Have you heard gamers talking about play to earn but not really have a clue what they’re on about? Many people are curious about the opportunities to earn a little more cash while gaming online. And with the number of games growing by the day., there are plenty of choices to keep you entertained.
So, if you want to know more, if perhaps you’re curious about how play to earn works, then you’re in the right place!
What is Play to Earn?
Blockchain and decentralized markets have changed the way in which we can view financial transactions. No longer do they need to pass through the traditional banking system. Now payments can be made directly peer to peer.
This has also opened up the way in which users can carry out different actions, such as selling their assets. This, in turn, has introduced a new concept in the video game industry that allows users to be rewarded with money.
If we are going to talk about play to earn, inevitably, we will have to place ourselves at the joining of two commercial sectors. On the one hand, there are video games, which broke into popular culture less than a century ago and have become one of the most profitable entertainment industries of our time. On the other hand, there are cryptocurrencies and all their underlying technology, which have been created for just over 10 years and are already revolutionizing the financial world.
Why is Play to Earn Influenced by These Two Currents?
For the simple fact that they are digital games that have evolved to become business models based on cryptocurrencies. Such platforms typically have their tokens, peer-to-peer (P2P) exchanges, and a self-sustaining economy that provides benefits to participants. Each of these elements, in turn, adds value to the game world and contributes to its growth.
Today, we can say that playing to win is considered one of the most developed projects of the digital or video game era in conjunction with cryptocurrencies. All this is thanks to technological advances and the virtual world that have revolutionized the way players interact since users can buy assets that have value in the digital world or, in other words, within the video game you are playing.
From Traditional Gaming to Blockchain Gaming
To fully understand the paradigm shift represented by play to earn games, it is necessary to go back to the traditional video game industry. It cannot be pinpointed exactly when the first video game was released. Some experts consider that it dates back to the 50s of the last century, although it was from the 70s onwards that the industry began to gain more and more relevance with classic games such as Tetris, Super Mario Bros, and Pac Man.
The business model, at that time, was simple: consumers bought the products that allowed them to play (consoles, controllers, and games) or paid to use a video game machine (arcade). The player invested his money to receive entertainment and usability in return.
With the advent of computers, the Internet, and the growth of the industry, the possibility of investing in the video game metaverse has expanded. To expand the virtual world experience, in-game assets, items to increase character efficiency, and other additions were introduced to update the game’s plot. That is to say, a digital economy began to be constituted.
Are These Elements Essential to Improve the Gameplay?
Yes, these elements are essential to improve the gameplay of users. The possibility of earning money through gold farming was introduced. This practice, which is nothing more than the exchange of game assets or the transfer of accounts for money, is prohibited in the traditional gaming industry. However, due to its economic potential, it has caught the attention of another public that is willing to form a market with real value for players.
These are nothing more and nothing less than those game developers who have incorporated cryptocurrencies and blockchain networks into their projects. Thanks to the possibility of identifying the property of each individual, allowing person-to-person exchange, and immutably protecting the processed data, today, several games have developed a self-sustaining economy thanks to cryptographic assets.
Starting from the hand of the crypto-collectibles —with the Cryptokitties NFTs—going through platforms with greater interaction between the characters and gameplay (such as Axie Infinity), a new niche was created in the video game industry where real value exchanges can be made. By introducing the concept of ownership with NFTs and blockchain addresses, it is possible to determine who owns a certain asset or game piece and to trade it with other participants in their community.
Then, How Can You Play to Earn?
With this, the treasures and coins won in any game become the property of the users. In other words, they stop having only value within the virtual world (such as a score) and become an exchangeable property capable of generating monetary returns. In this way, everyone can add value to the game economy by buying new assets, improving their characters, and exchanging pieces. And, thanks to the time, effort, and money they invest in said community, they receive a reward in return.
How Can You Earn Cryptocurrencies with Play to Earn Games?
First of all, play to earn games are based on non-fungible tokens or NFTs, i. e., digital assets that:
- They are unique and unrepeatable and explore scarcity.
- One NFT is not worth the same as another (unlike bitcoins, which all have the same price).
- They cannot be subdivided (like satoshis, the minimum unit of BTC).
- They are used for digital works, such as images, videos, documents, etc.
Now, you just have to choose a game and evaluate the rewards that it can provide you, spend quality time, and have an income.