Guest article by Ian Scarffe, who is a serial entrepreneur, investor, key opinion leader and Blockchain consultant with business experience from around the world.
The rise of blockchain technology and cryptocurrency has led to a new trend in gaming called “Play2Earn,” which is revolutionizing the creator economy by allowing players to earn real money through their in-game activities.
The Rise of Play2Earn: How Gamers Are Earning Real Money in the Blockchain Economy
Play2Earn is a game design model that uses blockchain technology to create transparent, player-driven virtual economies within games, where players can earn cryptocurrency, NFTs, and other forms of real-world value. This concept is gaining traction among gamers and game developers as it generates new revenue streams and cultivates a sense of community among players. In this article, we will delve into the details of what Play2Earn is, how it works, and its benefits for both gamers and game developers.
Play2Earn has come to revolutionise the creator economy with a direct benefit for players.
Unlike regular games, where games are played for entertainment, There is no incentive to play. It was a one-way relationship that only favored the creators of the games.
But, with Web 3.0 and Blockchain technology, gamers receive rewards and have true ownership of assets acquired through their in-game activities, earning real money while still being entertained.
Accenture reported that the total value of the global gaming business now exceeds $300 billion, more than the combined markets for movies and music. With this and the rise of Play2Earn, game developers and enthusiasts are looking into new ways to make money.
Accenture’s report, “Gaming: the new superplatform,” found that gaming represents $200 billion in direct spend and influences over $100 billion in indirect revenue.
What exactly is Play2Earn?
Play2Earn is a relatively new concept. Play2Earn is a game design model that is reshaping the creator economy. It uses blockchain technology to build a new economy in which “game developers can create transparent, player-driven virtual economies within their games” and “players can earn cryptocurrency, NFTs, and other forms of real-world value through in-game activities, which can be converted to real money—fiat currency.”
Blockchain is a decentralized digital ledger that allows for secure, transparent, and tamper-proof transactions. The technology enables the creation of digital currencies, such as Bitcoin and Ethereum, which can be used to purchase in-game items or exchanged for real-world cash.
Non-fungible tokens (NFTs) are unique digital tokens that can be used to prove ownership of content like images or music. Blockchain-based games allow players to own virtual in-game items like clothing or land.
These virtual economies allow players to buy, sell, and trade virtual items and earn cryptocurrency through playing games. Because it generates new revenue streams while also cultivating a sense of community among players, the Play2Earn trend is gaining traction among gamers and game developers.
The role of blockchain technology in enabling Play2Earn:
Blockchain technology is the key enabling technology for Play2Earn. It allows for the creation of digital currencies, such as Bitcoin and Ethereum, that can be exchanged for in-game items or real-world money.
It ensures transparency and security of records of transactions and activities of gamers through its decentralized ledger.
Additionally, blockchain technology allows for secure, transparent, and tamper-proof transactions, which is essential for creating a fair and reliable economy within games.
How Does Play2Earn Work and its benefits for both gamers and game developers
Play2Earn offers several benefits for both gamers and game developers. Game players earn cryptocurrency or other real-world value through their in-game activities. They earn by playing games, completing tasks, fulfilling the obligations and rules of the games, or referring friends.
For example, a player may earn cryptocurrency or NFTs by completing tasks or participating in in-game events. The earned cryptocurrency can then be used to purchase in-game items or exchanged for real-world currency, while the NFTs can be sold off the platform where they were acquired.
Play2Earn can increase player engagement and retention for game developers, as players are more likely to continue playing a game if they can earn real-world value through their in-game activities. Some used a membership pass, traditional methods of advertising, or in-app purchases.
Examples of Play2Earn Blockchain games
Axie Infinity – Develops a digital pet (fantasy animals with different attributes and strengths) breeding and battling game on the Ethereum blockchain. Players can earn cryptocurrency by breeding and selling unique digital pets, participating in battles, and farming in-game assets.
Axie Infinity was the first Ethereum-based NFT game to hit US$1 billion in sales on August 8, 2021, created by Sky Mavis, the Vietnamese company.
Through battles, breeding, sales, and trades, players can collect increasingly powerful Axie NFTs and in-game tokens and cryptocurrency ( Axie Infinity Shard (ASX) and Smooth Love Potion (SLP)) that can be converted back to fiat cash.
Decentraland: Decentraland is a metaverse-based game developed on the Ethereum blockchain. It encourages a global network of users to operate a shared virtual world. Players can earn cryptocurrency by creating and selling virtual real estate, building and managing virtual businesses, and participating in in-game events.
The Sandbox: The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences on the Ethereum blockchain. Players can earn cryptocurrency by buying and selling virtual land, creating digital assets in the form of non-fungible tokens (NFTs), building and managing virtual businesses, and participating in in-game events. It has a native utility token called SAND.
F1 Delta Time: Develops a blockchain-based racing game on the Ethereum blockchain; it uses the ERC-721 and ERC-20 standards. Players can earn cryptocurrency by collecting and trading limited edition digital cars and track assets, participating in races, and completing in-game challenges. These are non-fungible tokens (NFTs) based on the ERC-721 token standard.
The future of Play2Earn-The potential for Play2Earn to revolutionize the gaming industry:
The potential for Play2Earn to revolutionize the gaming industry is significant. It has the potential to create new revenue streams for game developers and increase player engagement and retention. Additionally, Play2Earn could create new business models, such as the ability for players to earn money through streaming or content creation. As blockchain technology continues to evolve, we expect to see the play-to-earn model become more prevalent in the gaming industry.
In conclusion, Play2Earn is a game-changing trend that is transforming the gaming industry by allowing players to earn real money through their in-game activities. It is a game design model that utilizes blockchain technology to create transparent, player-driven virtual economies where players can earn cryptocurrency, NFTs, and other forms of real-world value. With the advent of blockchain technology, Play2Earn is now possible, and it has opened up new revenue streams for game developers while also increasing player engagement and retention. As the global gaming business exceeds $300 billion, more and more game developers and enthusiasts are looking into new ways to make money with the rise of Play2Earn. As the trend continues to gain traction, it is exciting to see how it will evolve and shape the future of the gaming industry.
About the Author:
Ian Scarffe is a serial entrepreneur, investor, key opinion leader and Blockchain consultant with business experience from around the world.
An expert in Startup, Investment, Fintech, Web3 and Blockchain industries. Ian currently consults and advises for a range of multi-million dollar companies.
Ian’s overall mission is to foster a society of economically independent individuals who are engaged citizens, contributing to the improvement of their communities across the world.
Follow Ian Scarffe:
https://uk.linkedin.com/in/ianscarffe
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