Another day, another gaming trend! This multi-billion dollar global industry is not exactly short of an innovation or two; over the past decade alone, we’ve seen the meteoric rise of gaming on the go, eSports, Virtual Reality gaming, streaming and more. So, is crypto gaming all that it’s cracked up to be? If the GameFi sector continues its ascent, yes.
GameFi Explained
GameFi, a portmanteau of gaming and finance, is an exciting new tech sector that combines gaming with decentralised finance, all with the aim of enabling players to earn real-world rewards by playing games. Central to most GameFi projects are play-to-earn or P2E mechanics, which allow players to earn native tokens, cryptocurrencies, and various other digital assets by completing in-game tasks and milestones or by contributing to the game’s virtual ecosystem. It’s finance with gamification elements or gaming with financial incentives, depending on how you look at it!
Of course, playing games for rewards is nothing new. For centuries, we’ve played lotteries, board games, card games, casino games, and more for a whole host of prizes. Even here in the digital age, real money gaming has been thriving for decades thanks to the iGaming industry and the online casino sector, with platforms like PokerStars Casino offering global gamers the opportunity to compete for cash prizes by playing games like slots online. So, what makes P2E different?
Well, a unique aspect of the play-to-earn sector is that, instead of asking gamers to play to win, they’re rewarded for the time they spend playing titles. This model effectively allows gamers to monetize their in-game participation by earning real-world rewards, which typically take the form of digital assets like crypto tokens and NFTs.
The Role of Blockchain Tech
GameFi and P2E are decentralized sectors, meaning they’re built on blockchain technologies. Crypto enthusiasts are well versed in the specifics of blockchain tech, but a simple way to think of them is as distributed ledgers that are able to securely record a variety of different records. When applied to P2E gaming, blockchains facilitate the creation of unique, verifiable digital assets, which players can keep, sell, or trade as they wish — typically in the form of non-fungible tokens. Basically, thanks to blockchain tech, gamers can truly own in-game items like weapons and accessories, characters, and skins.
So, what exactly are non-fungible tokens? The clue’s in the name! Unlike cryptocurrencies like Bitcoin and Tether, which are fungible or mutually interchangeable, NFTs have distinct characteristics, meaning that they cannot be reproduced or replicated. NFTs are unique digital assets, a characteristic that can add value to whichever in-game items they represent. Moreover, NFTs can appreciate over time, which would see their real-world value increase also.
P2E gamers aren’t just rewarded with NFTs; they also have the ability to earn native cryptocurrency tokens. All games in the sector are built on blockchain networks, meaning that they’re powered by native crypto, which serve as in-game currencies. Players can earn tokens by completing quests, achieving in-game milestones, and, of course, making in-game purchases. Like NFTs, these tokens can also be traded on decentralized marketplaces, and players can convert their value into fiat currencies.
Essential P2E Games
Like most crypto sectors, GameFi is a burgeoning segment, so we can expect plenty more P2E games to be released into the market in the coming months, all with varying standards of quality. If you’re looking to get involved in play-to-earn gaming, it’s best to stick with established games that already have a solid reputation in the gaming community. Unlike iGaming, GameFi remains an unregulated sector, meaning you need to take extra caution when selecting games to sign up for.
Here are three essential P2E titles worth checking out:
- Axie Infinity: this definitive game in the P2E sector remains a staple despite being around for over five years. Taking its cues from Nintendo’s Pokemon games, Axie Infinity allows players to collect, breed, and battle cuddly — but fearsome — creatures for digital rewards.
- Decentraland: technically a sandbox metaverse (digital universe), Decentraland nevertheless offers plenty of gaming and P2E elements for players to enjoy, as well as opportunities to monetize the digital experience by becoming part of its virtual economy.
- Star Atlas: Traditional gamers will undoubtedly find Star Atlas appealing. This strategy-focused P2E game features immersive space exploration gameplay and offers plenty of ways to earn rewards and digital assets.
