Play-to-Earn (P2E) allows users to generate substantial profits just by playing a video game. This is changing the investment environment for many people.
An introduction to the new sector in the crypto industry.
Just a few years ago, the idea of receiving any tangible monetary incentive for playing video games would have been scoffed at. Today, in 2022, there are several examples where players can reap significant financial benefits just by participating in various in-game activities. With the rise of cryptocurrencies, particularly the non-fungible tokens (NFTs) industry, many financial models have made their way onto the market. Play to Earn (P2E) is one of them. These allow users to earn significant winnings by playing their favorite games. In this article, we will explore the concept of play-to-earn in detail.
The Basics of Play-to-Earn (P2E)
As the name suggests, Play-to-Earn (aka P2E) games are designed to help users “farm/collect” various cryptocurrencies and NFTs. These can then be sold through third-party marketplaces for handsome profits. In other words, by participating in play-to-earn games, users can receive items, tokens, etc., which can eventually be sold for additional income. Gamers around the world have reportedly started supplementing (and sometimes replacing) their existing sources of income by playing these video games. However, it goes without saying that such activities involve a degree of risk. In most cases, users will need to invest a reasonable amount of seed capital to qualify for participation (by purchasing characters, items, etc.).
While technically each P2E game’s reward mechanism can be different, typically most offers use some form of staking. That is, they allow users to either farm the in-game crypto token or generate tradable NFTs. Older blockchain games were largely based on a random system that allowed players to earn incentives. However, most P2E games today feature a creator economy, where users simply need to perform certain activities to earn a secure income.
What does blockchain have to do with all of this?
The core idea underlying P2E is not entirely new. There are some online MMO RPGs (Massively Multiplayer Online Role-Playing Games) that are built on a fiat-based economy. The difference with cryptocurrency video games is that they use an underlying blockchain system to solve issues related to provenance, rarity, etc.
Also, the use of blockchain technology ensures that every transaction that takes place within a game is recorded in an immutable database. Management of the network is overseen by a decentralized group of computers, with each node owning a copy of the entire set of data in question. As a result, the risk of fraud through data manipulation, duplication or deletion can be almost completely eliminated.
Blockchain games and their connection to the Metaverse/Web3 ecosystem
Another aspect of blockchain-based P2E games is that they have set an ideal precedent for many Web3/Metaverse-centric crypto trends. This is because decentralization is their key differentiator. In this regard, Web3 means a whole new iteration of the World Wide Web ecosystem. Specifically, one that is built on a blockchain basis and uses a token-based economy. The concept of the metaverse also plays a role. It relies on using a financial framework that leverages different types of crypto assets – from stablecoins to NFTs and pretty much everything in between. In the last year alone, deals worth over $40 billion were made in the fledgling NFT sector. So it stands to reason that more and more P2E titles will use this new asset class.
To generate income, players can participate in Web3 video games by collecting NFTs and trading them on marketplaces that support the respective token standard. As mentioned, the NFTs can represent anything including game items, characters, cosmetic upgrades, etc. Finally, these tokens can also be locked into smart contracts and staked to earn steady returns. All of these trends suggest that the metaverse and blockchain gaming economies will remain inextricably linked, at least for the foreseeable future.
Crypto Nights and its new play to earn proposal
Be part of this new open world MMORPG game under the play to earn model. Now you can have fun while making money. No more repetitive games with no playability, get everything in one place. Receive cryptocurrencies by killing monsters, participate in various events PVE and PVP. You can also exchange great items inside the game for cryptocurrencies (without paying gas). Form clans, declare wars, find the best items for your character. All in an open world.
Our project aims to develop an online P2E game. Here, you do not have to wait for turns nor press buttons mechanically. We do not make your gaming experience monotonous and boring nor leave players with no possibility to generate income. We listen to the user, and we bring the best of both worlds: the possibility of making money while enjoying a fun game. Let us make your dreams come to life.
Check our white paper under www.crypto-nights.com and feel free to contact me for further details.
Sebastian KHL Berquet | CFO & Founder Crypto Nights Holding Limited