Play2Earn (Play-to-Earn)

Understanding Play2Earn (Play-to-Earn)

Play2Earn (play-to-earn) games are a type of gaming where players have the opportunity to earn valuable in-game assets that can be converted into real-world resources. This concept has evolved as technology has become more accessible to the general public. In the past, games were limited to arcade machines in specific locations, where players would compete for high scores using quarters. However, with the advancement of technology, games can now be played on smartphones, computers, and gaming consoles like PS5 and Xbox.

One of the latest gaming models to emerge is play2earn, particularly in the blockchain realm. This model allows players to generate income by participating in games. By engaging in the in-game ecosystem, players contribute value to other gamers and developers and earn assets in return. These digital assets can range from coins to accessories, all tokenized on the blockchain. As a result, the play-to-earn business model aligns well with blockchain games.

A notable example of play2earn games is Axie Infinity. In this game, players acquire, breed, and battle with adorable animals called Axies to earn rewards. Each Axie is a unique digital collectible known as a non-fungible token (NFT). Within the game, there is a complete economy called Lunacia.

In Lunacia, users can obtain land and breed Axies using in-game tokens such as Smooth Love Potion (SLP) and Axie Infinity Shard (AXS). These tokens also hold real-life utility.

Play-to-earn games, like Axie Infinity (AXS), have already provided a significant source of income for people worldwide, especially in countries heavily affected by the current pandemic. For instance, individuals in the Philippines are earning $1,500-$2,000 per month by simply playing Axie Infinity as a hobby. Many individuals in Vietnam have even quit their full-time jobs due to the substantial earnings from these games.

Other NFT games include Lost Relics, Splinterlands, CryptoBlades, DogemonGo, and Sorare.

The NFT market has already exceeded $2.5 billion in sales in 2021, and this figure is expected to grow exponentially as more NFT games enter the market. The NFT boom is creating new revenue streams within the blockchain industry, and it may soon surpass other major industries in terms of growth and profitability.