Gaming and esports company Nazara Technologies has announced its foray into the Web3 space by signing a letter of intent with Singapore-based Web3 infrastructure startup Lysto. The collaboration focuses on building a Layer 1 (L1) blockchain platform, named The Growth Protocol, which is intended to reshape digital marketing and growth applications within the Web3 ecosystem.
L1 blockchains form the foundational layer of decentralized cryptocurrency networks, serving as the backbone for core blockchain functions. Prominent examples of L1 networks include Bitcoin, Ethereum, Solana, and Cardano. By leveraging this infrastructure, The Growth Protocol aims to introduce improved transparency, fairness, and financial incentives for all stakeholders in the Web3 marketing environment.
Launch of The Growth Protocol at India Blockchain Week
Nazara and Lysto officially unveiled The Growth Protocol during India Blockchain Week in Bengaluru. As part of the launch, the team introduced a proof-of-concept decentralized application (dApp) for loyalty rewards, specifically designed for game marketing. Alongside this, a private testnet for the protocol was rolled out, offering attendees a tangible demonstration of how Web3 technology can be implemented to enhance the gaming sector.
This strategic move represents Nazara’s intent to expand beyond traditional Web2 gaming, marking its entry into the Web3 landscape. With the support of Lysto’s expertise in blockchain-based gaming infrastructure, Nazara is expected to release new games that incorporate Web3 elements. These developments are anticipated to position Nazara as a frontrunner in the evolving blockchain-based gaming industry.
Web3 Gaming: A Key Driver for India’s Booming Industry
The collaboration comes at a time when India’s gaming industry is projected to experience rapid growth. According to insights shared by blockchain technology investor Hashed Emergent during the same conference, the Indian gaming market is expected to reach $9.2 billion within the next five years. A significant portion of this growth is predicted to come from Web3 gaming, which is emerging as a key contributor due to its higher monetization potential and increased player engagement.
The findings highlighted a stark contrast between Web2 and Web3 gamer spending patterns. On average, Web3 gamers spend significantly more annually compared to their Web2 counterparts. Specifically, the annual spending of a Web3 gamer averages $220, which is nearly double the $120 spent by Web2 gamers. Furthermore, a larger proportion of Web3 gamers—approximately 38%—were observed to spend over $500 per year, underscoring the lucrative opportunities within the Web3 gaming segment.
Impact on Digital Marketing and Gaming
Nazara’s entry into the Web3 domain signals its intent to embrace blockchain innovation for both gaming and digital marketing. By developing The Growth Protocol, the company aims to address some of the long-standing challenges within the digital marketing space, including transparency and equitable revenue sharing. The use of blockchain technology offers a decentralized framework that benefits all participants, from game developers to marketers and players.
In addition, Nazara’s plans to release Web3-based games will likely strengthen its presence in the gaming industry, attracting a new generation of gamers eager to engage with blockchain-powered platforms. This shift also aligns with broader industry trends, where Web3 gaming is gaining traction due to its ability to provide financial incentives, greater ownership of in-game assets, and enhanced user experiences.
A Strategic Move for Future Growth
Nazara’s partnership with Lysto reflects a forward-thinking approach to harness the potential of Web3 technology. By integrating blockchain infrastructure into digital marketing and game development, the company aims to remain competitive in the fast-evolving gaming industry. The launch of The Growth Protocol not only demonstrates the practical applications of blockchain but also underscores the growing importance of Web3 in reshaping traditional business models.
As Web3 gaming continues to gain momentum in India and globally, Nazara’s efforts to bridge the gap between gaming and blockchain technology position it as a leader in the next generation of gaming and marketing solutions. By tapping into the increasing spending power of Web3 gamers, the company is well-placed to capitalize on the opportunities presented by this rapidly expanding market.
