Play to earn is emerging as a trending business model and is taking the DeFi gaming industry by storm. Here’s everything you need to know about it.
Gamers are no longer overlooked and crossed out as outcasts who waste their time instead of doing something productive.
According to some estimations, the global gaming market is expected to reach a value of $268 billion by 2025. Considering a career in gaming is no longer frowned upon but actually encouraged in many countries.
As with every industry, online gaming also witnessed a myriad of trends and tendencies over the years. From first-person shooters (FPS) to multiplayer online battle arena (MOBA) games, the list grows constantly.
Now, it appears that the cryptocurrency industry has realized the potential of this growing segment and the impact that blockchain-based technology can have on it. This was largely possible through the boom of non-fungible tokens (NFTs), as developers understood they could be able to create and transfer tangible value in gaming ecosystems, providing further incentives for people who spend their time gaming.
This is how the play-to-earn model (specifically pertaining to crypto) was born, and it’s starting to catch speed. In this article, we explore the play-to-earn model within the cryptocurrency industry, some of the important concepts, and popular games.
But first, it’s essential to clarify a few things in advance.
1. Introduction to Play to Earn and Its Growth
- Play to earn is a booming business model in the decentralized finance (DeFi) gaming industry.
- The global gaming market is expected to reach $268 billion by 2025.
- Gaming is increasingly accepted as a viable career choice.
2. Online Gaming as the New Norm and the Emergence of the Metaverse
- Online gaming has become a norm, with millions playing games professionally or casually.
- The “metaverse” concept, a virtual world beyond reality, gains popularity.
- Mark Zuckerberg’s interest in building the metaverse signifies its immense scale.
3. Understanding Play to Earn Model
- Play to earn is a business model where users play games and earn cryptocurrency.
- Ownership of in-game assets, often represented by non-fungible tokens (NFTs), is a key element.
- Players contribute to the in-game economy, creating value for themselves and developers.
4. Debates on Accessibility and Popular Play-to-Earn Games
- Debate on whether play-to-earn games should be free; developers take varying approaches.
- Overview of popular play-to-earn games in 2021: Axie Infinity, Decentraland, and The Sandbox.
5. Axie Infinity: A Leading Play-to-Earn Game
- Axie Infinity, inspired by Pokémon and Tamagotchi, allows players to collect, breed, and trade token-based creatures (Axies).
- Axies are NFTs with different attributes and strengths; players earn through playing and trading.
- Native cryptocurrencies include Axie Infinity Shards (AXS) and Small Love Potion (SLP).
6. Decentraland and The Sandbox: Virtual Worlds with Earning Opportunities
- Decentraland, a virtual world on Ethereum, allows users to create, experience, and monetize content.
- MANA and LAND are native tokens, facilitating ownership and transactions within the platform.
- The Sandbox combines blockchain tech, DAOs, and NFTs in a virtual world with earning potential.
7. Conclusion: The Future of Blockchain Gaming
- Blockchain gaming, particularly play-to-earn, is seen as the future of e-gaming.
- Both developers and players can monetize their time spent on enjoyable gaming experiences.
- The increasing digitization of the world, accelerated by the COVID-19 pandemic, supports the belief in a digital future.