What is crypto play-to-earn gaming? This is your ultimate guide
The cryptocurrency space in 2021 has seen a number of different sectors literally explode with popularity. One such space is play to earn gaming. So what is this you might ask, well it’s exactly how it sounds, and in this article I will explain more about this innovative online gaming sector as well as provide you with an ultimate guide to give you a glimpse into the future.
What is Play-To-Earn gaming?
With evolutions in the crypto community and advancement in blockchain application, play-to-earn models have started to come around to make the most desired activity profitable: gaming. This is the only industry where you can earn cash through cryptocurrencies or NFTs by shooting aliens and catching (the trademark-free version of) Pokemon.
Even with the sophistication required to enter crypto, many enthusiasts are still lost figuring out how to get paid for playing games. How can I earn money by playing? Which games can I play to earn? Read on and I will guide you through the nooks and crannies of the play-to-earn (P2E) model so you can have fun accumulating.
P2E is a gaming model that financially incentivizes players to play. P2E merges Decentralized Finance (DeFi) and Gaming Finance, offering a platform for gamers to make more profits. This gaming model doubles as a business model, allowing you to invest in in-game assets, create and rent out NFTs, or play games to earn.
Gamers typically earn the native asset of the game, which is readily tradable on secondary markets (both CEXs and DEXs). Whether you'll reinvest these rewards or move to fiat is up to you because the dollar value of the assets you earn in-game usually varies with the market's ebbs and flows.
P2E could only exist on blockchains because the technology ensures transparency and security in the collectability, creation, circulation, and provable scarcity of digital assets. Nobody can duplicate your spaceship, gear, or buffs. Each digital item is non-fungible and not replicable.
Just like yield farming requires an upfront investment of collateral, P2E games require an upfront investment of time. Unlike the traditional gaming model where you buy the console and game disk or download, blockchain games can be free to play or require a minimum number of in-game assets. But to progress through the game, you have to purchase or create characters (unique avatars) and gear for the game. Raising your in-game power level (which correlates directly to earning power) is done by purchasing or upgrading your inventory and collecting artifacts.