23 September 2023
When it comes to the social implications of the rise of decentralized technology, gaming communities throughout the globe have been in the forefront. Africa's gaming scene isn't as well as those in the Americas, Asia, or Europe, but new firms in nations like Egypt, Kenya, Nigeria, Uganda, and South Africa are lifting the standard.
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What is Web3?
The development and the rise of blockchain, a ‘wave’ phenomena as defined by several tech gurus – is progressively encompassing technology with the power of advancement. In this sequence, many different definitions start to fall apart. With the goal of establishing a trustworthy distributed network for doing business, tech enthusiasts have begun investigating the best ways to build a distributed data structure with built-in security measures. This structure will be founded on Cryptographic principles. Web 3.0 is another rapidly developing online development wherein Information Technology giants are focusing their attention. Previously, the terms Cryptocurrency, non-fungible tokens (NFTs), and the metaverse had begun to dominate the digital world. Known for his forward-thinking vision for the internet, renowned computer scientist Gavin Wood first used the phrase "Web 3.0" in 2014.
Web3 Possibilities in Africa
Web3 as well as blockchain games including Axie Infinity as well as Thetan Arena, with its decentralized structures and P2E token economies, have proved to be rather popular among African gamers. Metaverse Magna, which bills itself as "Africa's Largest Online Gaming Community," is gaining popularity and demonstrating the enthusiastic use of Web3 technology by African gamers. After beginning as a gaming guild providing P2E scholarships to almost 1,000 gamers across a variety of online games, Metaverse Magna has expanded to become a multi-guild platform with 100,000 members and a recent $3.2 million seed token sale, valuing the initiative at about $30 million.
Many African governments are investigating blockchain-based solutions, such as Central Bank Digital Currencies (CBDCs), since they believe this will lead to a more educated strategy to the Web3 market and, in turn, regulatory structures that are more in accordance with the requirements of regular consumers. The Central Bank of Nigeria (CBN), that had earlier condemned it, eventually introduced the e-Naira in October 2021, but it took some time for the government of Nigeria to catch on to this technological trend. This "Bank for International Settlements" digital currency trial project in Durban involves several different Central Bank Digital Currencies (CBDCs), including those of several other African countries. Furthermore, central banks in Morocco, Tunisia, Ghana, Kenya, Rwanda, Madagascar, as well as Mauritius, and most recently Uganda, are exploring the feasibility of issuing digital currencies.
Metaverse Magna, which plans to produce new games and a Crypto-gaming guild-management platform, is inspired by the community-driven model pioneered by Yield Guild Games and Avocado DAO. Latest gaming groups often use the DAO structure to pool resources for the purchase of non-fungible tokens (NFTs), the creation and investment in specific games and Decentralized Finance (DeFi) initiatives, as well as the coordination of marketing efforts to expand demand for their collective assets. There were a number of international investors from the gaming and Crypto space who participated in Metaverse Magna's funding round this year, including South Korean videogame developer Wemade, Japanese venture capital firm Gumi Cryptos Capital, Hong Kong digital asset manager HashKey, IndiGG, India's largest gaming guild, and others. This demonstrates the wide-ranging interest in Africa's blockchain gaming market.
Setting the Stage for Africa’s GameFi Boom
Newzoo, a company that tracks the global gaming industry, has determined that between 2012 and 2022, the number of gamers in the Middle East and Africa (MEA) rose by 8.2%, the highest rate of any area. The Middle East and North Africa (MEA) region also had the fastest annual market expansion, at 10.8%. According to Newzoo, there are around 24 million gamers in South Africa. On the other hand, according to Chainalytics' research on the Crypto payments ecosystem in Sub-Saharan Africa, countries like Nigeria and Kenya have some of the highest Cryptocurrency adoption rates and are among the most advanced in terms of peer-to-peer transactions.
As a result, Africa's growing economies have seen some of the most remarkable development in modern times. Nations including Kenya, Nigeria, as well as South Africa have really been quickly growing their marketplaces, in both terms of the number of gamers and the acceptance of bitcoin. This has created the conditions for the two movements to intersect in the emerging Game-Fictional industry. Africa's gaming environment does have a possibility to support broader financial development as well as draw interest from Web3 developers and investors as NFTs, in-game currencies, and top eSports continue to debunk the illusion that in-game value is somehow isolated from the real economy.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.