Interoperability is becoming increasingly important in the expanding metaverse space. Previous generations of Web3 and Metaverse games suffered greatly from a lack of cross-platform compatibility.
However, new developments in interoperability are breaking down these silos and allowing platforms to deliver more immersive experiences. BeInCrypto speaks to Ilman Shazhaev, founder and CEO of Farcana, about how to engage with the virtual world and foster the next stage of digital evolution.
Breaking down the siled gaming ecosystem
Lack of true ownership has been a persistent problem in traditional games. Players spend countless hours and precious money building characters and assets, only to have them locked away within a single game. This problem carried over into the Metaverse to some extent.
Locking your assets within a single blockchain network creates the same issues of exclusion and limited user experience as before. Therefore, this barricade must be broken for the Metaverse to flourish and deliver the immersive experiences that are the essence of this technology.
Interoperability addresses this issue by allowing assets, achievements, and identities to be moved between platforms and networks, transforming the way we interact with the virtual world. This approach empowers players and lays the foundation for a connected metaverse ecosystem where digital assets hold real-world value.
“Blockchain allows players to control virtual items across different environments, unlike traditional games where purchases are locked to a single account or platform,” said Ilman, founder and CEO of Farcana. Shazhaev said in an interview with BeInCrypto.
Breaking down barriers with blockchain
Tokenization is at the heart of interoperability in the metaverse. Tokenizing assets as NFTs makes in-game items like avatars and weapons unique and portable across platforms. Tokenization turns these items into valuable digital assets that players can use, trade, sell, and rent across the environment.
“This eliminates the trend of worthless microtransactions seen in many AAA games today. You've reached a new level and unlocked a new skin, but what's its value? Blockchain allows , players can extract their value from their in-game assets,” Shazaev said.
Platforms like Farcana exemplify how blockchain integrates interoperability into gaming. Farcana allows players to tokenize in-game assets and trade and use them across other compatible environments. Similarly, Decentraland took this idea further by allowing users to transfer avatars, virtual real estate, and other items to various metaverse platforms.
This feature enhances user engagement and creates a broader ecosystem where time and effort invested in one space can be carried over to other spaces.
In-game assets provide players with a richer and more meaningful gaming experience. However, according to research from EY-Parthenon, gaming assets are not among the most popular digital assets. Repeating the study from 2022 to 2024, gaming assets grew by just 4%, ranking seventh overall. With improved interoperability, gamers will be more inclined to invest if they can get a greater return.
Retail Digital Asset Investor Survey, March 2024. Source: EY-Parthenon.
Developers equally benefit from interoperability. By connecting your games to a broader ecosystem, you can attract a more diverse audience and generate new revenue streams. For example, Farcana has expanded its in-game economy with a marketplace where players can exchange items and contribute to prize pools.
Similarly, Decentraland hosts a unique batch of weekly events that demonstrate how interoperability drives a participatory ecosystem, as demonstrated by our growing user base.
Unique Number of Wallets (UAW) Decentraland, August to November 2024. Source: DappRadar.
Challenges in achieving interoperability
While interoperability promises a new era of gaming and metaverse experiences, it also faces major hurdles. Scalability remains a key issue.
As of 2023, Ethereum, the leading blockchain for gaming, can only process 15-30 transactions per second (TPS), compared to 193 TPS on PayPal's network. This contrast can increase transaction costs, slow processing times, and disrupt seamless gameplay.
Complexity is also a major obstacle. Blockchain games often require players to set up wallets, purchase tokens, and manage digital assets. According to a 2024 report, 10% of traditional gamers cited these complexities as a barrier to adopting blockchain-based games.
To overcome these challenges, developers need to streamline the onboarding process while maintaining the core benefits of blockchain: transparency, security, and ownership.
Awareness also remains a barrier. Many players still associate blockchain games with speculation and financial incentives, and view them as less interesting than traditional games. Shazaev reflects on this change:
“Developers are currently optimizing the Play-to-Earn framework to focus on building a sustainable ecosystem that prioritizes quality of gameplay over short-term financial gain,” he said. I added.
By focusing on gameplay-first experiences, developers can combat skepticism and foster long-term engagement.
Despite these challenges, the future of interoperability is bright. An integrated marketplace could soon allow players to seamlessly trade assets across different platforms, creating liquidity and long-term value for digital items.
Dynamic assets, or items that adapt their functionality based on the platform or game, are another promising innovation. Imagine the sword you get in a fantasy RPG becoming a decoration for your virtual home or a tool in a survival game. This is what a truly immersive experience should be.
These developments are consistent with broader trends in the gaming market. Investments in blockchain gaming skyrocketed, reaching $1.1 billion in Q2 2024, an increase of 314% quarter-on-quarter. This rapid influx of capital shows strong confidence in the future of blockchain-based interoperability.
According to Statista, the projected market size for Metaverse games is expected to skyrocket by 2030, reaching an estimated market cap of $168 billion.
Metaverse Game Market Size Forecast, March 2024. Source: Statista.
Shazhaev envisions a connected metaverse where players and developers alike benefit from these advances.
“Blockchain allows us to create an ecosystem that benefits both players and developers, opening up new opportunities for engagement and innovation,” he concluded.
Overall, interoperability represents a fundamental change in the way games and the metaverse work. By breaking down silos and enabling cross-platform connectivity, blockchain-powered interoperability transforms isolated digital experiences into unified, collaborative virtual worlds.
Projects like Farcana and Decentraland are paving the way and demonstrating how blockchain can empower players and developers alike. However, challenges such as scalability, complexity, and recognition issues must be addressed for widespread adoption.
As blockchain technology matures, interoperability will play a central role in shaping the future of the metaverse. By integrating these technologies, game studios can deliver more immersive and infinitely scalable experiences that change the way we interact with digital spaces.
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