Why we're (still) betting big on Web3 gaming

Welcome back to Web3 Creator!

In today's edition, we're diving deep into the most exciting developments in the Web3 world. From gaming to social commerce, here's what's on our radar:

1 big thing: Why we're (still) betting big on Web3 gaming

Leah Callon-Butler and Nathan Smale of Emfarsis explain why gaming is still the leading light of blockchain tech.

The resilience of Web3 gaming: Game tokens may be down 37% this year, but crypto's cyclical nature makes this just another phase. For angel investors, this is the perfect time to dive in. We're post-Crypto Winter but not yet in another bull run, offering a unique window where innovators pitch groundbreaking ideas and intriguing MVPs. Our belief? Web3 gaming will outshine other sectors in innovation, adoption, and impact.

Emfarsis's mission: At Emfarsis, we're investing in early-stage Web3 projects, focusing on gaming. Since 2016, we've seen blockchain’s potential to empower marginalized groups and fairly redistribute wealth. Web3, for us, is a force for good.

Play-to-earn: Play-to-earn gaming flipped the script. We saw its potential early, when "blockchain gaming" seemed laughable. Leah's 2020 piece on Axie Infinity marked a turning point. Despite UX issues, the game's promise caught on, especially in the Philippines, where a young, tech-savvy, and largely unbanked population embraced it.

Axie Infinity: By July 2021, Axie had nearly 3 million daily users, mainly from emerging markets. Sky Mavis, Axie’s developer, delivered a pure Web3 experience where anyone could benefit from the game’s virtual economy. This was groundbreaking without simplifying blockchain tech.

Community innovation: Scholarships allowed NFT owners to rent assets, making the game accessible. Though free-to-play models have lessened their relevance, they showcased the community's ingenuity.

The future of Web3 gaming: Web3 games are evolving with trends like composable “modding” and fully on-chain games (FOCG). We see these as Web3’s R&D labs, pioneering unique user experiences and innovative tokenomics.

Angel investing insights: We began angel investing with the realization that mass adoption didn't require simplified Web3 elements—it needed to be engaging. This insight points to a massive market for Web3 gaming.

Growth and momentum: By July 2024, there are over 994 quality Web3 games across 70 blockchains. This rapid development highlights gaming’s role in driving Web3 engagement, making it the most promising blockchain use case.

What's next? Investors want to know: what’s the next Axie? With ongoing innovation, the next big hit is imminent. Web3 gaming developers continue to drive growth and engagement, keeping the sector exciting.

Web3 gaming is a strategic investment despite market fluctuations. Its innovation, growth potential, and impact on the digital economy make it compelling. At Emfarsis, we’re committed to early-stage Web3 gaming projects, aiming for long-term growth and social change.

Report by Onyx by J.P. Morgan

Web3: A new era for social commerce

Social commerce is booming, and Web3 is set to take it to the next level. Our new report dives into how Web3 tech like digital identity and open algorithms are making online shopping more fun, secure, and user-friendly.

Say goodbye to frustrating algorithms and cart abandonment. With Web3, you control your data and enjoy a seamless shopping experience directly within your favorite social platforms.

Curious about what’s next? Download the report and get ahead of the game.

MetaMask unveils game-changing toolkit at EthCC

Consensys has just introduced the MetaMask Delegation Toolkit at EthCC, a significant leap forward in simplifying decentralized app development and boosting Web3 user engagement.

A toolkit for developers: According to a press release shared with Cointelegraph, the toolkit empowers developers to build decentralized applications (DApps) and protocols that offer fresh user experiences. Available on any Ethereum Virtual Machine (EVM) chain supported by a user operation bundler—including Arbitrum, Avalanche, Base, Linea, Optimism, and Polygon—the toolkit promises broad applicability.

Dan Finlay, co-founder of MetaMask, noted that while this first version is Ethereum-specific, its components could easily be adapted for other chains.

Bridging the Web3 knowledge gap: A Consensys study involving 15,000 participants aged 18 to 65 revealed that many people find crypto overly complex. Only 8% of respondents considered themselves very familiar with Web3, highlighting a significant knowledge gap.

The MetaMask toolkit aims to close this gap by reducing repetitive user actions and minimizing direct interactions with Web3 infrastructure, making the experience smoother and more intuitive.

Key features of the MetaMask delegation toolkit:

• Seamless onboarding: Users can get started without needing extensions or application downloads.

• No seed phrases: Eliminates the need for managing seed phrases, a common friction point.

• Smooth interactions: Removes pop-ups and constant confirmations, allowing for uninterrupted flows.

• Flexible gas management: Supports gasless transactions and flexible gas cost management.

Finlay elaborated on the user experience, explaining that the toolkit allows users to set custom policies and conditions, eliminating the need for constant confirmations.

Enhanced security with Wallet Guard: In addition to the toolkit, Consensys announced its acquisition of Wallet Guard on July 3. This security tool is designed to protect digital assets and data from fraud, scams, and theft. The integration of Wallet Guard into MetaMask aims to enhance user protection against malicious DApps and scams, ensuring a safer Web3 experience.

MetaMask’s new toolkit and the integration of Wallet Guard are set to revolutionize the Web3 landscape by simplifying user onboarding and enhancing security. As the Web3 ecosystem continues to grow, these innovations will play a crucial role in driving adoption and improving user experiences.