Web3 is a future, decentralized phase of internet development, where users become owners. This contrasts from the current Web2, which is owned and dominated by large tech companies such as Google and Facebook, and who capture most of the internet's monetary value. Web3 is based on blockchain technology and digital tokens, giving users ownership in a decentralized internet, along with increased security, privacy, speed of transaction and cutting off unnecessary middle men.
Although still in its infancy stage, Web3 is the future of the internet and will impact the investment community and broader economies in the years ahead. Web3 is moving quickly and approaching mass adaptation with digital currencies. Central banks are already thinking about digital currency strategies and investing in bitcoin. And while you've heard about the Metaverse, your children are already there, playing games such as Roblox, Minecraft and Fortnite.
DEFI to GAMEFI - Web3-based games allow the players to engage with the games in innovative and decentralized ways. People can play to earn via cryptocurrencies and NFTs. This democratizes all aspects of gaming and puts the main power in the hands of the player instead of confining it to one central authority within a game.
Online gambling had already surged in popularity during the coronavirus pandemic. But now even as COVID is finally on the verge of ending, the growth trajectory of online gambling shows no signs of slowing.
Online Gambling is Currently Valued at $93 billion and is expected to reach $154 billion in 2030.
While the COVID-19 lockdowns hit the gambling industry hard, with the shutdown of casinos and canceled sporting events, the sector instantly pivoted to online casinos and betting platforms.
Physical casinos opened digitally and existing platforms expanded to offer more options to their users. Automations, innovations and various marketing efforts also helped increase the popularity of the online gambling industry.
At the time the phenomenon of increasing the number of internet gamblers was considered a consequence of the coronavirus pandemic and lockdown. Among the cited reasons for it were stress, financial struggles, and psychological crisis during the social isolation.
However, now the pandemic is almost over and the sector doesn't show any signs of slowing down.
On the contrary.
The online gambling industry is expected to have a compound annual growth rate of 11.49% till 2026. Since October 2021 the revenue of the iGaming sector has increased by more than 300%. North America market saturation is estimated to remain eight years away. The industry is valued at staggering $93 billion and is expected to reach $154 billion in 2030.
Crypto payments represent 25% of all online gambling payments and is the fastest growing sector in gaming
The online gambling business has also evolved to embrace crypto currency. For online gamblers, cryptocurrency is a natural partner. Currently 25% of all gambling payments are made with crypto, and 48.6% of crypto owners use it for online gambling.
Why are cryptocurrencies so popular among gamblers? Anonymous, fast, secure.
Gambling with crypto removes many of the obstacles and annoyances related to fiat money and are generally related to anonymity, speed, security and more.
Crypto solves one of the biggest risks in the internet - protecting the user's personal information. For each transaction made with it a new address is generated. It is almost impossible to track. This allows gamblers to overcome geographical restriction of access to certain online casinos.
With cryptocurrency, users can increase the speed of the transactions, making and receiving payments instantly, minus the banking fees and regulations making gamblers feel safer.
Blockchain technology provides a high level of security during payments, protects keys and stops the illegal trade of digital assets. Crypto may grow in value over time. So any winnings from online gambling have the potential to increase from the initial sum.
Coins are used for payments of course, but also for sending money to other players and in-app purchases. They are rewards in ads where users are paid for completing various tasks or for referrals.
Enter the Crypto Casino, NFTs and Tokens
Enter the Crypto Casino leveraging the full power of the decentralized web, crypto currencies, NFTs and Tokenomics.
By design Crypto Casinos offer lower fees compared to other platforms and instant withdrawal options. Being decentralized allows the casino to have no restrictions on the amount of money you can deposit or withdraw. If you are looking for the best way to deposit funds in an online casino, it is safe to say that the best option that you have is crypto.
Crypto Casinos like Dancing Diamonds embrace the full dimension of Web3. NFT's offer users the ability to own shares of games, and profits. Tokens allow users to participate in staking pools and earn rewards.
Venture Capital is Investing Heavily in Web3 Gaming, $100 Billion in 2022.
Despite the challenging market conditions investment in Web3 game development is on the upswing. Venture capitalists have funded the Web3 gaming sector more than any other crypto related investment this year. In 2021 $25 billion of venture capital funding has been poured into Web3 gaming projects. The number is expected to grow over $100 billion till the end of this year.
A recent report from Absolute Reports projects massive growth for the GameFi industry within the next six years. The research has the play-to-earn nonfungible token (NFT) game industry with an estimated value of $2.8 billion within the time span from 2022-2028.
Blockchain-based games see an uptick in users despite bear market conditions. Data shows blockchain-based gaming protocols registered a steady uptick in daily active users and transactions despite the current bear market conditions.
As shown in the chart, all sectors of the blockchain market have experienced a noticeable decline in active users, but the gaming sector has proven to be the most resilient at retaining users as the bear market intensified.
Web3 is the Foundation of the Metaverse.
Behind the VC interest in Web3 gaming is a bigger vision for a future in the Metaverse. Web3 is the foundation of the Metaverse and it's being built now from the ground-up. 25% of the global population will spend at least 1 hour a day in the metaverse by 2026. Already, Gambling accounts for 30% of the Decentraland Metaverse daily users. If you believe in the potential of the Metaverse, then investing in it's infrastructure is a natural play.
In its early stages, gambling is the leading activity in the Metaverse. Today, 1,000 people play poker in the Metaverse at any given moment. This number may seem small, but consider this: Decentraland Games in its first three months of operations had a monthly revenue of $2.5 million with 6000 unique customers each day. In addition 30% of Decentraland's daily Metaverse activity is gambling.
And the numbers for metaverse gambling are expected to seriously grow in the coming years.
The greatest hindrance is the lack of blockchain developers and project leaders who understand.
Web3 development is a difficult province. Its main technology - blockchain - requires specialization in languages like Solidity and Rust. It's also brand new. This means that a lack of experienced developers is a serious problem.
At the end of last year, when bitcoin and a handful of other cryptocurrencies reached their highest values, only about 18,500 developers each month were contributing to open-source Web3 projects, according to a report published by crypto-focused investment firm Electric Capital. Lack of real experience remains a huge barrier to Web3 growth. Of the 18,500 developers, 60% entered the market in 2021, only a year ago.
ICON Worldwide is one of the few development companies who has been in blockchain development since the beginning and can attest to the challenge of transitioning traditional developers to Web3. Likewise, at the management level, many startups and traditional businesses with great ideas for blockchain projects, lack a true understanding of the complex technology required.
“There is no shortage of start-ups or consultants with great ideas for DeFi projects. But turning these power-points into a viable tech product takes a level of technology understanding only developers really grasp”, says Jonathan Glicksberg, CEO of ICON Worldwide.
“There is a real shortage of experienced blockchain developers who have delivered projects. The challenge is to simultaneously 'lower the barrier to entry' for Web3 developers and 'raise the ceiling' of what is possible in Web3 gaming.”
The future of online gambling is bright.
It seems clear that online gambling will continue to be a forerunner leading the future of Web3 development. While the classic online casino sector is an estimated minimum 10 years away from saturation, the nascent Web3 gambling sector is just beginning. With the Metaverse on the horizon this is an exciting time to shape the most important technologies poised to shape the future.
