There is no doubt that 2022 has been a wasteland for crypto investors, NFT collectors, and blockchain enthusiasts. From the destruction of TerraLUNA to the implosion of FTX, many have looked at web3 and blockchain technology with derision; but those elements are not to blame for the criminal behavior of bad actors.

Those bad actors constructed their own version of web3 to swindle investors and pilfer money. Web3 needs to step away from the tech stacks, tools, and packages of web2 and construct its own wholly independent apparatus. Blockchain technology itself is proveably robust and secure; the technology itself has not failed users, the problem is the centralized web2 ecosystem it is built in.

Decentralization is foundational 

Although fully pure decentralization is arguably not possible, it still brings an immense amount of independence and ownership that is not possible with web2. Decentralization is at the core of web3 and an essential element for unlocking the power of blockchain technology.

By definition, decentralization means the distribution of powers and functions away from a single centralized authority or governing body to multiple other entities. This type of structure has enabled web3 to become an internet that is more secure, distributed, and censorship-resistant than web2.

By leveraging blockchain technology and decentralization, web3 eliminates the need for third-party intermediaries and brings users more control over their data. The problems with web2 – such as the lack of privacy and security – will never be fixed by web2 because of its centralized configuration.

GameFi is unwelcome in web2

Payment systems within gamefi, such as Play-to-Earn, are seen by many gamers as a bold cash grab. In 2022 Minecraft famously banned all blockchain technology from its platform, abandoning many associated NFT projects. 

Gamefi has been gaining traction in the gaming industry as web 3.0 technology continues to grow and decentralize the web, ushering in a new era of games powered by blockchain. While gamefi has tremendous potential to revolutionize the gaming industry, it is still largely unpopular with gamers due to its perception of putting monetization ahead of gameplay experience and community growth.

Many web3 games are in their early stages and require players to manually track their funds and transactions, which can be a cumbersome process. As such, gamefi has a barrier to entry that can be difficult for many gamers to overcome.

Their suppression of blockchain was a clear line in the sand to web3 developers to not bring their brand of games into the Minecraft sandbox. This was yet again a clear signal to web3 developers and game developers: don’t build web3 on a web2 platform. Developers must put the work in to build their own tools, packages, and frameworks to expand gamefi’s potential. 

By contrast, Etherjump gained massive success after building its own platform, independent of a web2, centralized ecosystem. Etherjump took the nostalgic look of older videogames like Super Mario and created a brand new game with a hot style that the market loved. BCCN3 interviewed the Etherjump team about their success on BCCN3 Talk podcast.

Blockchain is the central gamechanger

In web3, blockchain technology serves as an immutable distributed ledger that records transactions between parties securely and transparently. This technology is essential for decentralization, as it allows all parties to verify the accuracy of transactions and store them in an immutable public record.

Centralization is at the core of the TerraLUNA and FTX crime syndicates. These platforms were built under the guise of decentralization, beguiling countless investors. All the while, they were just like any other centralized scam such as Enron or Bernie Madoff. For web3 and blockchain to truly rocket to the moon it must stop relying on web2 technology.