P2E Crypto Games: Bridging the Gap Between Playing for Fun and Rewards

Cryptocurrency games are gaining traction thanks to their numerous rewards, advanced technologies, and innovative visuals. Playing a blockchain game involves earning coins or NFTs through tournaments or in-game achievements, with smart contracts that secure and automate the process.

A higher level of trust is provided by projects built on top of well-known blockchains, such as Ethereum, with games like CryptoKitties, Decentraland, and Axie Infinity leading the market. The support from popular ledgers also gives traders the opportunity to maximize their portfolios with pairs like ETH/BTC, since both coins are important in decentralized gaming. Since payment models depend on crypto gaming mechanics, the value of digital assets determines the demand for blockchain gaming.

Let’s learn more about decentralized gaming and how the P2E technology works.

How does P2E work?

The Play-to-Earn model allows users to play their favorite games while earning rewards, whether in cryptocurrencies or NFTs (non-fungible tokens). Gamers can use these rewards to either transfer them in the real world and sell them for crypto or simply hold them as valuable assets. Compared to traditional games, players in decentralized games can own their in-game assets without the company controlling how they use them.

Users contribute to the growth of these games by participating in the gaming economy, generating value for the other users. In addition, developers have the freedom to improve the gaming worlds, usually with the community's approval, whose members can vote on further updates.

How do P2E games leverage cryptocurrency?

When creating a decentralized game, the development team can choose whether to use a native cryptocurrency or an existing one. However, each approach requires a different level of experience and skill. Introducing a native asset means creating a blockchain project, designing the tokens, and using smart contracts to automate such processes. These coins can live on existing blockchains, such as Ethereum, so the gaming network can operate on a reliable system.

On the other hand, using existing coins can be easier and faster for developers; for example, games like Bitcoin Tycoon or Bitcoin Pop reward users in BTC. However, since leading coins are more volatile, the monetization process might take a bit longer and yield smaller payouts.

Thirdly, users can receive NFTs in collections, such as characters, items, and virtual land. These unique and irreplaceable assets are highly valuable to collectors and rare-asset investors. For example, the most popular and expensive NFT collection is Beeple’s “Everydays: The First 5000 Days”, and its price was no less than $69.3 million. But other recognizable collections include numerous CryptoPunk NFTs.

What are the best blockchains for decentralized games?

Blockchains must support several features for blockchain games to succeed, including high security, immutability, and transaction speeds and costs. Given that users will make numerous transactions while playing games, accessibility and speed are essential.

And while Ethereum is the leading option for decentralized games, other interesting ledgers include the following:

• Polygon CDK (Chain Development Kit) has integrated zero-knowledge proofs that secure fast transaction confirmations and low gas fees;
• Ronin Network is where the Axie Infinity game started, and it has a dedicated user base with strong developer partnerships;
• SKALE Network is a multichain blockchain network with seamless compatibility with other chains, with benefits like no gas fees for end users;

Do users play P2E games only for the rewards?

While many believe these games are interesting only for their rewarding mechanisms, that’s not the case. After all, the rewards are modest and depend on the time spent playing or the luck of receiving rare assets. Therefore, the many other reasons why people choose P2E games include the following:

• They take ownership of their in-game assets;
• They participate in strong communities, share in-game strategies, and connect with like-minded peers;
• They have fun trying popular games and new technologies in the gaming field;

Of course, players can leverage these P2E games to gain access to new economic opportunities and supplement their income, but substantial rewards may take time to accrue.

Are P2E in competition with traditional video games?

There are several reasons for players’ dissatisfaction with traditional games, including microtransactions, a lack of true asset ownership, and continuous competition among gaming companies. With so many games on the market that prioritize profit over unique and pleasant experiences, it’s no wonder people are shifting towards decentralized games.

However, the newness of blockchain games hinders their innovation, beyond the complex onboarding (network configurations, wallet setups), and the limited scalability. One of the most prominent challenges lies in the regulation surrounding cryptocurrency and blockchain, which is still not properly assessed.

For example, cryptocurrency can be banned in certain jurisdictions, and support for blockchain networks is still limited. Therefore, accessing these games is impossible for certain users, and even if the evolving legal framework provides greater clarity on the use of digital assets, this can still be an impediment for developers, players, and crypto brands.

Do blockchain games have better community engagement?

Communities are crucial to the gaming industry. They not only offer support for developing games and indie projects, but can also foster a sense of belonging and help people connect over fun games. While traditional games are also supported by global communities, such as League of Legends, decentralized spaces benefit from the growing opportunities for innovation.

This is what makes the blockchain gaming sector benefit from strong community involvement, where players collaborate and trade assets. Finally, the community-driven nature of blockchain-based games helps developers build such impressive ecosystems. Communities are also among the reasons why cryptocurrency and blockchain evolved, as they pushed for adoption and integration in light of their benefits to the world.

Conclusion

Play-to-Earn games are popular in the decentralized world, where blockchain-based games allow users to earn rewards by simply having fun. Earning native assets, real cryptocurrencies, and NFTs supports the growth of an innovative community, whereas competition from traditional games shifts attention towards transparent, safe, and unique games in the industry. Moreover, support from various blockchains helps developers lay the foundation for the Web3 world, where decentralization is present across all networks.