Video games and Play-to-Earn Games have tremendously grown in popularity, especially during the COVID-19 quarantine, as well as due to the normalization of the state-at-home and the awareness of social anxieties we had in the past without having a vocabulary with which to name them.
We can blame sedentarism or inflation, due to which going out has significantly increased prices. If we add a predominantly cold climate, most people will look for ways to valuably spend their time at home instead of going out: with the growth of the cryptocurrency market came games built and based on Blockchain technology. The possibilities are limitless in the crypto gaming sphere, representing an additional way we can spend cryptocurrencies and profit from playing games.
What exactly are Play-to-Earn Games?
Play-to-Earn Games, where players can earn extra cash by playing, are one of the most exciting ways we can make money from crypto – but it’s also a space where players can distribute in-game items amongst them. By directly using assets from the respective games, such as cryptocurrencies, utility tokens, or NFTs, we can increase their market value by growing their utility. This is also the main reason native game currencies like SAND, AXS, and ILV have grown enormously amid the hype and aggressive marketing strategies during the Bull Market. Numerous projects that offer games or different ways to create video games provide various approaches for their currencies and come up with ingenious ideas about game design and inventiveness.
How do Play-to-Earn Games work?
Technically speaking, each project is different from any other, but almost all of them use NFTs in the back end that is encrypted on the Ethereum Blockchain to build the virtual reality that we see on screens or with the help of VR glasses. The non-fungible token technology is vast, but in short, we can encrypt on the Blockchain almost anything we want: images, sounds, sheet music, or any type of art.
This data is stored on a distributed ledger using the help of a unique code that no one can steal or hack, and it is not transferable without the owner’s consent. All this runs on Smart Contracts, primarily written using the Solidity programming language. Smart Contracts are automatic mechanisms that activate themselves based on in-game activities.
How exactly do we make money from these Play-to-Earn Games?
It is important to note that profit is not always guaranteed when it comes to Blockchain games. A lot depends on everyone’s personality, and if we find a game that suits us, we desire to play it constantly. But for those who identify as gamers and possess all the necessary equipment, passion, and free time – for them it’s worth trying. Depending on the platform or game in question, you either have to acquire NFTs that symbolize in-game creatures that you team up with and battle other players (like Axie Infinity, for example) – or create your games through tools provided by the game developers.
Generally, a minimum investment is needed for these in-game NFTs or for staking cryptocurrencies. During the gameplay, depending on the fights, the way players form and apply strategies depend on their experience, thus leveling up and earning rewards. There are entire online schools and academies where people learn how to overcome obstacles in various games. Investors can take advantage of the market hype and the marketing teams to try and sell these NFTs for more money than they bought into or even to sell in-game items they don’t need anymore.
What are some examples of crypto gaming platforms or projects?
In addition to the actual games, many of these projects incorporate an enormous interest in virtual spaces like the Metaverse, such as Decentraland, where people can invest in virtual real estate (that they can rent out or resell for profit). Binemon is another excellent example, created on the Binance Smart Chain, where players can battle the environment or each other. With Illuvium, players fight for ETH through battles and completing individual quests that increase in difficulty through time – and they get rewarded in ILV, the game’s native currency.
Apart from these, there are a lot of projects with different games and platforms which may suit your style and taste. Each Play-to-Earn game comes with a distinct artistic 3D design and offers an entirely unique experience to its players. In developing countries where wages are not that high, people play these games at an expert level to earn a monthly income for their families. It can also be an ingenious way to make some extra cash for simple gamers or teenagers without too many worries.
Anyone can be an investor. On a global scale, crypto remains a relatively young asset class with an investor base that’s still growing. At IXFI, we’re building a community where everyone is welcome. We mean it when we say that anyone can be an investor. Try it for yourself; join Your Friendly Crypto Exchange today and see where you fit in.
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Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty, or undertaking, stated or implied, is given as to the accuracy of the information contained herein. IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should, therefore, not be undertaken by any individual without prior consultation with a financial professional to assess whether the ideas or techniques discussed are suitable to you based on your personal economic and fiscal objectives, needs, and risk tolerance. IXFI disclaims any liability or loss incurred by anyone who acts on the information, ideas, or strategies discussed herein.
