Optimism Pertains for Web3 and More Users Will Hopefully Enter

Web3 is destined to bloom, Animoca Brands CEO Yat Siu believes. The sector is currently seeing a lot of activity with nearly a million unique active wallets (UAW) active every day according to data aggregator DappRadar. A recent survey of executives of companies operating in the sector echoes the sentiment.

Executives are Hopeful for Decentralized Technologies

Yat Siu told a crypto news publication that the industry may see 100 million more users entering the sector. Gaming could be at the core to strengthen this. He sees casual Web3 gaming space to summon a majority of activity in the market. Additionally, he foresees Asian nations playing a vital role due to the higher acceptance rate for non-fungible tokens (NFTs) and gaming finance (GameFi).

A recent study by research company Fortune Business Insights indicates that blockchain gaming is likely to generate over $600 Billion in revenue by 2030. COVID-19 gave a great push to these games after several people lost employment. Users from nations like the Philippines report of making $200-$300 a week, enough to feed a family there.

Furthermore, the Animoca Brands CEO highlighted that several games under the developmental phase might be ready for commercial release next year. Web3-focused company, CoinFund, found that executives are hopeful for decentralized technologies.

70 percent of founders hold optimism for the sector. The United Kingdom and Singapore were found to be the most crypto startup-friendly nations. About the regulatory landscape, CEO of digital asset company Bridgesplit Luke Truitt says “The next year will see regulatory downside capped and as a result, products that leverage crypto rails for more traditional economic and social functions will see significant growth.”

Although confidence in gaming with regards to Web3 is high, some reports indicate that gaming is nearly dead within the sector. Data aggregator CoinGecko highlights that over 2,000 games have failed during the past few years. The failure rate of games was 107 percent during 2021.

Traditional gamers have not settled down with the idea of blockchain integration in gaming yet. They are not in favor of introducing financial elements in games that might push genuine users away and attract money-makers. Entertainment may become secondary if that happens.

Environmental issues are another concern among the gamers. Blockchains using the Proof-of-Work (PoW) algorithm are deemed carbon emitters and harmful to the atmosphere. Bitcoin (BTC) has made a name for itself in greenhouse gas (GHG) emissions. Many studies have shown that it has large footprints of water and land alongside carbon globally.

Technicalities of blockchain may affect a broader Web3 market. Blockchain is a vital element for Web3 and is relatively new to many developers, they do not understand it entirely. Even if they decide to work on it, it may initially require some education to get familiar with it.

Data shows most Web3 activities came from North America last year with the region accounting for 34 percent of the global users.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.