1. How Does Web3 Gaming Become “Gaming”?

   1. On-ramps & off-ramps in the backend, 1 min flow in the frontend for gamers

   2. Esports - Play to earn before Web3’s play to earn

   3. Why build a game and link a token when you can link a token to an existing game?

   4. Fully on-chain games - who needs composability when you have creativity from the community?

   5. Games as web3-native social networks/messaging

   6. Game-specific L2s

   7. In-game Ads (Gillboards/Adplay)

2. How Does Web3 Become Web?

   1. Smart contract wallets - The real DeFi wallets

   2. Blockchain scaling via Rollups - More speeeeeed!

   3. Modular Blockchains via Cosmos - Fat app thesis?

   4. Interchain > Multichain? Users choose the network, not the dev

   5. My identity, my control

3. Web2 <> Web3 Gaming Stats

   1. Which company in web2 games makes the most $$?

   2. Which category in gaming makes the most $$?

   3. What do game developers think about NFTs?

   4. NFT use cases in esports

   5. How interested are gamers in the concept of earning NFTs through playing video games?

   6. How would earning NFTs through gaming impact gaming habits?

   7. In-game virtual goods ownership interest among adults in the United States as of December 2021

   8. NFT game awareness is low! (:)

Blockchain gaming is the killer app of blockchains. 20% of the volume of NFT sales in 2021 was gaming-related assets, 49% of crypto wallet activity comes from games, and there are 50+ live web3 games with more than 1k unique on-chain users.

Millions of players who haven't heard about crypto are learning about wallets, token swaps, monetary policy, and economics. I related to them; growing up, I played FIFA Ultimate Team (simulated football) a lot.

FIFA has a transfer market similar to a traditional market - in-game events and actual football events move the value of the FUT cards (players). This taught me basic economics, what moves markets, and how to be best positioned.

We are just beginning to see web3 gaming emerge, which could be the unofficial on-ramp to web3 & crypto, just like how a simple FIFA game made me learn about real-world economics.

Blockchain games could be the renaissance for web3 and make crypto mainstream; where people earn a living, not just use it to grow their existing wealth, which is absent in most developing countries. As the numbers suggest, there are more than 2 billion gamers worldwide, so what would happen if we allow billions of people to create wealth for themselves and everyone around them by doing what they love? More wealth, economic prosperity, and mainstream adoption of web3.

Traditional gaming is bigger than music, movies, and TV combined, and it's compounding 10% year on year. The $100bn a year spent "renting" items will become a trillion-dollar “ownable” economy. And the infrastructure to make it happen will be web3.

But there are main problems that need to be solved to blur the line between web3 gaming and gaming (We don't call the internet an information superhighway anymore, do we? :) )

• Liquidity

• Scale

• User experience

• Security

• Scalable game economy designs.

Combining blockchain & gaming also introduces securities laws, anti-money laundering, KYC, and other compliance considerations.

The current user experience of playing crypto games is asking people to set up a wallet, store private keys, and convert fiat to crypto through an exchange or on-ramp. There are no off-ramp solutions that exist natively on these platforms. People should have the same experience as web2 platforms; you pay once and get what you want in 1 min. To achieve this 1-min efficiency, we need integrations with fiat, on-ramp & off-ramp providers in the backend.

Most on-ramp aggregators have a very low success rate; either the cards don’t work or don’t support a particular currency or payment method. And most of them don’t even support off-ramp yet. We tried integrating with the top on-ramps and faced a very low success rate but chose to go with Coinbase for the US & worldwide customers, and Onmeta for Indian users.

I think P2P will be a significant way to on-ramps & off-ramps. It's already evident that most big exchanges, FTX, Binance, and Kucoin use a P2P method for most users in India to convert their Fiat to Crypto and vice versa.

If you look at the flows, it is very similar to Paxful, which in its own platform supports over 453 payment modes in India and is similar in other countries. We are trying to figure out how to work with them or have a similar flow to the Kucoin instant buy referred to below.

We implemented an on-ramp using Onmeta (Indian partner) and soon with Coinbase (US partner) in our app and a flow similar to Kucoin by the end of this year. I believe this will help reduce users' friction and can easily go from fiat > crypto > gaming asset and vice versa in less than a minute. And it will feel like magic for users who can, for the first time, easily understand that they can buy and sell the items they earn and own in the game.

Our long-term goal would be to get the efficiency down to 30 seconds by eliminating the “crypto” in the front end while working with on-ramp/off-ramp aggregators in the backend, so the flow for users would be gaming asset <> fiat and vice versa

This is how we implemented on-ramp in our app in three steps in V1 (Launching on Sept 22nd):

Step 1: Go to the Wallet inside our app

Step 2: Enter the amount you’d like to purchase

Step 3: Complete the payment and get your asset in the wallet.

Esports (competitive gaming) is similar to sports; you have players, teams, coaches, and team analysts just like you would have for football and basketball teams, but for video games like Fortnite, Valorant, PUBG mobile, etc.

Esports is one of the top 5 sports in the world. Also, you have people who would like to get into esports as a player so that they can love what they do, i.e. gaming, and get a contract worth millions for a professional. A play-to-earn before web3 even existed.

Librty (when it was active was Higin Esports) did a lot to grow the esports ecosystem, i.e. have more people make a living by playing competitive games. But we struggled to do that due to:

• Opportunities are limited to the top 1-3% of the players as the esports enablers (tournament organizers & game developers) only cared about the big teams as they brought in viewership

• As Viewership was the important KPI, the esports business model is driven through sponsorships, creating a broken incentive between aspiring players and esports enablers.

You can find detailed info about this in our Instagram post. ⬇️

https://www.instagram.com/p/CWutjjfPsfM/

So, the question we asked ourselves deeply, which also gave birth to Librty’s roadmap, is “How do we enable millions of aspiring players to succeed in making a career out of playing games?”

Problems with current esports:

• There are thousands of tournaments happening every day via toornament, Challonge but most tournaments organizers don’t end up paying the players or talent (who help run the tournament)

• Even if the TOS decides to pay the teams, the teams don’t have a proper contract or choose to pay players in time.

• Token incentives solve governance and control of esports leagues and find a business model for Esports pipeline problem

Librty is building tools for web2 esports and web3 esports to solve this.

UI design is still a work-in-progress, and we are improving daily. The below screens of our product is just for UX reference and don’t represent the final quality of the product design.

Players can easily play verified prize-money tournaments via Librty’s App in just a few steps:

Step 1: Discover tournaments via our Home screen or Tournaments screen

Step 2: Check for prize-money verified tournaments - where tournament organisers lock the tournament prize pool in a smart contract using our tournament partner dashboard while creating a tournament

Step 3: Complete KYC if required

Step 4: Check for the prize money distribution between the players and the team/guild and join a guild/team

Step 5: Look up tournaments for web2/web3 games, filter using tokens, region, and start playing

Making games is hard; making games that get traction and social value in an esports ecosystem is even harder. If you think from the first principles and look at all the blockchain games right now, how are they different from web2 games? One single thing is an open economy, i.e. the ability to have tools to distribute the value created.

Let’s look at two games, Valorant and Ev.io:

Valorant

Valorant is free to play. You can buy in-game items which don’t affect the game. All the in-game items you’ve purchased immediately go to zero as you don’t have ownership.

Ev.io

Ev.io is free to play. You can buy in-game items from the NFT marketplace like Fractal, Magiceden, and Librty’s app soon.

You can start playing Ev.io for free. But if you’d want to earn, you would have to get NFTs through an NFT marketplace, connect your wallet to your EV account and start monetizing.

You can even lend NFTs to others using marketplaces (soon) to monetize your assets even if you are not playing.

When you compare both architectures, it's almost identical. So what would it take for Valorant to become web3?

• Link in-game assets to NFTs

• Ask users to link a crypto wallet

• Allow users to trade the NFTs & Tokens freely

We can make every web2 game with millions of users a web3 game by just integrating tokens/NFTs, and of course, the hard part is figuring out a sustainable economy. Traditional web2 games have their KPIs figured out; they know where people spend money (utility), product-market fit, strong traction, and daily active users that web3 games can only dream of. Even if 2-5% of the most active web2 games chose to participate in the economy, it would still be higher than the entire NFT space and Axie (the most popular NFT game).

And why would game developers do this? Open up their economy instead of taking all the value for themselves? Summarized in one of my favorite tweets.

https://twitter.com/jakebrowatzke/status/1541291934601428992

Most revenue in gaming usually comes from 3-5% of their user base. Game developers can look to improve this number when they send a key message to their users - that the money they spend is not a purchase but an asset that you can own, lend, stake and earn a yield or get perks.

However, this ultimately depends on game developers to change it. Having a developer ecosystem that helps them will solve this, but I think web3 needs to solve its own UX problems and scale to drive mass adoption.

Major problems with blockchain games:

• Fragmented liquidity is a huge problem that also ties into poor in-game economics. Slowly, gamers will realize ownership of something is useless when no one wants to buy what they have.

• Traditional web2 gamers won’t set up a crypto wallet, do on-ramp, or off-ramp, get an NFT in a marketplace, and synch the wallet to the game. These are just too many steps for an average gamer.

• Dev tooling generally for web3 exists and is growing, but dev tooling focused on gaming that’s very dynamic (every game is different) takes care of integrations; legal stuff doesn’t exist yet, which is mainstream.

Ways we are looking to solve through Librty Network SDK:

Librty Network SDK

We started working on full-stack APIs to help game developers integrate fungible tokens, NFTs, and NFT marketplaces.

• Fund developer wallet

• Withdraw fund

• Create a game and track game-specific statistics

• One developer account can have multiple games, each with its own API key and wallet

The architecture of Librty SDK

• Restful interface with an endpoint that returns JSON responses.

• API key for authenticating APIs

• Developers can call APIs directly or use an SDK

• Every gamer must have a unique user_id that will be linked to a crypto wallet.

• Game developers can send rewards directly to a gamer, entirely programmatically, using user_id.

• Dashboard for developers, where they can manage their wallets and send rewards to multiple users simultaneously. They can also see historical data and graphical representations of various insights.

Integrations of Fungible Tokens and Non-fungible Tokens :

Fungible Tokens Flow

1. The user clicks on the ‘connect wallet’ button inside the game

2. User logins or register the wallet using a Librty SDK

3. The wallet is connected to the game, and his unique user_id is now linked with the wallet

4. Users play games and earn in-game points

5. The user clicks on the ‘redeem’ button inside the game

6. The user sees the conversion rate and confirms the amount

7. Points are deducted, and a transaction is submitted to the chain

8. The transaction is confirmed, and the user sees the updated balance in his wallet

Non-Fungible Tokens Flow

1. The user clicks on the ‘connect wallet’ button inside the game

2. User logins or register the wallet using Librty SDK

3. The wallet is connected to the game, and his unique user_id is now linked with the wallet

4. The game backend can now query about the NFTs this user is holding using Librty APIs and take appropriate action in the frontend

In-App NFT Marketplace

Game developers prefer to use in-app marketplaces for their NFTs because

• Going from a game app to an external marketplace creates a lot of friction for their end user.

• They want trading fees to accrue to themselves or their community instead of third-party NFT marketplaces.

We are working on the best architecture possible for the In-app NFT marketplace.

LBS Oracle API:

Offer oracles for pulling high-frequency information token prices as well as static information like:

• KYC

• Game-specific stats/Esports stats that are linked to tokens

• Universal identity in web3 with all the game states

• Friend/team/Guild history

On-chain games are those where the entirety of the game state and game logic (not just in-game assets like currencies and NFTs.) is written to the blockchain.

Consider Tic-Tac-Toe. The concept of turns, a 3x3 board, players, and a sequence of three must be unchangeably documented as the rules. The history of player moves must also be recorded.

On the other hand, the colors of the board and pieces, the shapes of the pieces (X and O can become Y and Z for all we care), the animations, the sounds, etc., can all stay on the client side.

Putting all states and logic on-chain unlocks all sorts of novel behaviors:

• Smart contract-based players (as opposed to human players) play the game according to intelligent and constantly improving rules. Think about composability between the game and players. One of the earliest instantiations of this is MEV in DeFi. The MEV bots are the smart contract-based players, and MEV is the game. In this case, the smart contract-based players compete with human players.

• Trustless collaboration between players via smart contracts. Think composability between players. Take Dark Forest as an example. At launch, it was a multiplayer game with only informal alliances. To work together, you need to trust the other players will not betray you. However, someone built a smart contract to act as a competing player. This contract allowed players to be permissionless, donate points, and eventually rank high enough to win a prize. It kept track, and those players could share that prize pro-rata when they won.

• Game mods are built by third-party developers without fear of getting de-platformed. Think composability between games. Using Dark Forest again as an example, someone created a single-player spin-off of the multiplayer game. The same logic from the main contract was used, thanks to Ethereum’s rarely used Diamond Standard. All that was changed was the map, the UX, and the scoring. Instead of players trying to dominate each other synchronously on the same terrain, each was instead trying to solve the same puzzle but faster than the rest.

The Web3 community is obsessed with decentralized social/messaging. However, the first truly successful Web3-native social network/messaging app will not look like Twitter or WhatsApp because simply decentralizing the whole stack is likely not compelling enough for users to switch.

Gaming could be the wedge. A Web3-native game that is fun and interactive enough to reel in a critical mass of users could turn itself into a popular decentralized social network/messaging app, i.e., simply a place for people to hang out.

(The second most popular category of apps that could win Web3 social/messaging is DeFi. Arguably, DeFi is gamified finance.)

Projects like Axie, Bored Apes, and dYdX have launched their own app chain. They sacrifice shared security, atomic composability, and engineering simplicity for throughput, sovereignty, and value accrual. An alternative to an app chain could be an app-specific L2.

The app-L2 as a service product would make it simple for dapp/game developers to launch their own L2. It would recruit sequencers/verifiers behind the scenes. It could even spin up app-specific indexers, oracles, bridges, block explorers, etc.

Unlike current in-game ads, we want Ads to be part of the game. For example, let’s consider one of the most popular games last year, Forza Horizon 5, The number plate on the back of the gamer’s car, large buildings in the city of Guanajuato, a mission, or the crater in the canyon biome could be NFTs (gillboards). Gillboards can be wholly/partially owned by the game developer, gamer, and/or any other stakeholder. These NFTs could be rented to brands just like physical billboards IRL.

Gillboards/Adplay can solve 2 of the biggest problems troubling the gaming sector today.

1. Bring money into gaming from non-gamers. Gaming will become sustainable only when there is a larger influx of money from non-gamers like sports. In sports, social media, etc., brands infuse most of the money in the sector. Gaming presents a bigger opportunity to grab attention than sports and social media because of the potentially higher number of avenues possible in the digital world.

2. Brands like Google/Facebook (Meta) Ads in gaming lack a platform. If they can compare all the possible assets to play ads, estimate impressions, and plan campaigns based on geographic location, gamer demographics, etc., Brands can confidently enter the gaming sector, especially non-endemic brands. Today, brands that have nothing to do with sports or social media, like pharma, banks, etc., sponsor Ads in sports tournaments or social media but most of the brands sponsoring Esports/gaming events are related directly to the gaming industry.

Attention to gaming has been heavily under-monetized. The only challenge is convincing game developers to make in-game assets into NFTs. Adplay is a single platform where,

1. Gamers can buy/sell/rent in-game asset NFTs.

2. Game developers can track their revenue from these NFTs.

3. Brands can plan/execute Ad campaigns or measure previous campaigns.

Game developers can rely on brands for a revenue multi-fold of present revenue generated purely from game sales and in-game microtransactions. Gillboards will create a new revenue stream on top of existing ones. Most of these NFTs are rentable, so the income is recurring (like royalty). Game developers can fully own these NFTs or giveaway/sell/make gamers earn these.

NFTs with missions - gillboards will incentivize gamers to choose the game over the competition. Game developers don’t need to re-invent or develop new games; they can convert their existing games by using Librty SDK to mint some of the in-game assets.

Brands can use Adguage to get a clear picture of their ad expense before committing, and they can estimate the ROI, plan the budget effectively, compare various options across multiple games, and design campaigns around the same based on gamer age/gender/geographic location, etc., Brands will be able to choose/divide ad spend among esports, gillboards, streaming, etc.

Gamers can rely on gaming for dependable income; they won’t have to win esports tournaments or be popular streamers to make a living. They can rent the NFTs they own and earn an income. They can sell/buy Gillboards in the marketplace. If the gamer wants to switch games today, he/she has to start over, but with gillboards, the gamer can trade the assets of one game for another and make the switch.

Future:

1. Gillboards can be interactive, starting from images, and can evolve into gifs, embedded videos, affiliate links, portals, microgames, or metaverse elements.

2. A game can be a DAO and have a life of its own (Maintenance can be paid from the Adplay revenue, reducing game developer responsibility)

Everything in the blockchain is tied to all the innovations to improve the web3 user experience. Blockchain games are also dependent on this. We must make wallets more accessible and create better ways to switch between blockchains.

Current web3 tokens make products worse. They degrade the user experience.

Imagine you want to buy groceries.

And every time you go to the store, you first need to buy grocery tickets at a particular price.

And only then can you buy your groceries.

That would irritate you. It adds more steps to the process.

But it doesn’t add value of any kind.

The same goes for your Web3 dApps and protocols.

We fix this, we fix the web!

Current wallets are explained simply by the following image. It doesn’t matter if we have industry-grade security. There is always a chance of human failure. Users can always be prone to phishing attacks and lose their entire net worth with a simple login.

The problem is with the humans, and we shouldn’t expect the next financial system to work on a 12-word seed phrase or private keys. The private keys are abstracted by EOA (Externally Owned Accounts, but it's pretty centralized.

Smart contract wallets are decentralized wallets that don’t have a single point of abstraction. An example of a smart contract wallet is a multi-sig wallet with multiple private keys to a single account. If the hacker can abstract only one private key, the hacker can’t do much. Another example of a smart contract is social recovery wallets, where you can set up nominees/guardians and request them if you lose your keys.

Problems with smart contract wallets

• Gas fees: It would cost $10-50 to set up and maintain smart contracts, and the average user won’t be paying this much.

• All smart contract wallets that interact with dApps should be relayed through EOA. People would have to set up a separate EOA or rely on app EOA (for example: Argent wallet), but app EOA is again centralized; if it goes down for any reason, it will be difficult to transact.

The future with EIP-4337 - Advantages of Smart contract wallets

Account abstraction via entry point contract specification introduces the concept of user operations; these are pseudo transactions that allow you to encode whatever you want, similar to transactions. Bundlers pick up these user operations as miners, individual users who batch up and broadcast to the network similar to transactions.

This would enable:

• Paymasters, i.e. allow developers to pay gas fees for their users.

• Universal & widespread interface between all dApps to share paymasters

• Support for more advanced signature schemes whatever is developed can code in solidity it can be used.

• Paymaster would allow the most important thing developers need; you could pay with any tokens instead of ETH.

• Would allow private withdrawal from Zk dApps.

• The one I am excited about the most is you could allow paying off-chain with a credit card through Paymasters. Ex: There can be a paymaster who holds a special private key behind the cloud server; if we go through their stripe API and pay for the user operation, they could sponsor your operations. You don’t even hold any tokens, not even ETH. This is a game changer and would solve great for great UX while interacting with traditional finance systems.

• Since we are working with smart contracts wallet, we could do multi-operations. If you want to do Uniswap, you approve one transaction and then do another. if we use smart contracts wallet, we could eliminate them.

For gamers, it would enable session wallets while using blockchain games. Explained well in the below thread:

https://twitter.com/Web3zy/status/1535311561798979584?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1535311561798979584%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

and lastly, Vitalik approves:

https://twitter.com/0ceans404/status/1561465297613344773?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1561465297613344773%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

Layer 1 and, to a point, even layer two wouldn’t be able to handle any web2 game till a few months ago. Rollups and can start supporting web2 games to an extent. But there are problems with the few Optimistic rollups that it is quick; by assuming things are correct, the network doesn’t have to waste time confirming things. The drawback is that it usually takes about a week to officially withdraw your funds from popular networks like Optimism or Arbirtrum.

But thanks to Polygon and a few other projects pushing ZK-rollup that support virtually any application developers would care to build on Ethereum – making things vastly quicker and cheaper for end users.

Although rollups sound promising, they are still in the development phase, so although they borrow Ethereum’s core security guarantees, still come with some risks relative to Ethereum’s mainnet. As such, the networks on which they operate are often somewhat centralized. In some cases, the developing team behind a rollup maintains partial control over the network and can theoretically pause or switch it off wherever they like.

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If I were a AAA game developer, I’d think twice about trusting third-party Rollups until they are decentralised and optimised for smart contract bugs and pass the security test of time. So I prefer to use 1.6 Game-specific L2s and make it a rollup. We will keep monitoring rollups' development and progress, what makes sense, and how our Librty SDK can provide value to developers.

The fat protocol thesis coined by Joel Monegro in 2016 believed the differences in value accrual between the Internet and dApps.

💡

“The market cap of the protocol always grows faster than the combined value of the applications built on top since the success of the application layer drives further speculation at the protocol layer.”

While this is true with Eth and Bitcoin, this might quickly change. The base layers accrued all the value up to this point because, while people saw the immense potential of things like DeFi and NFTs, no individual application reached a large enough product-market fit to compete at the level of Web 2 applications or fin-tech products. Therefore, these base-layer tokens ETH, SOL, and AVAX became a way to bet on the future growth of a chain's economy while uncertain which individual applications come out as winners.

We are finally reaching an inflection point where applications come into their own.

Uniswap and dYdX (who recently launched their app chain using Cosmos SDK) have rivaled volume from Coinbase, OpenSea is a household name, and Synthetix and GMX are constantly raking in more daily fees than the entire Bitcoin network. We are also shifting to a world in which cash flow is king.

Fees and revenue generated have become the new scoreboard, as opposed to TVL, which can be heavily manipulated (as seen through Ian Macalinao on Solana). Cash flow can also be an exact measure of where value accrues along the transaction pipeline.

For example: when a user trades $100,000 on an L2 DEX and pays $0.50 network transaction fees but $300 in exchange fees, it's clear which layer accrued more value. And while an open and permissionless network does allow for greater competition and better UX, this does not mean that applications can't build moats in liquidity and user retention.

Do you think someone could fork Uniswap or Aave right now and directly compete on Ethereum?

Networks won't accrue value the more applications are built on them; there is simply a window for individual applications to accrue moreThis is especially true in an L2 environment or for L1s where network fees are extremely low.

💡

As applications/games grow their user base, create moats, increase revenue, and ultimately achieve product-market fit, we will see a world where we might have applications accrue more value than the networks.

Thus, App chains will be an interesting trend to look out for and optimise the infrastructure tools we are building.

Below is an excellent thread about why DyDx is shifting to its own app chains COSMOS SDK:

https://twitter.com/divine_economy/status/1540347832283959297?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1540347832283959297%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

Interchain app explained well by Abacus: Interchain, like the name, takes inspiration from the “internet” each local network may run its protocols, but the heterogeneous networks are interconnected. Mutual interactions between blockchains have been increasingly demanded. Currently, bridges are the way networks connect with each other, besides being dangerous and a weak link for hackers to attack, bridges fragment liquidity and break the user experience.

Projects like the Abacus network make interchain communication using a simple on-chain API for sending and receiving messages, helping developers create and manage interchain applications possible. This would make apps & games can share states across eth, arbitral, Polygon, Avalanche, and possibly every EVM-compatible chain.

https://twitter.com/Hyperlane_xyz/status/1547982023360360452?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1547982024853450753%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

https://twitter.com/Hyperlane_xyz/status/1547982024853450753?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1547982026287894529%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

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Librty SDK will closely look into helping game developers build interchain games. A gamer can have a wallet in one blockchain and play games on any blockchain without having to get new wallets or add networks to play a new game. This would be an important step towards having a better user experience.

If you look at some major problems with games, it has been dealing with hackers. Hackers destroy the game and make it miserable for others. Game developers couldn’t enforce KYC as this would be hard for them to maintain and be legal complaints in all regions. Web3 has a solution, Decentralised Identity using Zk. Tell & prove to me who you are without telling me who you are.

Polygon ID is probably at the forefront of making this mainstream. Polygon ID is a decentralized, self-sovereign identity solution allowing fully-private and verifiable on-chain verification using ZK-cryptography. It supports KYC attestation while simultaneously allowing users to retain privacy.

Polygon ID could be used ubiquitously across crypto.

Specific use-case it enables can include:

• On-chain credit scores for better DeFi terms

• DAO voting rights

• Exclusive gaming guild access

• Verifying details like age and location without sacrificing privacy

Polygon ID is best explained by Polygon below thread:

https://twitter.com/0xPolygonLabs/status/1539638091232579590?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1539638093711519744%7Ctwgr%5E7642bcd935141c9e84b64d36a86af2ef3e65d606%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fwww.notion.so%2FWeb3-gaming-thesis-Librty-02234d7e38514f09acdd56bede37ab9a

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Zk Identity will be useful for game developers to prevent hackers and avoid access to underage users without worrying about respecting user privacy and regulations that attract it. Librty Network SDK will keep monitoring this Zk identity to truly build permissionless, trustless and privacy advocate games.

At the moment, Web3 gaming is a tiny market. Its eventual success would be to become just “gaming” and grow the gaming market even more.

In 2021, Tencent was the highest-grossing gaming company worldwide. The Shenzhen-headquartered online company generated approximately 32.2 billion U.S. gaming revenues during the measured period. Tencent is one of the biggest mobile gaming publishers worldwide and holds significant stakes in multiple international gaming companies.

In 2022, smartphone games are projected to account for 45% of global gaming market revenues. The mobile segment generates more than half of all gaming revenue worldwide. Console gaming is the second-strongest segment, with a 29% market share.

With the almost universal adoption of smartphones and mobile internet worldwide, it is hardly surprising that this accessible technology has opened gaming to a broader range of audiences. Global mobile gaming revenues nearly reached 74 billion U.S. dollars in 2020, with the F2P (free-to-play) PC games coming in second with 22.7 billion U.S. dollars.

During an early 2022 survey, 72% of responding game developers worldwide indicated that their studios were not interested in using non-fungible tokens (NFTs). The topic is highly controversial and only sees limited implementation, as only 1% of respondents stated that their studios were already using NFTs tools in their games.

The esports industry has boomed in recent years, in no small part thanks to the coronavirus (COVID-19) pandemic, which forced people to seek alternative forms of entertainment during the widescale cancellation of professional sporting events. An industry that has experienced a similar meteoric rise is non-fungible tokens (NFTs), which assign a unique identifier to digital assets. During a survey of eSports industry professionals in October 2021, approximately 64% felt that digital player cards of professional gamers, streamers, or content creators would become increasingly prevalent NFTs over the next 12 months.

As of July 2021, Europan eSports organization OG Esports generated roughly 987 thousand U.S. dollars via three non-fungible tokens (NFT) drops released throughout the year. On July 6, 2021, OG sold ten digital artworks associated with 3,336 non-fungible tokens for nearly $512k, making it the most expensive NFT drop in the esports market. Meanwhile, eSports team NAVI (Natus Vincere) sold an NFT based on the NAVIGATION Season 1 NFT Cup for $100,000 USD in March 2021.

A December 2021 survey of crypto-interested gamers in the United States found that 28% of respondents were interested in earning NFTs through playing video games. However, 23% of responding PC and console gamers said they were uninterested or uninterested in doing so.

A December 2021 survey of crypto-interested gamers in the United States found that 30% of respondents being able to earn NFTs through gaming would increase their engagement. However, 42% of responding PC and console gamers felt this would not impact their gaming habits.

Despite NFTs (non-fungible tokens) creating a lot of buzz online and offline, only a fraction of NFT-aware adults knows of NFT-related games. A December 2021 survey found that among U.S. adults familiar with NFT, only a quarter also knew about the availability of NFT games. NFT games have become popular in the GameFi world to earn income, also known as play-to-earn.

🤷‍♀️ NFT games have very low awareness, but most gamers agreed they would spend more time if it's NFT-related, plus are somewhat or highly interested, but game developers don’t want to do anything with NFTs.

Gamers will win, and Librty will help gamers win 🎮