The Evolution of the Play to Earn Space
Gaming is a popular pastime activity among over two billion people. It’s so popular that the gaming industry is now valued at $173.70 billion with estimates suggesting that it will sit atop the quarter trillion dollars mark in the next five years.
Sadly, despite this massive growth trajectory, the industry has always been one-sided. It’s almost always that only the gaming studios can turn in a profit while users only pay for in-game assets they do not even have ownership of. Making a livelihood from playing games has long been a pipe dream for many. However, new solutions are emerging with the introduction of the play-to-earn (P2E) model. All thanks to blockchain and crypto!
The Change of Blockchain and Crypto-Powered P2E Games
Innovation with blockchain and cryptocurrencies has helped turn gaming into a source of revenue rather than just entertainment for thousands of people.
Blockchain-based, play-to-earn online games are allowing users to earn crypto as incentives, and many have attested it as a secondary source of income. For instance, in the Philippines, a crypto player named John Aaron Ramos claims to have purchased two houses entirely with revenue from playing Axie Infinity, a P2E fantasy game.
The concept of in-game rewards has proven to be successful, allowing users to earn crypto for actions they take while playing the game. For example, Clash Crush Block is a fantasy game that allows players to earn crypto by completing in-game challenges. The game is similar to Candy Crush but with the added benefit of earning free cryptocurrencies.
Similarly, NFTs are powering the P2E space, allowing users to buy, sell and trade in-game items (as NFTs) even off the gaming platform, on secondary marketplaces. For example, Axie Infinity and Decentraland are leveraging the Ethereum blockchain to allow the exchange of in-game items as NFTs on OpenSea and other similar NFT marketplaces.
Challenges and Solutions within the Gaming Industry
Implementing a play-to-earn model is not that easy, and most industry professionals are humble enough to admit that the P2E crypto-based games will face several challenges before gaining widespread acceptance.
One major challenge for P2E platforms would be eliminating the potential anti-money-laundering risk since users will trade the in-game NFT products against crypto. While developers agree that there would be regulatory constraints, the majority feel that the most serious difficulties will be internal and are beyond the reach of authorities.
Another significant challenge would be that the opportunity to earn money via gaming would encourage certain abuses and hatred among gamers, destroying the ecosystem. Furthermore, most gaming platforms burn money by investing it in pointless upgrades and features that benefit no one but the platform.
However, solutions are emerging to resolve the existing challenges within the industry. One such solution is Citrus, a gaming token that aims to accelerate the transformation of gaming. It offers a wide range of solutions to the blockchain world through the DeFi ecosystem, NFTs, advanced DApps, etc.
With strict KYC/AML policies within the gaming ecosystem, Citrus aims to reduce the money laundering risks. Moreover, with the implementation of a strict reporting mechanism, it aims to eliminate in-game abuses or hate.
Further, Citrus will utilize the funds collected through the platform to create better utility apps, dApps (decentralized applications), and tokens that will benefit the Citrus community in return.
The ultimate goal of Citrus is to improve the P2E paradigm by making it more secure and scalable by employing features like a 100% audited code, low cost, and reliable investment model, as well as high-speed transactions.
The Future of P2E
While play-to-earn is still a new concept, it has the potential to change more than just the typical gaming scene. Furthermore, with the emergence of P2E platforms such as Citrus, the future of gaming is likely to become safer, more beneficial to players, and highly trustworthy. Citrus’ self-sovereign banking system, open creative economy, universal digital representation, and ownership could be a key booster to P2E’s rapid growth.
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OhNoCrypto
via https://www.ohnocrypto.com
, Khareem Sudlow