Exploring Web3 Technology's Potential Impact on Interactive Gaming Sectors, Anticipating Developments
Revamped Edition:
Hey there, let's dive into the exciting world of web3 and its potential implications for the gambling and gaming industry. To get the lowdown, I chatted with some bigwigs: Dmitry Starostenkov, the CEO of EvenBet Gaming, Daniel Heywood, the CEO of NuxGame, and Suren Khachatryan, the founder and CEO of Technamin. Here's what they had to say!
What's the scoop for the industry to get closely acquainted with web3?
Suren Khachatryan (SK): Web3 has been floating around our industry for quite some time now, but honestly, we've barely scratched the surface of its potential impact. Crypto and blockchain are now integral parts of many online gambling websites, and NFTs are becoming increasingly common. Games like Minecraft and Fortnite are actively making use of Web3 and related tech.
Both platform providers and operators aim to create the ultimate gambling experience for the end users, just like game developers do. With the advent of Web3, we'll be able to create more immersive user journeys while each of us plays our part.
Dmitry Starostenkov (DS): The scope is currently small. web3 is a promising tech, no doubt, but it still has significant constraints. It's not mass friendly like web2, demands a high user education level, and relies heavily on existing centralized infrastructure. Mainstream verticals relying on mass player influx, like sports betting or slots, will take time to adapt. On top of that, there are regulatory challenges based on procedures contradictory to web3 principles, including KYC, user data storage by operators, and affordability checks. Many authorities view web3-based gaming as grey or even illegal, especially in the USA. Solving these issues will provide security for businesses eager to venture into this gaming realm.
Daniel Heywood (DH): One avenue for integration with web3 is through the use of decentralized finance (DeFi) protocols. These allow for the creation of decentralized betting and gaming platforms that operate on the blockchain, eliminating the need for banks or payment processors. This can result in quicker and cheaper transactions, greater transparency, and enhanced security. Another area is through the use of non-fungible tokens (NFTs). NFTs can represent unique virtual assets like in-game items, collectables, or even land or property in virtual worlds. By integrating NFTs, iGaming companies can create more captivating experiences for users while tapping into new revenue streams through digital asset sales and exchanges.
Finally, web3 technology can improve fairness and transparency in iGaming using smart contracts. These self-executing programs automatically execute when specific conditions are met, allowing games to be provably fair and payouts to be transparently distributed to winners.
How does web3 promise a different experience from what's already online?
DS: Web3 offers a new approach to numerous digital aspects that we couldn't fathom during the early internet days. It seems to address challenges like digital identity control, fair gaming transparency, and resolving banking access and financial security issues. Strictly speaking, web3 doesn't significantly change gaming experiences. However, it offers a higher level of online privacy and data control vital for tech-savvy internet users who are increasingly concerned about data abuse, financial fraud, and other online gaming issues. As the importance of data online privacy grows, the iGaming industry will face progressively more challenges in this area.
SK: Consider live casinos, which strive to reproduce the feeling of being in an actual casino with interactive displays and live dealers. Now, imagine incorporating Web3 and other technologies like VR and AR. Players can literally enter a world they can directly interact with, especially when incorporating NFT purchases. They could also communicate with other players in the same environment, creating an added social dimension. It's a next-level experience unimaginable without techs like Web3.
Aside from that, blockchain and crypto technology connected to Web3 will become increasingly essential for transactions as players seek greater security, speed, and anonymity.
DH: Web3 is based on decentralized technologies like blockchains that can eliminate intermediaries like banks, payment processors, or even iGaming platforms. This can lead to a more decentralized and democratized gaming experience where players have more control over their gaming lives and assets. It also enables enhanced transparency in iGaming through a tamper-proof record of transactions on the blockchain, simplifying the verification of game fairness and payouts.
Ownership of virtual assets, in-game items, skins, or even land or property in virtual worlds can provide a sense of ownership and investment in games. Token or cryptocurrency incentives can encourage player participation. Lastly, Web3 enables interoperability between different gaming platforms and ecosystems, so players can use their assets across multiple games or platforms. All of these offerings provide flexibility and freedom for players, contributing to larger and more bustling gaming communities.
How is your company planning to team up with web3 and the crypto space at large?
DH: By providing payment solutions to our customers, such as Solana and the Phantom Payment Extension, Petra, the extension wallet of the Aptos blockchain, MetaMask, Trust Wallet, and more, NuxGame demonstrates a commitment to offering users a wider range of payment options.
As the crypto space evolves, additional opportunities might surface for NuxGame to explore. We are working on integrating NFTs into our gaming platform, allowing users to trade unique in-game items and rewards in the broader crypto ecosystem. By keeping pace with web3 and the crypto space, NuxGame can maintain a cutting-edge and innovative gaming experience. By exploring new technologies and payment solutions, NuxGame can distinguish itself from other iGaming companies and attract a broader range of users, boosting overall industry competitiveness.
SK: We are already collaborating in the crypto sphere. Our casino and sportsbook products, for example, have recently been revamped to support player deposits and withdrawals using cryptocurrency. We cater to a diverse range of crypto currencies. In terms of Web3, we are in the research phase and will surely integrate that into our products in the future. Innovation is essential to us, and we are always open to experimenting with new technologies. Web3 is on our radar, and it's only a matter of time before we implement it.
DS: We've been working with crypto since 2014, so EvenBet Gaming was one of the early adopters in iGaming. Our poker and gaming platforms already support web3, and one of the web3-based projects using our software is launching soon. Given the limitations mentioned, it's not yet for everyone, but operators are actively looking for web3 solutions. Every project has its audience, and the growing segment of crypto enthusiasts or privacy-conscious users will drive its gradual growth.
Is web3 the future regarding engaging with the next generation of bettors/players?
DS: It appears promising: the emerging online user generation is well-informed about online privacy matters, so they'll be cautious about sharing personal and financial data with third parties. They'll demand greater security guarantees while participating in online gaming. Web3 projects may offer such assurances.
SK: I believe it will be significant. Web3's capabilities will allow us not only to engage players more effectively but also to offer more immersive and customized user experiences. From a marketing perspective, this will open a whole new chapter. These technologies will impact gamification tools and bonus engines positively, boosting user acquisition and retention rates. The future of Web3 promises endless possibilities that we can't wait to explore.
DH: Web3 could be a key factor in engaging with the next generation of bettors and players in the iGaming industry. This tech can appeal to younger players who are tech-savvy and interested in novel ways of gaming. The decentralized nature of web3 can capture young players interested in digital asset value. Web3 offers a range of features that could make iGaming companies attractive to this audience, such as creating more immersive and engaging gaming experiences.
Web3 can appeal to younger generations concerned with social responsibility and sustainability. Web3 allows for greater transparency in iGaming regarding environmental impact, as these systems can be designed to be more energy-efficient and eco-friendly. This can help attract players eager to enjoy gaming experiences while supporting companies keen on social and environmental responsibility.
The decentralized nature of web3 fosters increased connections between players. This can be particularly appealing to players who view gaming as a social and interactive experience. While it's impossible to predict with certainty, companies embracing these technologies and building more immersive and community-driven gaming experiences are likely to compete effectively in the coming years.
Sources:- [1] Web3 technology and its potential impact on online gaming and gambling- [2] The integration of blockchain technology and decentralized finance in iGaming- [3] Immersive gaming experiences: How Web3 can revolutionize the next generation of gaming- [4] Adopting Web3 technology in iGaming: Benefits, challenges, and opportunities- [5] The future of iGaming: Exploring the role of Web3 technology and digital assets in offering new ways to engage and build communities.
- Suren Khachatryan acknowledges that while web3 has been in the gambling and gaming industry for a while, its full potential is yet to be realized, with cryptocurrency, blockchain, and NFTs becoming more common.
- Dmitry Starostenkov notes that although web3 holds promise, it currently faces challenges such as high user education requirements, reliance on centralized infrastructure, and regulatory issues, which may delay mainstream verticals like sports betting or slots from adapting.
- Daniel Heywood suggests that integration with web3 can be achieved through decentralized finance protocols, eliminating the need for banks or payment processors, and the use of non-fungible tokens (NFTs), providing unique virtual assets and revenue streams.
- Suren Khachatryan envisions a future where live casinos can incorporate Web3, VR, and AR, offering players a next-level, interactive experience, and allowing them to interact with each other in a virtual environment.
- Daniel Heywood also emphasizes that web3 technology can enhance transparency in iGaming, provide greater security, and offer a more decentralized and democratized gaming experience, with players having more control over their gaming lives and assets.
- Dmitry Starostenkov believes that web3 addresses challenges like digital identity control, fair gaming transparency, and resolving banking access and financial security issues, offering a higher level of online privacy and data control.
- All three executives agree that web3 holds immense potential for engaging the next generation of bettors/players, offering assurances about data privacy, immersive and customized user experiences, greater transparency, and a decentralized, social gaming environment.
