Lưu trữ cho từ khóa: Web3

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Investing in MENA’s crypto future: Opportunities and challenges | Opinion

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With a tech-savvy population, progressive regulatory frameworks, and ambitious government-led initiatives, significant strides are being made across the Middle East when it comes to nurturing blockchain and crypto innovation. This year, I had the pleasure of attending the Satoshi Roundtable and the Token 2049 summit in Dubai, two flagship gatherings on the global web3 events circuit. In addition to showcasing the latest milestones and breakthroughs across the web3 landscape, the events served as a celebration of the region’s rapid ascension as a thriving hub of web3 activity, and the energy in the air was palpable.

In recent years, MENA has earned a stellar reputation for hosting high-quality events, attracting the best and brightest across web3. Since the launch of Lemniscap seven years ago, we have been actively identifying and backing pre-trend narratives and up-and-coming web3 solutions, both from an infrastructure and consumer layer perspective. 

The MENA region has presented exceptional investment avenues within emerging verticals, and as blockchain technology continues to evolve, the Middle East’s appetite for web3 growth will undoubtedly create a breeding ground for the most innovative and disruptive projects to thrive.

Phygital: The intersection of blockchain and physical assets

In my mind, one of the most intriguing investment plays in the Middle East is the ‘Phygital’ space, representing the confluence of blockchain technology with physical assets. This convergence has the potential to revolutionize industries such as real estate, art, and luxury goods—three sectors that are already booming across MENA. Blockchain’s immutable ledger and smart contract functionality provide a powerful framework for creating transparent and secure systems for managing and trading physical assets. For instance, tokenizing real estate on blockchain platforms allows for fractional ownership, making it easier for investors to buy and sell shares in high-value properties.

In a region where real estate investment is a major driver of wealth, particularly in countries like the UAE and Saudi Arabia, this is opening up a world of opportunities for smaller investors who may not have had access to such high-value assets previously. We’ve seen how the UAE’s real estate sector is benefiting from deployments of blockchain technology, with properties being bought and sold using Bitcoin (BTC), which provides international investors with a more seamless and transparent way to invest in MENA property markets. Additionally, by tokenizing art and collectibles, owners can secure proof of authenticity, trace provenance, and even trade portions of high-value pieces—not only democratizing access to valuable assets but also reducing fraud, a key concern in these markets.

While there is substantial upside to the Phygital space, the infrastructure for seamless integration between digital and physical assets is still evolving. Secure and verifiable connections between blockchain-based digital tokens and their corresponding physical assets are challenging to establish, requiring reliable tracking systems, such as IoT devices or RFID technology. Ambiguity around legal frameworks and regulatory standards for tokenized physical assets may also restrict growth in the short term, but once these issues are ironed out, the Phygital growth trajectory will be expansive.

Web3 gaming

Governments in countries across the MENA region are actively fostering innovation within the gaming sector, recognizing the ‘first mover’ opportunity to accommodate web3 gaming platforms, which are ascending in popularity. These platforms empower players with real ownership of in-game assets by utilizing NFTs and play-to-earn models. 

Dubai, in particular, has established its credentials as a leading hub for web3 gaming development, boosted by the recent launch of The Dubai Program for Gaming 2033—with a mandate to create 30,000 new jobs in the burgeoning sector. Gaming is one of the high-potential verticals in terms of crypto adoption among consumers, but it’s one of the most difficult ones to get right. Complex blockchain integrations, including slow transaction times, high gas fees, and difficult onboarding processes for non-crypto users, still hinder the overall web3 gaming experience. These barriers make it challenging for mainstream gamers to engage with web3 games, limiting adoption fully.

For example, high Ethereum transaction fees often deter in-game purchases or NFT trades, while complex wallet setups discourage casual users. However, with advancements such as Layer-2 scaling solutions and gasless transaction models, these issues can be resolved. Simplified onboarding through user-friendly wallets and seamless integration with blockchain infrastructure can significantly improve user experiences. Once these obstacles are overcome, web3 gaming can attract millions of players, unlocking massive opportunities for growth and player-owned economies. Looking ahead, we are excited to pursue exemplary investment opportunities that expand the realm of onchain gaming.

DePINs

Decentralized physical infrastructure networks represent another promising frontier for VCs surveying the web3 space across the Middle East, which is renowned for its vast energy resources, presenting unique opportunities for DePIN deployments—using blockchain technology to enable decentralized networks that support physical infrastructure. 

With many Middle Eastern countries, such as Saudi Arabia and the UAE, investing heavily in renewable energy to diversify away from oil, VCs have a timely opening to back projects that could redefine how energy is managed and distributed in the region. Last year, a branch of Abu Dhabi’s Advanced Technology Research Council introduced a new blockchain-powered carbon tracking and trading platform, enabling companies to offset their carbon footprints more effectively and transparently, so there is clear buy-in at the highest level for blockchain-centric sustainability measures to take hold.

While DePIN is demonstrating exceptional promise, the success of DePIN projects in MENA will depend on the region’s ability to build and maintain robust physical networks that can support decentralized applications, which requires significant investment in physical assets and technology. The cost of infrastructure development will be high, and projects may take years to mature fully, but the roadmap for success is there.

From a VC perspective, the Middle East offers a conveyor belt of highly attractive opportunities for targeted investments within the blockchain space. The replication of initiatives like the UAE’s Digital Government Strategy 2025 across the MENA region will go a long way towards promoting digital and blockchain integrations across core government departments, which, in turn, will have a ripple effect across the rest of the tech and investor ecosystem.

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Sony’s Soneium could set the blockchain pace — is BlackRock preparing to follow?

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How will Sony’s Soneium stack up against existing blockchain giants, especially if BlackRock makes its anticipated move into the market?

Sony has long been synonymous with innovation, and now it’s making a bold entry into the blockchain world with its latest initiative: Soneium.

On Aug. 23, Sony Block Solutions Labs — a collaboration between Sony Group and Singapore-based Startale Labs — announced the launch of this new project. 

Just a few days later, on Aug. 28, Sony further introduced the “Minato” testnet for Soneium, along with an incubation program aimed at onboarding developers to the new platform.

Soneium will be built on Ethereum (ETH) and the OP Stack from Optimism (OP), a highly customizable toolkit that enables developers to create their own networks with ease. 

According to Jun Watanabe, Chairman of Sony Block Solutions Labs, Sony views blockchain as a way to enrich lives and elevate creativity to new heights. With Soneium, the company aims to unlock new business opportunities and use cases, offering value that’s unique to web3 technology.

It’s important to note that Sony’s journey into web3 didn’t begin with Soneium. The company has been steadily expanding its footprint in the crypto space, including the acquisition of the Japanese crypto exchange WhaleFin — now rebranded as S.BLOX Co. — and Amber Japan, a digital asset trading services provider.

But what exactly is Soneium, how does it compare to its rivals, and what can we expect from this project in the future?

Understanding Soneium’s core purpose

As a public blockchain, Soneium operates on an open network, inviting participants from all walks of life to engage without limitations.

What makes Soneium stand out is its role as a layer-2 solution for Ethereum. This means it builds on Ethereum’s existing infrastructure, aiming to solve two of the biggest challenges in blockchain today: slow processing speeds and high transaction fees.

By handling data processing on its own layer, Soneium helps alleviate these issues, making the blockchain experience faster and more affordable.

One of the most exciting aspects of Soneium is its support for advanced smart contracts, which are crucial for creating decentralized applications, or dApps.

Developers will also have access to a suite of third-party tools designed to simplify the process of developing and launching apps on the Soneium network. This makes it a promising platform for innovation, offering endless possibilities for what can be built on the blockchain.

The recent launch of the Soneium testnet, known as Minato, marks a key step in this journey.

Minato is designed to mirror the conditions of the mainnet, providing a realistic environment for developers to test high-volume applications. This is essential for ensuring that when these apps go live, they perform smoothly under real-world conditions.

As claimed, Minato also plays a critical role in community building. Early access to the testnet allows developers and creators to gather valuable feedback, which is key to refining their projects.

Users, too, benefit from this early access as they get to experience and influence the future of these applications without risking their own assets. That’s because Minato uses a test version of crypto assets for in-app payments, creating a risk-free environment that encourages exploration and engagement with web3 technologies.

Supporting the Soneium Minato testnet is Astar Network, a blockchain platform known for its multi-chain capabilities. Astar is providing initial liquidity and a variety of fungible and non-fungible digital assets, helping to fuel the early stages of Soneium’s ecosystem.

In addition to Astar, a host of other prominent blockchain projects and companies will be early experimenters on the network, including Circle (the issuer of USDC), Optimism, Alchemy, The Graph (GRT), and Chainlink (LINK).

Soneium is also rolling out a builder-focused program called Soneium Spark, designed to attract visionary developers and creators, offering access to crucial infrastructure, mentorship, and industry partnerships.

Moreover, Sony is offering investments of up to $100,000 per team. Soneium Spark’s incubation period kicks off in mid-October and runs through the upcoming months.

Soneium’s battle for dominance

Soneium has already begun forging key collaborations that could give it an edge in the highly competitive layer-2 space.

One of the most notable partnerships is with Pyth Network, a decentralized data infrastructure known for providing real-time, high-fidelity price feeds. 

This collaboration means that all projects building on Soneium from the start will have access to Pyth’s reliable market data, a critical component for applications in decentralized finance, web3 games, NFT marketplaces, entertainment services, and more.

However, Soneium is entering a crowded and fiercely competitive layer-2 landscape, where it will face off against established players.

One of the most prominent rivals is Base, which recently hit a key milestone — 1 million daily active addresses. Base is known for its strong backing by Coinbase, one of the most recognized names in the crypto space. But Base isn’t the only competitor in the field.

Polygon (MATIC) is another key player, known for its scalability and low-cost transactions. Polygon has become a go-to layer-2 solution for many developers, especially those looking to build scalable dApps without sacrificing security.

Then there’s Stacks (STX), which brings smart contracts and dApps to Bitcoin (BTC), offering unique opportunities for developers who want to leverage Bitcoin’s security while building on a layer-2 network.

Mantle (MNT), another emerging layer-2 solution, focuses on modular design and ease of integration, making it attractive for developers seeking flexibility and efficiency.

Each of these layer-2 networks has its strengths, and Soneium will need to carve out its niche to stand out.

Traditional giants embracing blockchain

The layer-2 blockchain space, already competitive with players like Base, Polygon, and others, could soon become even more intense.

The latest buzz suggests that BlackRock, the world’s largest asset manager, might be gearing up to launch its own layer-2 blockchain network.

According to a report from Token Terminal, BlackRock is seriously considering this move as a natural extension of its growing involvement in the blockchain space, where it already manages a portfolio of blockchain-related products, including the iShares Bitcoin Trust (IBIT), and investments in Circle and Securitize, which oversees the on-chain money market fund BUIDL.

The only piece missing in BlackRock’s crypto puzzle is its own blockchain network—a move that seems increasingly likely.

If BlackRock does launch its own layer-2 blockchain, it would follow a similar path to what Coinbase has done with Base. This would allow BlackRock to streamline the recordkeeping of its $10 trillion in assets under management across different asset classes on a single, global, interoperable, and transparent ledger.

The potential benefits are immense: 24/7 operational capital markets, improved transparency and investor access, lower fees, and faster settlements. However, challenges like the cost of blockchain implementation and regulatory uncertainties remain significant hurdles.

Sony’s Soneium and BlackRock’s potential layer-2 blockchain might be targeting different segments — Sony with its focus on entertainment and gaming, and BlackRock with its financial products — but the underlying strategy is similar: leveraging blockchain to stay ahead in an increasingly digital world.

As the layer-2 space evolves, the entry of traditional companies like Sony and BlackRock could likely make the competition even more exciting and intense. Sony’s journey with Soneium is just beginning, and while the path is uncertain, the opportunities for growth and innovation are vast.

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Theo Crypto News

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Alchemy acquires Romania-based Web3 infrastructure firm Bware Labs

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Alchemy has acquired Bware Labs, the Romania-based blockchain infrastructure platform and application programming interface services provider.

Web3 infrastructure platform Alchemy disclosed the acquisition in an announcement on Aug. 29, highlighting Bware Labs’ growth trajectory and suite of blockchain infrastructure and API services as additions that will help Alchemy execute on its product roadmap.

Path to expansion into Europe

According to Alchemy, acquiring Romania-based Bware provides a path towards Alchemy’s expansion into Europe. The company’s presence in Europe, which leads in the overall regulation of crypto via its MiCA rules, also offers the pathway to entry into other markets.

Europe is also a growing force in the web3 market, with a talent pool that Alchemy can tap into via the Bware Labs footprint, the firm added.

While Alchemy will take over Bware’s business, the expectation is that the deal will not impact respective companies’ customers. Operations will continue as normal for Bware’s Blast API and blockchain validator businesses, with integration into Alchemy’s product suite set to occur in the coming months.

INFRA token

Notably, Alchemy says it will not take over the INFRA protocol. The INFRA token powers the Bware ecosystem, including the Blast staking protocol.

The token is available on the Ethereum (ETH), Avalanche (AVAX) and MultiversX (EGLD) blockchains and has a total supply of 100 million and current circulating supply of over 4.4 million.

In its announcement, Bware said its team “will be stepping away” from its role as the protocol’s core contributor.

“The proxy that sends API requests to the protocol has been deprecated. If you participated in the testnet the related tokens will continue to vest, but you may cease your participation in the protocol as there will not be further rewards.”

Alchemy.

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DecideAI launches its GPT-2 LLM on Internet Computer

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Artificial intelligence-focused startup DecideAI has reached a key milestone with the full on-chain implementation of its large language model GPT-2.

On Aug. 28, DecideAI announced that its GPT-2 LLM had been deployed on the Internet Computer (ICP), a step that brings a decentralized approach to the training, maintenance and deployment of AI. Decentralized AI eliminates the pitfalls that beleaguer centralized AI development, the startup noted in the press release shared with crypto.news

Why the Internet Computer?

Launched by the DFINITY Foundation, the Internet Computer is a blockchain and web3 platform that enables developers to build and run decentralized applications entirely on the blockchain. This approach eliminates the need for centralized IT infrastructure, such as cloud computing services from major tech providers.

DecideAI is leveraging this decentralized ecosystem to democratize access to AI model training and deployment.

Key features of the Internet Computer include a virtual machine that uses WebAssembly to support floating-point numbers and deterministic SIMD, enabling parallel computation. DecideAI will also take advantage of ICP-native AI optimization.

“Today, the Internet Computer is the only blockchain capable of running a major LLM fully on-chain, offering the sufficient memory and compute power required to sustain a 100% decentralized AI.”

Raheel Govindji, CEO and founder of DecideAI.

DecideAI to expand Ethereum and Solana

Notably, the launch of the GPT-2 LLM on ICP opens up AI models to the benefits of interoperability, transparency and blockchain security. In the future, DecideAI will also leverage Internet Computer’s Chain Fusion technology, which allows for protocol-level blockchain integration, to expand its AI models to Ethereum (ETH) and Solana (SOL).

DecideAI’s GPT-2 large language model implementation on the Internet Computer will be powered by the web3 startup’s native token DCD.

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Sony launches Soneium blockchain as it pushes for mainstream web3 adoption

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Japanese electronics company Sony is developing its own blockchain, Soneium, in collaboration with Singapore-based web3 infrastructure provider Startale.

The company announced the development in an Aug. 23 release, stating that the Soneium testnet will go live in the coming days. It will allow developers to experiment and build applications, paving the way for a future public release.

Sony has positioned the new blockchain as a public network that will make web3 technology accessible and mainstream. The company decried the centralization of the current internet, where information and economic power are concentrated in the hands of a few entities. As such, it believes Soneium can help decentralize the internet while tackling two of the biggest challenges facing web3; limited adoption and a lack of meaningful use cases. 

However, according to Startale chief executive Sota Watanabe, Soneium’s first year will be spent onboarding web3 core users since the technology and the community are not yet ready for general users. In year two, the plan is to integrate several Sony products onto the platform, including Sony Music, Sony Pictures, and Sony Bank. Finally, in the third year, the team will allow other enterprises and general decentralized applications to build on Soneium.

The Soneium testnet will run on optimistic rollup technology built using the Optimism (OP) OP Stack. It will also integrate Startale’s Astar zero-knowledge Ethereum virtual machine to provide liquidity as well as fungible and non-fungible tokens.

The electronics manufacturer stated in the press release that it plans to explore how it can integrate Soneium with its other businesses to create a range of decentralized apps and services for new and existing web3 users. Sony claims that its new blockchain infrastructure will help protect content rights and come up with new profit-sharing models for creators. 

Web3 is a catchall phrase that refers to the next iteration of the internet, focusing on decentralization and user empowerment. However, its development is facing several challenges, including scalability and interoperability.

Sony said that the goal for its new blockchain project is for it to have “internet-level scalability,” a feat that could make it more adaptable by everyday users. Earlier in the year, the company announced it was partnering with Siemens to create industrial applications for the metaverse.

The first product of the collaboration was a mixed reality headset built specifically for web3 designers and engineers. In addition, Sony recently acquired Japanese crypto exchange Amber, which then rebranded to S.BLOX. The company runs the WhaleFin exchange and is also led by Startale CEO Watanabe.

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Here’s why the TARS AI token price is soaring

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TARS AI, a Solana-backed artificial intelligence infrastructure provider, was one of the top-performing tokens on Aug. 20.

TARS (TAI) token rose by 14.45%, continuing an uptrend that began on Aug. 15 when it bottomed at $0.990. The token’s rise followed hints from developers about four new AI products they plan to release in the next 30-60 days in partnership with Google.

These products will be launched months after the network was accepted into Google’s Startup Program, which supports young companies. Other crypto projects in the program include Celo (CELO), among others.

This development comes two months after TARS AI developers launched a $2 million ecosystem fund to support developers within its ecosystem. It also aligns with the growing global popularity of AI projects. OpenAI has achieved an $80 billion valuation while Elon Musk’s X.ai is valued at $24 billion. 

TARS AI aims to replicate this success by bridging the gap between AI and Web3 worlds. The project’s infrastructure is designed to help companies and organizations build and deploy conversational applications.

TARS is one of the few blockchain companies that seek to become big names in the AI industry. Artificial Superintelligence Alliance (FET), the biggest one in the sector, was formed by merging Fetch, Ocean Protocol, and SingularityNET. 

Others, like Akash Network (AKT) and Render (RNDR), have built infrastructure solutions that let people share their Graphics Processing Unit. 

TARS rose after finding key support

TARS AI token price | Chart by TradingView

TARS AI token rallied after it bottomed at $0.10, a level it failed to move below in June, July, and August. As it rose, the token also moved above the descending trendline that connects the highest swings since June 15.

TAI has flipped the 25-day moving average from resistance into a support level and has invalidated the descending triangle pattern. Therefore, the token could continue rising, with the next reference point to watch being at $0.17, its highest swing on July 26 and 25% above the Aug. 20 high.

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Hong Kong lawmaker calls for legal framework to regulate DAOs

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A Hong Kong lawmaker calls for a legal framework to regulate DAOs following a court ruling on a decentralized organization.

Hong Kong might begin developing a regulatory framework for decentralized autonomous organizations, as lawmaker Johnny Ng Kit-chong advocates for clearer rules to improve stability in the web3 sector.

According to a report from the South China Morning Post, Ng, a member of the Legislative Council, believes that establishing a legal framework could benefit the region by attracting international talent and investment, reinforcing Hong Kong’s position in the rapidly evolving crypto landscape.

It is not the first time Ng has urged regulatory clarity for DAOs. In July, he also publicly called for the creation of clear policy and regulatory recommendations for DAOs to “support and regulate the healthy development” of these entities in Hong Kong.

However, the latest call comes shortly after Hong Kong’s High Court, in what Ng described as a “landmark moment, marking the world’s first judicial examination of a DAO,” ordered six defendants in the Mantra DAO case — alleging misappropriation of HK$6 billion (approximately $767 million) — to disclose financial details.

“I hope the government can improve the ecology of web3 and regulate DAOs legally so that more people in the industry will come to Hong Kong to develop their projects and bring in capital and talent.”

Johnny Ng Kit-chong

Ng has long been a vocal proponent of crypto-friendly regulation in Hong Kong. In early August, crypto.news reported that Ng emphasized the need for the city to intensify its efforts in the crypto space by expanding virtual banking services, particularly as web3 startups continue to face challenges in accessing financial services.

Ng has proposed that virtual banks should better cater to the needs of web3 companies and accelerate the development of Hong Kong’s digital ecosystem, asserting that “virtual asset policies have become the focus of global government discussions.”

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Aptos partners with myco to take Web3 entertainment mainstream

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The Aptos Foundation has announced a strategic partnership with Web3 streaming platform myco to accelerate mainstream adoption of Web3 entertainment.

Aptos (APT) is a layer-1 blockchain platform for smart contracts and offers a decentralized and highly scalable network.

The Aptos Foundation’s integration with myco, formerly Mcontent, will see the web3 streaming platform bring more than 13 million users and 3 million active monthly viewers onto Aptos, the two platforms said in an announcement.

myco to bring Web3 content to Aptos

Myco will leverage this partnership to bring its platform’s content, including documentaries, movies, and live sports, to Aptos L1. The platform will also integrate user-generated content, which is expected to go live on-chain by the end of the year.

myco co-founder Umair Masoom Usmani via X

This latest partnership adds to recent developments around Aptos’s growing market presence, including the collaboration with Alibaba Cloud to boost Japan’s Web3 ecosystem.

Earlier this year, Aptos partnered with Jambo to advance the digital economy and web3 adoption in emerging markets.

Web3 streaming and entertainment market

While the global streaming market continues to see a few traditional giants dominate, Web3 is taking shape with several projects across the industry.

There are blockchain-based content creation and streaming platforms leveraging decentralized infrastructure and crypto-based incentivization, among other Web3 features. Aptos’ and myco’s collaboration is part of the broader shift.

Some of the top projects in this market include the decentralized video streaming platform Livepeer (LPT), the Web3 music streaming site Audius (AUDIO), and Theta Network (THETA), the decentralized cloud for artificial intelligence, media, and entertainment.

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The future of web3 gaming is not tap-to-earn—it’s Roblox | Opinion

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It’s no secret that web3 gaming has struggled to take off. However, if the web3 gaming-related sector wants to make its mark on the global entertainment market, it must focus on what makes it unique. Current trends such as tap-to-earn and other arcade-like models are far from that.

With blockchain technology, web3 game developers can create games designed for players with complete rights to their virtual goods. This is a gateway to new in-game economies and speaks to a new generation of players who use platforms like Roblox. 

These gamers are used to creating assets and making legitimate profits from them, where players can monetize their creativity in a dynamic and legitimate in-game economy. It is not uncommon for this group to see these games as lucrative full-time jobs. This is where web3 gaming can find its perfect fit.

History replays itself

Having the mature market of traditional video games as its competition—with a total value of $200 billion a year—seems like a daunting challenge for web3 gaming. However, this doesn’t necessarily mean that it’s completely defenseless.

This used to be the case for traditional video games, too, which 30 years ago were a niche next to the global movie industry. Today, they have outgrown this market by far, with the gaming industry reaching approximately $227.6 billion in 2023, compared to only $65.21 billion for global subscriptions to over-the-top video-streaming revenue. Games like Fortnite have an annual profit equivalent to half the world’s movie box office. 

The current state of things came about when a new generation of users better adapted to technological advancements emerged. Then, people witnessed the potential in the gaming niche, and businesses turned to this segment of the entertainment market. Can this be the case for web3 games in three or five years?

An economy in (and of) leisure

The number of video game enthusiasts continues to grow each year, and they are welcomed by new platforms with new business models. This is especially the case for younger generations, who are more likely to treat gaming as their primary leisure time activity and entertainment.

Children and teenagers have plenty of free time to spend on leisure. They can easily spend 10 to 12 hours a day “grinding” or gathering adequate gear in a video game. However, for adults, this free time shrinks in the face of responsibilities, including financial ones. Many games lose long-lasting players at this point in the life cycle of their products mainly because they weren’t designed to balance engaging gameplay with monetary incentives—this is precisely the challenge that web3 is uniquely equipped to address.

Would it be possible to play for a living and choose it as your career path? A few years back, this idea seemed ridiculous. Obviously, a few chosen ones could treat playing as a full-time job thanks to e-sport competitions or streamer revenues. For most, however, these doors would remain shut.

The Roblox model

However, if we look a bit closer at a few renowned, massive multiplayer web2 games, we find complete financial systems that can illuminate a different perspective. For over two decades, MMO RPGs like World of Warcraft or EVE Online have had players ready to pay real money for anything from leveling up characters to obtaining in-game currency used to buy coveted items. Many skilled players treat these activities as their main source of income.

No platform is a better example of in-game time capitalization than Roblox, however. We could even see it as a bridge between what happens in web2 and what would be possible with web3 models.

Being more of a social platform than a game, Roblox has provided its users with an experience based on community-created content. Roblox allows players to create their own assets and monetize these products by gaining “Robux,” its in-game currency. After reaching a certain level, they can choose to convert these coins into real currency. This is an economy mostly powered by creators, allowing both parties (the company and the players) to earn their share.

Lo and behold, Roblox’s MAU reaches 300 million players. The platform has become the leisure activity of choice for a whole generation of new gamers in the Gen Z demographic. It turns out that providing players with freedom and tangible (financial) rewards for their creativity does create an enormous amount of user engagement. Its model has created the right balance between financial incentives and good gameplay. 

However, Roblox is not a blockchain-based project. Players do not own their creations and are forced to pay significant fees to obtain profits. As developers indicate on their website, only 29% of the sold asset’s value is returned directly to its creator. The rest is distributed to cover platform expenses or goes to the game developers’ pockets.

Web3 can balance incentives with gameplay

It’s easy to see how adopting a model like Roblox to include the benefits of having a decentralized and permissionless onchain economy could be the logical next step in the evolution of gaming. This could start by allowing players to manage their in-game assets and go as far as designing new in-game economies.

From a web3 perspective, this approach could also be the solution to the lack of quality in web3 games today. A platform that gathers users by providing them with the right incentives would leave game developers to focus and compete solely on designing the best gameplay. 

Currently, most web3 games are in the stage of searching for their path or, in the worst of cases, only attracting users in search of a quick buck. It’s no secret that this is what drives the success of certain categories, such as play to earn and now tap to earn. This has been very unappealing to a whole generation of gamers who never saw gameplay mixed with financial incentives.

However, younger users who are raised on titles such as Roblox, Fortnite, or Albion Online have different expectations. They also seek quality entertainment and opportunities to socialize with other players, but financial components are already a part of the game for them.

That is precisely where the new path for web3 gaming must be laid. GenZ players are already used to economic mechanics, and the demand for the possibility of capitalization will increase as time goes by. They are in the middle of the road. All we have to do is design platforms that improve the overall quality of the experience, and web3 gaming may well be the birthplace of the next Roblox.

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Theo Crypto News