Looking to earn money while having fun? Play-to-Earn or P2E games are the way to go, then. P2E is a new gaming model that allows users to earn while playing games. It is rapidly gaining popularity among gaming enthusiasts and investors alike. So, if you’re interested in learning about it, start with this article as soon as possible.
Introduction to Play-to-Earn or P2E games
So what is Play-to-Earn, exactly? It is a new model and trend in the gaming industry that lets gamers earn while doing what they do best. Such games are gaining in popularity because they offer an alternative source of income without the drudgery of work. You can simply play a game and earn money.
Understanding the concept of P2E
Play-to-earn games allows players to monetize their time and efforts. That means, it lets them turn their gaming skills into a source of income. P2E games became possible due to the arrival of blockchain technology. The technology allows developers to create in-game assets that players can earn as they complete tasks.
The rise of P2E in the gaming industry
The gaming industry has seen a significant rise in popularity with the advance of P2E games. On-chain gaming activity rose by 1.31% in January 2023. And the market caps of top gaming tokens have also risen by a steep 122%, according to CryptoSlate. Clearly, the gaming industry was thriving despite what is known as the crypto winter.
How does P2E work in blockchain games?
Play-to-Earn operate through blockchains and smart contracts. But how exactly do they work? Let’s break that down a little for you.
The use of crypto and blockchain technology
The use of crypto and blockchain technology has revolutionized the gaming industry. With their introduction, gaming has become mre than a hobby. There are people looking to make a career out of gaming. All of this becomes possible with P2E blockchain games, because they allow for the tokenization of digital assets. Such in-game digital assets can be purchased through crypto.
The role of in-game assets
In-game assets play a crucial role in the P2E games. These are virtual goods, such as weapons or armor. They usually are essential for taking the game forward and for the discovery of new levels.
Players can acquire them through gameplay or purchase them.
The interoperability of P2E games
As games that use the P2E model have gained in popularity, so has the demand for interoperability. Interoperability refers to the ability to transfer crypto and other assets across blockchains. As players acquire assets in a game, they often wish to put them to use on a different platform. This is where the demand for interoperability stems from. Developers are now focusing on creating P2E games that can work seamlessly across different platforms.
Popular P2E games and their features
Some of the most popular P2E games are CryptoKitties, Axie Infinity, The Sandbox, and Splinterlands. They are well-known for their engaging gameplay and rewarding features.
Let’s start with CryptoKitties. This is a blockchain game developed by Canadian studio Dapper Labs. Players can create, buy, and sell cat-themed NFTs on the underlying Ethereum network. Due to its popularity, the Ethereum network had to deal with a congestion problem back in 2017. Come 2023, the network continues to remain just as well-loved.
Axie Infinity is another popular P2E games developed by the Vietnamese studio, Sky Mavis. The metaverse is a world full of creatures called Axies. Players can collect, breed and get them to battle against each other.
Sandbox is a gaming platform that was developed by Pixowl but later acquired by Animoca. Players get to assume the avatar of a “Deity apprentice” and go about crafting their own universe. In the process, they explore and exploit resources such as water, soil, lightning, lava, sand and glass. Having begun in 2D form in 2012, the popularity of this game has stood the test of time.
Splinterlands is a collectible card game. Players can own the cards in the game as NFTs that they can sell on third-party platforms. The game gets its name from Splinters—one of six different character categories of players using different elements in battle. The game uses an in-game currency called Dark Energy Crystals.
The advantages of P2E games
P2E games offer various benefits to players. Let’s try to understand some of these advantages that make these games so popular.
Increased player engagement
With the rise of these games, players are more invested in the gaming world than ever before. This has to do with the oppotunities to earn rewards and incentives. P2E games therefore mean more player engagement.
The ability to earn money
The opportunity to earn while having fun is a real attraction. Some of the games also allow players to put in-game assets on other platforms, making the monetization even easier.
The potential for long-term investment
The long-term potential of these games as an investment is promising. They offer a unique opportunity to own more virtual assets with not much more than your time at stake.
The development of a strong community
Play-to-earn games have also revolutionized the way communities interact. People form strong bonds and gain a sense of belonging by playing games. Furthermore, P2E platforms have made it possible to monetize gaming, giving players even more incentives to participate.
The challenges of P2E games
P2E games pose significant challenges for players and developers. For instance, the volatility of crypto rewards and the risk of fraud can make it difficult to sustain the business model. To understand the challenges at length, read on.
The need for technical understanding
To fully engage with these games, it’s crucial to have some understanding of blockchain technology. This knowledge enables players to optimize their gameplay and earn more rewards.
The risk of volatility
The volatility risk associated with these games cannot be ignored. As a result, it is essential to diversify investments and stay informed about the market. Additionally, using caution when investing in such opportunities is crucial.
The importance of trust in the platform
While trust is crucial in any platform, it is more so for P2E games. Firstly, transparency and reliability result in a loyal user base. Users want to know that their earnings are safe. Ultimately, it encourages growth and success in the play to earn industry.
The potential for fraud
P2E platforms are vulnerable to hacking, phishing, and account takeovers. Plus, fraudsters can manipulate the game to win virtual rewards.
The future of P2E and the gaming industry
The future of P2E looks promising. How so? There are various components to the answer.
The integration of virtual reality
Virtual Reality (VR) has revolutionized the gaming industry. The play-to-earn model’s financial gains apart, integrating VR enhances the gaming experience. It makes the experience more immersive and engaging.
The expansion of the P2E ecosystem
The P2E ecosystem is growing exponentially, thanks to the popularity of these games. The global blockchain gaming market size is expected to reach $104.5 billion by 2028, according to one estimate this year.
The development of new P2E games
With the rise of these games, developers are even more inspired to constantly work on new games. This means that gameplay is like to get more exciting and engaging than ever before.
These games have already revolutionized the gaming industry. With time, the games get better and the market will expand even further. P2E games have thus set us on a path of no return. Thankfully it leads to greener pastures.
What is play-to-earn?
Play-to-earn is a gaming model where players can earn real-world rewards or cryptocurrency by participating in the game, completing tasks, achieving milestones, or trading virtual assets within the game.
What is an example of a play to earn game?
Axie Infinity is a popular example of a play-to-earn game. Players can earn cryptocurrency by breeding, battling, and trading virtual creatures called Axies within the game.
What is play and earn vs play-to-earn?
“Play and earn” generally refers to traditional gaming, where players may receive in-game rewards or virtual currencies. On the other hand, “play-to-earn” specifically emphasizes the ability to earn real-world value or cryptocurrencies through gameplay activities.
How can I make money from play-to-earn?
To make money from play-to-earn, you can participate in play-to-earn games, complete tasks, earn in-game rewards or virtual assets, and then sell or trade them for real-world value or cryptocurrencies on gaming marketplaces or exchanges.
How do I start playing play-to-earn games?
Research popular play-to-earn games. Set up an account, acquire in-game assets, play the game, and earn rewards. Trade or sell assets on marketplaces for real-world value or cryptocurrencies.
Which app is good to play and earn money?
Some popular apps that offer opportunities to play and earn money include Swagbucks, Mistplay, and Skillz. However, it’s important to research and read reviews to find the best fit for your preferences and location.