Web 3.0
Warning: This is a term that has varying definitions. The below definition is my understanding of term 'Web 3.0.'
Don't trust every community that claims they are 'Web 3.0' friendly. Check their claims through reputable sources.
Web 3.0 is viewed by some to be the next evolution of the internet, evolving from Web 2.0 and Web 1.0.
Web 3.0 is a term that is seeing a growth in usage by the general public in the past year. In general, it describes an approach to developing communities and technologies that are more equitable for all participants that are producing value.
Collaborative Value Production
Community building in Web 3.0 emphasizes the production of value in collaboration with the community as well as coownership with the community. Some communities offer cryptocurrencies to community members who engage in behavior that is good for the ecosystem, directly promoting good behavior.
These cryptocurrencies can be a new project specific token or a currently existing token distributed from a fund. They vary from project to project - one might issue stablecoins such as DAI while another might issue governance tokens, allowing the members of the community to take ownership and vote on the direction of its growth.
Putting it in more practical terms, here is a comparison of two digital trading card games - Hearthstone and Gods Unchained.
Hearthstone
Hearthstone is a Web 2.0 game. You can buy random card packs directly from Blizzard, but it's a unidirectional transaction. You can't trade those cards to other players, you can't sell them, and you can't get a refund. Your value has been extracted.
Gods Unchained
Gods Unchained is a Web 3.0 game. Like Hearthstone, you can purchase random card packs in limited runs directly from the developer. Unlike Hearthstone, you can then trade the cards you receive with other players in various currencies.
As different deck builds emerge to counter the meta, different cards gain and lose value. This incentivizes players to either buy and sell on a regular basis or to hold on to more cards, thus reducing the supply and increasing their value.
The cards having value is dependent on the community enjoying the game. If nobody enjoys playing the game, the cards lose value. But if people love playing the game, cards gain value.
The most important part of their model, though, is that at any point you can sell all of your cards and withdraw that money from the ecosystem. Regardless of the reasoning, you can choose to withdraw your value and leave the community.
Warning: Games that offer "Play To Earn" should be treated with mistrust - if the primary feature of the game is to make you money, it's probably a scam.
Look for games that emphasize the "Play" part. Games are supposed to be fun - that's the whole point. Returning value to you should be a benefit, not the main attraction.
Value In Web 3.0
The value the Gods Unchained developer gains in this situation is twofold.
Funding from random card packs
Royalties on secondary transactions
The value gained by the player is also twofold.
Enjoyment from playing the game
If it is no longer enjoyable, value can be withdrawn
The game developers have also stated they want to enable the community to have a voice in how the game develops. The goal is to have the in-game currency be used to cast votes - though it's important to note that this is not a current function of this currency and there is no clear timeline on when it might be implemented.
This system is made possible through something called blockchain technology.
Blockchain technology allows for automated, permission-less transactions of value between participants based upon predetermined factors.
Last updated