Understand Play-To-Earn in just 3 minutes

Play-to-Earn tends to revolutionize the video game world. The player is no longer just there for entertainment, but participates in a new form of economy called GameFi (combination of “Game” and “Finance”).

The player is now central to the experience by being encouraged to earn cryptocurrencies and spend them on exchanges or in the game itself. A new world where NFTs integrate perfectly and fully play their part.

What is it concretely?

Play-to-Earn (P2E) games are: video games based on blockchain technology. The goal is to encourage the player to participate in the video game experience as much as possible. This incentive therefore requires the implementation of rewards in various forms (cryptocurrency, NFT, enhancement, bonus, etc.).

These Play-to-Earns can take various forms. They can be “autonomous” like Axie Infinity, i.e. linked to their own game universe, or rely on a virtual universe in the form of Metaverse like Runiverse.

How does Play-To-Earn work?

The economic model of Play-To-Earn is to: reward players who add value to the gaming ecosystem. To do this, the game is initially free (freemium). It’s no longer a matter of buying a game or paying for a subscription, but rather investing time in the game for a profit in return.

It is up to the participant to pay to add new features, improve a character, restore content or equipment, or simply progress faster in the game.

What are the Major Play-To-Earn Platforms?

In recent months, a large number of Play-To-Earn has been emerging. The main ones are:

  • so rare : a game built on the blockchain Ethereum. The main goal is to collect virtual cards of soccer players to participate in competitions. These cards are NFTs that can increase or decrease in value depending on the footballer’s real-life performance.
  • Axie Infinity : The most famous NFT game where you buy creatures to evolve to participate in battles.
  • My neighbor Alice : The player is on a farm and has to grow vegetables, raise animals, go fishing, develop his map.

Read also Understanding “Liquidity Pools” in just 3 minutes

Artwork from the video game Axie Infinity

The Strengths and Weaknesses of Play-To-Earn

This game mode has many advantages by now incorporating a transaction thought into the game experience.

  • Thanks to the authenticity conferred by NFTs, the player enjoys all the benefits that blockchain technologies offer: Security, Authenticity and Decentralization.
  • The whole concept is to be a rewarding game experience for the player in the form of rewards in cryptocurrencies.

However, Play-To-Earn is not without risk and also has some limits:

  • To generate returns, it is still necessary to make significant investments in advance (purchase of cards, artifacts, equipment, characters, etc.).
  • The security is not guaranteed within these blockchain games. The most famous Play-To-Earn Axie Infinity has been hacked for over $600 million in damage.
  • This one games are often suspected of pyramid schemes. A system that needs to feed new users to feed the income of previous players. So if players quickly convert their winnings and leave the game, the system is no longer efficient.

Conclusion: what future for these games?

If these games are a real opportunity to make money and consume the world of video games differently, they are still too little and still lack of maturity.

These games will only last over time with a recurring addition of new features, new uses for NFTs, to keep players in the game. the development of Metaverses can be the solution.

💎 Get your free crypto watch

The “Quickly Done, Well Done” Crypto Watch: Receive our free crypto watch in your email inbox every Friday at 8pm sharp. 100% added value, 0% spam!

🔥 As a bonus, get your free guide “Find the future Nuggets”: learn how to analyze cryptos like a pro, avoiding red flags and scams, to start or continue your adventure in the world of cryptocurrency.

Leave a Comment