What is play-to-earn & how does it work?

Play-to-earn means that players of games can earn rewards and even money in games that they play. It has come exploded this year with the growth of Axie Infinity, a game by Vietnam’s Sky Mavis which uses nonfungible tokens (NFTs). Axie Infinity has been so successful that Sky Mavis recently raised $153 million at a $3 billion valuation.

Are play-to-earn games the future of gaming?

Play-to-earn games could bring digital identity, assets, and ownership into players’ hands as the gaming industry is becoming decentralized. This is how modern video games may introduce new paradigms that lend themselves to a wide variety of emerging digital environments and forms of value creation.

Do play-to-earn games eliminate centralization?

For now, it is worth noting that play-to-earn games do not inherently and fully eliminate the centralization found in games: they still require the authority of the publisher to define, issue and constrain the asset that eventually is traded as an NFT.