Web3 gaming holds big promise, but there are risks

Kevin Lin, co-founder of Twitch and CEO of Metatheory, is a veteran of the streaming industry, and is now at the forefront of a new revolution: web3 gaming.

"To me, web3 is really about a new chance at a new data system that puts users first," Lin explains. "It puts data more in control or fully in control of the users, and allows us to rebuild a web with that as a starting position."

This vision of a decentralised internet, where users have unprecedented control over their digital assets and data, is at the heart of the web3 movement. And nowhere is this paradigm shift more apparent - or more contentious - than in the gaming industry.

Lin's latest venture, Metatheory, is building games on blockchain technology. But what exactly does this mean for gamers and the industry at large?

At its core, web3 gaming promises to revolutionise the concept of ownership within virtual worlds. "Can you just own things in a game? And what does that mean?" Lin posits. "Do users actually want that? And if they have it, what do they do with it?"

These questions strike at the heart of a growing debate in the gaming community. For years, gamers have spent real money on virtual items - skins, weapons, characters - that exist only within the confines of a specific game. With blockchain tech, the promise is that these digital assets could have value and utility beyond their original context.

Lin draws a parallel to the physical world of collectibles. " Pokemon cards are the best example of this," he says. "It's just a piece of paper printed on a machine designed by an artist and a game design team. And yet they retain value."

The idea is compelling. Imagine spending countless hours building up a character in a game like "Final Fantasy VII: Rebirth," only to have all that progress become worthless once you've finished the game. In a web3 world, you might be able to sell that character to another player, recouping some of your investment of time and potentially money.

However, the road to this digital utopia is fraught with challenges. The most glaring issue is the current state of web3 games themselves. "I don't think anything's working that well yet," Lin admits candidly.

Many early attempts at web3 gaming have focused more on speculation than on creating engaging gameplay experiences. Games like "Axie Infinity" saw meteoric rises followed by spectacular crashes, as players flocked to the games not for fun, but for the promise of financial gain.

"Unfortunately, that game ended up collapsing in on itself for multiple reasons," Lin says. "But I think one of the fundamental reasons is that the economy itself was really thin."

This get-rich-quick mentality has cast a shadow over the entire web3 gaming space. Traditional gamers have pushed back against the integration of blockchain technology into their favourite franchises, viewing it as an unwelcome intrusion of financial speculation into their hobby.

Lin acknowledges these concerns. "Existing games like Final Fantasy, let's say... If you suddenly change that financial relationship, your customer promise is shattered," he explains. "It's confusing from a consumer perspective."

The focus, Lin says, should always be on creating compelling gameplay experiences first, with blockchain integration serving as an enhancement rather than the main attraction.

Lin is most excited about the potential for AI to democratise game creation, allowing anyone to become a game developer. This, combined with blockchain tech, could lead to a future where games are not just played, but co-created by communities.

However, this future is not without its potential pitfalls either. As game creation becomes easier, the market risks becoming oversaturated. "There's going to be infinite noise," Lin warns. "There's going to be infinite games coming out every day."



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