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Why Blockchain and Play2Earn are changing the economics of video games

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The emergence of blockchain and Play2Earn (P2E) in the video game universe is transforming the video game economy. Play2Earn is shown as an alternative for small studios to build increasingly larger and more massive games. All this, while creating a community and an economic activity that translates into benefits for all. For the developers, who can have a good salary and resources to continue improving the game, and for the players, who can earn money for the time they spend playing

Blockchain, Play2Earn and video games

 

 

Although many purist gamers consider Play2Earn to be the “end of gaming for fun”, the reality seems different. Currently, models such as Free2Play (F2P) or Pay2Win (P2W), are quite similar to what Play2Earn offers. Such models are widely seen in the industry and have millions of players. However, F2P and P2W only benefit financially one of the parties: the developers

 

Both proposals are not bad, since developers and companies must earn money for their work. But what if we could make everyone win? What if we could make a game where people have fun, create communities, make a profit, and the developers make money too?

The indie sector

 

That is precisely what Play2Earn does. Therefore, it cannot mean the end of the games industry. On the contrary, it can be the perfect model for small studios to find a way to monetize their work and take it forward. In fact, one of the sectors that has experienced the greatest growth and from which we have received the most pleasant surprises in the world of current video games, has been the Indie sector.

 

Names like Konami resonate strongly in the video game world, as it is one of the most prolific and powerful electronic entertainment companies in the industry. Does Schell Games ring a bell? If the answer is no, you may know him from the success of Among Us, an indie game that has aroused great curiosity in the last two years.

And while Among Us is not a Play2Earn game, its studio is a clear example that the indie sector can generate high-value games. If we add models like Play2Earn to this, we can find ourselves facing a creative boom that will benefit everyone. To players and developers.

 

Axie Infinity’s Mistakes

 

Of course, not everything is good in Play2Earn and experience has taught us some lessons. Perhaps the most exemplary has been given by Axie Infinity. This game became one of the biggest P2E milestones, but in recent months it has been losing momentum. Reasons for it? From errors in the game, constant changes in the commissions of the marketplace and, most importantly, few improvements in the dynamics and graphics of the game.

 

axie infinity

 

Despite the accumulated economic potential, Sky Mavis, the development company, forgot the most important thing: to evolve the game to new levels of interactivity. Fortunately, Sky Mavis has listened to the community and has started to fix many of these issues and improve the possibilities of Axie Infinity. This means that Play2Earn doesn’t do magic with winnings and if the game is bad, nobody will be interested in it and it will be forgotten. Sky Mavis claims on its website that real economy games owned by players will become the places where we live, work and play. That is, in true digital nations.

 

A model of tokenization and real economy

 

In this sense, the bet could happen because Play2Earn becomes a model of tokenization and real economy for video games. Not only for developers and studios to make money, but for players to also own everything that belongs to them within those games.

Thus, each item in the game would become a collectible controllable by the player’s wallet. In this way, in the event that the virtual world of the game ends, the player will continue to possess the item. He can keep it or sell it, that is his choice, but no one can take it from him. It is the search for a property that transcends the game itself. In decentralized spaces, the game items will always be yours, even if the game ceases to exist. Items are game objects that grant specific functions or some kind of property within the game.

 

At the origin of Ethereum

 

In fact, the centralized gaming model played a significant role in the birth of Ethereum, as Cypherhunter notes   in Vitalik Buterin’s Profile. «I was born in 1994 in Russia and I moved to Canada in 2000, where I went to school. I happily played World of Warcraft during 2007-2010, but one day Blizzard removed a broken component from my beloved warlock Siphon Life. I cried myself to sleep and that day I realized the horrors that centralized services can bring. I soon decided to quit.”

Today, interest in Play2Earn continues to grow. On the one hand, small studios are looking to offer eye-catching games that will generate dividends for them and attract large communities, through Play2Earn. On the other hand, the big firms are seeing in Play2Earn a means to diversify their offer of games and income. Especially for MMO games (those that connect thousands of players online at the same time), where a large amount of resources must be dedicated for its optimal operation.

At the moment, everything is still under construction and Play2Earn is full of basic games, within the perspective of any AAA or competitive gamer. There’s nothing quite like a Call of Duty or Fortnite, but at the rate this option advances, it won’t be long before we see how Play2Earn transforms the landscape of the video game industry.

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