Apr 05, 2022 07:10
Play2earn is a long-awaited dream for gaming lovers, which is coming true. Which gamer doesn't dream of earning money with his hobby? Play2earn now makes it possible. The development, which is mainly driven by blockchain technology, is currently becoming a megatrend.
Gaming is one of the biggest growth drivers in the economy. This includes so-called free-to-play games, which allow players to play for free. Games like Fortnite, PUBG, and mobile games started this trend. The developers earn money through in-game purchases such as special weapons or outfits. But what is Pla2earn and how does it work?
What is Play2earn Crypto?
As the name suggests, Play2earn means that players can earn money by playing certain games. At first glance, the Play2earn system is very similar to the “free-to-play” system. The games are free of charge, but special items such as outfits, weapons, etc. can be unlocked in the game by using money. At Play2earn, however, players can earn equipment. Through further playing, the possessions can be "leveled up" and gain in value accordingly.
The valuable items are then stored on the blockchain as tokenized NFT. The item can't, therefore, be copied or counterfeited. In addition, the owner is clearly defined and well-known through the wallet that owns this NFT. The NFT can then be offered on the open market. Depending on how rare the item is, the demand is high and the price increases accordingly.
What Is Tokenization?
Tokenization is a way experts replace sensitive data with unique items called tokens while retaining all the essential information and not compromising its security. Security is crucial in tech as it protects a software or program from all sorts of attacks, which may lead to data or digital asset theft. Either way, tokenization is an essential part of the NFT and gaming world. Tokens retain these significant parts of the actual data to ensure seamless running. Today, institutions utilize tokens to keep medical records and bank transactions safe from theft. Other sensitive information may also be tokenized for their protection.
What Are NFTs?
Non-fungible tokens or NFTs are one of the most important topics on the lips of digital asset enthusiasts. These token types are different from the usual fungible tokens, like Bitcoin and Ethereum, increasing their demand. NFTs are blockchain-based digital assets that you cannot replace or change for others. For instance, you can take a Bitcoin loan and replace it with another Bitcoin. However, this is not possible with NFTs because they are scarce. In some instances, NFT rarity helps push their prices to higher grounds. This makes it challenging to place a price on these assets because they have low liquidity. Still, many people create digital products and turn them to NFTs to sell them at mouth-watering prices.
How Did Play2earn Games Start?
Experts created play 2 earn games to play games while earning money. So, gamers will play games and stand a chance to receive attractive rewards, which can be converted into real currencies. One of the most prominent stories leading to the industry’s growth was in 2019.
In 2019, the creators of MixMarvel explained that blockchain technology might change the gaming industry. They spoke about this during a blockchain conference, informing other enthusiasts about opportunities in the gaming sector. Also, Yearn’s Andre Cronje used the word “GameFi,” describing an opportunity for the financial and gaming sector to meet. Thanks to blockchain technology, many service providers made this possible.
It’s safe to state that games have different gameplays and rules. While some encourage mining to get rewards, others mandate winning in-games to receive tokens. Still, no matter the game’s avenue to award players, it’s inevitable that they enjoy excellent tips from their gaming.
Play2earn games Examples
One of the most well-known Play2earn games is the metaverse " Decentraland ". The game, which is visually very reminiscent of Minecraft, is a decentralized world programmed on the blockchain, which had its ICO (Initial Coin Offering) in 2017.
The Decentraland consists of 90,601 parcels of virtual land, which can be purchased and resold by players. In the Decentraland world, everything is tokenized as NFT. In Decentraland, in addition to buying and selling land and buildings, players can also earn money through business.
The game "NBA TopShot" could be interesting for sports fans. Within the game, sponsored by the NBA, players can purchase basketball trading cards. Some of these are issued free of charge, some of the cards can also be purchased or played as NFT tokenized cards. Valuable cards can be worth thousands of dollars.
The Sandbox is another Play2earn game that initially shares similarities with Minecraft and Decentraland. In The Sandbox, players earn money by playing minigames or crafting items. This includes characters, outfits, or your own games.
How does the developer make money in Play2earn?
Since the development of such games costs a lot of money and is mostly financed by private companies, behind every Play2earn game there is also the expectation of a company to make money. But how do companies whose games are free to make money?
With free-to-play games, the developers usually finance the games through the in-game sales described above. So players pay to have the coolest "skin" or weapon. This is similar to Play2earn games. First and foremost, even if the game is free, new players have to invest some money to get some kind of basic equipment that can be leveled up. The more time players play, the more they end up benefiting from equipment sales.
Will Play2earn prevail?
Play2earn currently seems to be heading for a megatrend. The model in which both players and developers earn money is not only novel but also a win-win situation. The advantage is also that the games are mostly evolving and are not relaunched every year. The property in Decentraland is not worthless from one moment to the next, as is the case with every Fifa Ultimate team, for example, when the new Fifa part is due in September.
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