Thanks to blockchain technology, significant developments are taking place in the gaming industry, much like in many other sectors. One of the latest innovations in the blockchain-based gaming world is the “play-to-earn” model. So, what exactly is this “play-to-earn” model?
The gaming industry continues to evolve rapidly, driven by technological advancements. As of 2021, it is estimated that more than 2.5 billion people worldwide play mobile games and video games. While the esports industry boasts over 450 million players, the growing interest in 3D games is constantly on the rise. In 2020, the gaming industry as a whole generated approximately $162 billion in revenue.
Until recently, games were purely one-sided experiences. However, with the evolution of the industry, games have transformed into social platforms, providing new opportunities for interaction and connection. The play-to-earn system, a new gaming model, offers a unique approach to virtual sociality. The COVID-19 pandemic, which affected the entire world in 2020, played a significant role in accelerating the popularity of play-to-earn games.
The global lockdowns forced by the pandemic led people to explore the potential of the online world. During this time, many discovered that they could both work and have fun simultaneously, using internet-connected devices from anywhere in the world. As a result, play-to-earn has emerged as a trending business model and is steadily gaining traction within the DeFi gaming industry.
Play to Earn ve Metaverse
The games in the Play-to-Earn system are integrated with the Metaverse feature. The Metaverse offers users a world that goes beyond the physical universe. In the Metaverse, virtual lands, avatars, and even buildings can be bought and sold, often using cryptocurrencies. In these virtual universes, people can spend time with friends, participate in events, and buy goods or services. In other words, the Metaverse enables you to do everything that you would do in real life, but in a virtual environment.
Most of the Metaverse platforms are powered by Blockchain technology. To purchase items in these virtual worlds, you need cryptocurrencies or NFTs. Many current Play-to-Earn platforms have their own local currencies.
What is Metaverse?
To put it simply, the Metaverse is a virtual world that people can enter. It is the internet brought to life with all its subtleties. The Metaverse can be described as an infinite and interconnected world of virtual realities, where people can play, meet, work, and do whatever they want using headsets, AR devices, and other smart devices.
What is the Purpose of Play to Earn Games?
The play-to-earn game model, which embraces the idea of an open economy, financially rewards every user who adds value by playing and spending time in the gaming ecosystem. In the past, games were merely a way to have fun, but thanks to new game models, they are now transforming into an investment opportunity.
The core concept of the play-to-earn system is that players are rewarded for dedicating time and effort to the game. Consider traditional games like The Sims or World of Warcraft, where players can purchase in-game assets from the platform’s store using in-game currency. In these games, even if you spend money to buy various items, that expenditure holds no value in the real world. The reason for this is the lack of a liquidity infrastructure in such traditional games. However, Blockchain technology, combined with the play-to-earn model, has provided a solution to this issue.
How Do Play-to-Earn Games Work?
With its combination of gaming and finance, play-to-earn games fall under the GameFi category. Each game provides financial incentives to play and progress. The two main methods of generating income are as follows:
- Earn in-game cryptocurrency: Completing daily tasks can reward players with the game’s native cryptocurrency.
- Earn or trade in-game NFTs: Each NFT can represent an item, character, or other collectible in the game, and these can be traded between players.
A third method is staking. Some NFT games allow users to lock NFTs or cryptocurrencies in smart contracts, generating rewards. For example, staking MBOX tokens rewards users with MOMO NFT Mystery Boxes. Each box contains a random NFT of varying rarity, which can then be sold on the secondary market.
To better understand how play-to-earn games work, let’s take Axie Infinity as an example. Axie Infinity is a Blockchain game inspired by Pokémon. One of the most interesting aspects of the game, which has more than 1 million active daily users, is the cute in-game creatures known as Axies. Users can breed, buy, train, and send these creatures into battles to complete missions. The primary goal of the game is to earn an in-game token called Smooth Love Potion (SLP). With the SLP earned, players can breed their own creatures, thus generating even more value.
Another feature of SLP is that it can be traded on cryptocurrency exchanges, allowing users to earn income that holds real-world value. Players can also sell the items they create in-game to other users as NFTs.
How Does Blockchain Technology Secure Play-to-Earn Games?
A Blockchain has several features that easily prove ownership, legitimacy, and rarity. Blockchains, which can be thought of as an immutable database, are secured by a distributed network of computers that maintain a copy of all data. This means it is almost impossible for someone to modify, duplicate, or delete data on the Blockchain.
Thanks to Blockchain, games can prevent issues like item duplication, gold piracy, and other types of fraud or corruption that are common in traditional games.
Are Play to Earn Games Free to Play?
While there is ongoing debate about whether these games will be available for free or not, it is clear that each developer has chosen their own approach. Since video games are expensive to develop and require a creative team, it is entirely reasonable for developers to pursue a profit motive. Some games are free, while others may charge a small fee to play. On the other hand, the benefit of such games is that they create value that can be sold to players. Even if you have to pay something to start playing, these items can be sold for a potential profit.
How To Start Playing Play To Earn Games?
Each play-to-earn game will have different requirements for new players. At the very least, you’ll need a crypto wallet to store your cryptocurrency and connect it to the game.
You may also need to make an initial investment, such as building a team of characters to play with or purchasing in-game items. Entering a digital crypto economy usually comes with a small fee.
Play to Earn Game Examples
Play-to-earn allows players to earn a steady stream of crypto income simply by playing the game. While the mechanics of each game may vary, the rewards typically come from placing bets, collecting the game’s currency, or crafting tradable NFT items. In older Blockchain games, users mostly relied on random luck to make a profit. However, play-to-earn has introduced in-game economies and business models where players can actively work to generate revenue. Below are details of some games with the play-to-earn model:
Bloktopia
Powered by Polygon, Bloktopia is a decentralized metaverse that offers an unparalleled virtual reality experience for the crypto community. It serves as a bridge between the virtual and physical worlds within decentralized and open-source environments.
OneTo11
OneTo11 is a fantasy sports mobile application that allows players to use their sports knowledge for entertainment and profit. The game aims to enable sports fans, bettors, and players to do what they love on a single platform. On this platform, users can interact socially and compete with each other in a transparent and decentralized manner. Users can earn money by participating in fantasy sports competitions and other games on the platform.
Nakamoto Games
Nakamoto Games‘ goal is to ensure that anyone with a crypto wallet can access a wide range of play-to-earn games on the platform, enabling them to generate large and sustainable revenues.
TryHards
TryHards is an NFT-based shooter powered by the Polygon Blockchain. In TryHards, players can risk, fight, craft, and evolve their characters and weapons simply by playing the game. Known as Fanatics, these characters and their weapons are all NFT-based. Players must collect as many Fanatics as possible to upgrade their gaming power. Since it’s a play-to-earn game, there’s a monetary incentive to stake the platform’s native TRY tokens and continue playing.
Gods Unchained
Gods Unchained is a free-to-play card battle game where players buy and sell rare and valuable cards to defeat enemies.
A close copy of Blizzard’s hugely popular “Hearthstone: Heroes of Warcraft,” Gods Unchained offers Blizzard’s game players a familiar introduction to crypto and Blockchain technology with the added advantage of crypto. Although Gods Unchained itself is not based on the Blockchain, the cards are built on the Ethereum Blockchain. As a result, the cards owned by players become tradable assets in secondary markets.
Plant vs Undead
Plant vs Undead is a free-to-play tower defense game set in a post-apocalyptic world overrun by zombie attackers. Players must strategically arrange plants to defend against an invading zombie colony. The play-to-earn model in Plant vs Undead capitalizes on the game’s considerable replay value. Players can purchase seeds with PVU tokens from the platform’s marketplace to play the game.
Together With The Gods
Built on the Polygon Blockchain, Together With The Gods is a costplay P2E game that rewards players with NFTs and cryptocurrencies. The game features powerful action heroes from five different classes, each with unique traits, skills, and special abilities for battles. Players need to create and strengthen teams of heroes and use different strategies to win battles.
Farmers World
Farming games, where players can plant crops, harvest them, or build barns, have grown in popularity in recent years. Farmers World is a P2E game that allows players to choose from a variety of vehicles to grow and harvest crops. Players can also attack other farmers while waiting for the harvest period. By participating in in-game events, farmers can mine or mint GOLD, the game’s native token, and NFT-based in-game items.
Farmers must also protect their farms from wild animals and monsters. With GOLD tokens, they can create their own NFT-based farming tools to enhance their farms and improve crop production.
My Neighbor Alice
My Neighbor Alice is a multiplayer game set in Alice’s world, where players can buy and build virtual islands. Players can make in-game purchases using ALICE, the game’s native currency, and convert ALICE tokens into fiat currencies on cryptocurrency exchanges.
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