Evolution of social interactions and digital communities in web3 gaming and the metaverse

Millions of people across the globe resorted to tech-fuelled distractions like Netflix Party film viewings, zoom conversations, and video games to keep in touch with family and friends during the Covid-19 pandemic. During this period, many turned to esports and community games to connect with people and stay entertained. According to a study conducted by Nielsen, playing games was more popular than watching sports (83 per cent vs 29 per cent among esports enthusiasts aged 18-34). One-third of esports fans viewed it as an alternative to regular TV entertainment. The pandemic also gave rise to high spikes in the crypto market, with the sector topping $3 trillion market capitalisation at its peak in 2021. The ‘Crypto Winter’ of 2022 has seen a reversal of fortunes in the crypto space, with the market capitalisation now only around $1 Trillion.

Out of the ashes of the cryptocurrency market, the adoption of blockchain technology and decentralisation captured the attention of many start-ups and larger corporations. The gaming industry saw the fastest adoption of this technology with Axie Infinity, a ‘Play to Earn’ game with a valuation of $30 billion. Individuals in the developing world jumped at the opportunity to earn an income by playing the game in 2021.

It is certainly possible to earn some money playing NFT games, but once the hype dies. A lot of these games lose their initial value, leaving people holding JPEGs and PNGs with almost no value. The [web3 gaming] industry is slowly evolving into a decentralised future with open metaverses, where people will be able to socialise, play games, own their digital assets, and hang out with friends and family in a digital universe of their choosing.”

According to a study titled 'Breaking the Stereotype: The Case of Online Gaming' by Professor Mark Griffiths of Nottingham Trent University, 25 per cent out of 11,000 players from the online role-playing game 'EverQuest' said, interacting with other players was their favourite aspect of gaming experience. Based on a report from Accenture, community-based games are known for fostering virtual friendships. The study also shows that 84 per cent of gamers feel that video games enable them to meet others with similar interests, 80 per cent believe that video games allow them to meet new people, and 77 per cent believe that video games help them remain in contact with their friends. Community gaming is creating ripples in Web3 too. Xiro App, a social and community-gaming-focused web3 platform developed by Xiroverse, has managed to acquire 250,000 sign-ups to their waitlist in two weeks. Xiro App includes non-fungible and fungible tokens, a marketplace, a built-in Xiro wallet, mining software and multiple games from various gaming studios.

‘Xiroverse’ is a London-based web3 gaming start-up, capitalising on web3 and the 'community gaming' boom. Using its proprietary 'proof of play' protocol within its mobile-focused, lifestyle gaming app, the Xiro App delivers social-Fi and game-Fi aspects to its users. It enables gamers to compete in games with their friends and family for accolades and rewards. Players can get on leaderboards and compete in tournaments to up the stakes.

Xiroverse is much more than a gaming platform. It is an ecosystem, a 'Digi-verse' of sorts, where individuals can participate in their community, socialise with friends and family, play multiple games, explore, and discover digital worlds. To us, the metaverse is the future of the internet, how we will communicate with our friends and family and socialise shortly.” The company also partners with multiple gaming studios on a technology-sharing basis to onboard existing games and their community into the Xiroverse web3 and metaverse ecosystem. The firm operates under four pillars, Xiro App (Web3 mobile gaming), Xiro Card NFT, Xiroverse Business and Xiroversity and leverages the Ethereum blockchain for its security layer.

‘Community Gaming,’ another start-up operating in the Web3 gaming space, has acquired $2.3 million in funding for the development of automated esports events. This web3 start-up has worked on how to run online and local tournaments, pay players instantly and even distribute winnings in cryptocurrency if necessary. Epic Games, the maker of Fortnite, owns metaverses within their video games, alongside other games like Roblox and Minecraft. Fortnite has a thriving ecosystem and a massive fan following with virtual events attended by million within their community. These gaming ecosystems seem to have a north start which seems to be community and social interactions coupled with great gameplay.

According to NPD, an American business research organisation, four out of every five individuals in the United States played video games in the previous six months. At a time when many businesses were struggling to generate growth, gaming revenues began to surge and the user adoption rate accelerated. The global gaming market is anticipated to generate $203 billion in revenue and surpass three billion users in 2022, with mobile gaming alone accounting for 43 per cent of all smartphone activity out of the 2.2 billion active mobile gamers. With almost half of the world population actively involved in gaming, the market capitalisation of global gaming companies has already passed the $2 trillion mark. Gaming ecosystems, based on community and social interactions, are seeing wider adoption within the gaming space. This new digital interaction now seems.

Roshan George is a CEO of Xiroverse.