No one would have believed it possible to make a living from gaming in the latter half of the twentieth century. Nonetheless, we are steadily progressing toward that world. Currently, a breakthrough in the gaming industry is taking place, leveraging cryptocurrencies, decentralized exchanges, and non-fungible tokens (NFTs).
As a result, the potential for monetizing in-game objects and textures has grown significantly over the last decade. However, advancements in blockchain technology are taking Play-to-Earn (P2E) gaming to the next level. Anyone can generate revenue from the game environment thanks to P2E games.
Play-to-Earn games are capturing markets in almost every existing type of gaming as their popularity grows. In contrast to traditional Pay-to-Win games, blockchain and NFT-based games strike a balance between Pay-to-Win and Play-to-Earn.
In crypto-based P2E gaming, players can grind for assets or tokens that can be redeemed for in-game utilities and traded on secondary markets. As profitable as it is, this paradigm shift in gaming has been especially significant in the aftermath of the ongoing global pandemic.
Blockchain and play-to-earn
In general, decentralized networks and cryptocurrencies have made the peer-to-peer (P2P) model highly viable for the gaming industry.
On the one hand, due to the underlying blockchain technology, payments have become more streamlined and accessible. NFTs, on the other hand, make it possible to monetize in-game assets without the risk of counterfeiting.
Furthermore, the gaming environment can deviate from the traditional top-down, developer-to-user model.
For example, Nine Chronicles, a free PvP RPG game, runs on fully decentralized servers that users manage through Peer-to-Peer (P2P) networks.
Mars4, another P2E metaverse, is combining various NFTs with immersive simulations of Mars exploration. This P2E game thus combines the experiences of Axie Infinity and Decentraland. As a result, players will be able to acquire and trade “virtual land” on Mars.
Play-to-Social Earn’s and Economic Impact
It is obvious that earning money from video games will have a significant social impact. It transforms gaming from something that is merely consumed to something that generates revenue for the player.
Previously, only professional e-Sports players could hope to significantly monetize their gaming time. This option is available to everyone, even novices, in the emerging world of crypto-based P2E games.
Complex in-game economies are also created by play-to-earn gaming. In-game economics have existed for some time, but the Play-to-Earn model increases the cash flow within the virtual economy by allowing gamers to earn money while playing.
People who have lost their jobs as a result of pandemic-related shutdowns have turned to Play-to-Earn gaming as a reliable source of income. The Axie Infinity Play-to-Earn model has gained significant traction in this regard in the Philippines. The game has earned over 60,000 Filipinos a living. However, Axie Infinity is not the only game in town.
My Defi Pet, a popular game similar to Axie infinity, allows users to breed, evolve, and fight in-game monsters. This P2E game on the decentralized KardiaChain network employs Chainlink VRF to provide a secure environment for users to trade and earn tokens.
P2E gaming has become a significant investment and return arena, in addition to being a source of direct income for players.
For example, The Sandbox, an upcoming NFT game, allows users to purchase virtual land and assets within the game’s environment. Despite the fact that it has yet to be released, major gaming companies such as Atari have purchased a lot of “land” in the game.
Town Star, a promising P2E game from the makers of Farmville, is offering a $1 million prize pool. Town Star, like its predecessor, is a farming game with weekly challenges that users can complete for rewards.
A word of warning
Earning money while playing video games may appear to be a get-rich-quick scheme. To some extent, yes. Despite this, players must exercise caution when it comes to their earnings. For starters, transaction fees and in-game purchases can eat into your earnings if not carefully managed.
Furthermore, there may be risks involving both value and liquidity. For example, the MMORPG “MIR4” recently experienced a problem in which its in-game token “Draco” lost 50% of its value. This was most likely caused by increased selling pressure as players cashed out their earnings.
upcoming titles to keep an eye out for
Aside from the ones that are already shining brightly, a slew of blockchain-based games are on the way. Depending on the genre, players have a number of options.
The upcoming Lunacia expansion for Axie Infinity will most likely make the base game’s economy much more robust. Titles like Echoes of Empire could be extremely profitable for 4x gamers.
Thetan Arena is an upcoming game with exciting gameplay mechanics for Multiplayer Online Battle Arena (MOBA) and battle royale players.
This venture has received backing from major investors such as Animoca Brands and Coin98, among others. Given the rate at which P2E gaming is evolving, it is only a matter of time before it becomes a primary economic domain for both the young and old.