Gm folks! And welcome to the world of blockchain gaming, where you can own your in-game assets and earn some juicy rewards or evaporate your net worth faster than SBF ran off to the Bahamas. Today we are going to talk about the difference between two popular blockchain gaming concepts: Play-To-Own (P2O) and Play-To-Earn (P2E). Let’s dive in!
What is a blockchain game?
First things first, let’s define what a blockchain game is. A blockchain-based game is a game that runs on a decentralized network using blockchain technology, so instead of signing in with an account, you use your wallet to connect with a decentralized application (dApp). So no more worries about your mail address getting leaked in the next exploit!
Blockchain games also provide players with true ownership of their in-game assets, enabling them to buy, sell, and trade their digital assets without anyone being able to stop them. Unless the blockchain halts, yes we are looking at you Solana.
Read also: 2023 Is a Make-or-Break Year for Blockchain Gaming: Play-to-Own
What is a Play-To-Own (P2O) game?
Play-To-Own (P2O) is a concept where gamers can purchase and own their in-game assets. In P2O games, players have complete control and ownership over their in-game items. This means that players can buy and sell their items, even outside the game, as they are unique and cannot be duplicated. This means that the game developers have no control over the assets once they are sold, and players have complete ownership of them.
While P2O games offer ownership of assets, they typically require players to invest time and effort to obtain the assets. This can be seen as a disadvantage for those who prefer to spend less time playing and more time profiting from their assets.
The Sandbox is one of the most popular examples of a P2O blockchain game, where players can own digital land, create and trade voxel based NFT’s through VoxEdit.
What is a play-to-earn game? (P2E)
Play-To-Earn (P2E) were pretty hyped in the last bull market, in these blockchain games players earn digital rewards and cryptocurrency rewards for playing the game. In P2E games, players can earn rewards by completing in-game tasks or challenges. These rewards can then be converted into cryptocurrency, which can be traded or used in other games.
P2E games provide players with a new way to earn money while playing their favorite games. This concept has exploded in popularity during the last bull cycle, with more and more players seeking ways to earn tokens or assets while playing games.
Differences between P2E and P2O
The main difference between P2O and P2E is the type of gaming incentives they offer. P2O games provide players with ownership of in-game assets, while P2E games offer the opportunity to earn cryptocurrency and digital rewards for playing the game.
In P2O games, players can buy and sell their in-game assets as they please, while P2E games reward players with cryptocurrency that can be used or sold outside of the game. Additionally, P2E games have a stronger focus on completing in-game challenges and tasks to earn rewards, while P2O games rely more on the value and rarity of in-game assets.
Overall, P2O and P2E games offer different ways of obtaining rewards in the blockchain gaming world. P2O games are more focused on ownership of assets.
Defi kingdoms is a popular blockchain game that currently runs on Klaytn and DFK chain (a subnet that runs on Avalanche). It has both P2O and P2E aspects, you can own a hero (P2O) that excels for example in foraging, which is a profession that lets your hero forage for herbs and other rare items (P2E), and use them to create potions to help your heroes in future endeavors.
Growing Popularity of PTO and PTE Games in the Future
The gaming industry is rapidly evolving, with blockchain gaming emerging as a new player in the market. P2O and P2E games are leading the way in the world of crypto gaming. The global gaming market is expected to grow steadily by the next bull cycle, and blockchain gaming is expected to contribute significantly to this growth.
Moreover, the COVID-19 pandemic has contributed to the growth of the gaming industry as more people are staying at home and seeking out new forms of entertainment. This has led to a surge in the number of players and the amount of time they spend playing games, which presents a ripe opportunity for PTO and PTE games to become even more popular.
As the game economy grows and players become more familiar with digital rewards and cryptocurrency rewards, we can expect to see an increase in the number of PTO and PTE games available. So if you’re looking to get in on the action and potentially earn some money while having fun, keep an eye out for new PTO and PTE games hitting the market.
What is the most popular play-to-earn game?
On DappRadar you can find the top blockchain gaming projects. Here you can see various important metrics like balance, which shows the total value of assets in dapp’s smart contracts. UAW, which is the unique amount of wallets interacting with the game’s smart contracts, the volume, which is the total amount of incoming value to dapp’s smart contracts and which blockchains they run on.
Currently the most popular P2E game is Axie Infinity, a digital pet game where players earn rewards by battling, breeding, and trading their Axies. Axie Infinity has gained a massive following, with millions of dollars worth of digital assets flowing through the game.
Can you make money with play-to-earn?
Yes, you can make money with P2E games. However, it’s important to note that it’s not a get-rich-quick scheme. It takes time and effort to earn significant amounts of cryptocurrency rewards, and it’s not a guaranteed source of income. This includes studying the tokenomics and fundamentals of the project you are looking to participate in, as many projects rely on inflationary incentives.
While it is true that during the bear market, blockchain gaming projects are amongst the biggest bleeders, as investors are sidelining or looking for less risky asset classes. There still is huge potential for the strongest projects to make a comeback in the next bull cycle, though the keyword here is “fundamentals” (pun intended), because projects with solid fundamentals have a higher chance to recover.
The Role of NFT’s in Play-to-Earn Games
Now, you may be wondering how these games keep track of all these unique in-game assets that players are earning and trading. Enter NFTs, or non-fungible tokens.
NFTs are digital tokens that represent ownership of a unique asset, such as a piece of art, a collectible, or in this case, an in-game item. By using NFTs, blockchain games can ensure that each in-game asset is unique and can be securely traded and tracked on the blockchain.
NFTs have been a game-changer for the gaming industry, allowing players to truly own their in-game assets and giving rise to a new era of digital ownership.
Read also: Zebedee’s Bringing Bitcoin to the Mushroom Kingdom & Beyond!
How Can You Earn Through Staking in Blockchain Games?
Another way to earn cryptocurrency rewards in blockchain games is through staking. Staking involves holding a certain amount of a cryptocurrency in a wallet and using it to validate transactions on the blockchain. In return for validating transactions, stakers receive rewards in the form of the cryptocurrency they are staking.
Some blockchain games allow players to stake their cryptocurrency within the game itself, which can provide additional rewards or benefits. For example, a player may be able to earn a higher percentage of the game’s cryptocurrency rewards or in-game boosts by staking a certain amount of the game’s native token.
Staking can be a great way to earn passive income in blockchain games on paper, however in many cases you are prone to inflation. So it is important to do your research, there are various factors to look into when assessing the quality and potential of a project. Make sure you understand the tokenomics, check out if the team is solid and dive into the discord of the project to get to know the community.
In conclusion, blockchain-based gaming is a rapidly growing industry, and play-to-earn games are becoming an increasingly popular way to earn cryptocurrency rewards while having fun. Whether you prefer play-to-own or play-to-earn, or a mix of both, there’s glorious opportunities out there, but mind your step, or you’re NGMI.