The web3 industry has seen significant growth in funding, with more than 60% of the $7.1 billion raised by web3 startups in 2022 going into web3 gaming. But for web3 games to take off and reach their full potential, they need to overcome scaling challenges. Enter Zero-Knowledge (ZK) technology, which offers multiple game-changing benefits, including scalability, enhanced security, privacy protection, trustless gameplay, new revenue streams, and improved game mechanics.
One of the biggest challenges is scalability. Web3 games need to be able to process tens of thousands of transactions simultaneously to compete with traditional AAA games like League of Legends and Fortnite, which attract millions of players, each with multiple in-game items. Ethereum, the go-to blockchain for web3, can only process up to 30 transactions per second, on average, which is a problem.
However, the development and imminent launch of ZK technology native compatibility with Ethereum, known as zkEVM, will change the game development fundamentally in ways that transcend web3 gaming. The technology allows transactions to be bundled and validated off-chain, reducing the transaction data on the mainnet and increasing throughput by 600x, significantly lowering fees, and allowing millions of high-volume, low-cost transactions daily.
The interoperability of the new titles will be another significant benefit. Assets, avatars, profiles, and more can move across different platforms and games, allowing users to have greater liquidity and access. Furthermore, all titles and services can become seamlessly interoperable, thereby creating an ecosystem where gamers can engage in a composable gaming universe, increasing the longevity of the underlying economic value of gaming titles.
The technology also enables compatibility with smart contracts, which will unlock more sophisticated gameplay mechanics and vibrant economies within the Ethereum ecosystem. All assets can be nested, with a player’s avatar being an NFT with multiple accessory NFTs. This will offer numerous possibilities for monetizing the game and increases the longevity of the gameplay.
ZkEVMs will make games more secure than ever before. Leveraging ZK-powered IDs or gamer tags ensures that only the individual connected to the account can interact with them, making exploitative or malicious activity easier to monitor and address. This stands to revolutionize how moderation is handled, making these environments safer for everyone.
The future is already here, as zkEVMs are already under development, and any gaming studio can tap into the benefits offered by this technology. Developers are no longer shackled by limitations, and they can bring their creative visions to life. The use of ZK technology is set to take decentralized gaming to the next level, introducing new levels of scalability, security, and privacy protection, creating a more immersive and interoperable ecosystem for gamers to engage with and enjoy.