Play to Earn platforms let people seek entertainment and earn crypto at the same time.
Hitting the last couple of years of my 30s, I have had a gaming console or a decent gaming PC at my side ever since I was 9 years old. As a kid, I would beg my parents for the latest games, eventually outgrowing them and buying new titles for myself once I started earning. For decades, game developers have made money through licensing and selling their products to people like me. They still do.
But along the way, some game developers realized that they could combine their games with blockchain to deliver a different experience to players. One where the money-making shifts from game developers and studios to the players themselves.
The Holy Grail of Gaming?
GameFi, a merger of Gaming and Finance, is the latest offering of blockchain practicality. GameFi fundamentally blends games and DeFi to offer a completely different gaming experience that has many benefits over legacy setups.
First and foremost is the use of crypto tokens as in-game currency. Some GameFi platforms have a single, others use a dual token model, but in the end, the objective is the same.
During a normal game, players use tokens to purchase in-game items, upgrades and unlock special abilities or stages. Once you have completed the storyline, you are left with the game tokens you have no use for. When it comes to GameFi platforms, these tokens are cryptocurrency in nature and players can simply exchange them for others or liquidate, creating a whole new income stream. Play to Earn, get it?
But wait, there is more. In-game items, weapons, defence, powerups, jewels, characters, accessories and practically anything can be represented through NFTs. The unique tokens can range from common items to rare or legendary ones, giving another layer to these decentralized games. The NFTs can be bought and sold on dedicated or secondary marketplaces as players seek these to advance in the game, opening up another income source for the players who can buy or win these and upgrade through different methods.
The best thing about it all is that, unlike other games where the developers are in control, the use of blockchain means players have true ownership of assets. Many GameFi platforms go as far as to create a DAO (Decentralized Autonomous Organization) where the players and token holders can propose and vote on different changes and upgrades to the game or the platform, making these the most extensive implementations of decentralized governance today.
But what’s in it for the developers? Well, if you have ever taken part in a token launch event, you will know that the developers keep a small amount of the tokens for themselves. As the tokens rise in value in the market, the game creators cash in on the fame. A win-win situation for all.
But is GameFi Practical?
I might be a bit biased on this but I would always say yes. A friend of mine even makes a living off of GameFi platforms. He plays, makes winnings and cashes them out to give a comfortable life to his family.
True, GameFi platforms are games and subject to the same general market audience mentality and games do bomb at the market at times, but that’s more an issue of marketing than that of crypto or GameFi itself.
Axie Infinity is a multi-billion Dollar GameFi platform and a prime example of GameFi making significant waves in the industry. The sector is nascent and new decentralized games are popping up every week. Like I said before, it is not about simply playing a game, it is about making an earning at the same time.
Honestly, I might try my hand at going full-time GameFi one day. I envy the thought of playing games the whole day and then taking my family out to an expensive restaurant just because I beat the boss round and won some hefty crypto.
Disclaimer: This blog post does not contain investment or career advice and should be seen as a thought-provoking piece for entertainment purposes only. This is an outlet for team members to share their opinions and interests. Individual contributors of this blog do not represent the official opinions of Bitcoin PR Buzz.