China Could Go After US to Make its Web3 Games Work, Just Like PUBG

Web 3.0 or Web3 games work in an attempt to empower end-users and decentralize control

Web3 is the next generation of the Internet, one based on blockchain technology. It incorporates concepts like decentralization and is fuelled by cryptocurrency. Compared to the previous iteration of the internet, known as Web2 or Web2.0 where data and content are in the hands of a previous few companies, commonly labeled as 'Big Tech', Web3 games work is an attempt to empower end-users and decentralize control. Web3 games, as inclusive as they are, still have barriers to entry that can be difficult to overcome for some players. Many of these games require the purchase of NFTs to access in-game features, some of which have significant financial costs. Gaming guilds have arisen as a new way for gamers to organize and eradicate the barriers to entry. Players can come together and leverage their collective earnings and progress potential as part of a team, not just grinding away as an individual.

While China may not produce the most original and impressive gameplay — which may be why Tencent and Netease recently sought out creative directors in the US — the country's game developers have caught up with their Western counterparts on other fronts.

But if China doesn't have the most creative minds, would the web3 games work up to users' expectations? Blockchain games are still in their infancy and have more pressing issues to solve, Wu argues. "What they need now is a better economic system and a more solid technical infrastructure, right where China's lead lies."

But there are still challenges to overcome. The blockchain universe continues to expand, with new games across multiple chains increasing the rate of expansion. Keeping up with all this development is difficult, and tracking scores and achievements is close to impossible. Equally, how do gamers know which games are worth playing, or which guilds are worth joining? New technology is full of promise, but that promise is often not realized. The gaming experience is often lacklustre, and precious time can be wasted. Even with the games that do make the cut, tracking in-game achievements and items across platforms is difficult, whilst seamlessly moving those items and achievements across the different blockchains and metaverses out there is next to impossible.

Web3 in China vs Web3 in USA

China and the United States always fight for the dominance no matter what field it is and same goes with Web3 technology. Web3 in USA: with its open competitive environment for innovation and cutting-edge technology, the market has taken the lead as the primary (autonomous) driver of development in the field. Compared to the US, China has focused more on data exchange and industrialization in its development of Web3.

Given the country's unique internet environment and the characteristics of Web 30-related technology, particularly blockchain, government-led projects were an inevitable choice. China's Xinghuo Blockchain Infrastructure and Facility, for example, is among the state-owned rising stars that have gained momentum in recent years.

The development of Web3 in China is highly controlled by the central government and succeeding in various ways. Chinese blockchain applications are pursuing digital transactions in blockchain-based collaboration, data sharing, intelligent manufacturing, and distributed energy production emerging in areas such as medical care and government affairs. In the field of the supply chain, it is now possible to source traceability of agricultural products, industrial products, medical records, electronic invoices, and judicial evidence, among others. Finally, the pilot project for the promotion of the digital renminbi is also proceeding well.

However, the realization of Web3 in China is yet to catch up to that of other countries, specifically the US. The government's rigorous control over cryptocurrencies, the absence of pertinent legal system research, and ambiguous law enforcement norms have all emerged as barriers to the development of Web3 businesses in the country. On one hand, the country outlawed the trade of cryptocurrencies, essentially outlawing the trading of NFTs on public blockchains like Ethereum. On the other, however, this move has inspired a growing number of Chinese businesses to explore new uses of blockchain technology. According to a market report by IDC China's blockchain market may be valued at more than US$3.2 billion by 2025, with a CAGR of 47 percent between 2020 and 2025.