What Are Play to Earn (P2E) Games? Crypto Or P2E NFTs

Some sectors are evading the crypto frenzy, but several game devs have really welcomed it.
Several gaming associated collectibles can now be redeemed as Non Fungible Tokens, but some titular P2E games have stepped even further and have NFTs and crypto as stakes.
P2E games are similar to normal video games, but a plus point here is that, in-game items here have a real world utility.

Play To Earn (P2E) Games Play To Retain

P2E games aka Play to earn games or just crypto games, are games that are backed by NFTs and cryptocurrency, couple of elements that are vital part of the gameplay. Often, rather than acquiring the game, folks acquire things within, such as weapons, skins or anything.

This is not completely distinct, several games utilize the same model, specifically so called F2P games. These games allow users to play for free and even let them earn stuff through gameplay, but the actual stuff is hidden behind a paywall — or perhaps a very time-taking grind.

However what makes P2E games unique is that folks can sell or trade assets to other players in the game. This is due to several assets being NFTs, and can be transformed into them.

To illustrate this, Axie Infinity is the best instance, as it is among the longest functioning P2E games out there. The notion of game is simple: users take common dof “Axies,” minor fantasy creatures, and face off with other players’ axies in the ecosystem. This game is similar to Pokemon but in highly monetized form.

P2E Business Design

However, not as much flows back as folks think. In an ecosystem where everything comes at a cost, individuals that command that environment have methods of adjusting things in a way that always comes out on top.

As a result, everything in P2E game Axie Infinity costs money. Receiving an Axie will set you back some Ethereum — the crypto blockchain the game operates on — SLPs costs ETH and AXS costs ETH.

Technically, several of these resources can be bagged in-game, but they are often set on timers, so the amount folks bag is actually curtailed unless they spend some physical world money.

Ownership Of In-Game Assets

It is not just P2E gaming structure which should raise eyebrows, it is also what is pledges. The notion is that you play the game or pay for it and that folks own their assets: Cards, NFTs or whatever the game has to offer. They are Non Fungible Tokens after all and users are the owners.

There are more traditional threats, such as theft. Axie Infinity, recently got attacked, where hackers wiped $600 Million straight out of the ecosystem. Taking into account, how much wealth is stored into online accounts, it makes them prominent targets for attackers.

So, yes, folks own their cards or axies or whatever else it might be that these gamers are hawking, but only as long as servers stay up and secured.

Anurag Batham is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.