Play To Earn Crypto Games and How They Revolutionized The Gaming Industry
Play to Earn crypto gaming has truly reshaped the way we engage within virtual worlds typically found within the gaming sector.
For decades now, we have enjoyed numerous games, all of which aimed to bring something new to the gaming sphere. From the early days of 2D games, however, to the latest 3D and Ray-Trading powered titles, many games have rarely provided players with opportunities through which they can monetize their time spent playing.
Today, we are going to go over Play To Earn crypto games to look at how they have revolutionized the gaming industry and how they have brought value back to the hands of the players.
Play to Earn Crypto Games
Play To Earn games are a genre of games that leverage the power of blockchain technology as a means of providing players with an additional level of utility.
In order to function the way they do, Play to Earn games typically feature a two-token structure and leverage non-fungible tokens (NFTs).
In traditional, non-P2E games, typically, the company would create the game and then let players purchase in-game items with microtransactions. However, players would never be able to sell the in-game items again, as they would be tied to their accounts permanently.
P2E gaming revolutionizes the concept of in-game items by providing players with the opportunity to essentially be able to sell those items.
Play To Earn will feature a two-token system. One token would be the in-game token, which is used to craft items, buy in-game items, and generally be gained as a reward for completing specific goals in the game.
The second token would be the off-game token, which can be bought or sold on decentralized exchanges (DEXs), and through which players can purchase non-fungible tokens (NFTs).
NFTs are a representation of in-game characters, weapons, clothing, and any other type of item that makes sense to get tokenized within that virtual world, such as a plot of land, for example.
Players would essentially buy an NFT in order to enter the game, or in some cases, they would be given a free character, to begin with. Then they would complete quests and in-game objectives of any kind, after which they would become able to gain an NFT.
These items, characters, or anything else that is gained in the form of an NFT can either be sold in the game’s native marketplace for the native utility token, assuming the game has this or can be sold on secondary marketplaces.
Games and NFTs are built and minted on different blockchains, so for example, if the game was created on Ethereum (ETH), then the token would be based on the Ethereum token standard for NFTs, such as ERC-721, which means that it can be bought or sold at Ethereum-based stores or multi-chain ones.
What this means is that players can get into the game, spend time playing it, get as many items as they want to, and at any point in time can just sell the NFTs for the game’s native cryptocurrency, after which they can use a DEX to convert that cryptocurrency to Ethereum (ETH), Bitcoin (BTC) or any other token, and use a centralized exchange (CEX) to convert those currencies to FIAT currencies.
What this means is that players are literally playing the game, through which they become able to earn from their time spent within the game.
Are Play-to-Earn Games Free to Play?
A majority of Play-to-Earn (P2E) games will be Free-to-Play (F2P) titles. What this means is that players will need $0 or 0 cryptocurrency to essentially enter the game and begin playing.
However, there are specific games that might require players to first purchase a character-based NFT or a set of NFT-based cards in order to begin their gaming session. However, these are rare and far between.
A vast majority of P2E games will only require players to essentially connect their cryptocurrency wallet, after which they can begin playing the game and earn cryptocurrencies. What this means is that if you have no cryptocurrencies, you should still easily be able to connect to a solid Play to Earn title and enjoy everything it has on offer.
Choose the Right Play-to-Earn Game
There are thousands of Play-To-Earn (P2E) games currently available within the blockchain space as a whole. What this means is that new players might feel a bit overwhelmed when it comes to picking the game that is right for them and their specific requirements.
In order to choose the right Play-to-Earn game, there are a few things that you need to take into consideration and keep in mind first.
First, ensure that the game you are playing has a long-standing reputation and was developed by a reputable team. The last thing you want to do is to be a part of a dying game that does not have a solid community and reputation behind it.
Second, ensure that the game you are planning to play features a healthy NFT marketplace presence, as well as a healthy native cryptocurrency token. What this means is that you want to ensure that your efforts within the game will be valued and that the NFTs you would earn are fundamentally valuable in the first place.
Third, ensure that you have the right device required to experience the game. Most P2E games are browser-based. However, there are specific ones that can be downloaded and installed, which might be exclusive to a specific operating system, such as iOS, Android, or Windows for example.
Fourth, always make sure that you understand the top of which blockchain network the game was developed so that you can use the proper wallet to connect, one that supports the token standard. Today, there are numerous multi-chain wallets; however, if you are using an Ethereum wallet and want to connect to a game built on another blockchain, you will run into a blockage.
By following all of these rules or steps, you will be able to pick the right play-to-earn game that will fit your specific needs.
Some of the most popular games include:
- Axie Infinity (AXS)
- Decentraland (MANA)
- The Sandbox (SAND)
- Gods Unchained (GODS)
- Splinterlands (SPS)
How Easy Is It to Cash Out Your Coins?
Cashing out your earned coins or NFTs to crypto is simple. While this procedure might work a bit different depending on the game in question, most of them will work as follows:
- Step 1: You would need to get yourself the native cryptocurrency in-game or an NFT that has a value associated with it.
- Step 2.1: if you have the native cryptocurrency, head over to a decentralized exchange (DEX) where the token is listed and swap it for Ethereum (ETH), Bitcoin (BTC), or any other token that is commonly found on centralized exchanges (CEXs).
- Step 2.2: if you have an NFT, you will need to sell the NFT at a primary or secondary marketplace for a specific cryptocurrency. If it is an Ethereum-minted NFT, you can sell it for ETH directly.
- Step 3: Head over to a centralized exchange (CEX), after which you can swap your pre-existing tokens directly on the platform to FIAT.
- Step 4: Cash out the FIAT to your bank account or credit card, depending on the options available at the CEX.
How Much Should You Spend to Get Started?
Most Play-to-Earn (P2E) games are free to get into, but if the game requires you to spend money for an NFT in order to get started, you need to analyze the potential returns you would get from the game and compare it to the time commitment required to get that amount. Ideally, you should spend $0 to get started, but if you do indeed need to spend some money, ensure that it is an amount that will not leave an impact on your balance in any way. In other words, make sure that it is an amount that is affordable to you.
The Future of P2E
Play to Earn (P2E) gaming has just begun, and there is a large road ahead of it in terms of development as well as progression.
In the future, we might see real-life jobs transferred and gamified within the virtual world, which would make them a lot more entertaining. With the consistent push of virtual reality (VR) and augmented reality (AR), we will likely see a future where games such as these are a huge part of our lives.
Advantages of the Play-to-Earn Games
- The ability to earn real money means that these are crypto games that pay
- An opportunity to become a part of an engaging community
- Aids in the adoption of blockchain technology
- It can help development studios monetize a lot more efficiency
- Creates both primary and secondary value, as NFTs can be resold
Disadvantages of the Play-to-Earn Games
- There are specific games that can have a high cost of entry
- There is the potential of loss of money if a game fails to reach popularity and dies out
- There is currently a lack of a solid infrastructure
- Most games feature mechanics built around earning and are not as fun as traditional ones
