Throughout the history of video games, they have been a form of entertainment and relaxation after a tough day. But now, this generation of video games is not similar to traditional gaming. Nowadays, gaming is pretty much the same but with a twist: gamers can now earn big bucks. This new version of gaming allows players to find a real income just by playing an online game.
What are Play2Earn (P2E) Games?
P2E games are video games where players can earn rewards such as non-fungible tokens (NFTs) or crypto that can be sold on the market. Regular players can earn more items or tokens that can be used to sell and generate a real-time income.
How do P2E Games Work?
Each game provides financial incentives to play and progress and each progress is different. Essentially, P2E games involve grinding and committing to victory.
The rewards may come in two forms: NFTs or tokens.
- Games like Axie Infinity rewards users with in-game cryptocurrencies acquired by completing tasks.
- Players can earn or trade in-game NFTs. Depending on the game, these NFTs can be for cosmetic reasons or other purposes in-game.
Here are some P2E games that users should be aware of:
- CryptoKitties: This is an Ethereum-based blockchain game that lets players purchase, collect, breed, and sell virtual cats.
- Axie Infinity: Axie infinity is a game about collecting, raising, and battling with fantasy creatures called Axies. This online game has garnered immense popularity in many parts of the world.
- Decentraland: This is a 3D world in which players can buy up virtual land, build on it, and rent or sell it to other players.
- Galaxy Fight Club: A player versus player (PVP) game where players can battle, win and earn Ethereum and NFTs.
- The Nemots: This is a smart NFT-based blockchain-powered multiplayer collectible card-building game.
How Secure are P2E Games with Blockchain Technology?
Cryptocurrencies are used for P2E games and these currencies and items exist on blockchains. A blockchain has several properties that easily prove ownership, legitimacy, and rarity.
A blockchain network is maintained by a distributed network of computers and each of them holding a copy of the blockchain data making it impossible for hackers to change, duplicate or delete the data.
As all transactions take place in the blockchain, ownership, and authenticity of in-game digital assets can be always verified. Moreover, using the blockchain makes it easier to move in-game assets between different games and platforms, meaning that the player has endless opportunities to monetize their collection.
Are P2E games an Investment Opportunity?
P2E games often mean investing more than just time. As many games require players to purchase required items before starting playing, these games have more at stake than usual.
According to research, in a way, they can be an investment because in any case, users can own an NFT related to a certain game and if it ends up being a big success with an active fanbase, then the NFT should see an increase in the value as well.
Another way to invest in NFT games is with its native token. For instance, Axie Infinity has a high-valued currency. In Axie, players are given a native token ($SLP) to spend the coins in the game to progress further.
The Rise of the P2E Concept
Axie Infinity is one of the biggest contributors to the P2E space. It is a monster battling game launched back in 2018.
According to research, the game had a massive growth in the Philippines and Indonesia.
The online game gradually gained popularity in 2019 with 2.8 million active players and a total trading volume of $3.8 billion.
This game is about players collecting creatures called Axies that come in the form of NFTs. Players can collect and trade them for real income.
Following the steps of Axie, several other GameFi companies started the development of new titles to benefit from the popularity of P2E games.
Conclusion
Driven by the high hopes for the coming of a new paradigm, P2E games have earned the spotlight since 2022. However, the P2E idea is fresh and still under development, it has yet to navigate many challenges. Based on research, leading game studios like Take-Two interactive and Square Enix have begun discovering the GameFi space.
Despite all challenges, the future of P2E is still promising. P2E is much more likely to win the hearts of users with its open ecosystem and ownership of in-game assets.
Learn More About Crypto, Blockchain, & Web3:
- A Beginner’s Guide to Crypto Trading
- Getting Employment for a Metaverse in 2022
- A Complete Beginner’s Guide to the Metaverse with Blockchain
- What Is a Stablecoin? How Does It Affect the Cryptocurrency Ecosystem?
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