As the era of Web 3.0 ushers in, we are witnessing the third wave of a digital and financial revolution. This is the ‘ownership’ phase. In the year 2008, Satoshi Nakamoto released Bitcoin’s initial white paper, and by 2009 the bitcoin network went live, with Satoshi mining the genesis block, number 0, with a reward of 50 bitcoins. Since then, we have come a long way, with bitcoin’s market cap exceeding $1 trillion at a point and a network that has remained online, without interruption, ever since. To put into context, Web1 was the original web of the 90’s and the ‘readable’ phase with limited user interaction and Web 2.0 is the current version of the internet and the ‘writable phase’ which has allowed websites and users to interact. Web 3.0, which is in its infancy, is creating a decentralized web where users can exchange digital goods and currencies in a multitude of ways, without the need for a middle man.

NFTs give users proof of asset ownership via a unique code and can be bought, sold and transferred but not replicated or divided. It started with CryptoKitties back in 2017, and in 2020, DeFi (decentralized finance) really took off, providing a radical peer-to-peer alternative to the traditional banking system, which has proved to be ineffective in combating inflation and absolutely dismal in its customer rewards and savings rates. It is in the year 2021 however, that NFTs and DeFi have combined, to provide owners with financial utility that goes beyond digital ownership. Users can now generate yields from their NFTs, just as in DeFi protocols, via options such as cryptocurrency staking and providing liquidity to pools.

This brings to center stage, the subject that concerns us in regards to blockchain gaming: GameFi. Not only does digital ownership of NFTs provide financial rewards, but it also enables the users to enter and interact in a plethora of entertaining games and communities. With the worlds of gaming and crypto intertwined, it appears Elon Musk’s tweet that the most entertaining outcome is the most likely, seems to make sense in this case.

Gone are the days where gamers will play games just for fun. Since GameFi has monetized gaming, users will eventually only play and partake in ecosystems where they can generate rewards and benefits, which is why play-to-earn as a concept, will take the world by storm. Why play games and collect points and/or currencies and in-game prizes that are worth nothing outside the game’s closed gates? People will now start making a living playing online, which is especially appealing in lower income countries, where games such as Axie Infinity have been such a hit. This is a ‘fun’ financial revolution, and blockchain gaming has the potential to lift swathes of people out of poverty.

The journey ahead is exciting and full of opportunity, and the innovation in the Web 3.0 space is only getting started but already paving the way for the collective self-expression to digitally translate into meaningful communities of creators and collectors.