A new era of the internet, called Web 3.0, is emerging. This version of the world wide web is powered by technologies like blockchain, which will make decentralization more commonplace. Among other things, these technologies make play-to-earn games feasible. With these games, gamers can now earn real-world money playing games, not just by joining massive multiplayer online (MMO) gaming tournaments.
And although they’re relative newcomers, the market value of play-to-earn games is now worth USD$4.6 billion. Play-to-earn or blockchain games, partnered with blockchain technology, will probably be the main driving forces of innovation in the world wide web in the next few years. Blockchain gaming is poised to significantly impact not only the entertainment industry but also the lives of the people involved.
An overview of play-to-earn games
With Web 3.0, traditional ways of entertainment consumption are undergoing a sea change. No longer will the consumer watch or listen passively to content. Consumers will be actively involved. This type of entertainment is best exemplified by play-to-earn gaming.
As the name suggests, play-to-earn games refer to games you can play online and earn money or cryptocurrency while playing. The gaming model gives incentives to players for playing in the game world, which makes players more invested in the game.
And since they can own assets they earn in-game, it also gives them a sense of ownership. These game mechanics draw players in by the millions, as evidenced by the popularity of the top blockchain games.
In play-to-earn or P2E games, a player can possess in-game assets that may be valuable. These assets include cards, skins, characters, weapons, in-game currency, or virtual real estate. Digital assets like these can be sold or traded, like any other non-fungible tokens (NFTs).
How do play-to-earn games affect people?
Video games have always been viewed as hobbies. However, the P2E gaming model is showing players worldwide that games don’t necessarily have to be just for fun. Blockchain gaming is still young, but it’s already been adopted by millions of active players worldwide. It’s estimated that the blockchain gaming market value will reach more than USD$65 billion in 2027.
No doubt about it, P2E games are going to get even bigger. The games will certainly affect the lives of people because of the following reasons:
1. Giving players an opportunity to earn real-world money
According to pundits, blockchain games are set to redefine the gaming industry. And they may be right. Already, people’s perception of online games is starting to change. Instead of just being a hobby, it’s now possible to earn an income from playing games. That will be a game-changer for many, especially players from underdeveloped countries.
Earlier changes in the gaming industry, like the introduction of MMOs, made gamers play against or with each other to achieve common goals. In-game economics were also introduced in early multiplayer games. You could buy, sell, or trade items, but the benefit is only in the game itself. In-game items have no value outside of the game world.
Blockchain games are changing that. This latest game model incentivizes gamers who spend more time gaming. The longer a player stays in the virtual environment, the more chances they have of collecting digital assets. And as these assets can be converted into cryptocurrency or fiat money, players can earn an income doing what they love.
Moreover, the digital assets you earn in-game remain in your control. Even if the game, for some reason, closes, digital assets like NFTs that you’ve acquired in-game stay in your possession. Nobody can take them from you, not even the developers. Items and resources in P2E games are connected to the player and not to the game.
Because of the way blockchain works, fraud like item duplication, hacking, and other glitches in other gaming models are prevented. The technology doesn’t allow copying and pasting, so rarity directly influences an in-game asset’s value. Thus, the assets possess actual value.
2. Helping the gaming community to evolve
The gaming communities supporting P2E games are some of the most active and robust in the gaming industry. It’s not uncommon for blockchain games to have daily active players reach six figures. Blockchain games allow players to cooperate in doing missions and quests. Whatever rewards they earn are split among them.
This tangible reward is an excellent enticement for players to band together, helping other existing communities to promote an inclusive and cooperative environment.
Plus, the continuing increase of gaming guilds makes it easier to join P2E games. The guilds, composed of players, managers, and investors, can make it easier to buy assets in-game. Tokens required to enter the game can be pricey, so keeping prices affordable makes them accessible for new gamers.
Profits earned by the guild are often reinvested to create a more immersive P2E environment for the gaming community. Gaming guilds are essentially an alliance, providing tools, training, NFTs, and funds for gamers who don’t have the necessary funds. This way, the community continuously evolves.
3. Helping promote increased adoption of blockchain technology
The gaming industry’s revenue is estimated to be worth more than USD$200 billion and is expected to grow even more in the next few years. On the other hand, blockchain technology’s potential is just beginning to be realized. Blockchain’s partnership with gaming is sure to cause a ripple, making other industries look closely at its capabilities.
Because of blockchain’s ability to decentralize, there wouldn’t be any central servers, which means hackers wouldn’t have a target. It makes Web 3.0 possible, and it can construct a multiverse. Games can be more immersive and can push their boundaries even further.
In short, blockchain can completely overhaul the gaming industry.
Blockchain, to date, is already used across many sectors. But partnering with an industry behemoth like the gaming industry could put the technology in a more prominent light. There’d be a greater chance of other industries using blockchain technology, which can power even more innovations.
Blockchain technology makes it possible for P2E games to develop and grow. Although these games are new, they’re already worth billions. These games can affect people’s lives because they make it possible for gamers to earn real-world money.
Additionally, P2E games can help gaming communities and guilds to evolve further. Blockchain’s partnership with the gaming industry may also lead to the increased adoption of blockchain technology, which can result in innovations.