Well, not any game. While there are professional competitive gamers who take part in tournaments and win cash prizes, that’s not what we’re referring to. We’re referring to ‘play-to-earn’ games.
The gaming industry is a $336 billion industry and is expected to continue rising especially since the introduction of crypto gaming.
Similar to other industries, the gaming scene has evolved over the years with many different types of games such as first-person shooter (FPS) games and multiplayer online battle arena (MOBA) games. Now, the trend’s ‘play-to-earn’ games – you’ll see why.
What are ‘Play-To-Earn’ Games?
The name in itself is rather self-explanatory. Users play crypto games and earn cryptocurrency for it, which can then be exchanged for real-world money.
The model looks like this: Play the game, earn digital assets, trade for crypto and exchange for money
This business model has boomed in popularity in recent months, after all the model sells itself – make money while playing? You have our attention.
How does it Compare to Traditional Gaming?
When you look at traditional gaming, everything about the game is pretty much owned by the developers. In comparison, crypto games are developed on blockchain networks, decentralizing control over information and allowing players and creators to hold power over the game. ‘Play-to-earn’ provides gamers with ownership over unique in-game digital assets that can increase in value through playing of the game. Ownership of digital assets are done through the use of non-fungible tokens (NFTs) and can be sold both in and out of the game.
Examples of ‘Play-To-Earn’ Games
There are multiple ‘play-to-earn’ games, some are free while others require some sort of contribution to play. Arguably the most popular one would be ‘Axie Infinity’. To get started on the game, players would need to purchase at least 3 axies using Ether (ETH). Following which they play the game, earn in-game currency that can be exchanged for actual cash.
‘Ember Sword’ is a massively multiplayer online role-playing game (MMORPG) that is free to play. Players can earn NFTs as loot which can then be sold in the in-game marketplace (which charges the player a 7% fee if/when the loot gets sold).
Crypto gaming is considered to be in its infancy stage as it is relatively new but it doesn’t take much to see how it is quickly taking over and is quite possibly going to become the future of the e-gaming industry. With that comes questions surrounding financial reporting and taxation, more laws and regulations are likely to be put in place as time progresses. To what extent? It’s anybody’s guess at this point. But one thing’s clear, the future is very much digital.
*Disclaimer: This article does not claim to provide any form of financial advice. Do your own research in crypto gaming if you choose to proceed.