Your ultimate guide to web3 jargon: Web3 gaming

Hello to citizens of the Unixverse, new and old. With web3 trending and taking the world by storm, we’ve seen an influx of newcomers to this space, which is brilliant! Unfortunately, many people new to web3 now find themselves without much guidance or information on just what everything means.

That’s why the team at unix gaming has taken the liberty to launch our Web3 Jargon series, where we will go over common terms you’re sure to encounter. It’s not just useful for novices. Everyone could use a refresher once in a while, and you might just be surprised by our take on some of these terms.

Web3 game

We’ve all heard this term being thrown around a lot in the web3 space, but what does it mean?

Contrary to popular belief, web3 games are much like many ‘traditional’ games you may already know. In popular titles like Dota 2 and CS: GO, for example, you can earn collectibles like character cosmetics, rare items, and VFX customisations, all of which you can then trade with others, albeit only within Steam’s ecosystem. 

Web3 games utilize a similar concept but remove the limitations of a centralized ecosystem by using the blockchain to give players complete control over their digital assets – usually in the form of NFTs. Our awesome community manager Migs wrote a great summary of web3 games in his latest article, ‘Forget GameFi, web3 games are about decentralization’.

Digital assets

Digital assets simply refer to the tokenization of in-game items or digital collectibles, in the form of NFTs, such that they can be traded with others. Digital assets can take the form of virtually anything within a game: cosmetics, skins, items, equipment, characters, pieces of land, and loads more.  

Land

Land is often one of the most valuable forms of digital assets. The idea is that the land of a game world can effectively be leased or sold to players, as you might real land or property. Ownership of land often comes with financial benefits, governance perks, and the ability to benefit from work done by users on that land.

GameFi

GameFi is a revolutionary concept in the gaming industry that combines the power of decentralized finance and blockchain technology to create a unique gaming experience.

The platform allows gamers to use their gaming skills to earn rewards (tokens, NFTs, etc.) while also enabling them to invest in digital assets that might improve their odds in-game. Gamers and collectors also often buy-up these valuable digital assets in the hopes of selling them back later at a higher price.

With GameFi, gamers have access to a wide range of opportunities in gaming to earn some form of income, while developers can benefit from increased user engagement and revenue streams. Granted, GameFi isn’t for everyone, but few genres are. Still, many gamers see the appeal of games where the economics are just as important as moment-to-moment gameplay.

P2E (Play-to-Earn)

Play-To-Earn (P2E) is a concept that has gained traction in the young GameFi industry, with the most popular example being Axie Infinity.

Utilizing blockchain technology, P2E makes in-game transactions more secure, allowing players to enjoy transparent, fun gaming experiences. But the key benefit of a P2E game is that players are rewarded for completing milestones or gameplay loops with rewards that have real-world value (NFTs or tokens). This gives players an incentive to play the game longer and gain more expertise, as well as a earning potential income stream for those looking to enter gaming as professionals. 

Gaming guilds

‍Did you know unix gaming started as a web3 gaming guild, even becoming one of the largest in the entire industry? But, what is a guild?

One of the biggest hurdles to P2E games is that because items are valued for their ability to increase earnings and prices are controlled by players, prices can sometimes become prohibitively expensive for individual players. Guilds effectively act as crowdfunding for P2E items.

Guilds use pooled resources to purchase items and lend them to their communities who use those items to play and earn from popular P2E games. Those players, referred to as scholars, return a percentage of the income earned to guilds and keep the rest for themselves. 

Scholars

Scholars are the lifeblood of any guild. Scholars refer to any player who plays P2E games using items borrowed from guilds or other individuals. In return for being able to borrow those items, they return a portion of their revenue to guilds.

P2O (Play-to-Own)

One of web3 gaming’s biggest selling points is the fact that players can have greater control over their in-game assets. Whereas P2E games focus on a reward economy, effectively paying players to return to the game, P2O games focus on giving players ownership over their digital assets.

The incentive for players is clear: digital assets earned or bought are yours to do with as you wish. You can resell them to recoup some of the costs spent to play a game, hold onto (and even purchase) rare collectibles to sell for a profit later down the line, or trade them with friends without being told by the developer you’re not allowed to. And, because developers earn a small percentage of every trade made, they’re financially rewarded for empowering their players in this way.

This move towards P2O will inevitably lead to increased player engagement, as well as greater game longevity and flexibility for game developers and publishers!

Gaming marketplaces

Initially, web3 marketplaces like OpenSea and Magic Eden only afforded users the ability to trade their gaming assets without much for the games themselves. It was left up to the player to know what a game was about, whether it was trustworthy or not, and how to play it.

Now more than ever there’s a demand for a space where players can discover and engage with web3 games without having to navigate social accounts, Discord channels, Reddit threads, and more. Web3 players want to be able to find great games, connect with other players, engage with a game’s community, and trade digital assets in one convenient, secure space.

If you’ll indulge us for a second, that’s exactly why we’re building OWNED.gg in the first place. It’s because web3 gamers are traditional gamers too and deserve the sorts of features that have made traditional gaming platforms great. That’s what we’re building at unix gaming and would love to share it with you.

F2P (Free-to-Play)

Free-To-Play (F2P) is a type of business model in which a game costs nothing to initially play; however, users can purchase additional content or services to enhance their gaming experience. 

This model has become increasingly popular as a go-to choice in web3 gaming, allowing gamers to test out a game without any upfront costs. This level of accessibility has become an effective way to bring in new players for developers looking to expand their audience.

For traditional (web2) gamers, F2P games are nothing new. Many gamers will already have experience with F2P games, including titles such as Pokemon GO on mobile, the battle royale hit Fortnite, and classic MMO Runescape. As more people enter the web3 space through F2P games, web3 gaming is bound to grow.

P2P (Pay-To-Play)

While nothing new to traditional gamers where games often require an upfront purchase to play, pay-to-play takes on a different form in web3 gaming.

Instead of selling a game directly to the player, web3 developers only allow players who own a predetermined NFT or token to access their game. This often reduces the overall number of gamers while increasing the exclusivity of the experience.

P2W (Pay-To-Win)

‍P2W is no different from what traditional gamers have come to expect. Play-to-win games often incentivize item purchases by granting player advantages to those items, usually through power boosts or increased earning potential (in the case of a web3 game).

While this model has the potential to generate incredible revenue for developers and publishers, they also come with certain drawbacks. Such models often create uneven playing fields, discouraging players unable or unwilling to purchase those advantages for themselves.

In our opinion, it’s best to avoid pay-to-win advantages whenever possible.

VR (Virtual Reality)

VR is a technology that allows users to interact with a simulated environment through devices like virtual reality headsets  – the most popular of which include the PlayStation VR & Meta Quest. Now, it’s being applied to the world of web3.

Web3 developers are now using VR to create immersive gaming experiences, commonly referred to as metaverses, allowing users to interact with virtual worlds and characters in ways that were previously impossible. Furthermore, it enables developers to create more complex game mechanics and give players a greater sense of control over their environment.

The intention is to create a whole new level of gaming experiences, as developers will have access to more powerful tools than ever before when creating content for web3 platforms.

Metaverse

The Metaverse is an emerging play and social space with the potential to revolutionize how we interact with each other online; think MMOs on steroids. Metaverses provide us with an opportunity to develop our own digital worlds and explore new frontiers in web3 technology.

Developed as an open-source platform, Metaverse allows users to customize their experience and create their own digital worlds. This could be used for anything from creating virtual games to building virtual cities or even creating virtual businesses. The possibilities are endless and are only limited by our imagination.

Interoperability

Interoperability in web3 is an important concept that is being explored and developed to improve the convenience and efficiency of the web3 gaming experience. It allows for different networks, protocols, and applications to communicate with each other, making it easier for users to access their favorite games without having to worry about the logistical challenges of having digital assets from different games across multiple chains and/or wallets.

Interoperability in web3 also has its pros and cons. It makes data sharing easier and more secure, but it can lead to data leakage or security issues if not properly implemented. To find out more about the factors influencing interoperability in web3 gaming, you can check out our Head of Strategy, Mathew Paul’s, insightful LinkedIn post on interoperability in web3. 

IGO

IGO, or Initial Game Offering, is a term used to describe either launching a new web3 game or raising funds for its development by selling its tokens or digital assets directly to players. You can think of an IGO as a mix between a pre-order and Kickstarter campaign all rolled into one.

By using an IGO, web3 companies can launch their games to the public and quickly gain traction without being dependent on traditional game publishers or financial institutions. It also allows web3 gaming developers to get feedback from players and adjust their games accordingly.

IGOs are becoming more popular among web3 gaming companies as they provide an opportunity to test their products before launch. This allows companies to identify potential issues that may arise before they go live and ensure their games are ready for public release. It also helps them save time in the development process by allowing them to get feedback from players before they make any major changes or updates.

PvP (Player-vs-Player)

PvP is a type of gaming experience that pits two players against each other in a virtual environment. This type of gaming has become increasingly popular as it allows gamers to compete against each other in real-time, often requiring strategy and skill in order to win.

It has become especially prevalent in the world of web3 gaming, where players can compete against each other for rewards and bragging rights. PvP offers an exciting and challenging way to interact with others, as well as a way to test one's skills in a competitive setting.

PvE (Player-vs-Environment)

PvE games are increasingly becoming popular, especially with the advent of web3 gaming. PvE games are those in which a single player or multiple players face off against computer-controlled opponents. These games often require players to use strategy and tactics to defeat the computer-controlled enemies and progress further in the game.

Web3 gaming has allowed for more immersive PvE experiences, with players able to interact with other players in real time and explore virtual worlds. This type of gaming also provides an opportunity for developers to create unique and innovative experiences that can be enjoyed by gamers from all over the world. With web3 gaming, PvE can become even more exciting as it allows for a greater level of interaction between players and their environment.

As web3 gaming continues to evolve it’s sure to continue gaining traction in the gaming community. We hope our jargon guide helps you navigate this new, exciting space without too much confusion.

If you are interested in learning more about web3, make sure to stay tuned to our socials for more upcoming guides and articles. And don’t forget to share this guide with your friends who are new to web3!

Finally, don’t forget to register your interest for our web3 gaming platform promising to unite web2 and web3 gaming spaces, OWNED.gg.