Gate.io Blog How NFT and Blockchain Bring New Potential to Play-To-Earn

How NFT and Blockchain Bring New Potential to Play-To-Earn

03 September 10:01

Source: ledgerinsight

Play to Earn has recently become a new wave in the crypto coin market that attracts a huge number of gamers to join and creates great records. It also gives people the opportunity to generate regular income from the games. This trend originated from Axie Infinity (AXS) - an NFT-based online video game from Vietnam.

So what is Play to Earn? Why is it appealing to users all over the world? This article will give you an overview of Play To Earn, its potential growth and the investment opportunities on it.

What is Play to Earn?

Play to Earn is a form of gaming but with the potential to earn real money. Specifically, players will receive a benefit, a certain reward when playing or through collecting in-game items to exchange, buy and sell. The value of the item depends on market factors such as applicability, scarcity, hotness, or even just FOMO (Fear of Missing out).

The NFT games have been around for a long time with the launch of CryptoKitties in 2017 when players could only buy or hatch eggs to hatch NFT cats. Then came the appearance of the second generation of games that we are playing, typically The God Unchained and Axie Infinity where players can take their NFT to fight with other players, greatly increasing their character and game interaction. There are probably two reasons why Play-to-earn appeals worldwide:

1. Using NFT technology as leverage for Play to Earn game:

NFT (Non-Fungible Token) is a unique token and cannot be replaced by other tokens. NFT tokens are widely used by artists, illustrators or game developers to tokenize their products. The potential of NFT is now huge. The value for them lies in (1) the story behind (2) the collectability, the purchase value and especially another value for NFT which is (3) applicability. Significantly increase the reach for NFT, thereby expanding the potential market

2. True ownership:

In the normal game market, in-game items can only be traded in that game. The game publishers have all the rights and powers, with which they can control the supply, usage and value of the items. And if that publisher goes bankrupt and closes the game, all the player's values and efforts will be in vain.
In contrast, by taking advantage of NFTs and their properties, NFT games help to solve the above problems.
Real Ownership: The user owns the item in the form of NFT and is certified by Blockchain. Thus, no publisher can take away any item even if the server goes down. Token helps users to trade with everyone in the world without being limited in the game like before.

Growth in the Future

Let's take a look at the value of the current gaming market for a correlative look at how far on-chain gaming can grow:

According to Newzoo - one of the world's leading gaming data collection sites, the gaming market is growing steadily every year. Considering the current average growth rate, this market could reach $200 billion with 3 billion players by 2023. Also, game revenue can account for up to 77%.
However, a prolonged trend does not mean that the price of game tokens will continue to rise from here on. For example, Axie Infinity has been in development since 2018. It takes years as well as a lot of expense, and generating real revenue is even more difficult. In the future, Play to Earn will solve the limitations of current games to bring better experience and game quality to players. Players will be able to experience the gameplay better, do not need to meet too high requirements to participate, the experience in the game will also be fast and smooth.

Axie's revenue far exceeds that of other protocols Source: token terminal Crypto investors also enjoy their part of the benefit by investing in these related crypto tokens. For example, token AXS of Axie Infinity grew significantly with a 7,089% growth since January, according to Messari.

Price of Axie Infinity Token AXS Increased over 7,089% in 2021

Source: CoinGecko

Conclusion

Play to Earn is a very potential way of earning money through blockchain games. It brings convenience and entertainment during the COVID season with tons of interesting features. In the near future, there will be a lot of projects coming out soon, so stay up-to-date to enjoy the most unique games.

* The article only represents the researcher’s views and does not constitute any investment advice.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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How NFT and Blockchain Bring New Potential to Play-To-Earn

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