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Web3 has revolutionized various industries, including gaming. With a major shift from traditional gaming platforms, 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.

Although in traditional gaming, in-game content or digital assets are purchasable with fiat currency or can be claimed as rewards, game operators still reserve the copyrights to the in-game content. In simple words, players do not own the in-game digital assets. Instead, in traditional gaming, players’ ownership is simply a license for engaging with the aspects of the game.

Further, centralized gaming servers store all game-related information on servers, which game administrators control and operate. Game developers do not have adequate resources or knowledge to monitor and allow a trade where players want to exchange their digital assets to earn a profit. 

Because of the inefficiency of centralized servers and traditional gaming, gray markets have surfaced to provide scope for hackers and scammers. They exploit players and provide no benefit to developers and administrators. Administrators fail to safeguard gaming platforms and their players from shutdowns and cyberattacks. Because of the centralized server and its inefficiency in safeguarding itself against hacks, the digital assets are also at high risk of loss, fraud and theft.

To address the problems listed here, Web3 gaming offers innovative techniques such as gaming Decentralized Autonomous Organizations (DAOs) with decentralized gaming ecosystems, blockchain-based game asset ownership, play-to-earn, crypto-secured gaming wallets and metaverse gaming. 

This article will unfold the aspects of Web3 gaming and its dynamic features.

What is Web3 gaming?


Web3 gaming is a process of decentralized gaming where the activities of a gaming ecosystem or a gaming platform, specifically that of the ownership of gaming assets and decision-making in all aspects of gaming, are delegated away from any central authority.

Web3 games are built by integrating blockchain into the gaming ecosystem, allowing gamers to express their opinion on when and how the game should evolve. Web3 gaming also lays down the foundation of play-to-earn for players, and it changes the pay-to-play aspect by offering asset trading, tradeable game tokens and opportunities to earn in cryptos while playing.  

Web3 gaming provides fair virtual markets for the gaming industry, where players can access and fully own in-game digital assets. These assets are stored in the form of gaming NFTs and are distinctive.

Web3 gaming also provides wide interoperability among various gaming ecosystems by linking the in-game assets and players across platforms. The interoperability factor depends on the type of blockchain platform one selects for developing a gaming ecosystem. For instance, Polkadot or Solana offers the interoperability feature in cross-chain communication bridges. 

Now that we are familiar with Web3 gaming, let us discuss the various features of Web3 gaming in the next section. 

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What are the key features of Web3 gaming?

Web gaming is a value-exchange gaming model where people can own and trade in-game objects and collectibles in the form of unique NFTs using cryptocurrencies. Web Gaming offers self-sovereignty and decentralization in gaming and is open source. There are some fundamental features of Web3 gaming platforms:

Ownership and interoperability

Web3 gaming offers self-sovereignty where players can completely own in-game assets and collectibles as digital NFTs. In traditional gaming, players own in-game assets and collectibles, but they lose all of their assets once they decide to change the gaming platform. Web3 gaming solves this problem by providing true ownership and interoperability between various platforms. The players can own in-game assets on one platform and carry them over to their next gaming platform. 

Old game integration

Web3 gaming has another interesting feature of integrating and upgrading older game models into metaverse and blockchain platforms, making them decentralized in nature. The gaming process is personal, and every player has their preferred game. Web3 offers to upgrade old and popular games by extending them to the metaverse, where players can make their avatars and trade in their favorite in-game assets and collectibles. 

Player-driven gaming

Web3 gaming tailors the gaming ecosystem based on players’ liking. There are different ways in which Web3 gaming benefits players. One is the play-to-earn aspect, where they earn profit via their in-game items; another is old-game integration which takes care of players’ wish to play their favorite games on the metaverse. Another aspect of player-driven gaming is that Web3 gaming supports self-sovereignty, which is again for players’ benefit.

Negligible Downtime

Web3 gaming ecosystems run autonomously with minimal maintenance cost and zero intervention from any authority. With block minting and high game data storage facility, Web3 gaming has negligible downtime and is highly scalable. 

Transparent gaming

Web3 gaming is a distributed process where games are hosted on the blockchain, making them unhackable. With no single point of failure, blockchain-based gaming relies on voting consensus to modify the gaming process and is equally accessible to all the players engaged on the network. This way, Web3 gaming ensures a high level of transparency. 

Now that we have understood the features of Web3 gaming, let us take a look at its technology stack in the next section. 

What is the technology stack of Web3 gaming?

The following are the components of the Web3 gaming technology stack:

Web3 libraries/dApps

Web3 libraries help game developers and players interact with the blockchain platform. The libraries and dApps support in-game transactions and assets and help interact with smart contracts. Web3 gaming dApps are built using Unity or Unreal SDKs. Once the protocol is done between EVM and non EVM blockchain, the Web3 libraries role changes accordingly.

Smart contracts

Smart contracts monitor and govern various game processes. Smart contracts also manage voting and decision-making for the changes to be made for game evolution. Customizable as per players’ requirements, smart contracts manage voting and decision-making on changes for game evolution. Most developers use the Remix IDE to write, compile and deploy smart contracts. However, tools like Truffle, Hardhat and Brownie are easy to use when a local development ecosystem is required.

Node/Web3 providers

Nodes or Web3 providers are important because they extract gaming information stored on the blockchain network. Nodes play an integral role in the Web3 developer stack because without nodes, Web3 libraries are not capable of interacting with smart contracts. 

Digital wallets

Every Web3 gaming platform has blockchain-based digital wallets. A unique wallet address is used to identify players. It holds various gaming collectibles and in-game assets. Wallets are critical part of Web3 games to interact with the blockchain.

XR hardware

XR hardware includes smart glasses, haptic gloves, scanning sensors, etc., linking the gaming ecosystem with the metaverse for an immersive and engaging Web3 gaming experience. 

Open interoperable media standards

These standards contain texts, audio, 3D scenes and vectors to power decentralized 3D applications. 

Let us now explore the other aspects of Web3 gaming, like gaming DAOs and metaverse gaming. 

What is a Gaming DAO?

Gaming DAOs function as gaming platforms based on open-source codes and are not affiliated with any gaming administrator or operators. Gaming DAOs are communitarian at the core and focus on creating a player-driven gaming ecosystem. 

Gaming DAOs have the power to redistribute the ownership of a game in an entire community of various gaming ecosystems. This redistribution occurs among players, game developers, investors and traders. 

Gaming DAOs power play-to-earn in Web3 gaming. They are revolutionary gaming concepts that compensate players for their gaming participation and success in a game. Traditional gaming models do not enjoy the same benefits and provide a one-sided exchange of value to game administrators or operators.

In gaming DAOs, the play-to-earn feature rewards both the player and the game developer. Play-to-earn powers the gaming economy, where players are rewarded for gaming skills.

Let us examine some of the fundamental gaming DAOs in the next section. 

What are the different types of Gaming DAOs?

The gaming DAOs can be differentiated into three fundamental types:

Gaming guilds

Gaming guilds constitute informal groups of gamers, highly organized multi-game clans and e-sport teams that engage in play-to-earn on the common communitarian ground. These gaming guilds are financialized because they function similarly to investment clubs, and the participants share the funds of the gaming guilds to purchase and acquire in-game digital assets.

Players in gaming guilds then play games with these in-game assets acquired in the form of unique NFTs, earning in-game tokens collectively and splitting the revenue among all players. Gaming guilds have massively affected the Web3 game market because they have accumulated in-game assets. There is also a growing base of new gamers, game speculators and gaming NFT traders. 

Incubators and accelerators

Another type of gaming DAO involves an evolving class of incubators and accelerators. They majorly focus on growing Web3 gaming platforms by providing their expert knowledge to the platforms’ founders. These expert incubators and accelerators promise funding to develop new gaming ventures. They also provide advanced tools and technical solutions to develop and upgrade the Web3 games. 

Incubators and accelerators play an integral role in the growing Web3 gaming by providing gaming grants and taking strategic initiatives to support the gaming clans and developers. This type of DAO brings together all gaming stakeholders and investors to expand Web3 gaming financially. 


Another fundamental type of gaming DAO is that of the game developers. These DAOs venture into different Web3 game developments on a common platform. DAOs define the terms and conditions of how the game will be developed ahead. Smart contracts monitor these terms and conditions. Developers’ gaming DAOs autonomously run them using smart contracts. 

Gaming DAO smart contracts entail the moderation of gaming content, in-game collectible policies, in-game voting and auctions. 

Now that we have understood the crux of Web3 gaming and DAOs let us explore some of the potential Web3 gaming development services that LeewayHertz provides. 

Embark on your web3 journey with our future-ready web3 solutions.

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What all Web3 Gaming development services does LeewayHertz provide?

Smart contracts

We develop smart contracts that regulate the terms and codes for functioning your gaming metaverses and DAOs, and nobody can alter these smart contracts. Therefore, secures Web3 gaming platforms and makes them function according to the decision rules of the DAO community.

Decentralized gaming platform

We design and build blockchain-based gaming platforms depending on your gaming project requirements. By building an open-source gaming platform with a front end and a backend, we provide a decentralized and autonomous UI/UX design for the Web3 gaming ecosystem.

Gaming dApps

Our gaming NFT experts assist you in designing, innovating and launching gaming NFT marketplaces. From creating a roadmap to full-stack design analysis, we develop interoperable marketplaces.

Gaming NFT marketplaces

Our gaming NFT experts assist you in designing, innovating and launching gaming NFT marketplaces. From creating a roadmap to full-stack design analysis, we develop interoperable marketplaces.

3D gaming spaces

We provide a robust and highly scalable 3D gaming metaverse for players to have an immersive experience in 3D gaming models. 


Web3 gaming has transformed the entire gaming landscape by integrating metaverse and blockchain technology into the gaming industry. It has democratized the gaming sector by eliminating central game administrators and owners of gaming platforms. 

With revolutionary technologies like blockchain, DAO and the metaverse, Web3 gaming is also powering the financial aspect of the gaming sector. It is helping game players engage in lucrative activities such as in-game digital asset trading and play-to-earn in the form of NFTs. Therefore, Web3 gaming is a positive step towards a transformed digital gaming industry.

LeewayHertz in collaboration with Bridgeport Capital has launched Tashi Network. Tashi Network enables gaming studio to integrate decentralised network for access to Attributed Decentralized Identities, Interoperability with cross game access and blockchain security.


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Author’s Bio


Akash Takyar

Akash Takyar LinkedIn
CEO LeewayHertz
Akash Takyar is the founder and CEO of LeewayHertz. With a proven track record of conceptualizing and architecting 100+ user-centric and scalable solutions for startups and enterprises, he brings a deep understanding of both technical and user experience aspects.
Akash's ability to build enterprise-grade technology solutions has garnered the trust of over 30 Fortune 500 companies, including Siemens, 3M, P&G, and Hershey's. Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.

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