Blockchain101: What is Play to Earn (P2E)?
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Have you imagined making money while you are playing online games? It was definitely a myth ten years ago.
But in 2022, you don’t need to be a game developer. You don’t need to be a top e-sport player. Everyone like you and me is able to earn money as a gamer on Blockchain games like Axie Infinity, Decentraland, Alien Worlds,The Sandbox…
That’s what we call Game-Fi and Play to Earn! In this article, we will walk you through what is Play to Earn (P2E) and the Blockchain games you can cash out in 2022.
What is Play to Earn (P2E)?
Play to Earn (P2E) is the new gaming model based on the Blockchain technology. The greatest feature of P2E is allowing users to earn crypto and non-fungible tokens (NFTs) that can be transacted on the market, so that they can make money while playing games.
In a P2E game, gamers can make money through completing specific missions, holding and transacting in-game assets like virtual land, skins or weapons or contributing to the ecosystem of the game.
The P2E game looks like a reality similar to our real life. It has created its own economic system and business models, like transaction system, NFTs, coins, marketing mechanism and governing. Gamers are able to earn an income in it.
Three Popular Play-to-Earn ways in Blockchain games in 2022
1. Completing a specific task: Gamers can receive a financial reward when they complete an in-game task, usually crypto or tokens that can be exchanged on the market.
2. Trading in-game assets: With the Blockchain technology, the ownership of digital assets is represented by NFTs. It allows gamers to carry out transactions of NFTs to make money.
In Cryptovoxels, The Sandbox and Decentraland, gamers are able to buy and sell land ownership on markets. In CryptoKitties or Axie Infinity, players can breed their creatures and exchange their represented NFTs to earn tokens.
3. Leasing of the assets: Through adding value to the in-game assets, like developing your own virtual land in Sandbox, you can generate revenue through leasing it for different usages like virtual concerts, events, casinos or virtual shops.
Three differences between Game-Fi and traditional online games
Playing while earning is definitely a cool idea, especially to young men. Why do traditional online game companies not develop this P2E business model?
Here is the reason why:
- Decentralized vs Centralized:
P2E games: They are based on the Blockchain technology. The data on the Blockchain is immutable and distributed on the nodes around the globe, which reduces the risk of losing the data.
The ownership of the in-game assets is completely protected as the details of ownership are stored on the Blockchain. That’s the reason why purchasing land in Sandbox has become a trend that so many traditional businesses like Gucci are involved in.
Traditional online games: They are based on a central server. If your account is hacked or banned by the game’s admins, you will lose all your in-game assets as ownership is not completely protected in a traditional game, so transactions of in-game assets in a traditional game are not as popular as Game-Fi.
Read more: Blockchain 101: Blockchain Basics, Blockchain 101: Blockchain History
- Transparency vs opaque:
P2E games: The rules are completely transparent, the mechanism, trading system and reward system are clearly stated in the smart contract stored on the Blockchain, which is executed automatically and immutable.
The play-to-earn game Axie Infinity is based on Ethereum, which players can collect, breed, raise, battle against and trade with other online users. Every gamer is able to access the rules. The game developers can’t change the rules to take advantage of gamers easily.
Traditional online games: The rules are completely controlled by the games companies. The founder of Ethereum, Vitalik Buterin, has complained that the character he loves was banned in a traditional game. That raised his awareness of decentralization.
- Open vs Closed ecosystem:
P2E games: Through holding the non-fungible tokens(NFT) issued by the game, gamers have the power of governance and the voting right to determine the future development of the game. They can create their own in-game assets like skins, weapons and virtual buildings and trade them on the market. It encourages gamers to create a more user-friendly ecosystem.
Decentraland is a virtual reality platform that allows gamers to construct their own 3D world — from building a game to opening an online store.
Traditional online games: All game settings are decided by game companies. Gamers almost have no say in the development and setting of the game.
Five popular Game-Fi protocols
With Play-to-Earn becoming more and more popular, the cost of running games on Ethereum becomes more expensive. It leads to the development of different platforms supporting the smart contract like:
Solana: A decentralized computing platform that uses SOL to pay for transactions. Both a cryptocurrency and a flexible platform for running decentralized apps (D-apps).
Polygon network: A decentralized Ethereum scaling platform that enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security.
Polkadot: An open source, Blockchain platform allows for cross-chain transfers of data or assets between different blockchains, and for cross-chain D-Apps to be built using the Polkadot Network.
OKC: Providing a secure and programmable smart contract platform for Web3 applications.
Wax: WAX is a purpose-built blockchain and protocol token designed to make transactions faster, easier, and safer for all participants.
Looking for the latest crypto projects like the opportunity in Game-Fi? On Bitget Launchpad, we have already launched several potential Game-Fi tokens projects in 2022. It is a new platform for launching new crypto projects and airdrops.
If you want to know more about blockchain and crypto-trading information, don’t forget to follow us on Bitget Academy. We have constantly provided useful information for crypto investors, so that they can enjoy better trading and a better life!
Disclaimer: All products and projects listed on this article are not endorsements, and are provided for informational purposes only.
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