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 barriers and allowing platforms to deliver more immersive experiences. TinTucBitcoin interviewed Ilman Shazhaev, Founder and CEO of Farcana, about how we interact with virtual worlds and drive the next phase of digital evolution.
Breaking down the siloed gaming ecosystem
The lack of true ownership has been a persistent problem in traditional gaming. Players spend hours and precious money building characters and assets, only to be limited to a single game. This problem exists to some extent in the metaverse as well.
Having assets locked in a single blockchain network leads to the same old problem of exclusion and limiting user experience. This barrier needs to be broken down for the metaverse to thrive and provide the multi-dimensional experiences that are the true essence of this technology.
Interoperability solves this problem by allowing assets, achievements, and identities to move across platforms and networks, transforming how we engage with virtual worlds. This approach empowers players and lays the foundation for a connected metaverse ecosystem where digital assets have real value.
“Blockchain gives players control over their virtual items across different environments, unlike traditional gaming, where purchases are locked to a single account or platform,” Ilman Shazhaev, Founder and CEO of Farcana, told TinTucBitcoin in an interview.
Breaking Barriers with Blockchain
Tokenization lies at the heart of interoperability in the metaverse. Tokenizing assets as NFTs makes in-game items like characters and weapons unique and portable across platforms. Tokenization turns these items into valuable digital assets that players can use, trade, sell, or rent across environments.
“This eliminates the trend of low-value transactions that we see in a lot of AAA games today. You reached a new level and unlocked a new shell, but what is its value? Blockchain helps players extract value from their in-game assets,” said Shazhaev.
Platforms like Farcana illustrate how blockchain can integrate interoperability into gaming. Farcana allows players to tokenize in-game assets, making them tradable or usable across compatible environments. Similarly, Decentraland has taken this idea a step further by allowing users to move characters, virtual properties, and other items across different metaverse platforms.
This functionality increases user engagement, creating larger ecosystems where time and effort invested in one space can be transferred elsewhere.
In-game assets provide gamers with a richer and more meaningful gaming experience. However, according to a survey from EY-Parthenon, game assets are not one of the most popular digital assets. When the survey was repeated between 2022 and 2024, game assets grew by only 4% and ranked 7th. With increased interactivity, gamers are more inclined to invest if it means better value for money.
Retail Digital Asset Investor Survey March 2024. Source: EY-Parthenon.
Developers also benefit from interoperability. By connecting their games to broader ecosystems, they can attract a more diverse audience and create new revenue streams. For example, Farcana has expanded its in-game economy with a marketplace where players can trade items or contribute to prizes.
Similarly, Decentraland hosts a series of unique events every week, evidenced by its growing user base, showing how interoperability drives ecosystem engagement.
Number of Decentraland Unique Wallets (UAW), August to November 2024. Source: DappRadar.
The Challenge of Achieving Interoperability
While interoperability promises to usher in a new era of gaming experiences and the metaverse, it also faces significant challenges. Scalability remains a key issue.
As of 2023, Ethereum, the leading blockchain in gaming, can only process 15 to 30 transactions per second (TPS), compared to 193 TPS on PayPal's network. This difference leads to higher transaction costs and slower processing times, which can disrupt smooth gameplay.
Complexity is also a major hurdle. 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 this complexity as a deterrent to adopting blockchain-based games.
Overcoming these challenges will require developers to improve the registration process while maintaining the core benefits of blockchain of transparency, security, and ownership.
Perception remains a barrier as well. Many players still associate blockchain games with speculation and financial motivations, viewing them as less fun than traditional gaming. Shazhaev reflects on this shift:
“Developers are now optimizing monetization frameworks to focus on creating sustainable ecosystems that prioritize gameplay quality over short-term financial gains,” he added.
By focusing on gameplay-first experiences, developers can address skepticism and encourage long-term engagement.
The Future of Interoperability in the Metaverse
Despite these challenges, the future of interoperability is bright. Unified marketplaces could soon allow players to seamlessly trade assets between 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 development. Imagine a sword owned in a fantasy RPG that could become a decoration in a virtual house or a tool in a survival game. This is what a truly immersive experience should look like.
These developments are consistent with broader trends in the gaming market. Investment in blockchain gaming has exploded, reaching $1.1 billion in Q2 2024, up 314% from the previous quarter. This rapid increase in capital shows strong confidence in the future of blockchain-based interoperability.
According to Statista, the projected size of the metaverse gaming market is expected to explode by 2030, reaching $168 billion in market capitalization.
Predicted Metaverse Gaming Market Size, March 2024. Source: Statista.
Shazhaev envisions a connected metaverse where both players and developers benefit from these advances:
“Blockchain allows us to build ecosystems where players and developers both benefit, opening up new opportunities for participation and innovation,” he concluded.
Overall, interoperability represents a fundamental shift in how games and the metaverse operate. By breaking down silos and enabling cross-platform connectivity, blockchain-powered interoperability is transforming separate digital experiences into a combined and collaborative virtual universe.
Projects like Farcana and Decentraland are leading the way, demonstrating how blockchain can empower players and developers. However, challenges like scalability, complexity, and cognitive issues need to be addressed to achieve widespread adoption.
As blockchain technology evolves, interoperability will play a central role in shaping the future of the metaverse. Integrating such technologies could enable gaming studios to deliver increasingly rich and limitless experiences, changing the way we interact with digital spaces.
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