Pay to Win Games: The Future of the Digital Economy
At the time, games were divided into two main types: free games (F2P) and paid games (P2P). The latter was the most popular because gamers had to acquire physical game CDs in order to play games.
However, with the rise of the Internet, F2P games have become commonplace. Although free, some additional aspects of these games are locked behind paywalls. On the other hand, other games depend on ad revenue to keep their services free.
Yet when cryptocurrencies and the metaverse went mainstream, another kind of game ensued: pay-to-win. With these games, players can earn money by playing the game and redeeming their rewards for cash or cryptos.
On top of that, pay-to-win isn’t really new. Take MMORPGs for example: high level players could sell their accounts or rare items for huge sums. Although it was quite common, these practices were generally frowned upon and illegal, as stated Riot Games.
Now, with today’s paid games, the key concept is different. In these games, earning and exchanging items for money is actually a feature and, for some, the main objective. But how does it work? We’ll take a look.
NFT and paid games
To get started in these new games, players must acquire an NFT. An NFT, or a non-fungible token, is a unique object stored in the blockchain. This token includes an ownership certificate that can be used to determine its rightful owner, providing additional security.
Anything can be an NFT, from a simple item to unique areas or game characters.
After acquiring an item or character, the player’s goal is to improve the value of their NFT by playing the game. This depends on the game and usually includes upgrading it, fighting it, breeding it, or completing quests . NFT owners can also access exclusive benefits and rewards, further increasing the value of their assets.
Think of it as a casino. You buy tokens to access a game and then you play. If you end up making money, you can exchange your tokens for cash, which generates a profit. go here for more information on online casinos and how they compare to other digital economies.
How P2E Games Affect Digital Economies
Long gone are the days when players had to illegally sell their accounts or items over the internet, risking losing their account or getting banned.
Since NFTs are stored on the blockchain, transactions cannot be manipulated. Therefore, the network knows who the rightful owner is. This clears security concerns related to hacked accounts or stolen items.
NFTs have led to the creation of safe environments where users can legally sell their assets for cryptocurrencies, primarily Ethereum. In fact, some P2E assets are now worth millions, like Axie Creatures and Crypto Kitties.
(Devdiscourse journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse claims no responsibility for them.)