A new gaming industry sector has begun to emerge in recent years that rewards players for the time they spend gaming. The profile of play-to-earn gaming – as well as that of its predecessor, real money gaming – has been given a significant boost over the past 18 months thanks to the integration of cryptocurrencies and blockchain tech.
In this article, we’ll take a closer look at the different categories of play-to-earn (P2E) and real-money gaming.
Real Money Gaming
Real money gaming, in which players have the opportunity to play for financial rewards, was, in many ways, the older cousin of P2E games. While there are important distinctions between the two, with real money gaming often requiring players to spend resources in order to earn, nevertheless the appetite for this type of gaming activity nevertheless has set the stage for P2E games to emerge.
Real money gaming, or iGaming, is still a highly popular online gaming sector, with platforms and apps catering to the needs of players all over the world. Recent expansion has meant that keen players can now play slots in US states, while ongoing online poker tournaments are in regular play throughout Europe.
Early Iterations of Play to Earn Gaming
We saw elements of play-to-earn gaming first emerge into mainstream gaming sectors with the rise of mobile gaming apps. The freemium business model, in which apps are initially free to download and play, but require microtransaction purchases to unlock new levels or character skills, incentivises gamers to play for longer by giving them the opportunity to “earn” in-game items.
These items in-game items often included armour, weapons or other virtual goods necessary for the game, and while players could “trade” their goods virtually, they had no real-world financial value.
As MOBA games and MMORPGs began their ascension, developers started to integrate these loot box rewards into full-scale video games. There may still have been a monetisation elements involved that required players to spend resources to “level up”, but incentives were still there to keep playing in the form of in-game rewards.
The Blockchain Era
The advent of blockchain gaming had a revolutionary impact on the P2E sector by introducing in-game rewards that had a real-world value. The decentralised nature of blockchain tech made it possible for developers to create gamng systems that allowed for the generation and management of digital assets. Previously, in-game items earned by players were tied to that particular game. However, blockchain tech suddenly made it possible for players to have true ownership of their earned assets.
Now, P2E crypto and blockchain gaming – or GameFi as it’s become known – is a fourshing crypto scector that could disrupt the traditional gaming space for several years to come. By rewarding players with assets in the form of NFTs (non-fungible tokens), blockchain games enable gamers to generate genuine financial rewards. NFTs can be bought, sold and traded on blockchain exchanges, which players are then able to convert into fiat currencies or reinvest into a crypto of their choice.
