Did you know that by 2021, the gaming industry will account for approximately 49 per cent of all blockchain usage? There are around 1.4 million Unique Active Wallets that are connected to blockchain games daily, according to the data provided by the Blockchain Gaming Alliance. Play-to-Earn (P2E) Games are a new and fresh phenomenon in the gaming industry, but they will not stop developing since they combine the two things people want in their lives: fun and money. The gaming industry as a whole is expected to continue its rapid expansion.
The majority of today’s play-to-earn games award the player with their in-game token, the value of which is determined by the amount of liquidity, or real-world currency, contained in the token. Because of this, many people initially utilize non-fungible tokens (NFTs) to bolster their tokens. They devote a portion of their income to propping it up until users start pouring their money into it, which is why many people use NFTs.
What exactly are these “play-to-earn” games?
To put it another way, play-to-earn games are video games in which the player has the opportunity to win rewards that have value in the real world. People have made money from playing video games for several years thanks to farming activities and unauthorised marketplaces for in-game stuff. However, the introduction of blockchain technology and NFTs have changed the game’s rules. Non-fungible tokens, also known as NFTs, are tokens that are cryptographically distinct from one another and can be used to demonstrate ownership of digital material such as photographs or songs. Players can acquire ownership of in-game objects, such as virtual apparel or plots of land, in games powered by blockchain technology.
How does it work when you play games to earn money?
Play-to-earn is an example of a game that fits under the GameFi category since it combines gaming with finance and offers players cash incentives to play and advance in the game. There are two ways to bring in money to support oneself. The vast majority of video games released up until this point have used a centralized economic model. This meant that the game’s developers and publishers controlled the rights to all the in-game economy items and the right to distribute the game’s assets however they saw fit.
For instance, the game producers retained the discretionary power to permit you to keep any skins or other in-game things you already own. However, if they decided to discontinue the game or remove any elements from the game that had any bearing on the item that you possessed, you would be powerless to do anything about it. The item or skin would be discarded.
- You can earn in-game cryptocurrency by completing daily objectives or engaging other players in combat within the game.
- Earning in-game NFTs through trading or other means. In this context, each NFT may stand in for a character, an item, or some other type of collectable found in the game.
- Staking is an additional method of earning money through earn-to-play games, in addition to the other ways described above. When using this feature, users can store NFTs or cryptocurrencies within intelligent contracts, which ultimately results in the generation of incentives.
The secret to making money from your gaming skills
Do you want to get paid in bitcoin for playing some of the most exciting games on the blockchain? However, before playing some play-to-earn games, users must make an initial financial investment in the Non-Fungible Token (NFTs) required. Others fall somewhere in the centre, enabling players to begin the game for free and then requiring them to spend in-game tokens to progress to a level with better assets or more rewards. For this to function, a guild will offer game NFTs for rent to individual players in exchange for a share of the players’ earnings.
Play to Earn Future Growth
The development of GameFi and the appearance of new types of gaming experiences, such as Wilderness, are both significant in more ways than one. Playing a straightforward mobile game on one’s smartphone may, in theory, be all that is required to make GameFi’s crypto tokens accessible to an entirely new generation of people living in underdeveloped or rural economies. Fifty per cent of the users who began playing the game had never dealt with cryptocurrency in their entire life before starting to play the game. Games have severe entry barriers, requiring players to pay NFTs before they can begin, although newer games like Wilderness do not have these restrictions.
P2E might also uncover the market’s latent potential, which is now underutilised in the game industry. Users can acquire game assets in the form of non-fungible tokens (NFTs) or crypto tokens, which are tradable on the open market. Most non-fungible tokens (NFTs) are virtual wearables that may be worn everywhere in Decentraland and grant specific benefits while playing the game.
People used to go to game arcades to unwind and enjoy themselves, so gaming served no purpose other than amusement in the past. Over time, players started participating in unauthorised contests and sales of in-game objects to make money from video games. People can now convert their engagements on a particular gaming platform into profits. The metaverse is a connected virtual environment emerging in tandem with play-to-earn technology. It is a universe in which users engage with one another as identities, meet up with one another, work collaboratively, and play video games. Play-to-earn is transforming into a viable model of business which enables visitors to monetise the effort they put in doing something they appreciate doing and also helps developers. Play-to-earn also benefits users as they can earn money from their time spent playing games. The world is gradually but surely transitioning into the digital environment, compelling a significant number of traditional interactions to go online and bringing brand new people into the digital world daily.