By Harishkarthik Gunalan, CEO & Co-Founder, CoinFantasy
Historically, the video game industry has been functioning on a pay-to-play basis. Only after major levels of transition, the payment model was transformed into Free-to-play. Thanks to the intrusion of blockchain technology, a paradigm shift called P2E games is sweeping through the gaming landscape now.
No matter what, the gaming industry never remains stagnant. From PC to mobile games, the constant evolution has taken gamers on a roller-coaster ride. But what gave life to their wildest fantasy is blockchain technology and the birth of disruptive gaming concepts that followed.
Over time, P2E games have become the talk of the town. While some believe crypto gaming is the biggest interference that has ever happened, some are sceptical about it. But this could beg a bigger question at hand- How are P2E games different from others? And how is it benefitting players on a higher level?
The answer is simple! The play-to-earn concept is breaking the stereotypical gaming pattern and gives the upper hand to players over anybody else. These games provide an income source for players while also keeping entertainment at heart.
Based on blockchain technology, play-to-earn games are a type of game that allows players to earn winnings. The concept is that players should be rewarded for their skills and time. By entwining gaming and cryptocurrency, the notion of monetizing the gaming experience has been made possible. According to a report, play-to-earn NFT games have recorded a whopping 2000% growth in the first quarter of 2022.
Going beyond monetary evolution, crypto games have caused a major psychological shift. Players are starting to realize the value of their gaming skills and everything that they procure during the gameplay.
Yes, P2E games have created a space for players to own their virtual assets and sell them in-game or in NFT marketplaces outside of the game for real money. And the affiliation of NFTs in gaming has brought around a recasting for both players and developers. While players found a stream of income, developers gained higher engagement and game demand.
Countries like UAE, India, Philippines, Nigeria and Singapore are topping the adoption of crypto games.
Traditionally, players were pushed to pay for in-game assets, if not, or on top of, making an entry payment. But despite compensating at every corner, all that spending goes to waste once the player shuts down the game.
In contrast to this traditional way, play-to-earn games give players ownership of in-game elements entirely. This means that players can hold on to their digital assets and even trade them for real money. Besides, many crypto games reward players who top the leaderboard according to their criteria.
In a nutshell, rewards, profitability, and the decentralized nature of the games are making it lead at the front.
It is worth mentioning that P2E games are as beneficial to developers as they are to players. Since players get a form of ownership over the game assets, their interest in investing also seems high.
Developers also make the best of this by building immersive games that scream engagement and retention. And some crypto games also make little commission on the sale of digital assets earned by players from their platform.
The shift from video to play-to-earn games is not a fleeting trend, it’s a seismic shift toward the new era of autonomous gameplay. This turned out to be possible solely because of blockchain technology.
Although recent, blockchain technology is what the world is roaring for. Starting from changing the way games are developed and played to the ownership of in-game assets and reward formats, blockchain is completely transitioning the gaming sphere.
By making P2E games a core component of decentralization, blockchain provides a secure gaming framework for people who come across it. As a result, the concept has given birth to in-game NFT-like assets.
Play-to-earn forges a deeper connection between users and blockchain technology. As users continue to secure, buy, collect, sell, and grow their digital asset catalogue, their interaction with blockchain intensifies. What seems like a very minimal form of blockchain usage could take a bigger shape in the years to come.
Using P2E games as a tool, blockchain is in one way or the other, finding its way into mainstream adoption. It is also important to remember that concept of P2E is still in its infancy and we have just scratched its surface. Soon, it is going to bridge the gap between gaming and real life through its hyper-interactive and immersive gameplay features.
