2.1 Play-and-Earn Gaming
Last updated
Last updated
By mid-2021, the 2020 trend of non-fungible tokens (“NFTs”) had evolved into the innovative new genre called play-to-earn (“p2e”) gaming. This was driven by the market demand for NFTs to have additional utility attributed to them, allowing holders to use NFTs as skins or items in virtual worlds and metaverses.
New p2e projects implement crypto asset technology throughout the game, with fungible tokens for in-game currencies and NFTs for in-game characters or items. Transactions and game mechanics can also be automated with smart contracts deployed on the blockchain ledger.
The result is the GameFi sector, where gaming has integrated technologies from decentralised finance (“DeFi”) to offer enhanced efficiency, transparency, and a range of economic opportunities.
GameFi is revolutionising the business models of gaming companies which have historically only developed games with closed economies. By retaining ownership and freely trading outside of the game, players can now exchange their in-game assets into real-world fiat or crypto currencies. The earnings can then offset the costs of games and increase player efficiency because the time or effort spent on one game can accumulate value and be contributed to another.
Gaming is one of the fastest growing industries globally. It was valued in excess of $180 billion USD in 2021 and is predicted to grow at a CAGR of 25% over the next 5 years. At the same time, the adoption of p2e games in the UK and the US is expected to double in 2023, reaching over 15% (adoption in India is already over 33%).
Analysis of the top 5 competitors shows the rapid emergence and growth of new P2E games as well as the potential volume of active daily users for a successful game.
By opening up the economies of these booming virtual worlds, p2e games such as Realm Of Titans, are creating a range of new business opportunities. GameFi guilds set up ancillary services such as NFT lending while markets can process millions of dollars in daily trading volume.
However, there are still a number of serious industry problems in the emerging GameFi sector of 2022. Many games suffer from unsustainable token models, where companies promise high yields to win users but ultimately degrade the value of all in-game assets.
The majority of p2e games are also considered to offer a poor user interface and experience (“UI/UX”). This is typically either because the games have been rushed to market or because the developer was more concerned with blockchain technology than quality gameplay.
Realm Of Titans has planned to address these issues with distinct crypto asset operations, sustainable economy management and a strong focus on game quality, including multiple battle modes and ongoing production of new, engaging content for the Realm Of Titans Universe.
