Updated: Apr 15
Non-fungible tokens (NFTs) have shown time and time again that they have the capacity to transform the gaming industry since their debut.
The introduction of NFTs heralds the beginning of a new and exciting era in which gamers will assume increasingly more important roles in the gaming economy while also receiving commensurate benefits in the process.
Today, this gaming paradigm is beginning to take form as game producers progressively incorporate blockchain technology into their creations in order to provide their players with an even more immersive gaming experience.
What Are Play-to-Earn Games and How Do They Work?
An NFT game is one that mixes standard gaming ideas with unorthodox game techniques to provide gamers more control over in-game assets such as skins, characters, weaponry, virtual territories, and other virtual worlds and environments.
Creating blockchain-based games and incorporating them into a digital asset-based economy makes this feasible. These digital assets are often non-transferable tokens (NFTs) in order to be identifiable and tamper-proof.
The implementation of NFT token standards also enables game producers to maintain the rarity and uniqueness of some of the in-game objects by using standard NFT tokens.
As a result, certain blockchain gaming assets are deemed to be more costly than others in comparison to others.
With this mechanism in place, players may claim ownership of game assets in one of three ways: by claiming them directly, by claiming them indirectly, or by claiming them indirectly.
They may create or breed new characters, buy digital things on the game's native or third-party markets, or unlock and earn new stuff by completing missions. Whichever method you choose to get access to certain game assets, you will retain sole ownership rights to these assets.
In essence, you may distribute or sell them and keep all of the money that is generated from these transactions. This is the reason why this gaming approach is referred to as "play to earn."
What Are the Advantages of the Play-to-Earn Model for Gamers?
Virtual economies in gaming worlds are not unheard of – major massively multiplayer online role-playing games (MMORPGs) such as RuneScape and World of Warcraft have tens of thousands of players each.
Furthermore, many games that advertise themselves as free-to-play are really operated on a premium basis, in which players must spend a specific amount of money in addition to their time and effort in order to speed their ascent through the ranks or gain uncommon in-game goods.
While these in-game things may be worth a lot of money, the ultimate ownership of these objects does not reside with the player, but rather with the game creators who created the game.
Gaming firms should be fairly paid for their efforts in creating engaging games, but players also add value to the equation by investing their time and actively participating in the in-game economy.
In this manner, both sides benefit from the synergy created by the model, and everyone is compensated for the value they provide to the community. On the one hand, gaming businesses have the opportunity to create a more active in-game economy.
Gamers, on the other hand, are able to claim ownership of their in-game assets and get compensation for their efforts.
We will talk more about one such game in our next blog. So, stay tuned!