Gaming industry was resilient during the pandemic of 2020-21, when it added more than 300 million users and earned $180 billion. The gaming industry is considered to be the most important sector in the world and is predicted to grow to $320 Billion by 2026/27.
All ages have an interest in playing games, thanks to digitization and increased mobile penetration. Gaming has been the best form of entertainment on the internet.
Gaming was considered a hobby with no financial benefits over the years. The players are those who spend thousands on premium games products and in-game merchandise. Beyond social status and digital communities, there is no quantifiable return on the investment.
This is slowly changing, however, with the advent of play-to earn gaming. P2E is offering a new way to make money for highly skilled gamers by using the NFTs-based blockchain technology and the metaverse. Blockchain gaming is a different game than the Web 2.0 controlled by corporations. It promotes player-owned economics and returns power to the players.
How play-to-earn is changing the gaming dynamic
The traditional game world is a place where players can spend endless hours improving their skills and competing with others. In return, they don’t get any kind of compensation or reward. A few game developers or publishers receive 100 percent of all revenue. Players create value that is not visible.
Transitioning to blockchain technology will change the economic system and distribution of value forever. Play-to-earn games allow players to have complete control of their game assets. This is backed up by real ownership of NFTs. These digital collectibles can be used in the same way as other digital items with secondary markets. Players can then sell the tokens on a market and get their value in tokens, or any other currency they choose.
Play-to-earn is community driven, which means that the game’s mechanics and roadmap are developed based on suggestions and interactions from members. Traditional gaming is the exact opposite. Few centralized entities hold all the power to decide the game’s future. These entities can also ban players’ access to third-party marketplaces in order to trade in-game goods.
Play-to-earn is not restricted to gaming. There are many ways to generate revenue from the metaverse. One can rent real estate or license games. According to Grayscale’s metaverse report, the annual revenue generated from metaverses could exceed $1 trillion in the foreseeable future. Play-to-earn and digital currencies in crypto-land are more profitable than traditional gaming.
Comparison of Pay-to Play vs. Play-to Earn
A new type of game is playing big in gaming, and moving up from play-to earnn and pay-to-play. Penguin Karts transforms the typical mechanics of kart racing to Web 3. This allows players to earn money and allow them to enjoy the real world.
Penguin Karts has a. play-to-earnP2P racing game featuring staking and a battle mode. Users can stake their NFTs and receive payouts in Fantom. This is how the game was built. You can customize your racing experience by earning unique skins, accessories and kart skins.
While traditional racing games offer coins and other benefits, Penguin Karts has so many more. The PGK token is used to rent tournament space. Players have the option to host private or public events. An % fee returns to the treasury, and rental fees can also be built and hosted by players. The sportsbook is a must-have for any trip to the races. Spectators will love the ability to place wagers on their favourite drivers.
The Penguin Karts team is committed to creating NFTs with real utility. Genesis Penguin 2D editions will give early access to beta of the game and can be staked for loot. The 3D NFTs will be able to create custom avatars for the game, and can also be staked. It is our goal to create value for gamers, investors and players within the game as well as outside of the game through NFT marketplaces like OpenSea.
Are Play-to-earn and Crypto Adoption the Most Important Drivers?
The economic model that blockchain gaming creates is far more successful than traditional gaming. More gamers will move to the internet 3 when player-owned businesses show signs of sustainability. We may experience a faster adoption rate for P2E games than other cryptocurrency markets, as NFTs and gaming have a greater appeal than DeFi.
