The play to earn model of online games is a revolution and has been trending for over two years. Its first breakthrough came with the worldwide lockdown, where everyone could not go outdoor. And some were inadvertently forced to get entertained by whatever means from within the home. Some traditional game lovers could quickly switch to game playing, while others saw how profitable game playing has become.
Game lovers from the Philippines, Venezuela, Brazil, and other countries quickly discovered the potential income from play to earn scholarship. Meanwhile, engaging with these games provided a means of killing two birds with a stone – entertainment, and income. Even after the pandemic, gamers’ accounts became fat with these NFT games that fetched valuable assets that could be converted into real-life currencies.
Not everyone is also excited about the innovation called crypto games; some are just skeptical about the whole thing. Perhaps you have been indifferent; learning one or two things about play to earn scholarship cannot harm. Besides, learning more about it will guide your decision-making and bring you to the right place. Also, this article will guide you to learn the ropes of NFT games with the play to earn scholarship model.
Definition of Play-to-Earn Games
A good question will be, how did we arrive at the name “play to earn” for video games? The term already gives an idea that play to earn scholarship reward you, unlike traditional games that you play for fun. The reward, in this case, is cryptocurrency or NFTs, which can be converted to real currency. Whereas the process of players earning from these games also involves them making the same commitment as they do with traditional games.
The other type of model standard with traditional games is the pay-to-win game model. Meanwhile, the play-to-earn gaming model allows the players to earn valuable cryptocurrencies or a unique NFT that can be sold for real value. Play-to-earn games are popular because they offer players two key benefits – entertainment and income. But how exactly do these play-to-earn games work in rewarding the players and making their time worthwhile?
Play-to-Earn Games work
When players engage with traditional games, the inbuilt assets are only valuable inside the game and cannot be valued outside of it. In other words, they don’t have real value in the real world. However, the game player can exchange the play-to-earn in-game assets with real-world value. In addition, the traditional game is wholly controlled by the game developer, and he can choose to close it anytime. But such a thing cannot happen with P2E modeled games.
Play-to-earn games allow players to hold the potential value embedded in the game as in-game digital assets. These assets can be of any type, such as cards, skins, characters, virtual lands, or any specific type of cryptocurrency. And the more a player plays and accomplishes different tasks, he gathers these assets in his collection. On the other end, the asset gains more value due to its uniqueness and rarity.
After earning the digital assets, the players can decide to transfer any of these assets to the real world. He can sell or exchange them within the game environment to other players or sell them in a third-party marketplace. The medium of exchange can be cryptocurrency or real money on their terms. However, the traditional games are on a centralized platform, while the play-to-earn games are decentralized.
The implication is that the game developer does not have control over all the items in the power center. In-game assets can also be distributed among the players who are most actively partaking in the game. And when each player takes part in the game, they automatically generate value for other players and the game developer. But the real gain of the game developer comes when any transaction takes place, and he places a charge such as the gas fees.
Why Play-to-Earn Games are called Crypto
Do not be surprised when you find that play-to-earn games are crypto games. The reason is good and simple: the more you play the game, the more you can earn cryptocurrency. And we are not talking about low-rated coins but high-value coins like Bitcoin and Ethereum. This value can be highly motivational for the players who hope that the value of the cryptocurrency can rise in the market and you suddenly become rich.
Although the P2E games reward players with cryptocurrencies in bits, they can accrue and become real wealth. Also, we are not talking about fables here but real action that millions of players globally are already earning. When the player completes a task, contest, or battle, they earn a reward for the process. But there are two major approaches that developers can take to build a highly profitable game.
Game developers may decide to create a game with its native cryptocurrency as tokens. This process requires first creating a blockchain project and designing the tokens. Finally, the developer closes the deal with smart contracts on the blockchain network. At the same time, these tokens may also serve as the usual in-game currencies, only that they have a real-world value. Examples of these native cryptocurrencies found in specific games are the SLP and the AXS.
SLP stands for Smooth Love Potion, while AXS stands for the Axie Infinity Sheared tokens. Both are found in the world’s most popular play-to-earn blockchain game known as Axie Infinity. And the cryptocurrencies exist on the Ethereum blockchain, which implies that these tokens have a value that can be exchanged for the ETH coin. Meanwhile, just like the other cryptocurrencies, the values of these tokens can also go up and down in the market.
Apart from the native cryptocurrency, game developers can use another method, the existing cryptocurrencies. When the developers take a second look at the game, they may decide to go for a direct shot on existing coins. For example, the developer may stick to Bitcoin, Ethereum, Cardano, Dogecoin, or other crypto coins. Since the names of the coins are already familiar, the associated cryptocurrencies are tagged alongside these names.
Examples include Bitcoin Tycoon or Bitcoin Pop. In other cases, they may have the crypto prefix such as Crypto-kitties or Crypto dragons. As the player explores the reward system of these games, the units of reward cryptocurrencies may take a while before ti accrues to real wealth. However, monetization is actual, even if it takes a long process.