it affected and profoundly changed the world. Due to the continuous development of the Internet, society has changed. When we are going through another era change, we can become one of the early adopters of this change.

A brief analysis of the evolution of the Web

Web 1.0-the world’s first open “library”

Web 1.0 is the first iteration of the web, which lasted approximately from 1989 to 2005. It is considered a “read-only” network, and users are mainly consumers of content.

Creators are developers who build websites that contain information mainly provided in text or image format. Most websites have static content, and the only interaction for visitors is to read and obtain information, because at this time the website does not have much interactivity at all. You visit a website, perform a certain action, or consume some content, basically that’s it.

By the standards of the time, such an innovation was actually great. The early network can be regarded as a huge portal, similar to the first open global information “library.”

At this time, there is no community forum or social platform, interactivity is almost non-existent, and there will not be any major network effects from the information consumed.

Web 2.0-socialization, centralization

With the emergence of social networks, we are beginning to see the rise of a new type of network, which is the network we are still experiencing today. At this time, the network will be more complete and ubiquitous. Can be understood as interactive and social networks.

The first change is that in the Web 2.0 world, you don’t have to be a developer to participate in the creation process. Anyone can create their own content through blogs, websites, videos, social media pages, sharing, likes, gifs, etc. Today, if you want to conceive an idea and share it with the world, you can do it anytime, anywhere. Web 2.0 has opened the door to more and more creators all over the world.

However, Web 2.0 is not all sunshine and roses. All these advancements we have made come at a price: the companies and entities that develop, manage, and operate the platforms we use for content creation and sharing today are the hands of privacy, personal data, and digital rights. Therefore, we now live in a world where the Internet is increasingly centralized and dominated by several big companies: Apple, Google, Facebook, Amazon, Netflix, etc. These companies focus on creating closed and centralized ecosystems, controlling revenue streams, and generating additional revenue by using user data.

However, although these platforms have obtained huge benefits from tens of thousands or even millions of people, and have gradually expanded their scale based on the network effects generated by users, there is a serious imbalance in the interests of not sharing and not returning to the community. .

In the current Web 2.0 paradigm, we lack the infrastructure to provide users with real ownership. Web 3.0 aims to solve these shortcomings by fundamentally rethinking how we build interactive applications from the ground up to allow users to gain greater privacy and digital ownership, and allow the benefits and growth of certain platforms to flow back to the community (not only For a small number of investors and owners).

Web 3.0-returning power to people

Web 3.0 is the next evolution of the Internet and is currently in the making. In fact, there is no precise definition of what Web 3.0 is or will be. However, as an emerging technology under development, blockchain allows us to see a new situation of the Internet that may emerge.

Today, Web 3.0 is increasingly being defined as a truly open and decentralized Internet, and because Bitcoin, Ethernet Square , Polkadot appear such as block chain network makes this possible. The key innovation of these blockchain networks is the creation of protocols and applications that are not controlled by a single entity but that everyone can still trust. This opens up many possibilities, such as bringing power back to users, or bringing us back to the core values ​​of the Internet: an Internet shared by all and owned by all.

All in all, Web 3.0 is about creating a more user-centric network, where we retain full ownership of our data, identities, and digital assets.

Some of the key features of Web 3.0 applications include the following:

  • No trust-The core function of Web 3.0 applications should be trustless. This means that users do not necessarily need to trust a third party or intermediary to trade or use the system.
  • Protection of identity and privacy-the concept of self-regulation is very important in the Web 3.0 space. Users own and control their own identity and data, and can create any record in the database without providing user email or password to access any type of function. The authentication methods in Web 3.0 use wallet addresses that can remain completely anonymous, and they can be transferred seamlessly between multiple applications.
  • Local currency and economy-With the help of blockchain, we are now able to introduce and create a completely borderless economic layer and payment layer. This will allow any strong community to gradually build its own economy and create value in a fairer way, by contributing and providing rewards to incentivize more participants to join the community.
  • Open protocol-The combination of the first three features opens the door to the creation of protocol-based (rather than platform-based) systems. The agreement is open to everyone and is built in a way that is driven by users and communities rather than centralized entities.

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The lack of large-scale adoption of Web3.0

However, Web 3.0 is still brewing and developing. The disadvantages of large-scale adoption of Web 3.0 may be as follows:

  • Scalability and speed—compared to more decentralized systems, transactions in Web 3.0 are still slow;
  • Cost-the use of decentralized applications and protocols still have related costs for end users. Appropriate open networks should not hinder participants due to lack of funds to participate;
  • User experience-There are already several solutions for speed and cost. By far, the biggest challenge may be the user experience. Many of the underlying concepts of Web 3.0 are still very confusing for new users (wallets, tokens, gas, transactions, approvals, etc.), and the use of Web 3.0 applications still requires a lot of new steps, software, and education. This will definitely hinder adoption. We may need to do more work in this area to create a smoother and more transparent user experience for users.

It can be said that the Web 2.0 we are in is very, very similar to the blockchain: within 2 or 3 years, scalability and cost will naturally increase with technology, as more and more users join and request The quality of all teams and projects is higher, and the user experience will naturally improve when developing in Web 3.0.

But progress has been rapid, technology has matured day by day, and innovations in this field are happening every day.

Web 3.0 is in its infancy. Although the general public is still unable to adopt it, it is growing at a steady rate. We can see its rapid development in many areas, including:

  • Decentralized Organization (DAO);
  • Decentralized Finance (DeFi);
  • File storage using a decentralized file system;
  • Game and Play2Earn model;
  • Art and digital ownership;
  • Brands are looking for new ways to interact with communities and empower them;
  • The rise of micro-economy built around specific communities.

Regardless of the way forward, Web 3.0 is a strong competitor to end the current dominance of the “top-down” business model.

Ownership in the digital world

In the world as we know it, ownership is easy to determine. You can always trace the physical item back to the actual owner in some way. Understanding and acknowledging who owns what the item is our natural behavior. We do this every day, even unconsciously, we have known since childhood that ownership is an important concept.

Now, when we enter the digital realm, the situation becomes a bit more complicated. In the past few years, we have seen a huge shift towards digitalization: almost everyone is online every day (Online), and we are developing our lives and identities online. Although this may be a transitional step for the older generation, there is now a generation that interacts with new technologies from birth, and they are called digital natives. Over time, future generations will become more familiar with digital technology. This means that society and civilization are moving towards digitization, whether we personally like it or not.

We are seeing the rise of large-scale online experiences and the emergence of “a parallel society” through social media, virtual worlds, multiplayer games, and digital art. The freedom and decentralization of anonymity is placed in a world called Metaverse. . In this virtual world, we will see 100% digital assets and objects. Items created in virtual worlds or games, posts shared by celebrities, or works published by artists are becoming the norm, becoming more and more popular and valuable.

Then the biggest question comes: how do we determine the ownership of items in the digital world? Digital files can be easily copied and pasted, copied and distributed. How can we prove who actually owns the original?

NFT becomes a game changer.

This is where NFT comes into play. Since NFTs are decentralized and exist on public blockchains, they provide an unalterable source of truth for digital ownership that did not exist before. Before NFT, there was no legal way to prove the ownership of digital items in a decentralized way.

Yes, I can still copy and paste a picture that becomes an NFT, and I can also have a copy of the Mona Lisa, but its value is almost zero.

This opens up unlimited possibilities for everyone in the digital world. If you are a creator, then you can prove which NFT is the original draft, no matter how many copy/pastes are performed. If you are the owner of a digital item, an art dealer, or someone who only owns a digital “life”, you can still proudly display the digital items you own.

Anyone can still copy and paste JPEG pictures or MOV files, but the creator’s wallet record can become the final proof of ownership.

Democratization of the “Play2Earn” revenue model

Play games to make money? This has always been the dream of any video game enthusiast. However, game publishers and platform owners almost dominate the game economy, game peripherals, handling fees and other economic sources. In fact, this is a serious imbalance in the flow of game funds. The income of the entire game is among the players and users who generate value for the game. Uneven distribution between.

Web3.0 games may be an alternative to this situation. Now we can already see some new forms of games bring additional and creative sources of income to users, while creating a new economy and community around games.

E-sports and competition

Nowadays, most players’ income comes from e-sports competitions. E-sports activities have existed for more than 20 years, and have been steadily increasing year-on-year. The audience of e-sports is growing at an alarming rate, and popular games have swept the entire industry. League of Legends, CS:GO, Fortnite, Call of Duty and DotA are all household names in today’s e-sports games.

E-sports has transformed video games into a professional activity, in which some gamers can obtain “star-like” status and income, similar to successful football or basketball star players. Many of these gamers now earn millions of dollars each year, and major global brands such as Adidas, Red Bull, Levi’s, Mercedes-Benz are investing hundreds of millions of dollars in sponsorship funds for gaming teams and e-sports competitions.

However, for a fully electronic and digital industry, the revenue model is still very traditional. E-sports players still earn most of their income in traditional ways: winning cash prizes, earning team salaries, obtaining sponsorships, and selling merchandise and media rights.

Obviously, e-sports is now leading the way in terms of revenue from games, but the method is outdated and unbalanced. The fact is that earning any form of gaming revenue is not for everyone. Most income generators are skilled and dedicated professional players, and only top players can enter where they often make money.

Let funds flow back to users

Both members of the crypto community and blockchain users understand that there is a better option-the NFT mentioned above. NFT is more than just collecting cute penguins and pixelated punks. The NFT project that issues in-game assets on the blockchain is creating a real Play2Earn (P2E) mechanism to attract users and achieve great success.

The recent success Axie Infinity is an example. This is a fantasy world where players can fight, raise and collect Axie s (a monster-like creature named after the game). Game mechanics reward gameplay and player-driven economy: Axies itself is an NFT that can be purchased and traded outside the game. Fighting monsters in the game will earn tokens called Smooth Love Potions, which can be traded on the market. With these benefits, you can choose to purchase additional items in Axie Infinity, or transfer the value to different crypto games, or even bring them into the real economy.

Interestingly, Play2Earn has now become a way to create opportunities on a global scale. We have seen players in the Philippines, Brazil, or Venezuela adopt a large number of such revenues. These revenues can actually become emerging under the devastation of the epidemic. The “lifeboat” of economies and the economies of third world countries.

Compared with the traditional game model, this is a very interesting dynamic, because the revenue generated in the game is much more evenly distributed among game players. Some gamers worked harder than others and were rewarded. Even if you play for one or two hours a day, you will get your share of your contribution to the game, the economy, and the surrounding community.

The core and opportunity of “Play2Earn”

Today, innovative game companies have a great opportunity to try new business models and gain traction in this field. There is nothing wrong with the traditional game model of creating games that generate a lot of revenue for publishers, but it is reasonable to let some of this value flow back into the game economy, and it can return to the players who help make contributions. At the same time, this can generate a higher level of participation. Directly incentivize players to work for their game accounts for a long time, work hard for rewards, and contribute to the entire game. Rewarding users enables them to become greater game ambassadors and may bring greater rewards in the future, such as a stronger and more loyal community.

The core philosophy of Play2Earn is to put value and ownership on the side of the player. In a non-blockchain game, you can spend years building an inventory of in-game assets, but when you finally abandon the game, you will have nothing (because these assets never belonged to you). Blockchain-based games make them more open and allow players to own actual ownership.

NFT and Play2Earn are not just “encryption” trends. They are truly global “consumer” trends. We have seen this in the Philippines, Brazil, Venezuela and other countries. Users who have never used cryptocurrency or heard of blockchain before join because they just want to play a game that can really earn money. 

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/will-the-play2earn-revenue-model-promote-the-development-of-web3-0/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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