The blockchain industry has been on a path of continuous growth over the last few years. But things have accelerated in recent months with the relatively new Play-to-earn (P2E) blockchain games.
The industry is presenting new opportunities not only for Bitcoin (BTC) holders but also to cryptocurrency enthusiasts. With this new P2E model, there are now many possibilities for users all over the world to start earning while they play their favorite blockchain games.
What are Play-2-Earn Blockchain Games?
Play-to-Earn platforms, also known as P2E, are blockchain games that reward users for playing. That’s it. You can be rewarded with crypto tokens for playing different games online. This can be achieved thanks to the powerful use cases of blockchain technology and non-fungible tokens (NFTs).
With NFTs users have the possibility to own their items and in-game assets. This is a major breakout when comparing this to how traditional games work around the world. Nowadays, gamers providers are centralized companies with servers that have the information about our characters and in-game data.
Although you are the owner of the account and the items you hold, the ultimate decision on whether to create more similar items or delete your account relies on the centralized company. This is clearly something you don’t want.
With NFTs, users become the owners of all the assets and accounts they own. In this way, the game becomes decentralized and it could even outlive its creators.
But how could users earn while playing? For their participation, users receive game assets such as weapons, cards or unique NFTs and they could also receive crypto tokens for performing daily activities. This is similar to traditional games that reward you with tokens for daily players.
According to Token Terminal, Axie Infinity has registered over $350 million in revenue in the last 30 days. This shows how fast this game expanded in recent months.
What is Axie Infinity?
Axie Infinity is the most popular Play-to-Earn blockchain game right now. This platform has attracted thousands of users from all over the world that are enjoying one of the highest-paying play-to-earn games in the blockchain market.
The main characteristic of this game is that it is partially owned and operated by players, which decide the future of the platform. This blockchain game works with two different tokens called Axie Infinity (AXS) and Smooth Love Potion (SLP).
Axie Infinity has been created based on the Pokemon series and it offers users a unique card game on the blockchain. Users can play and train their animals or pets called Axies and be traded on the Axie ecosystem.
Users playing Axie will be able to earn close to 4,500 SLP per month. A few weeks ago, this was close to $1,200 per month, which is definitely a large sum of money in some countries. This is why the platform became so popular in countries in Latin America or Asia.
Some users in countries such as Vietnam or Venezuela are dedicating a lot of time to this game as they can earn more money in rewards than working full time. This shows the impact that these types of games could have all over the world and in developing countries.
Challenges for the Play-to-Earn Blockchain Games
There are some challenges that Play-to-Earn blockchain games will have to face in the coming years. One of the things is related to scalability. If you have been in the bull run experienced by the crypto market in 2017, then you remember the CryptoKitties craziness.
Blockchain-based cards of cats were sold for several thousands of USD and the Ethereum network was totally congested. The question is whether this could happen in the future as well. Every single time that the number of transactions grows, fees grow and transactions could take a long time to be processed.
This is why it might be necessary for blockchain networks to work on scaling solutions. Ethereum developers, for example, has been working on ETH 2.0, which would help the network to scale.
Another challenge that these platforms will have to face is related to interoperability. At the moment, users cannot easily transfer their items or in-game characters from one blockchain network to another.
This could be very helpful in the future and make it possible for more players to enter the market. As with interoperability, these are changes that require a long time to be adopted.
Despite that, the entire blockchain industry continues to grow thanks to Blockchain games and play-to-earn solutions. New users from developing countries are entering the market and having, perhaps, the first contact with digital assets. The future looks certainly positive for this sector.