If you’ve been involved in crypto to any capacity, you may have heard the term ‘P2E’ floating around. P2E stands for ‘play-to-earn’, and is becoming all the rage nowadays. As crypto gaming becomes more popular, so does P2E.

Let’s take a look at what exactly it is, and how it works. 

What is P2E?

P2E stands for ‘play-to-earn’, which is pretty self-explanatory. The business model for P2E games is that it works on blockchain technology, so when players play the games, they have the opportunity to earn in cryptocurrency.

So, how does this work?

In P2E games, you can get valuable assets within the game – from skins, cards or tools to help you play better. When more and more people play the game, the assets become more valuable, since only one person can hold one specific asset.

This is also true for traditional gaming, but the difference here is that the assets in these games are limited to the game-verse only. You cannot, for example, buy things in the real world with in-game money.

P2E gaming changes things! The assets you have in the game in P2E games have value in the real world! You can sell these for cryptocurrency, and even real money. 

P2E games, like all other crypto, are decentralized. Decentralization in crypto means that there is no one control center. The developer of the game doesn’t control everything. By playing the game, players can earn money for themselves as well as the developer. 

How P2E Games Work

The main appeal in P2E games is, of course, the fact that you can earn money while doing something you enjoy doing. Though the earnings themselves are not very extravagant, players are motivated by the idea of earning something, especially since there’s always the possibility of the value of the currency rising in the future.

Unlike other crypto investments, you don’t end up losing money either, since all you did to earn the cryptocurrency was to play the game – which is enjoyable on its own.

P2E games can have two main approaches: 

Native Currency

Some developers create the game’s own cryptocurrency as tokens. This is a long process, since it involves the creation of a blockchain project and smart contracts to seal the deal. You’d also have to design tokens that will act as the currency.

The tokens, however, unlike other in-game currency, will have value in the real world. At any time, you can sell your tokens from the game and get money.

Existing Currency

Developers can also take another approach, and use existing cryptocurrencies for the game. So, instead of making a whole new currency, you can use Bitcoin, Ethereum, etc. for your earnings. 

Games which use existing currencies will also often use the name of the currency in the name, e.g. Bitcoin Pop.

These games will usually pay the players directly in the currency (rather than having to sell the assets to make an earning) but it can take some time to actually accumulate enough currency to amount to something. Payouts of such games may be stingy, but they do happen. 

P2E Games With NFTs

Another form of P2E games is those that use NFTs. NFTs are practically a household name for crypto buffs at this point, but for newbies: NFT stands for non-fungible token, which is basically a collectible, but virtual. 

In crypto gaming, the collectible items you have in games are NFTs. In traditional gaming, of course, if you collect an item, it’ll stay within the game and you can’t really do much with it outside the game. With cryptogames, these items are NFTs, which means that you are the sole owner.

Then, each of these will hold its own value on the blockchain. Just like other forms of investments, this value can then go up and down. 

Are P2E Games Free to Play?

You might be wondering: is all of this just for free? Can you really just sit at your computer and start playing games to make money, or is there a catch?

That depends on the game. Some games are free to play, and you can earn money just by playing the game. Of course, your gaming skill will also make a difference. Playing once probably won’t get you much. The developer also wants to earn after all! They want you to play as much as possible.

Other games, however, will need you to invest a certain amount beforehand to start playing. After that, you can earn as much as you want.

Final Thoughts

P2E games have grown a lot over the past few years, and will probably keep growing as crypto starts taking over the way we do things. If you want more info about some of the best P2E games, this video goes into a good amount of detail.