What is Play-to-Earn Gaming? What Sets It Apart?
Throughout the history of video games, they’ve served as a source of entertainment and relaxation. However, the current generation of video games introduces a unique twist. Gaming now extends beyond tradition, enabling players to potentially earn substantial rewards. This novel form of gaming allows individuals to generate real income while engaging in online gameplay.
Exploring Play2Earn (P2E) Games
P2E games encompass video games where players have the opportunity to secure rewards like non-fungible tokens (NFTs) or cryptocurrency, which can be traded on the market. Ordinary players have the chance to accumulate valuable items or tokens, convertible into a tangible income stream.
P2E Games – How Do They Work?
Each P2E game incorporates financial incentives tied to participation and progression, each with its distinct dynamics. Essentially, P2E games involve dedicated effort and striving for success.
The rewards manifest in two primary forms NFTs or tokens.
- For example, Axie Infinity offers in-game cryptocurrencies as rewards, earned through task completion.
- Players can acquire and trade in-game NFTs, which may serve cosmetic or functional purposes within the game world.
Highlighted P2E Games to Note
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CryptoKitties
An Ethereum-based blockchain game enabling players to buy, collect, breed, and sell virtual felines. -
Axie Infinity
A game centered around collecting, nurturing, and battling fantasy creatures known as Axies. This title has gained substantial popularity worldwide. -
Decentraland
A three-dimensional virtual world where players can purchase virtual land, construct on it, and lease or sell it to fellow players. -
Galaxy Fight Club
A player-versus-player (PVP) game where participants engage in battles, with Ethereum and NFT rewards at stake. -
The Nemots
A multiplayer collectible card-building game powered by smart NFTs on the blockchain.
P2E Games with Blockchain Technology – How Secure Are They?
Blockchain technology underpins P2E games, encompassing both cryptocurrencies and items within a secure blockchain framework. The inherent properties of blockchain ensure unequivocal ownership, legitimacy, and rarity.
The blockchain operates via a distributed network of computers, each holding a copy of the blockchain data. This structure safeguards against unauthorized data manipulation.
Transactions recorded on the blockchain facilitate constant verification of ownership and authenticity of in-game digital assets. Additionally, blockchain facilitates the seamless transfer of in-game assets across different games and platforms, expanding avenues for asset monetization.
Can We Explore P2E Games as Investment Opportunities?
Participating in P2E games often involves more than mere time investment, as players may need to acquire specific items before embarking on gameplay.
Research suggests that P2E games can indeed be viewed as an investment, especially when owning NFTs associated with successful games could lead to increased value.
Furthermore, native tokens within NFT games, like Axie Infinity’s $SLP, offer another investment avenue, as players can utilize these tokens within the game’s ecosystem.
The Emergence of the P2E Phenomenon
Axie Infinity holds a prominent role in propelling the P2E concept forward, having introduced a monster battling game in 2018.
Research reveals substantial growth for the game, particularly in the Philippines and Indonesia, with 2.8 million active players and a trading volume of $3.8 billion in 2019.
Axie Infinity revolves around the collection and trading of Axies, which manifest as NFTs, providing players with opportunities for real income.
Inspired by Axie’s success, numerous GameFi companies have embarked on developing new titles to capitalize on the rising popularity of P2E games.
In Conclusion
Since 2022, Play-to-Earn gaming has garnered considerable attention, fueled by the promise of a transformative paradigm. Despite being in its early stages of development, P2E games exhibit promise, albeit with challenges ahead. Prominent game studios like Take-Two Interactive and Square Enix have begun exploring the GameFi space.
Undoubtedly, the future of P2E gaming remains bright, drawing users with its open ecosystem and the prospect of owning in-game assets.