A video game was historically considered a form of entertainment used to relax and relieve stress. In those days, they had little connection to reality since only you and your teammates were the only ones aware of your achievements as a player playing a particular game. But no matter what items you were able to earn or collect, for example, gear or skins, ultimately they were the developers’ property. Outside of the game, you couldn’t do much with them. But this isn’t the case with play-to-earn games.
In traditional gaming, you can never claim against the developers for a refund in such a scenario if they discontinue or cease offering certain features related to your own in-game items.
Your collection of items you have gathered over time would simply be lost. In essence, that’s what the play-to-earn model (P2E) gaming model has the potential to change forever.
Having an understanding of the mechanics behind P2E games is important to understand how these games work. At first glance, they may look like ordinary games, but certain mechanics enable players to gain more than just enjoyment from them.
As we all know that blockchain technology, cryptocurrencies, and non-fungible tokens (NFTs) have gained immense popularity over the past few years. As a leading innovator, the gaming industry has also adopted some of the latest technologies.
In the end, it was the play-to-earn (P2E) gaming model that came into existence.
Play-to-earn (P2E) games have the potential to significantly influence gaming economies. Prior to P2E, microtransactions often required real money deposits, but now you can earn items by playing.
You earn the currency to purchase the item, not earn it or unlock it. For instance, you can play game A since you find it less challenging to acquire assets, exchange those assets for dollars, and invest them in game B which you find challenging.
If you wish to pay your rent, the game will also allow you to withdraw money. A savvy player can use this as a means of supporting his or her hobby, lifestyle, or other interests. A virtual environment also allows them to indulge in a range of activities while enjoying their time.
Based on a Blockchain Game Alliance report for 2021, revenue generated by NFT games was $2.32 billion in 2021, representing 22% of all NFT transactions.
Our guide aims to help you understand the technical details of the play-to-earn model, the future of NFT play-to-earn (P2E) games, and future trends in that area. A number of play-to-earn (P2E) game problems will also be discussed. Let’s get started.
Tips To Choose The Right P2E Game Based On Your Needs
The first step you should take is to identify your preferred game types. Essentially, play-to-earn is a form of gaming where the basic assumption is that you enjoy it. The game is probably not for you if it bores you to tears or makes you feel like you’re doing work while playing it.
To help you choose your first array of play-to-earn (P2E) games, consider these questions:
- Have you ever played a game like this one before? Do you enjoy it?
- What is the upfront cost? Can you afford it?
- Does the game have a free trial version?
- How well do you know the mechanics of the game?
- What is the business model for developers?
- Are you familiar with the game token’s economics?
It might be a good idea, to begin with, a game that is free to play at first, or one that includes instructions for how to play. In this way, you will be able to see how the game works before investing any money.
You stand to earn more if you play better. The complexity of P2E games can vary from simple to overly complex.
Every game has its own set of benefits. Cryptocurrencies and NFTs are commonly rewarded in P2E games, allowing players to trade and sell them. Bitcoin and Ethereum can also be earned in other games as well.
A game’s NFTs can be earned by performing various tasks and activities that do not require much time or money. In light of this, you must understand what gameplay rewards you can earn from P2E platforms. Know what it takes to earn them and how long it takes.
Role of NFTs and Cryptocurrencies in P2E Gaming
The P2E network relies heavily on NFTs. In other words, a non-fungible token bears a unique digital identity that is irreversible, i.e. it cannot be altered, replaced, broken down, or redeemed thanks to its blockchain records.
That blockchain verifies ownership and authenticity. By using NFTs, these P2E games give players the ability to collect and sell virtual loot at their leisure. Furthermore, the games allow for unique gameplay, such as training a creature that is unique to itself or using a sword that is unmatched in the world.
The use of cryptocurrency is one way in which you are rewarded for playing these games. Cryptocurrencies such as Ether are often exchangeable or used as forms of digital tokens and assets that players can use to carry out actions in their games.
Using this feature, you can use your rewards to exchange for actual money or goods.
A Sneak Peek Into The History Of Play-To-Earn?
As successful as Play-2-Earn gaming has become, it didn’t just happen overnight. In fact, P2E traces its roots back to 2013, when it had humble beginnings, and has grown steadily.
True crypto enthusiasts, undoubtedly, will remember 2013, as it marked Bitcoin’s first big surge, which started at $13 and reached $1,100 in the blink of an eye. This jump coincided with the total market capitalization for Bitcoin exceeding 1,000,000,000, demonstrating the potential of this new currency.
1st blockchain-based game – Huntercoin
As Bitcoin surged, the first blockchain-based game was launched in the industry. “Huntercoin” was the very 1st game based on blockchain technology, launched by the Xaya team, allowing users to collect coins on an interactive map of the world.
The game map included resources, player-versus-player combat, and the ability to dominate. Launched in February 2014 as an experiment, this game has been seen by many in the community as being a great way for blockchains and gaming to come together.
1st Play-To-Earn Project (P2E) – Axie Infinity
Axie Infinity, a play-to-earn game project that was developed by Sky Mavis, gained popularity among cryptocurrency enthusiasts as the first blockchain game to allow players to earn by just playing. This game provides players with an opportunity to buy and breed Axies, a type of creature similar to those known as Pokemons.
A marketplace would allow players to breed and sell their creatures likely for a profit, along with fighting with other players and spawning computer monsters.
Benefits and Drawbacks of the Play-to-Earn Model
- Play-to-earn model provides an opportunity for gamers to make real money
- Strengthens the gaming community
- Enhances blockchain adoption
- Has the potential to benefit both, the developers and the gamers
- Game mechanics tend to be more focused on earning than on fun
- A few P2E games usually offer high entry prices with no demos
- A few P2E games even carry a risk of financial loss
- The gameplay of some P2E games may not even be clearly defined
What future holds for NFT-powered play-to-earn (P2E) games?
ZED RUN, Pirate X Pirate, and RaceFi all are significant contributors to the digital asset industry that are gaining popularity among crypto enthusiasts and gamers alike. It is evident from the titles mentioned above that P2E gaming driven by NFT is booming.
The recent acquisition of Activision Blizzard by Microsoft, the transition of Facebook to Meta, and the release of Ubisoft’s NFT marketplace Quartz demonstrate that mainstream gaming is also keenly paying attention to blockchain-based developments.
For example, Final Fantasy VII also commemorates its 25th anniversary through a complementary NFT project.
Gamers are sceptical of the idea of incorporating NFTs into their favourite pastime, and some are hostile to the concept. P2E gaming’s success has not changed the negative perception of NFTs within the gaming community.
There have even been concerns raised by developers themselves regarding the success of P2E games, encouraging game developers to put more emphasis on “play” aspects in order to ensure the games are as valuable as possible.
Increasing numbers of people are switching over to play-to-earn gaming, which can be attributed to its popularity and the fact that it has a bright future.
Hi, my name is Brandan Henry, and I’m an NFT, Blockchain, and Research enthusiast, as well as a content writer for NFT-onomics. I’m deeply passionate about exploring the potential of NFTs and blockchain technology. My mission is to educate people on the capabilities of non-fungible tokens and their applications. I stay up-to-date with the latest NFT news and trends, and as a full-time writer, I excel at generating creative, out-of-the-box ideas surrounding NFTs.