Why Warren Buffett might start thinking about shorting Web2 in 2023?

As the apocryphal tale goes when Warren Buffet was asked about missed opportunities, he replied, “I wish I’d started shorting horses in 1900” — or words to that effect.Now, in 2023, at the precipice of game-changing technology, he might well be inclined to say now is the time to start shorting Web2.

Horses for courses

Let’s attempt to qualify this thesis…When the first cars arrived, they made horses as a means of travel redundant. It didn’t happen overnight, of course. The transition took many years. Even after mechanized rubber wheels hit the road for the first time, the number of horses on the roads still far outweighed the number of cars.But within a short space of time, a tipping point occurred. Modes of transport were suddenly 50 percent horses and 50 percent cars. For the first time, people had a choice between recalcitrant creatures and more (if not entirely) obedient vehicles.Fast forward another twenty years and, as cars became more efficient and affordable to run, the use cases for horses as a means to get from point A to B diminished.By 1960, those use cases had nose-dived to zero.Hooves and oats were out. Wheels and diesel were in!

Comparison corner

In a similar way, Web3 is likely to replace Web2 — eventually. In a few decades’ time, the companies building dApps, ecosystems, platforms, and games on the blockchain will be considered Henry Fords of the digital age; the ones with foresight, ambition, and vision.Web3 points to the evolution and maturation of the internet. A place where digital ownership and data self-sovereignty will be in the hands of users rather than developers.Already, gaming is moving in this direction where players can earn, own and keep digital assets and have a say in the future of the games they help to scale through decentralized autonomous organizations (DAOs).And there is no better time than right now to be a part of it.

In Web3 gaming, ownership is a thing.

Remember that skin you saved up to buy. Or that ultra-powerful axe that takes just three blows to destroy an enemy instead of an energy-sapping ten. In Web3 you don’t just have them to flex or use in-game. You can own, swap and sell them. Increasingly, through guilds and scholarship programs, it’s even possible to rent them out. These artifacts, be they shields, potions, weapons, or parcels of land go beyond simply serving a function within a walled garden — they have a monetary value that can be realized in the real world.

How blockchain changes the game

Because these items are stored immutably on a ledger connected with a specific wallet address, proof of ownership is now a reality. And this is the real game-changer. Through smart contracts, every digital item and its history of transfer and ownership can be stored immutably on a distributed ledger, aka blockchain. Within games, this verifiable proof of ownership bestows, for the first time, real value on digital collectibles and other digital assets.

Still early days

But not everybody is ready to jump on the Web3 horse just yet. The technology is new and adoption is slow. There are multiple problems to solve, and regulatory hoops to jump through. But, by the time Web3 gameplay is as sophisticated and enjoyable as the best console games, the question players must ask themselves is: “Do you want to play just for the experience, or do you want to play for the experience plus rewards and collectibles with real-world value?”In the end, V-Bucks won’t buy your groceries. But cryptographically generated tokens with a fixed supply can.

Everything evolves

From mainframes the size of small buildings performing basic calculations to digital wristwatches with the entire world at your fingertips; from the phonograph to online music streaming; from horses to the modern car…everything evolves. Gaming is no different.From single-player to two-player to MMORPGs, from the “Brown Box” to mobile experiences, games have evolved in new and exciting ways. Now that the nature of the infrastructure has changed — conferring value to previously valueless digital items for the first time in history — a new gateway for the sector has opened. And, as the hype around Web3 increases, it’s likely that more and more Web2 gamers will get up and walk through it.

BlockGames is the world’s first cross-chain, cross-game Player Network, accelerating user acquisition for games through instant referral and engagement rewards mechanisms for players. The first game on the Player Network is Shatterpoint, an action-packed RPG in the style of Diablo.