Blockchain is something more than we can possibly imagine, and new blockchain-based solutions prove the same. The immense potential of blockchain could cater to the development of a wide range of new solutions for various sectors. With finance being the frontrunner in blockchain adoption, it is important to note how the web3 trends with blockchain would spell new opportunities in other sectors. The popularity of play-to-earn games is a clear example of how blockchain influenced the gaming industry.
If you are wondering what’s so special about the gaming industry, then you should know that the global gaming market might reach a total value of $268 billion by 2025. With the NFT boom, blockchain-based solutions in gaming set an ideal stage for play to earn games in the crypto landscape. Let us learn more about these new types of games that offer the benefits of earning in the following discussion.
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Gaming and the Metaverse
Online gaming is one of the popular global phenomena which are practically impossible to ignore. Many people all over the world play different types of online games, either professionally or for casual entertainment. You can witness many popular mentions such as League of Legends, Final Fantasy, and CS: Global Offensive alongside many other games which have global recognition.
Interestingly, online games also create communities alongside facilitating interactions between players, thereby developing a unique ecosystem. Such a type of concept leads to the development of the metaverse, a concept leading to the development of completely fictional and digital space. The concept of the metaverse is the foundation for the play-to-earn games you witness today.
Blockchain and Web3 Games
Blockchain has set the perfect precedent for web3 crypto trends with the power of decentralization. With a new and innovative form of network model for data sharing, blockchain heralds the beginning of web3 trends. Blockchain also underlies the design of crypto solutions, thereby pointing towards the alignment of web3 with the growth of crypto. In order to understand the next generation of web3 games, one should note how blockchain games have transformed over the years.
Blockchain-based games are not just about trading basic NFT collectibles such as CryptoKitties anymore. Interestingly, blockchain games offer the opportunity for players to earn money without having the rarest NFTs in their wallets. Even if the idea of play-to-earn games might seem a bit appealing, games have never offered any proven facility for making a real income by selling off digital assets. However, the “play to earn” model presents something different.
Definition of Play to Earn Games
The term “play-to-earn games” gives away the meaning as one could clearly infer what the games are for. You would basically play the games to earn some real income. In the case of play-to-earn games for web3, players could generate a steady source of income in crypto just by playing the games. It is important to note that the mechanisms of the games might be different from each other.
However, the rewards for players come from the creation of tradable NFT items, farming in-game currency, or staking. In some of the older blockchain-based games, players had to depend primarily on random selections to generate profits. On the contrary, play-to-earn games support the development of in-game business models and economies which enable participants to generate income.
The most popular example of best play-to-earn games would refer to Axie Infinity. Based on the Ethereum blockchain, Axie Infinity became one of the most-played blockchain-based games during the pandemic in 2020. The game presents a perfect blend of conventional video game elements along with gameplay and the traditional blockchain game model. Players could find adventure mode, tournaments, and PvP battles in Axie Infinity as highlights of the traditional gaming industry.
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Working of Play to Earn Games
The clear impression of web3 crypto trends draws attention towards NFTs. However, no one could undermine the foundations of NFTs in gaming, especially with new blockchain games blending NFTs, finance, and gaming. Games are now offering financial incentives for players to participate in a game and move to higher stages. However, many people have doubts about the ways in which play-to-earn games in crypto help you generate income. Here is an idea regarding the specific ways in which the new breed of blockchain-based games helps in generating income.
The first way in which the best play-to-earn games help players in earning income involves in-game cryptocurrencies. The Smooth Love Potion of Axie Infinity is an example of in-game cryptocurrency that players can earn by completing daily quests and other in-game challenges.
Players could also earn income from the play to earn web3 games by obtaining in-game NFTs and trading them. The NFTs could represent items, characters, or any other in-game collectible and are entirely cosmetic or specifically useful in the game only.
Play-to-earn games also offer another promising option for players to earn income through staking. You could find certain NFT games which help users in locking up cryptocurrencies or NFTs in smart contracts. Subsequently, users can generate rewards for their participation. You can see the example of staking MBOX tokens as proof of opportunities to earn real income from blockchain games.
Users staking their MBOX tokens would receive MOMO NFT Mystery Boxes as rewards. The mystery boxes include random NFTs which differ in terms of rarity, and players could sell them on secondary markets. On the other hand, players would need larger initial deposits with play to earn games in crypto for earning better staking rewards.
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Security of Play to Earn Games
The play-to-earn games are termed web3 games due to the value of blockchain. Even if the play-to-earn model is not new in online games, you can find a promising difference with blockchain-based games. Traditional online games such as MMORPGs offer fiat-based auction houses as well as secondary markets for trading in-game collectibles.
On the other hand, web3 crypto trends imply that blockchain games would store currencies and items on the blockchain. You could find the benefits of better control over ownership, rarity, or legitimacy with the use of blockchain in a new breed of games.
It is also reasonable to perceive blockchain networks as immutable databases, which ensures the security of play to earn games. The data and your rewards on the game would be under the control and maintenance of a distributed network of computers. The distributed network of computers or users has each user with a copy of the blockchain data. So, it is practically impossible to modify, delete, or duplicate the data in the game.
The play-to-earn games for web3 have the advantage of being designed to counter fraud or corruption. Players don’t have to worry about issues such as gold hacks, item duplication, and other vulnerabilities noted commonly in traditional games. The only aspect that matters to players in such games would refer to the rarity of the items. Blockchain ensures that an item is truly unique and helps in creating real value for in-game items.
Feasibility of Play to Earn Games
One of the most notable questions about play-to-earn games in crypto ecosystem would refer to the scale of income. People generally wonder about the income they can earn from such games. Average users would find it difficult to understand that games can help players in earning real money. So, it could be challenging to identify how players can make income from blockchain games. In addition, many people in developing countries earn their living wages by playing web3 crypto games like Axie Infinity.
Farming could offer you a promisingly steady income stream, where your earnings are related to the player’s skills and amount of gameplay time. Axie Infinity followed such a farming approach and helped people in the Philippines to counter unemployment. Players are able to make somewhere around $200 to $1000 each month by farming the Smooth Love Potion of the SLP token.
Even if farming offers lower benefits than trading NFT collectibles and items, it is a suitable pick for regular income. Games such as Axie Infinity also offer you the chance to use your NFTs for breeding new Axies. On the other hand, it is difficult to predict the value of a newly bred Axie quickly. The most expensive Axie as of October 2021 was Angel, with a value of $131,970, which is presently listed for 3000 ETH.
The lucrative numbers associated with play-to-earn games might look tempting. However, they are random in nature, and it is difficult for anyone to predict average income for an individual selling NFTs from such games. On the other hand, the advantage of new technology would empower the emerging generation of web3 games. The different scaling technologies would ensure that popular models would shift to the new model of in-game purchasing and selling. Furthermore, the rise of the metaverse also shows a lot about the feasibility of the play to earn games for web3.
The existing gaming industry has done nothing wrong. However, play-to-earn games add a huge difference by introducing the functionalities of blockchain in gaming. You could have games that let you earn income only by playing them. In addition, players could earn in crypto or NFTs, which they can choose to trade.
With a lot of promising talk about popular games with the “play-to-earn” model like Axie Infinity, it is reasonable to wonder how they would grow in the future. The formidable support of blockchain to ensure security and transparency alongside the involvement of NFTs and the creation of massive communities would serve as prominent highlights of new blockchain-based games. Let us wait and see how this new generation of games shapes up with blockchain in web 3.0.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!