Unleashing the Web3 Gaming Beast: A Deep Dive into Arcana Network’s Potential Impact

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Unleashing the Web3 Gaming Beast: A Deep Dive into Arcana Network’s Potential Impact

Ajay Shetty

Announcements

Oct 31, 2023

The fusion of blockchain with gaming is forging a new frontier—Web3 gaming, an arena where play-to-earn isn’t just a tagline but a reality. However, as with any nascent domain, the journey from the fringes to the mainstream is strewn with hurdles. Central among these are the onboarding challenges faced by the legion of gamers waiting at the gates of Web3.

Enter Arcana Network—with tools crafted to slay the onboarding dragon. This article unfolds Arcana’s potential to be the game changer in the Web3 gaming domain.

The global gaming market has been on a consistent growth trajectory, driven by technological advancements, changing consumer preferences, and the widespread adoption of digital technologies.

Broader Gaming TAM:

Global Gaming Market Size in 2022: USD 250 Billion
Global Gaming Market Size in 2023: USD 281 Billion (Projected)
Global Gaming Market Size by 2030: USD 665 Billion (Projected)
Growth from 2023-2030: CAGR of 13%

The revenue in the video games market alone is projected to reach USD 334.00 billion in 2023, showcasing the significant portion of the broader gaming TAM attributed to video games.

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Web3 Gaming Market and User Base:

Web3 gaming is a burgeoning segment within the broader gaming market.

Market Size in 2023: USD 2.4 Billion
Market Size in 2033:USD 50 Billion (Projected)

User Stats in Web3 Gaming in 2022

1Mn Users
15Mn transactions per day across 20 chains
2,000% increase in activity from 2021 to 2022

Even in these trying markets, there are 3,571,331 gamers on a monthly basis across 161 games in Web3.

Top 10 games in the last 30 days include: Alien Worlds, Farmer World, Sweat Economy, Splinterlands, SuperWalk, Trickshot Blitz, Upland, Solitaire Blitz, Axie Infinity, Sunflower Land.

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Future Growth Potential:

Technological Advancements: Continuous advancements in blockchain technology and the increased acceptance of cryptocurrencies and NFTs are likely to fuel the growth of Web3 gaming.
Monetization Models: Innovative monetization models like play-to-earn could attract a broader spectrum of gamers, driving user base expansion and market growth.
Regional Adoption: Regions with strong gaming cultures and blockchain interest, like Asia, especially Philippines, Korea and Japan, are leading and expected to double down on Web3 gaming adoption.

Challenges in Web3 Onboarding

Web3 technologies, although innovative and promising, come with a set of challenges that can hinder the smooth onboarding of new users, especially in the gaming domain. Some of the prevalent challenges associated with Web3 onboarding as of today:

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Design Complexity: Balancing the "play" and "earn" aspects of Web3 gaming is a significant challenge. The industry is still figuring out how to design engaging games while also providing earning opportunities through decentralized finance (DeFi) mechanisms.

Trust Issues: The “play-to-earn” model, while lucrative, has faced trust issues from traditional gamers. Overcoming the image issues from this era and gaining Web 2 gamers’ trust has been slow and remains a challenge.

Cost Barrier: The upfront costs associated with starting in Web3 gaming, such as transaction fees (gas fees), can be a deterrent for many potential gamers. The cost barrier is a pressing obstacle to onboarding new players who need to onramp from an exchange and buy native gas tokens before playing the game

User Experience (UX): Streamlining the user experience to make it seamless, user-friendly, and less complicated is crucial. The complexity of blockchain technology and cryptocurrency management can be overwhelming for newcomers.

Accessibility: Simplifying user interfaces and onboarding processes is essential to improve accessibility. Designing user-friendly interfaces and providing easy-to-understand information can make it easier for newcomers to navigate Web3 gaming platforms without burdening them with complex crypto specific terminlogies.

Technical Understanding: A certain level of technical understanding is required to navigate the Web3 space, including managing wallets, understanding blockchain technology, and handling cryptocurrencies. This technical barrier can dissuade many potential gamers.

Privacy Concerns: Privacy and security concerns surrounding the use and storage of personal information on blockchain networks can also be a significant challenge. Ensuring the protection of user data while maintaining the decentralized nature of Web3 is crucial.

Regulatory Uncertainty: The evolving regulatory landscape for blockchain technology and cryptocurrencies can create uncertainty and apprehension among potential gamers and developers alike. Adhering to regional and global regulatory requirements is essential for the successful onboarding of users in Web3 gaming.

Network Scalability: As the user base grows, ensuring the scalability of the network to handle increased traffic while maintaining performance is vital. Scalability issues can lead to slow transaction speeds and higher costs, negatively impacting the user experience.

Interoperability: Interoperability between different blockchain networks and traditional gaming platforms is essential to facilitate a smooth transition for users and developers alike. Overcoming interoperability challenges can significantly enhance the onboarding experience in Web3 gaming.

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Each of these challenges requires tailored solutions and strategies to ensure a seamless onboarding experience for new users in the Web3 gaming domain. By addressing these challenges head-on, the industry can better position itself for broader adoption and sustained growth.

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Arcana's Positioning to Solve Web3 Onboarding Challenges

We can’t solve all the challenges (just yet) but the Arcana product suite is well-positioned in addressing the challenges associated with Web3 onboarding, particularly in the gaming domain. Here's an elaborated breakdown of how Arcana is well-equipped to tackle some of these onboarding issues:

Simplified Onboarding: Arcana Auth can simplify the onboarding process by enabling users to log in using familiar Web2 credentials such as email or social accounts and provides them with a non-custodial in-app wallet. This reduces the learning curve for users new to Web3 technologies and can help in overcoming the trust issues associated with the “play-to-earn”.

Reduced Onboarding Complexity: With Arcana Gasless, users can play games without paying gasfees reducing the need to understand transaction costs and native tokens, addressing the complexity that often comes with decentralized applications (dApps), making it easier for users to transition from traditional gaming platforms to Web3 gaming environments.

Targeting Web2 Users: Arcana aims to repair Web3 onboarding by targeting Web2 users and retaining the existing player base of games. Offering native chain and widget wallet solutions can ease the transition for traditional gamers

Seamless Integration: Arcana’s Auth & Store Software Development Kits (SDKs) facilitate easy integration to onboard Web3 users seamlessly and store data on-chain with access control. This approach addresses the privacy concerns and the technical understanding required to manage wallets and handle blockchain transactions.

User Experience Enhancement: By removing common blockchain-associated frictions such as managing wallets, keys, and gas fees, Arcana helps enhance the user experience (UX)

Whitelabelling the wallet will allow developers to control the level of blockchain complexities users are exposed to.

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Gas Fee Sponsorship: with Arcana Gasless, the developers can sponsor gas fees, addressing the cost barrier associated with blockchain transactions. This feature can make blockchain transactions frictionless for users, thereby improving the user experience and accessibility.

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Privacy-Preserving Features: The users email IDs are not exposed to the network of nodes not stored on a backend server. The private keys are only retrievable by the end-user and neither arcana nor the key generation nodes in its network have access to it.

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Potential Impact of Arcana on Accelerating Web3 Gaming

User Acquisition Impact: Arcana isn’t just opening doors; it’s tearing down the walls that stand between gamers and the utopian world of Web3 gaming. Arcana’s can bridge Web2-Web3 gaming UX, potentially tapping into the 20% annual growing gaming market, it’s not merely an improvement; it’s an onslaught that will see the user base swell to 7.5 million over 5 years.

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Retention Rate Impact: Loyalty isn’t granted; it’s earned. Based on data analysis of current gaming applications using Arcana Auth, there is a 15% increase in retention rates. As Arcana’s product offerings expand, the gaming platforms will witness not just a fleeting visit but a lasting allegiance from the gaming populace.

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Conversion Rate Impact: As of today, the conversion rate from Web2 to Web3 falls well under 2%. By abstracting the onboarding issues such as authentication, transaction fees, transferring assets using email, the conversion rate can be increased by upto 90%.

Market Share Growth: With a 2% increase in market share, translating to a market value surge of USD 2.66 billion by 2028, Arcana isn’t just playing the game; it’s changing the game.

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Gas Fee Sponsorship Adoption: Arcana’s Gasless feature with a potential to facilitate a million transactions, it’s not just saving; it’s an emancipation worth USD 10 million based on the current transaction performed on Top 10 games.

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Developer Adoption: Arcana strongly believes that to onboard the next billion users to Web3, there needs to be another million developers in Web3. The developers using Arcana product suite can build their user onboarding in just minutes, boosting inbound developer interest in Web3.

User Satisfaction and Recommendations: Satisfaction isn’t a goal; it’s the standard. With Arcana, user satisfaction and recommendations will significantly increase, carving a path of organic growth fueled by user endorsements.

About Arcana

Arcana Network is an UX-focused appchain dedicated to improving Web3 UX with a suite for products for developers and users.

Its offerings include Arcana Auth for seamless user logins and web3 authentication on dApps, Arcana Gasless for frictionless Web3 transactions, SendIt for simplified crypto transfers.

By addressing challenges like user onboarding, complex user interfaces and transaction costs, Arcana is fostering a more user-friendly and inclusive web3 ecosystem
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‍Join the Public Pre-Sale Allowlist for Arcana’s Upcoming RegD Token Offering on Republic

Stay updated through our communities for real-time updates, insights, and essential announcements:
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Allowlist members are given access to the sale 48Hrs before the general audience.

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‍Please note: https://arcana.network is the only official website to access Arcana's XAR Drop. Neither the claiming site, any member of the Arcana team, nor any community moderator will ever ask you to enter your private key or transfer tokens of any kind from your wallet.

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