In 2021, in Digital Bytes, I wrote about gamification, nudge economics and distributed autonomous communities (DAC) the link between gamification, blockchain and its combined potential for addressing global challenges. Gamers are of all ages, with an average age of 35-44 and a gender split of nearly 60-40 males to females. Asia leads the market, with 1.48 billion gamers, more than Europe, Latin America and North America combined. Mobile gaming comprises 40% of the market share. With gaming now
the most popular recreational activity globally with over 3.2 billion users, it's timely to consider its potential for more than just recreation. Web3 gaming, which creates a blockchain ecosystem around community, social connections and player empowerment, has an estimated $200billion addressable market. Web3 gaming surged by 2,000% from 2021 to 2022, with Play-and-Earn (PAE) games and Esports powering much of the growth. Play-to-Earn (P2E) games initially attracted criticism due to unsustainable tokenomics and poor gameplay experiences, now PAE games focus on sustainable tokenomics, offering better gameplay, often with free-to-play models. Games such as Illuvium, Guild of Guardians and Big Time showcase this approach. The future of PAE lies in creating games that people enjoy without needing to understand NFTs, offering players value and ownership over in-game assets. Meanwhile, the Esports market is projected to rise in turnover from $1.44billion in 2022 to $5.48billion by 2030, with events such as Dota 2 International and League of Legends Worlds drawing millions of viewers and generating substantial revenue. Web3 enhances Esports through NFTs, tokenized rewards, decentralized autonomous organizations (DAOs), fan tokens and tokenized crowdfunding, giving players and fans more control and ownership. Though still in its early stages, Web3 promises to empower players as owners, creating new opportunities for earning and deeper involvement in the gaming experience.
Source: Teamblockchain
AI will be the “critical friend” for game developers as generative AI enhances creativity, development and interactivity in gaming. New technologies such as “Text-to-World” technology, where a simple text prompt can generate entire virtual worlds for players to explore, neural radiance fields (NERFs), photogrammetry is enhances realism for on-line games. Generative AI and voice synthesis to transform voice integration in games and simulations enabling avatars to express emotions dynamically are opening games to more developers and making them more engaging for players. These innovations highlight how generative AI is accelerating the gaming industry's creative and technical processes. Education in games and gamification of education will be a game-changer for learning. Gamification in education is making it interactive, engaging and hyper-personalized. AI-powered gamification integrates elements such as avatars, real-time feedback and personalized learning paths to create immersive experiences. Students engage in virtual activities such as quizzes, field trips and collaborative projects, enhancing problem-solving and critical thinking skills. AI algorithms will analyze performance data to tailor lessons based on individual strengths, learning styles and preferences. Learners can collaborate with peers, teachers and parents to share progress, receive feedback and improve continuously. This gamified approach helps foster active participation, making education more dynamic and engaging. More than any industry, education is set to be transformed by on-line games.
Gamification in healthcare is combining blockchain, wearables and monetization models such as “play to earn,” “learn to earn” and “move to earn.” These will allow individuals to monetize their health data, creating new economic opportunities and transforming healthcare into a consumer-driven model. Platforms will reward users with tokens for engaging in wellness activities, education or community collaboration, and blockchain technology will enable secure data sharing and monetization through health data marketplaces. Gamified learning can also enhance medical education, where users earn rewards for completing tasks, and even celebrity experts, like surgeons, could offer virtual coaching in immersive, game-like environments. With 3 billion gamers globally, the World Healthcare Organisation is investigating how gaming is able to promote mental health, helping healthcare professionals and assist individuals in overcoming physical challenges. Video games offer benefits, including stress relief, mood enhancement and social connection, with games like SPARX reducing depression symptoms and Tetris helping prevent flashbacks after trauma. Cognitive advantages include improved decision-making, multitasking, problem-solving and hand-eye coordination, while interactive games enhance motor skills and even surgical performance. Recent studies highlight the positive impact of moderate gaming on mental health, with video games serving as tools to combat anxiety and depressive symptoms. Games like Angry Birds and Candy Crush have been found to improve mood and emotional regulation. Multiplayer and cooperative games foster socialization and teamwork, reducing aggression and promoting trust.
On the downside, gaming addiction potentially affects 2-3% of gamers globally (especially young males) and can lead to mental and physical health issues, including depression, anxiety, social isolation, sleep disturbances and obesity. And the WHO has recognised internet gaming disorder as a mental health condition. Preventive measures include education, parental controls and encouraging balanced lifestyles. But although excessive gaming poses risks, moderate play can be beneficial, offering a promising, stigma-free resource to support mental health and offering the opportunity to address what is a growing global burden of disease. Digital ethics focuses on the moral principles guiding technology use, affecting privacy, human rights and safety. Children increasingly interact with digital platforms, like gaming and social media, which offer benefits but pose risks, such as exposure to inappropriate content and cyberbullying. Ethical considerations must balance children’s protection with their right to engage online. Virtual reality (VR) raises concerns about cognitive and physical health, especially for children. Safety protocols are essential to mitigate risks; age verification, parental involvement and informed consent are critical in ensuring children’s online safety and protecting their data privacy.
Gaming growth is driven by Web3, AI and gamification advancements across sectors, from education to healthcare. The rise of Play-and-Earn models and the integration of blockchain technology are transforming gaming into a more participatory and monetised ecosystem, empowering players and enhancing user experience. In health and education, gamification fosters more engaging, interactive and personalised consumer experiences. While the benefits of gaming are clear, especially for mental health and skill development, ethical concerns surrounding privacy, data protection and the well-being of vulnerable populations - particularly children - need to be addressed to create a sustainable, inclusive and ethical future for gaming.
This article first appeared in Digital Bytes (15th of October, 2024), a weekly newsletter by Jonny Fry of Team Blockchain.