Among blockchain sectors, Web3 gaming has struggled to keep pace, delivering lacklustre performance compared to the explosive growth of cryptocurrencies over the past year. James Strudwick, executive director of Web3 firm Starknet Foundation, however, believes the Web3 gaming ecosystem has made gradual progress in recent times, even if the growth appears to be sluggish on the surface. Headquartered in Israel, the company runs the Starknet ecosystem as an Ethereum-based Layer-2 scaling solution that also lets developers design their game offerings.
Speaking to Gadgets 360, Strudwick said that onboarding challenges, unfamiliar UX, and limited awareness were among crucial factors that had kept the growth of Web3 gaming tepid. His words coincided with DappRadar’s recent report that said Web3 gaming activity registered a six percent QoQ decline in the forst quarter of 2025.
As per Starknet’s observation, western markets have been slower to engage with Web3 gaming owing to lingering scepticism. In regions like Southeast Asia, India, and parts of Africa, however, the interest in Web3 gaming has surged over the last few years.
In this interview with Gadgets 360, Strudwick addresses the roadblocks hindering the expansion of Web3 gaming, as well as possible solutions that can bring a notable change in the situation.
Gadgets 360: Where does the sector of Web3 gaming stand compared to traditional Web2 gaming? Which regions are showing most and least interests in Web3 gaming?
Strudwick: Web3 gaming is still in its early stages when compared to the vast scale of Web2 gaming, which reaches more than a billion online players worldwide.
Gadgets 360: Members from India’s gaming community often complain that Web3 gaming is merely a means to cash in on the hype around crypto, NFTs, and metaverse. What do you have to say about this view?
Strudwick: It’s understandable that some see Web3 gaming as a speculative trend, especially given the early wave of games focused on play-to-earn mechanics that prioritised profit over fun. However, the industry has evolved. Today, Web3 games are deeply gameplay-first, with blockchain working behind the scenes to enhance player experience.
These games focus on real ownership, trustless economies, and a more collaborative development model — not hype. Developers now aim to build sustainable, decentralised ecosystems where the emphasis is firmly back on player engagement and long-term value.
Gadgets 360: Do Web2 and Web3 game development share similarities? What best practices from Web2 gaming can help improve community engagement in Web3?
Strudwick: While Web2 games have mastered UX, onboarding, and player engagement loops, Web3 games are just beginning to integrate those elements. Web2 and Web3 game development, both, require a deep focus on gameplay, polish, and community building. The best practices from Web2 — such as frictionless login, engaging tutorials, and responsive UI — can dramatically improve Web3 gaming.
Developers should use blockchain with features like session keys and account abstraction to bring that same level of polish to blockchain-powered games, creating experiences that are both accessible and immersive.
Gadgets 360: Ubisoft, Lamborghini are among companies that have forayed into Web3 gaming. However, after the initial announcements, they rarely return to the headlines. What challenges currently prevent Web3 gaming from achieving mainstream adoption?
Strudwick: Mainstream adoption of Web3 gaming has been hindered by a combination of high transaction costs, poor UX, and onboarding complexity. Traditional blockchains could not support seamless gameplay due to slow speeds and fee spikes. Moreover, players often had to interact with wallets and sign transactions repeatedly, creating a clunky experience.
Web3 games need to match the fluidity of Web2 while unlocking the benefits of decentralisation underneath.
Gadgets 360: Is there a shortage of educational courses for Web3 game developers?
Strudwick: Yes. The shortage of formal educational content around Web3 gaming stems from the fact that the development stack is still evolving and lacks standardisation.
As more developers embrace languages like Cairo — which shares similarities with Rust — and more projects publish their development journeys, it will become easier to create structured learning tracks, tutorials, and onboarding resources to support the next wave of Web3 game builders.
Gadgets 360: What new technologies are expected to shape Web3 gaming in India in FY 2025–26?
Strudwick: Zero-knowledge rollups will offer high-throughput and secure environments where entire game logic can run onchain. Meanwhile, native account abstraction will make onboarding seamless, allowing for Web2-style login and gameplay experiences.
Composable game architectures will enable developers to treat games as protocols, allowing for modifications and spin-offs without central permission. Decentralised identity and cross-game asset portability will additionally give players more control and flexibility across gaming ecosystems.
Gadgets 360: What are the key trends influencing Web3 gaming in India, including the role of indie game developers and global collaborations?
Strudwick: Web3 gaming in India is being influenced by a few key trends. Indie developers are increasingly leveraging open-source engines like Dojo to build scalable, secure onchain games. Decentralised modding and user-generated content are becoming more viable, creating community-driven experiences that go far beyond traditional modding. At the same time, DAOs and decentralised communities are enabling global funding, knowledge-sharing, and project acceleration.
India’s strong indie game development scene is well-positioned to thrive in this model, where creativity and code matter more than connections or capital.
Gadgets 360: Can you shed some light on Starknet’s contribution to Web3 gaming?
Strudwick: Starknet offers the tools and infrastructure needed to match traditional game performance with decentralised benefits.
The platform delivers sub-cent transaction costs and sub-two-second confirmations, which are critical for action-heavy games. It also features native account abstraction, allowing players to sign in using familiar methods and enjoy uninterrupted sessions.
Developer tools like the Dojo Engine, Cairo language, and a growing suite of SDKs make building on Starknet intuitive and scalable. With live projects like Realms and Influence already demonstrating what’s possible.
Recent Developments in Web3 Gaming
A recent blog by Binance’s BNB Chain claimed that GameFi will evolve into the more mature “Web3 Gaming” model. GameFi merges gaming and finance via blockchain-based games that operate on a decentralised model. These games reward players with native tokens from their ecosystems, enabling them to earn income while playing.
In March this year, The Root Network (TRN), a metaverse-focused Web3 platform, launched its “TRN Odyssey” initiative aimed at assisting promising Web3 gaming projects on the TRN Layer-1 blockchain.
Telegram last year launched multiple Web3 mini apps on its messaging app, onboarding its users onto the Web3 gaming ecosystem.