Dear Bankless community:
Did you notice? The shift from attracting and extracting to attracting and rewarding?
Centralized institutions create profitable incentives for people to use their products-good user experience, registration bonuses, and better technology.
However, once our price regulation falls, the desire for profit will rise. They create barriers to exit, trap users in a walled garden, and then they extract the most value from our wallets.
The gaming industry is clustered around the same model, which means it is just another industry that can be disrupted by cryptocurrency.
Cryptocurrencies are not doing well on closed platforms. Composability and permissionless execution are the basic values we expect to see from the agreements we use.
In order to retain users, the agreement cannot close their borders and force us to play ball. Instead, they must find a proactive way to satisfy users.
Chris Clay tells us how the cryptocurrency gaming industry will do this.
Guest Author: Chris Clay, Game Director of Gods Unchained
Why is Play to Earn the next big event in the gaming industry?
Play to earn, play and earn, blockchain games. These names may vary slightly depending on who you are talking to, but the overall concept is the same. The current state of the game is changing, and the upcoming paradigm is to reward players for spending time in the game and its platform.
In addition, the birth of L2 solutions is no longer just a hope for the public. Yes, it provides a scalable way to interact with the Ethereum ecosystem, but for this particular article, more importantly, it makes the Play to Earn game a reality.
An important pillar of traditional game companies: small and micro transactions. Microtransactions on the mainnet are a painful experience; if gas fees are taken into account, a typical microtransaction of $4.99 quickly becomes a transaction of $34.99.
There is no point in trading at all. The traditional game model does not work in this environment.
But this is beginning to change.
Enter Layer 2
Whether it is Immutable X, Polygon , Optimism-no matter what your taste-they all provide solutions to the high gas costs that plague Ethereum . Even better, the implementation of these solutions ultimately allows all value transactions (from small to large) to become possible. The Play to Earn game can finally flourish.
However, you may ask, what is the relationship between microtransactions and the Play to Earn game? I will discuss this issue, but first, we must understand how the traditional game world works.
The problem with traditional games
Pay to win or freemium. If you have ever spent time playing games, you may have heard both of these phrases. In 2020, more than 54 billion U.S. dollars will be spent on in-game assets. This is a lot of money for people to spend on cosmetics, accessories, or other assets that the user does not own.
If you read the trivial prints of the numerous terms and conditions of any large gaming company, you will find a few lines explaining that these assets are only licensed to consumers. The company can take whatever you buy or get through the game as it wants .
This is where the combination of cryptocurrency and games will save the world.
Built on Ethereum, it gives users real ownership. If you buy an NFT, it really belongs to you and you can do whatever you want. Ownership of non-custodial assets is a shocking new concept that really makes the public question how and why the status quo is. The Play to Earn game combines the entertainment value of traditional games with the ownership and freedom unlocked by the blockchain.
When you put these two things together, you have a source of motivation, ready to introduce the unlimited potential of decentralized applications to the world.
The catalyst for Game 3.0: a profitable game
The Play to Earn game is no different from proof of work. In this case, “work” comes from participating in the game and its ecosystem. This behavior creates value for the product and users. Simply put, do some “work” (participate in the game) and you will be rewarded.
Cryptocurrency assets are combinable, which means that the value obtained as a reward can be retained in the game’s ecosystem or extracted from the ecosystem. For example, you can have a badass Gods Unchained card that wreaks havoc in Metaverse and brings you all the glory, so as to win you more rewards, or you can take this card to a third-party market and sell it. , In exchange for other assets, such as ETH!
So, why did Play to Earn suddenly pick up? There are several compounding factors. First of all, the mainstream awareness of cryptocurrency continues to increase, which means that more people are willing to get involved in this field. We saw this in the DeFi 2020 summer and NFT boom.
The second is the relentless threat of COVID. On a scale we have never seen in our lives, there have been losses in employment and stability around the world. People lost their jobs. They are looking for new ways to make money. The possibility that they can make money by playing games is unfathomable, and as this concept begins to accelerate, we are now seeing more and more adoption in this field.
The third point (as I mentioned above) comes from the limitations of L1, which has killed the opportunity to make money from playing games. Until recently, the scalable L2 solution proved to be feasible, enabling people to truly experience the feeling of extracting value from the game. (It’s a little bragging here: but I’m very happy that Immutable X can lead the trend here and become the first product to be released under the guarantee of Ethereum L1). )
How to make money from cryptocurrency games
With all these wheels moving, the cryptocurrency game is advancing at full speed. But how and where can you play games and earn value? This answer depends of course on the specific game in question, but there are some common standards that run through.
1. Assets in the game
Traditional games provide players with the ability to earn or purchase in-game items, but these items are almost always trapped in the user’s account. The difference in the Play to Earn game is that players can trade, sell and use these items in a non-custodial manner. For example, you have cultivated a very rare Axie , or pulled out a super rare Gods Unchained card-Play to Earn game users have non-custodial asset ownership, which allows them to say, “Hey, I want Sell this in the market and put the income in the wallet of my choice.” Bang. You just made money from the game.
2. Game related tokens
We have also seen the rise of game tokens-GODS, AXS, GHST, MANA, ILV, etc. These tokens are designed to support their game economy and reward their users for participation. In most cases, you can obtain these tokens in the game.
So, whether it is a practical tool in the game that enables users to create higher-value assets, bet rewards, or external synthesability, these tokens are another way for players to extract value from their time playing the game.
For example, take a look at the forging in “Gods Unchained”: GODS Token not only has external synthesis capabilities, but it will also be used in games to integrate non-NFT assets into NFTs together with traffic currency. These assets can then be sold, traded, and purchased among users.
3. Content Creation and Education
This is not directly from the game, but it is a very valuable piece of the game economy. People need to understand how to use these games. Whether it is educating people how to create wallets, the practical significance of signing transactions, or finding the best way to explain decentralized wallet ownership to people who have never been in this field, there are common obstacles.
For an ordinary player with no experience in cryptocurrency, the whole thing may feel very scary. Everyone in the field needs to continue their efforts to remove these barriers to adoption so that everyone can experience the benefits provided by cryptocurrency games. There is a huge opportunity to help the next wave of users enter this emerging economy. Who knows… you might be the next PewDiePie.
The beginning of the big event
With these excitement points, I really want to talk about one thing: I really believe that we are just expounding the surface of the potential of the Play to Earn game.
Its implementation is still very early, and I believe that the success we are seeing now in the entire industry is only a small part of the future. Let me mention the example of the NFT boom again: We saw people sneer at the idea of digital art, music, and assets, but just as the laughter began, people’s interest began to skyrocket.
As people begin to understand the intrinsic value of NFTs and true asset ownership, not only the interest in the cryptocurrency industry has emerged, but it has also broken into the mainstream world.
The day I saw the Beeple NFT news on CNN, I knew that the world as we knew it was changing, and from here on, it would only rise. I really believe that the same thing has to do with cryptocurrency games. The secondary market has just begun to operate, so we are at the beginning of what will completely change the gaming industry. Like all new technologies, there will be a wave of resistance initially, but once the mainstream public realizes a scalable product, through news or marketing or just a very interesting game, I believe the narrative will change and mass adoption will begin.
A big reason why I left the traditional game industry and pursued a career of making a living from games is that I truly believe in the importance of bringing the profitable potential of cryptocurrency to millions of people in a familiar and entertaining form. With my experience in the game industry, I really can’t wait to reverse the current situation, watching the players have the kind of “I can really own my own assets, I can buy and sell without a corporate overlord monitoring my every move.” , I can earn real-world value by playing games–something I have to do anyway!” in a moment.
Seeing that even a small number of us now realize this has strengthened my determination. I want to make sure that this concept is promoted all over the world.
What the future of cryptocurrency games looks like
Someone asked me a question many times, and it was also a question I asked myself countless times. What will the game look like next year?
Like anything related to cryptocurrency, the possibilities are endless, but here are my two comments. From the existing Play to Earn games, we will see a higher quality gaming experience. As we know, humans are always looking for the next attractive and more exciting thing. The company will have to raise the stakes to truly compete with the AAA gaming experience, so that users do not have to choose between the quality of the game and the value that can be extracted.
If this is achieved, the integration of these games with L2 solutions will be critical to its next success. The more accessible these solutions are, the more wallets, tokens, and games they support, and the experience becomes more entrenched. The future I envision is that players don’t even realize that they are connected to L2 solutions in their favorite games. All this happens on the surface, making interactions frictionless and mass adoption easier.
So, in my opinion, what is the next step? I believe that in the next 12 months, giant game companies will put their feet in the door to making money in games. I’m not a prophet, but I don’t think they will waste any time entering this market.
With the Play to Earn game that has been established in this field, we have seized an opportunity.
For example, Gods Unchained has ready-made game economics, which can not only meet the needs of the cryptocurrency industry, but also meet the needs of traditional game players. At the same time, we have formed a deep integration with an extended solution to ensure that we will not encounter any problems from this perspective and move on. I do think that these big companies will need to quickly improve the skills of their employees to achieve the same industry knowledge and understanding as those already in them. Once they do this, I believe this will lead to the mass adoption I mentioned earlier, as well as a flood of new game money-making users into the games they offer and existing game-money products.
I think a door that the Play to Earn game has not fully opened is the DeFi potential in this field.
For those in the ecosystem who are more familiar with cryptocurrencies, this will increase their earning potential, leading to more interaction and liquidity. The game tokens earned in the game can only be obtained through the time spent and put it into the liquidity pool to obtain passive income. I think this will further strengthen the ecosystem (SLP-ETH Uniswap V3 pool is a Great example).
To be correct, DeFi applications are likened to financial games. Although this space is developing rapidly, the core principle is to make money parallel to the game, and users can be rewarded by doing some kind of work or taking variable risks. Combining the multi-sensory nature of games with these economic games will be the main catalyst for the next wave of adoption. And change the traditional balance between gamers and game creators. In this new world, everyone can benefit from the success of the game, which is not the case today.
The Play to Earn game has arrived and will continue to exist.
I am proud to be a part of this space and I can’t wait to see the future development.
About the Author
Chris Clay (Game Director): Chris Clay is the former game director of “Magic: The Gathering Arena”. He led MTGA from the first version of the game to becoming the darling of the genre. He generated more than $120 million in revenue in the first year. . His career has been pushing the boundaries of technology, from the early pioneers of 3D character setup and design, to laying the foundation for large-scale multiplayer games at Turbine. He has moved to all parts of the world and joined Immutable. By building a game economy, he has benefited both game creators and game communities in the NFT field and continued to open up new horizons.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/layer-2-era-illuminating-the-way-forward-for-the-play-to-earn-game/
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