Play to Earn
Yesterday, I talked about DAOs as a new and interesting use case of the blockchain. Another one of those new uses cases is play to earn video games.
When I first heard about this concept, it sounded to good to be true. How does it work?
Free to Play (F2P) games like Fortnite make billions on just cosmetic items. Though you can purchase these items, they are owned by Epic games and have no value outside of the game.
Non-Fungible Tokens (NFTs) allow gamers to have ownership over in-game items like cards, cosmetic items, or virtual real estate. As the gamer continues to play the game, they participate in this in-game economy and create more value for other players and the developers. This value is rewarded through in-game assets ranging from cryptocurrencies to NFTs. Which can then be converted into fiat currency on a third party platform.