The NFT ecosystem has seen tremendous growth this year, with new players jumping into the market. The growth of the NFT ecosystem has also led to the emergence of play-to-earn gaming. Play-to-earn gaming has seen significant growth in the recent few months, but it’s just the tip of the iceberg. Play-to-earn is set to revolutionize not just the gaming industry but also the digital economy.
The emergence of the e-gaming industry brought games to digital platforms. The e-gaming industry’s value had already crossed $173.70 billion in 2020. Before the mainstreaming of esports, play-to-earn PC games contributed largely to digital economies. PC games like ‘Diablo II’ (2000) or ‘Runescape’ (2001) have helped a lot of players make significant earnings.
Source: https://www.zfort.com/blog/How-Does-Your-Video-Game-Make-Money-From-NFT
The gaming industry saw huge growth over the past decade. From merely a source of income, the gaming industry evolved into a full-time source of income for many. According to Statista, the global video game industry’s total value is expected to surpass 138 billion by 2021. Gaming has become the world’s largest media category, leaving behind linear TV, on-demand entertainment, film, and music.
While gaming is a very profitable industry, almost all the activities related to it are centralized. With a wave of decentralization sweeping across the industries, even the gaming industry is not untouched. While the traditional model of ownership and profit sharing still exists, concepts like play-to-earn are bringing the necessary change.
Play-to-earn Games
Play-to-earn games are special types of video games that allow players to ‘truly’ earn and own digital assets. allow users to farm or collect crypto and NFTs that can be sold on the market. The idea of play-to-earn games is focused on decentralizing the gaming industry. Regular players can earn more items or tokens to sell and generate an income.
Source:https://podcastgameconsultant.com/digital/play-to-earn-games/
The Role of Blockchain
While play-to-earn games are profitable, there involves a risk. To play the game, one needs to put up an initial investment to purchase characters and items. This is where blockchain technology comes into play. Blockchain helps guarantee the collectibility of these items and create working digital economies. This concept is called digital scarcity. NFTs also have a role to play here. In order to cash out the gains, the players need to deposit their NFTs or crypto to an NFT marketplace or exchange.
How play-to-earn games work
Play-to-earn games fall under the GameFi category. Players get financial incentives for playing the game. There are two ways how players can make an income from play-to-earn games:
Players can earn in-game cryptocurrencies.
Gains can also be made in NFTs. These are called in-game NFTs.
Besides this, staking is another option for players to make an earning from play-to-earn games. Some NFT games allow users to lock up NFTs or cryptocurrencies in smart contracts. Users get rewards in exchange for locking up their NFTs or cryptocurrencies. Since the rewards associated with these games are in cryptocurrencies, blockchain has a critical role to play.
How Play-to-earn games are changing the gaming industry
Play-to-earn games are nothing like normal games. Users see it as a full-time profession and dedicate their time and personal investments to digital platforms. The involvement of blockchain makes the entire process trustworthy. Play-to-earn games rely on blockchain in several ways. This includes the dependence on NFTs. The gains made in the form of NFTs can be sold by players for real-world money. NFTs are totally decentralized, and this helps in keeping the decentralized integrity of play-to-earn games intact.
Source:https://medium.com/@wunbit/the-benefits-of-blockchain-technology-in-online-gaming-66508f0603c5
Traditionally, gaming companies had complete control over profit sharing and other decisions. Play-to-earn games have given players the power to decide what to do with their NFTs or cryptocurrencies. But the play-to-earn game is still an emerging trend. It has the potential to change how people interact with and perceive traditional socioeconomic structures like financial institutions, marketplaces, and governments. The trend provides a proof of concept for a self-sovereign financial system. Play-to-earn games are bridging the gap between the physical and digital worlds. This bridging has emerged in the form of Metaverse- another revolutionary concept that has made hundreds of millionaires in the past few months.
To conclude, play-to-earn games are here to stay. They are not only emerging as an alternative source of income but giving more power to stakeholders by disrupting traditional architecture.
Comments
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