Play to earn gaming has been making waves in the online games scene. This is because play to earn games have a real-world value, i.e., players can earn cryptocurrencies which they can exchange for real-world money.
Often described as GameFi, play to earn crypto games are a relatively new concept. Especially considering how much gamers usually spend on games. The Prospect of earning from, instead of spending on games, is attractive.
Before we get into various ways these games can help generate substantial revenue, we first have to define play to earn gaming.
How Play to Earn Gaming Works?
Online gaming, where players form communities, has been a part of the gaming culture for quite some time. Crypto games take this community aspect to a new level by adding financial elements to the mix.
For example, MMORPGs with mechanics to make real money would attract new and veteran gamers. All of which will lead to a thriving community with active players.
Play to earn gaming has taken this concept and combined it with Blockchain. Gamers can earn cryptocurrency in return for their in-game efforts.
Items they can exchange for real money include avatars, weapons, clothing, armor, land, and anything that improves the experience. Players can grind for these items and trade them on the marketplace for local crypto.
Where did Play to Earn Gaming Get Its Start?
Play to earn crypto games started out as ambitious projects on the Bitcoin Blockchain. But the Bitcoin chain proved inherently slow, leading players to find a new, faster chain – Ethereum.
Although Ethereum proved more reliable than the Bitcoin chain, it still had its issues. Players had to pay exorbitant gas fees to have their tokens up the queue. This wasn’t desirable because it essentially put a pay wall, which would discourage new players from joining.
Many games had to be shifted to faster, decentralized chains, including Solana, Polkadot, and others. This meant faster gameplay and much more flexibility in game design. All of this led to better games and more engaged players, thus, a thriving industry within the gaming industry.
Players didn’t have to worry about losing their progress, either. All the data, including NFTs, was stored on decentralized Blockchain networks. Players could access their assets even if the gaming company’s servers were down because of the network’s distributed nature.
Gamers in Control
With the decentralized concept, players now have more control over what they get in the games. They can vote for components that will enhance the gaming experience. In-game currency can be used to vote for such decisions, letting the whole community be a part of the decision-making process.
Games that allow for such voting on crucial elements are called DAOs (Decentralized Autonomous Organizations). There’s no governing body making decisions for players, but players themselves vote democratically and choose how they want to enjoy their games.
To partake in such voting, you need to own in-game crypto. Typically more crypto (tokens) translate to more voting power. So to influence the game in any impactful way, you either need to earn a lot of tokens. Or be an active part of the community and persuade other players.
Traditional vs. Play to Earn Gaming
Traditional games take money from gamers in the form of in-app purchases, level-ups, micro-transactions, etc. Despite spending real money, players don’t have access to their assets outside the game’s servers – rendering all their efforts meaningless the moment they step out of the game’s world.
Players only get entertainment out of their efforts and time. They don’t have anything to show for their efforts in the real world.
Play to earn gaming takes a jab at traditional games by introducing elements that are usable outside the game’s boundaries. Players can earn cryptocurrency against their efforts and exchange those for fiat currency to use in the real world.
To drive this point home, let’s take a realistic scenario. Someone spends 4-5 hours playing a game and grinding their way to the top. If they get something for their efforts, they will be motivated to keep playing.
In fact, there are players generating seamless revenue from play to earn games. These gamers spend hours in the game, strategically collecting NFTs and other collectibles. Once they have enough of such items, they can simply sell those to the highest bidder for real money.
We know gaming is a growing industry. And play to earn gaming is becoming an essential part of this industry. Players are encouraged to participate in such games because they enjoy and make money from their experience.
We hope this comprehensive guide helped you better understand play to earn gaming.