The Web3 sector is teeming with thousands of products and services that seek to engage a new generation of tech-savvy consumers, and blockchain gamification is one effective approach. This process involves incorporating interactive gaming elements to make non-gaming activities more engaging and immersive for users. The blockchain component enhances this concept by integrating Web3 elements, such as digital avatars and non-fungible tokens (NFTs), into metaverse-based gaming ecosystems.

When the Web3 brand – which already has a blockchain network serving as its core technology – decides to apply blockchain gamification techniques, it introduces a special set of features. This includes branded games and prizes from later game competitions.

What Blockchain gamification entails

NFT brand Axie Infinity and mobile-friendly web3 browser Fulldive are among the brands that have incorporated blockchain gamification into their operations. Both platforms introduced versions of utility NFTs, VR games and crypto points to keep users spending more time on their platforms.

Through this process, brands can connect a storytelling narrative to their platforms and services. This can further help brands act as a hotspot for social interaction for their community members, marketing platform Smartico.ai explained in a blog post.

As part of gamification experiments, brands can implement rewards for using certain features and allow in-app trading of those NFT-like rewards. Several platforms are adding blockchain gamification to their operations to engage old users and keep things interesting for newer ones.

The risks of blockchain gamification

Gamification of the Web3 protocol always runs the risk of creating or introducing gaming addiction. For others, if designed and executed improperly, gamification could distract users from the usefulness of the platforms.

As explained on the Investopedia blog, gamification of web3 products and services “harnesses the same human psychology that causes people to enjoy winning at games and dislike or even fear losing”.

The excitement of winning games integrated with their brands can manipulate people into joining the platform – where they could be at risk of facing crypto-related financial losses.