Play-to-earn games offers players the opportunity to earn NFTs and cryptocurrency while having fun by playing the games.
Given how popular the blockchain has become in the cryptocurrency world, It was only a matter of time until games jumped on the blockchain bandwagon and certainly, the number of blockchain or play-to-earn games is starting to soar.
Online gaming has experienced a wide range of trends and tendencies over the years, just like every other sector. The play-to-earn game can appear as cutting-edge and brand-new at first glance, but, it has its roots in a lengthy tradition of role-playing games and massively multiplayer online games.
What are play-to-earn games?
Play-to-earn games are online games based on the blockchain technology that allows players to earn rewards with real-world value by performing tasks, competing against other players, and advancing through multiple game levels.
Play-to-earn games payout rewards in the form of non-fungible tokens or virtual currency. In-game items including cryptocurrency tokens, virtual land, as well as skins, weapons, and other NFTs are used as these rewards.
Because these games are decentralized, players can purchase, trade, and sell these in-game items for real money outside of the game’s virtual universe.
These blockchain-based games, sometimes referred to as P2E, have gained popularity recently and have become an essential part of almost every metaverse, with each platform having its coin to compensate online players for their time investment.
Play-to-earn gaming has become more popular despite still being in its infancy. One of the main reasons play-to-earn games have become so well-liked is because players can enjoy themselves while earning currency with real-world worth. Another reason is the ability to develop NFTs that have the potential to be valuable assets.
Axie Infinity, a blockchain-based game created in 2018 by Vietnamese game developer Sky Mavis, is perhaps the most notable example. It is currently valued at about $3 billion.
What is the impact of play-to-earn games on blockchain adoption?
Play to earn games is emerging as a trend in the gaming industry and is taking the DeFi gaming industry by storm. Here are some of the impact of play-to-earn.
• Creative way to make money
• Proven Ownership
• Full control over assets
• Growing gaming industry and market
Creative way to make money
While having fun is still the most important aspect of gameplay, earning rewards in cryptocurrencies and NFTs is a huge added incentive to play. This is the basic idea behind play-to-earn games.
Playing games to make money benefits both gamers and game producers.
Play-to-earn gaming allows for the use of more cutting-edge revenue streams. Developers of play-to-earn games consider the creative worth of these assets rather than the asset price.
Developers consider how in-game assets will rise in value while they are being created. For instance, in Cryptokitties, this was accomplished by giving the “kittie” NFTs a substantial amount of DNA properties.
Traditional games only offer players the opportunity to play for sheer fun. You pay for the game, and unless you’re an established streamer or professional esports player, you will never be able to earn money from your gaming time.
Contrarily, blockchain gaming gives users the chance to make real money. Players view them as something that will enable them to gain money rather than something that will rob them of it.
The initial inducement for many players to join these games is the opportunity for financial gain offered by the play-to-earn concept.
The way these games are designed, the revenue is split between the players and the creators.
Blockchain technology is used in play-to-earn games to demonstrate ownership of unique game assets. The digital asset that players win in a blockchain game becomes their own.
Even if the game is permanently discontinued, nobody can take it away from them. These resources are linked to participants, not to games.
The players own the NFTs. not the game’s, the developer’s, or anybody else’s. They are still in the players’ possession even if the game ends.
Blockchain games are created in a way that thwarts corruption or fraud, such as gold hacking, item duplication, and other frequent flaws in conventional games.
Blockchain prohibits copying and pasting. A game item’s worth is significantly influenced by its rarity. If something is unique, it cannot ever be copied. As a result, in-game objects have more true value.
Players frequently suffer buyer’s regret when playing traditional games. This occurs when gamers put time and money into a game, yet the game continually requests more. Players feel duped since the game diminishes the value of their prior purchases in this way.
Blockchain games do not have this issue. Players have the option to take their NFTs outside of the game and sell them in a variety of niche markets where they could be paid in cryptocurrency or real cash.
Blockchain technology is used in play to earn games to specify asset quantities, and to establish ownership, validity, and rarity.
Full Control over Assets
The gaming sector is not exempt from the decentralization and autonomous governance features that the blockchain delivers to everything it touches.
In conventional games, the developer manages the distribution of all goods, money, and collectables. Play-to-earn games are decentralized in contrast to conventional games.
They distribute their assets among players rather than keeping them on a single server under one person’s control.
Players have total control over their digital accounts and assets in blockchain games.
They are aware that they are free to exchange, sell, or give away the assets they hold. They are also free to engage in any manner of interaction with the game’s economies.
They are also free to use these assets in other blockchain games. Players can essentially utilize them in any market that uses blockchain technology.
Traditional games are centralized. This indicates that the developers have complete authority and set the rules for users. The potential for democracy is limited.
Play-to-earn gaming is a unique case. Many games include “governance” tokens that allow players control over decision-making.
In these games, each player is given a vote. The developer will be compelled to implement the change if the majority of players, even if they are just 51 per cent, voted for it.
Growing gaming industry and market
The possibility of NFTs and play-to-earn has appealed to the mainstream gaming business. Play-to-earn projects combine elements of decentralized finance (DeFi) with NFT gaming. The growth of play to earn games would cause a shift in the gaming culture, revolutionizing current huge projects.
Play-to-earn games are anticipated to have a successful future and transform numerous industries in the upcoming years, changing the gaming landscape forever.
As a result, existing games will gain fresh traction and gamers’ interest in the blockchain gaming industry as a whole will increase.
Furthermore, the fact that this sector is expanding will be advantageous to all developers on the market. An independent developer or a large company both have the potential to produce a successful blockchain game.
According to Reddit founder Alexis Ohanian, within the next five years, play-to-earn games will account for 90% of the gaming market,
Play-to-earn games are a recent innovation that has made it feasible for gamers to make money. It is a business that will continue to expand since it combines two things that everyone wants in life: fun and money.
It is still a fairly new idea, but it is organically growing in popularity with a market that used to spend their money on gaming but is now able to invest it and their time.
However, you should always exercise caution because many games have the potential to be scams, unsustainable due to poor tokenomics, or both.