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What is GameFi and Play-to-Earn (P2E)?
Table Of Contents
- What is GameFi and Play-to-Earn (P2E)?
- What is GameFi?
- TOP 5 GameFi and P2E Games
In 2021, the market capitalization of P2E games was $755 million, which was the launch of a report to take over the traditional gaming industry for the GameFi . This direction today attracts players due to the possibility of earning real money in games. According to preliminary estimates of experts, this industry will grow by 300% in the coming years and by 2028 the market capitalization will be $2.9 billion.
Let’s find out what exactly is GameFi and how this industry differs from traditional video games.
What is GameFi?
GameFi is a completely new direction in the gaming industry that combines games and tools for earning. The name GameFi speaks for itself and is derived from “game” and “finance” – game and money. In a nutshell, GameFi brings together play-to-earn blockchain games that offer cash rewards. Players get the opportunity to earn cryptocurrency or NFT rewards for completing tasks, competing against other players, or for completing levels.
Compared to traditional video games, GameFi allows you to bring in-game items from the virtual world into the real world. They can be sold under the guise of NFTs on special marketplaces, and earned cryptocurrency can be exchanged for real money.Find out more about GameFi and E2P games, and how to make money with web3.
How does play to earn work?
GameFi uses either cryptocurrency or in-game assets as rewards:
- virtual lands;
Each project has its own unique model and its own game economy. Basically, in-game assets are NFTs running on the blockchain and can be traded on NFT marketplaces. But in some cases, in order to sell or exchange assets, they must be converted to NFTs.
Ethereum and p2e
At the core of GameFi projects is the modern play-to-earn game mode. It differs from the model that is common in traditional video games that you have to pay to start playing. Play-to-earn games are different and give players full control over their in-game assets and also allow them to earn money.
However, crypto games are individual in their own way, and in many respects, everything depends on the game design of each specific GameFi project. We recommend that you carefully study the principles of the play-to-earn game before joining it.
IMPORTANT! The following languages for blockchain development are used in writing smart contracts for p2e NFT games deployed on the Ethereum network: Solidity, Vyper, and Yul.
Now it is worth paying attention to such an important component of games as protocols. We are talking about the Ethereum protocols, and what does the Ethereum infrastructure for GameFi and P2E mean? First of all, it allows you to store and execute programs in the chain. Involvement in blockchain development has led to the fact that a whole world of decentralized apps or dApps has emerged. And when blockchain developers learned how to create Ethereum dApps, they began to change the idea of games by adding new features to them.
GameFi and P2E have gained momentum thanks to the crypto community and it is thanks to Ethereum that people have come up with new token standards such as the ERC-20 token standard for fungible tokens. This further allowed standards such as ERC-721 and ERC-1155 to be used to create NFTs, or non-fungible tokens.
One of the first games that started using ERC-721 was CryptoKitties. This game has taken over the gaming market and changed the way GameFi and P2E are perceived. CryptoKitties is the first game to provide the ability to monetize NFTs and change the perception of “what is p2e gaming and GameFi” for decentralized applications (dApps) and the blockchain industry. If you don’t know how to build Ethereum dApps, find a team that will complete the project for you
Are P2E Games Revolutionizing the Gaming Industry?
P2E games have taken the game industry by storm, primarily due to the exceptional model that rewards NFT players. NFT P2E games are fun and make a living. The growth in the number of digital asset owners makes it clear that P2E is the future of gaming. First of all, this is due to the players’ interest in having unique in-game tokens.
If we draw parallels with the traditional niche, in this case the relationship between the gaming company and the player is one-sided. A game company makes a profit when a player goes home empty-handed. In blockchain games, things are completely different, since this area has allowed players to monetize their time. But that doesn’t rule out problems that P2E games certainly have. For example, pretty simple graphics, boring interface, and so on.
But even despite the disadvantages of crypto games, they have made a splash and there is no doubt that this trend will continue to gain momentum, given the prospect of digital assets.
New GameFi and Play-to-Earn (P2E) Incentive Models
One of the new models in GameFi and Play-to-Earn is Wellness-to-Earn, which is a broader term that encompasses many sub-models such as Move-to-Earn and Sleep-to-Earn. This is a reward model that is based on the fact that users get profit through various activities. They might include:
- good sleep
- physical exercises
- forming permanent habits
- leading a more active social life
Basically, any activity that improves health can be rewarded.
But in order for developers to get more profit from the model, they need to know how to create an NFT marketplace. This will allow you to make money on players who want to sell the assets that they have earned in your own game.
Top P2E Protocols
Ethereum is consistently the best protocol for dApps and P2E games, but other blockchains are just as good as Ethereum. For example, Polkadot, Solana, Polygon, Avalanche, and OEC all have their own GameFi and P2E ecosystems. So, if you are interested in making a game on any of these platforms, then this is the right choice. These protocols make it easy to build cross-network decentralized applications and P2E games.
TOP 5 GameFi and P2E Games
It’s time to take a closer look at the best crypto games that have made a revolution in the gaming industry and will help you earn good money.
Axie Infinity has long been one of the most talked about and popular P2E games. This game has a large following, but its popularity is due to its social and economic importance. Players can have different goals, they can breed creatures in order to profit in the form of AXS tokens plus a few SLP gamefi tokens. Depending on the combination of creatures to breed, the number of SLP tokens used in a transaction is determined.
Another game that will help you make money is the card strategy games Gods Unchained, which will be of interest to those who are familiar with the cult game Magic: The Gathering Arena and who are interested in this game model. Players get unique cards that can be converted into NFTs and sold for GODS tokens. GODS tokens can then be exchanged for fiat.
This is another NFT collectible card game that adds a new dimension to the GameFi space. The game is built on the Hive blockchain and inspired by classic games like Magic the Gathering and Hearthstone. The cards are collectibles and you can do everything with them:
- to buy;
- to sell
Moreover, you can also earn rewards.
The game uses Binance Smart Chain (BSC) to manage its BEP20 token, which is called Splintershards (SPS) The game is built on the principles of DAO to manage its ecosystem.
This game features unique main characters with different powers and weaknesses. Players are rewarded for logging in and also allows you to earn NFTs while you play.
CryptoBlades is a competitive game. Players receive combat contributions in the form of SKILL tokens, which are based on BNB, as an incentive.
All in all, GameFi and P2E can be considered very exciting field that attracts a huge number of players and developers. And with support for major blockchains, including Ethereum, BSC, Polygon, Arbitrum, and Avalanche, you can create your own games on your favorite blockchain without any hassle.
What is P2E game development?
P2E Games Development involves the creation of an online p2e gaming platform for making money in various blockchain networks. This model allows players and gamers to create, play and earn by competing with other players and completing tasks.
How to earn bitcoin by playing games?
By playing crypto games, you can earn. To do this, you only need to find a game that involves BTC, but this is not as common as it seems.
Are gambling games legal?
Most games are allowed, but there are cases where there may be certain legal restrictions such as age.
How many cryptocurrencies are there for earning in the P2E model?
According to existing information, 201 cryptocurrencies based on the P2E principle were traded on the open market.
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