What Are NFT and Metaverse (Play-to-Earn) Games?

 

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Play-to-Earn games allow users to earn cryptocurrencies or NFTs that can be traded on crypto exchanges.

About 50 years ago, the first video games appeared on the market.

As with most new products that hit the market, video games were considered by many to be a fleeting hit that would not leave a big mark.

Today, along with movies, books, music and other forms of media, video games are an important part of pop culture. The gaming industry is expected to reach a value of 256 billion USD by 2025.

The video game industry is evolving at a rapid pace, and it's doing so by experimenting with the best available (and popular) technology.

The gaming industry has often implemented new technologies and over time popularized them among the masses.

In the last few years, he has been experimenting with blockchain technology and NFT projects and is trying to enter the Web 3.0 sphere.

Through blockchain technology and tokenization, games are gradually evolving into gamer communities where certain financial gains can be made for playing.

This model in the gaming world is also known as "Play-to-Earn".

What Are Blockchain Play-to-Earn (P2E) Games?

Play-to-Earn (P2E) is a term that describes a model that combines video games, blockchain technology, cryptocurrencies and NFTs into one entity.

In this model, the central part is made up of games developed on blockchain technology.

The whole philosophy of the "play-to-earn" model is that users actively participate in the game, and the digital content they acquire while playing can be sold for real money or continue to be improved with the hope that it will achieve greater value over time.

Unlike traditional games where digital content (trophies, weapons, gear, coins, cars, etc.) function solely within the same game, in P2E games, digital content becomes a digital asset.

Many Play-to-Earn games also have their own tokens.

With the help of these tokens, you can buy in-game content, and you can get it as a reward for passing certain levels.

How Do Blockchain Play-to-Earn Games Work?

Blockchain Play-to-Earn games reward users through two methods:

• Digital NFT items that can be sold on the NFT marketplace.
• Tokens from the game that are used to purchase digital items. Tokens can also be sold on cryptocurrency exchanges for fiat currencies (EUR,USD)

1. NFT buying and selling in Play-to-Earn games

In Play-to-Earn games, digital items (cars, weapons, maps, clothes...) and even characters function as part of the NFT collection.

Each NFT is different and the person managing it can prove their ownership thanks to the fact that this data is stored on the blockchain.

If a person continuously upgrades their NFT character or some piece of digital equipment through the game, there is a chance that that NFT will achieve a higher value.

When it reaches the desired value, it can be sold on the NFT marketplace for a certain number of tokens. Tokens can be sent to a cryptocurrency exchange and sold for fiat.

Of course, the value of an NFT within a game is also determined by how popular that game is and how much its token is worth in the market.

2. Cryptocurrencies in Play-to-Earn games

In addition to NFT items, players can also receive a certain amount of tokens that are used within the game.

In most cases, tokens are obtained after passing certain levels or challenges in the game. Many games also introduced the possibility of earning money through "staking".

Staking in blockchain games works by staking your own character or a specific NFT item on the in-game marketplace.

Other players can “rent” your characters or items, and you can earn extra tokens that way.

Traditional Video Games vs Blockchain Play-to-Earn Games

When you play a traditional video game, all characters and equipment (weapons, cars, clothes, etc.) that you use to enhance your character are valid only within that game.

In Play-to-Earn games, the equipment you've used and even your character have real-world value.

Currently, every form of digital asset within games most often appears as an NFT (NFT projects have the greatest application in the gaming world).

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