According to CoinGecko, decentralized finance (DeFi) is leading the cryptocurrency industry, with a market capitalization of $115 billion and a total value locked (TLV) of about $139 billion as of October, 2021. A benefit of DeFi growth, blockchain gaming adds value to one of the most engaging businesses by bringing value to it.

DeFi can recompense gamers with gaming tokens and other types of prizes, like as non-fungible tokens (NFTs) and crypto-collectibles, in addition to traditional currency.

Has cryptocurrency-based gaming emerged as a new driver in the DeFi sector? Find out more about bitcoin games, play-to-earn, and how to earn cryptocurrency by participating in games in this article.

The future of blockchain gaming is play-to-earn

The gaming industry, according to Investgame’s analysis, is seeing a boom in blockchain-powered cryptocurrency games. In the first half of 2021, crypto gaming businesses concluded transactions worth more than $476 million (twice as many as in the entire year of 2020).

In general, the video game business is seeing rapid expansion, aided by pandemic-related lockdowns that pushed individuals to find new ways to pass the time at home. As reported in a research conducted by Mordor Intelligence, the global gaming market was valued at $173.70 billion in 2020 and is predicted to reach $314.40 billion by 2026, rising at a compound annual growth rate (CAGR) of 9.64 percent over the next five years.

However, what is the primary motivation for crypto aficionados to spend hours playing crypto games? It is no longer purely recreational. Crypto gamers may earn incentives while playing, which they can convert for fiat currency and spend in real life.

Users have ownership of in-game assets and may enhance their worth via gameplay in play-to-earn crypto games. They can earn tokens and NFTs as a reward for their engagement. Axie Infinity is a successful example of a play-to-earn gaming concept; monthly income climbed from $103k in January to $364m in August 2021. The game just surpassed one million daily active players and surpassed $600 million in cumulative revenue.

So, what exactly are “play-to-earn” games?

When you play to earn, you may produce a consistent stream of cryptocurrency money just by participating in the game. Even though the mechanics of each game might change, the benefits are often obtained by staking, farming a game’s cash, or creating trade-able NFT products. In earlier blockchain games, participants depended primarily on a chance to generate money in order to benefit. In contrast, play-to-earn has built in-game economies and business models where players may make a living by completing tasks.

There are many examples of games that runs on the Ethereum blockchain. These game incorporate typical video game components and gameplay with the ancient blockchain gaming paradigm, resulting in a unique experience. These games incorporates elements of the traditional gaming business such as an adventure mode, PvP fights, and tournaments. For Windows, Android, Mac OS, and iOS devices, the game is available for download.

What is the procedure for play-to-earn games?

Play-to-earn games are classified as GameFi because of their combination of gameplay and financial elements. Each game offers money incentives to those that participate and progress through the game.

As previously said, there is typically a grinding component to repeating particular behaviours that allow users to earn revenue in one of two ways: (1) by selling their services; or (2) by selling their time.

1. Earning cryptocurrency while playing the game. Where games give out tokens which may be obtained by completing daily tasks or defeating monsters and other players in the game.

2. Accumulating or exchanging NFTs in-game. In the game, each NFT can be used to represent an object, a character, or another type of collection. The cosmetic value of these items might vary depending on the game, and they can also have a functional role in-game.

3. Staking is a third option for earning money in play-to-win games that you should be aware of. Some NFT games include the opportunity to lock up NFTs or cryptocurrencies in smart contracts, which in turn creates incentives for players to participate in the games.

Each one includes a random NFT of varying rarities, which may be sold on the secondary market after being used to generate revenue. However, in order to gain significant staking benefits, you will need to make a substantial initial investment.

What role does blockchain technology play in the security of play-to-earn games?

Playing to make money is not a new concept. There are several online games (typically massively multiplayer online role-playing games) that include fiat-based auction houses or secondary marketplaces that are managed by gold farmers. The most significant distinction between cryptocurrency games and traditional games is that the coins and goods in cryptocurrency games reside on blockchains. A blockchain possesses a number of characteristics that make it simple to confirm ownership, validity, and uniqueness.

A blockchain network may be compared to an immutable database in terms of functionality. The blockchain is maintained via a distributed network of computers (users), each of which has a copy of the blockchain data stored on its hard drive. Therefore, it is almost hard for someone to alter, replicate, and/or remove information from the blockchain.

So blockchain games may be built in a way that prohibits fraud or corruption, such as item duplication, gold hacking and other vulnerabilities that are frequent in traditional games. Blockchain games are becoming increasingly popular. The rarity of an item in-game is a significant factor in determining its worth. There is no copying and pasting with blockchain technology. If an object is one-of-a-kind, there is no possibility for it to be recreated in the future. This contributes to the creation of real-world value for in-game objects.

How much money do individuals make by playing games that allow them to earn money?

Gaming is not typically associated with providing financial rewards to the ordinary user. It might be difficult to grasp the concept that average people can earn money by playing a blockchain-based game. In reality, many people, particularly in underdeveloped nations, are able to make a livable salary via cryptocurrency games..

Farming can give a more consistent source of income, as your profits are related to your abilities and the amount of time you devote to the activity. This farming system has proven to be quite popular in the Philippines. Players may earn between $200 and $1,000 (USD) every month through cultivating their gaming tokens, depending on the market price and the amount of time they spend playing.

Generally speaking, farming advantages are smaller than the option of trading NFT creatures and stuff, but they are far safer for someone who needs a consistent source of money. In play to earn games, you can even utilize your NFTs to breed new ones, which is a unique feature.

Since November 7, 2020, the most expensive gaming NFT sale has been $131,970, and it is presently advertised at 3,000 ether (ethereum).

Despite the fact that these figures appear appealing, projecting an average income for someone who sells NFTs from play-to-earn games is impossible owing to the random nature of the transactions.

How to Begin Participating in Play-to-Earn Games?

Each play-to-earn game will have its own set of conditions for new players, which will vary from one another. At a bare minimum, you’ll want a cryptocurrency wallet such as MetaMask or Binance Chain Wallet in order to store your cryptocurrency and link it to the game.

You may also be required to make an initial financial commitment in order to participate, such as putting up a team of characters or purchasing equipment that will be utilized in the game. It is not always free to participate in the digital crypto-economy.

Conclusion:

Despite the fact that play-to-earn games are still in their infancy, it appears that they will continue to exist and enjoy widespread appeal for a long time to come.Players are able to create new digital commodities, trade them via the game’s infrastructure, and earn virtual in-game currency that can be readily exchanged by other players into other cryptocurrencies and fiat currencies.

Play-to-earn games have always supported the dynamics of online communities, but by including the possibility to produce a cash income, play-to-earn games are causing communities to become even more active. Because the market is still in its early stages, it may be useful to keep a watch on these play-to-earn enterprises, which may prove to be advantageous in the long term.