What is Play-to-Earn (P2E)?
What is play-to-earn (P2E) gaming?
Play-to-Earn, abbreviated P2E, is the name of a game where users can earn money by playing the game. This way of making money is new and is powered by blockchain technology.
How does the blockchain work?
It is possible to play a game that runs on the blockchain. The blockchain consists of a decentralised network of computers that are connected to each other. All these computers have a copy of the history of the blockchain. These are all the transactions that have been made in the past.
The computers are constantly validating new transactions. When a transaction is approved, it is added to a block along with other transactions. Every X number of minutes (this depends on the type of blockchain) a new block is added to the blockchain. A specific piece of code, the hash, from the previous block is added to the new block. This creates a chain of blocks called the blockchain.
Some blockchains offer support for smart contracts. This means that developers have the ability to build their own application on the blockchain. The data from this application is stored on the blockchain's computers. Every time a user performs a certain action within the application, this action is stored as a transaction in the new block.
It is possible to build all kinds of applications on the blockchain. For example, it is also possible to build a game on the blockchain. User data is then not stored on a central server, but on the decentralised network of the blockchain. Players therefore have more control over what happens to their data.
Games that run on the blockchain can make use of the many functionalities and possibilities that the blockchain technology has to offer. For example, consider cryptocurrencies and NFTs, which is the abbreviation for non-fungible tokens. A NFT is a token that is unique, making it non-exchangeable with a similar token.
The mix between gaming and cryptocurrencies/NFTs has allowed players to make money from playing a game. These are called Play-to-Earn games.
How to make money with Play-to-Earn games?
To play a Play-to-Earn game, you must first connect an external wallet to the game's platform. This is where the cryptocurrencies are stored that you can earn during the game.
There are several ways in which you can earn money playing Play-to-Earn games that run on the blockchain. In many cases, you can earn certain tokens while playing a game. These can be normal tokens, in the form of a cryptocurrency. In the game, these tokens could serve as a "life" or "energy" for the avatar.
Because these tokens are cryptocurrencies, you can also sell them on a crypto exchange, and then make money.
In most Play-to-Earn games, there are also NFTs to earn. These NFTs can represent special in-game items, such as weapons, clothing, and rags of land. Often there are only a limited number of these items available, so their value can increase dramatically over time. These NFTs are stored in the player's wallet and can thus be sold.
What Play-to-Earn games are there?
You can play several Play-to-Earn games, as the number of P2E games has increased significantly in recent years.
Axie Infinity (AXS)
In Axie Infinity, players can own and raise their own pets called Axies. Axies are basically a NFT, and can fight other Axies. When an Axie wins a fight, the player receives SLP (Smooth Love Potion) tokens. Players can sell both SLP tokens and Axies to other players, allowing one to earn money from playing Axie Infinity.
You can also buy AXS tokens from Axie Infinity at Coinmerce. You can do that here [LINK].
In Decentraland, players can buy a piece of land, which is stored as NFT on the blockchain. On this piece of land they can do whatever they want: build houses, plant forests, build applications, etc. However, there are only a limited number of pieces of land in Decentraland, which created a form of scarcity as the number of users increased.
Some pieces of land have therefore been sold for more than tens of thousands of dollars. Large companies also want a piece of land in Decentraland, in order to provide exposure. The world of Decentraland is also known as the metaverse. You can join it through VR/AR glasses, after which you can communicate and play with other users.
You can also buy MANA tokens from Decentraland at Coinmerce.
The Sandbox (SAND)
The Sandbox is quite similar to Decentraland. As a user, you can buy a piece of land in the form of an NFT here, which you can resell to other players. The Sandbox is also seen as a metaverse.
Many large companies have a piece of land in The Sandbox, or issue special NFTs for The Sandbox. For example, Adidas and Nike previously indicated that they are developing NFTs for metaverse like The Sandbox.
You can also buy SAND tokens from The Sandbox at Coinmerce.
Play-to-Earn is a term for games that run on the blockchain and where you can earn money by playing the game. In the game, you can receive various items, in the form of tokens and NFTs, when performing certain tasks/actions. You can resell these tokens and NFTs to other players, making it possible to earn money from Play-to-Earn games.
P2E games are unique because they run on the blockchain. Thus, users' data is not stored on a decentralised server. Instead, users have more control over their data because it is kept in a decentralised manner.
There are many different Play-to-Earn games, as the popularity surrounding these games has grown significantly in recent years. Think Decentraland, The Sandbox and Axie Infinity, whose cryptocurrencies you can buy at Coinmerce.