Current Challenges in Web3 Gaming and Entertainment

As discussed earlier, Web3 and “blockchain” have incredible potential to revolutionize game economies and mechanics. There are unfortunately a number of problems still plaguing “Web3 gaming”.

Source: CODALABS Web3 User Study 2022

The primary of these is “fragmentation” and the need to slog through an arduous process using multiple platforms to simply play a game. This is a major issue for even those who are “crypto-savvy”, and the learning curve associated with “crypto” is still a huge detractor for the massive population of traditional and casual gamers discussed earlier.

There can often be a very convoluted process to play a Web 3 game, which typically involves the following steps:

1. Deposit fiat into a centralized exchange (CEX)

2. Buy native coin (e.g. ETH, SOL, MATIC)

3. Create a non-custodial wallet

4. Withdraw native coin to your wallet

5. Connect your wallet to a decentralized exchange (DEX)

6. Buy the gaming token from the DEX

7. Connect your wallet to the game

8. Buy an NFT needed for play

9. Play (finally)

Web3 games also often require a large number of “microtransactions”. With each transaction on the Ethereum network, for example, costing anywhere between $4 and $40 each, this simply isn’t a sustainable environment for gaming. Although many of the Layer 2’s and other Layer 1’s are much more cost effective than Ethereum, no one really wants to pay any gas fees at all (especially when it comes to gaming).

There are other ancillary and technical issues that exist, as well. Lack of network scalability/speed is another issue that many blockchains struggle with. The inability to “scale” creates a self-fulfilling limitation on growth.

There are some fairly significant challenges currently within Web3 gaming and entertainment. The good thing is: OmniaVerse understands the problems and are fixing them.