What is Play-to-Earn Crypto, and How Does it Work?

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Introduction

Play-to-earn crypto is a business concept where consumers may play a game while also earning cryptocurrencies. It’s a powerful psychological paradigm because it combines two activities: earning money and having fun. 

The model’s main feature is that it gives gamers ownership of some in-game cryptocurrency. It allows them to grow their worth by actively playing the game. The usage of NFT is commonly used in the virtual world to define ownership and even transfer it (NFTs).

Players produce value for other players in the ecosystem as well as the creators by participating in the in-game economy. As a result, they are rewarded with possibly appreciating in-game assets. 

The basic principle behind these NFT play-to-earn crypto games is that players are rewarded for investing more time and effort into the game. It’s a relatively new phenomenon in the cryptocurrency industry. 

At least it just recently gained traction, thanks to the introduction of one specific project, Axie Infinity.

What are Play-to-Earn Crypto Games?

Play-to-earn games are video games in which the player may earn real-world money. Cryptocurrency and blockchain technology has allowed new ways to make money through video games.

When someone wins an item in-game, they can sell it on a website. The players will buy the digital currency so that they can get what is essentially “real cash.”

Non-fungible tokens are distinct tokens used to establish ownership of information like photographs or music. Users can assume ownership of items such as virtual apparel or property plots in blockchain games.

Unlike traditional games, where in-game items are stored on closed data networks and controlled by the game’s creators, NFTs enable players to own the unique assets they buy.

Furthermore, if you acquire an NFT, you may freely sell it outside of the platform where it was produced.

These NFTs have real-world value since they are scarce. There is no other reason to play regular online games except for pure delight.

The connection is one-sided: you pay for the game, and you’ll never be able to monetize your time. Unless you’re a professional esports player or a popular streamer. Blockchain gaming allows play-to-earn crypto gamers to make real money.

Players may transfer value and be paid to play regardless of who they are or where they are. 

How Does Play-to-Earn Crypto Games Work?

In the world of gaming, there are different types to enjoy. 

Among these is the play-to-earn genre, which provides financial incentives to play and progress. 

As the name suggests, in these blockchain play-to-earn crypto games, you can earn money while you play.

There are a few ways that you can earn income in play-to-earn games. One way is to earn cryptocurrency games. Another way is by earning or trading NFTs (non-fungible tokens).

Each NFT may represent an item, character, or another collectible in the game. Depending on the game, these can be pure digital items with real-world value.

How To Earn Money With Play-To-Earn Crypto Games

Each play-to-earn crypto game has its own rules and mechanics and depending on the game, and you can earn income by completing daily quests or battling monsters and players.

Here are two ways that let users earn an income:

  1. Earning cryptocurrency while playing.

One example is Axie Infinity’s Smooth Love Potion (SLP), wherein the only way to obtain rewards is to complete daily tasks or defeat the monsters and other players in the game.

  1. Exchange NFTs

Each NFT represents an object, a character, or another type of collection. 

The cosmetic value of these in-game items depends on their role in the game.

One thing to keep in mind is that each game is different, so make sure you read the rules and instructions carefully. As with any type of investing, it’s essential to do your research before jumping in. But if you’re looking for a new way to make money, playing a play-to-earn game could be the answer.

Top Play-To-Earn Crypto Games for 2022

Plant VS Undead

Plant vs. Undead is a multi-player game that allows you to collect light energy, which you can exchange for PVU tokens.

If you play Plant vs. Undead, you can generate real money if you have NFT as game assets. It’s a play-to-win game. Players manage their farms and earn Light Energy, the in-game currency (LE).

You can exchange these Light Energy tokens into PVU Token and convert them to decentralized finance (DEXs).

There are multiple ways to earn LE like collecting seeds, watering other players’ plants, farming, and other daily objectives.

Crypto Game: Gods Unchained

This game was developed by the same team that created Immutable X, an Ethereum layer-2 scaling solution.

With Immutable X, trading can be done without fees and can execute up to 9,000 transactions per second.

Axie Infinity

Axie Infinity is the most popular game in America right now. With more than 1 million active users and estimated revenue of US$1 billion. The company behind this successful application? Sky Mavis from Vietnam!

The Axie Infinity Token and Smooth Love Potion are the two currencies in the game. It is a Pokemon-inspired game wherein you have to breed Axies, a non-fungible token (NFT).

As a non-fungible token, each Axie has a distinct collection of bodily components that define its capabilities and rarity.

Decentraland

Decentraland is a 3D virtual reality crypto game powered by the Ethereum blockchain game in 3D virtual reality. In all game modes, players may discover new regions, design their own avatars and material according to their tastes, and have great experiences.

Aside from that, gamers may utilize its currency called “MANA” to buy and sell products while also partaking in joyful social interactions.

Decentraland includes VR games with ultra-high-definition visuals. NFT Marketplace, in conjunction with the freedom of trade, is made available to players.

The Sandbox

The Sandbox is a platform for 3D virtual reality with similar gameplay concepts gaining traction in the gaming world.

For you to buy and sell in the marketplace, you are going to use the ‘SAND’ utility token. Sandbox’s exclusive 166,464 acres drive up demand, making it expensive to acquire.

When it comes to the user interface, it emulates the traditional Minecraft vibe wherein the landscape and goods are displayed in block form.

If you want to play to earn in this game, you must trade lands and artifacts and complete tasks.

Advantages and Disadvantages of Play to Earn Games

Advantages

Earn real money

Experts say the P2E concept might transform the game business. For users who wish to spend more time in a virtual environment, the play-to-earn models now attempt to give an extra incentive. They can gather in-game stuff while they play. These in-game goods may be exchanged for bitcoin or cash. P2E players may make money doing what they love — gaming.

Boosts the gaming community

The most recent P2E games feature some of the most vibrant and engaged communities. Because in P2E games, players may work together to complete objectives and tasks and share the benefits. This fosters a community of gamers eager to work together.

May promote blockchain technology adoption.

The gaming business was worth $173.70 billion in 2021, and analysts expect it will be worth $314.40 billion by 2027. The gaming industry’s use of blockchain may cause other businesses to follow suit. This would introduce millions of people to blockchain and other related technologies.

Both gamers and developers may benefit.

Play-to-earn games enable players to earn real money through in-game assets, and the play-to-earn ecosystem expands steadily over time.

Disadvantages

Earning-based gaming mechanics

Critics of the P2E paradigm frequently mention this issue. Developers may focus on the game’s business concept rather than the entertaining features. They may make it more challenging to gain an item in the game, reducing the player’s enjoyment. 

High entry fees

The creatures necessary to complete quests and tasks in games like Axie Infinity cost a lot of money. You can’t play without them. Playing games demand comparable entrance costs, some of which can exceed $10,000. This high entrance barrier might dissuade individuals interested in P2E gaming.

Risk of financial loss

Much of the time spent playing play-to-earn games is wasted. Gamers often spend weeks or months just attempting to recoup their original investment. A developer or publisher still controls these games and may impose earnings limitations for players. While they do provide the possibility to gain, few are aware of the possible losses. It’s crucial to know the game’s rules before you start.

Lack of structure

Blockchain is a new technology. As a result, scalability, upfront expenses, network infrastructure, and mainstream accessibility remain issues. That’s not to mention the ephemeral nature of crypto tokens and NFTs, making them a risky investment.

Are Play-to-Earn Games Free?

Although there is a discussion about whether or not play-to-earn games should be free to play, the fact is that those game developers follow their own route. 

Some are free to play, while others need an initial investment.

It costs a lot of money to make a video game. Thus it’s essential to understand that these games are made by companies. Profitability is the goal of any firm.

The advantage of play-to-earn games, on the other hand, is that players generate some value that can sell. Even if players have to pay money to begin playing, these products can be sold for a profit afterward.

It’s also true that most free games demand some kind of initial expenditure to access basic features and complete gameplay.

Conclusion

Play-to-earn games are the hottest trend in cryptocurrencies right now. Non-fungible tokens (NFTs) allow players more control over their in-game assets than ever before.

Players may also earn tokens by playing themselves or by producing and then selling NFTs on particular marketplaces. 

These games are worth investing your time in if you’re looking for something fun to do in this new generation.

Play-to-earn games have made it feasible for gamers to make money but always exercise caution. 

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