The P2E marketplace is expanding, its assets boasting a nearly $28 billion in market cap at this publication. That is despite the space taking off in 2021. Nevertheless, what contributes to this growth? The play-to-earn market attracted individuals because of the real-world rewards players get.
Blockchain technology allows developers to create trustless platforms where users may earn rewards in non-fungible or fungible coins for playing the games. Users contribute to performing various tasks and social networks.
Moreover, there’s no need for centralized networks to manage these activities. That way, games can receive rewards directly without third parties. Enthusiasts may exchange the tokens for real cash.
For that reason, platforms such as Horizen are developing high-end blockchain networks for the play-to-earn industry to gain massive adoption. With that, developers will access top-notch tools to create highly customizable, privacy-preserving, and scalable games on blockchains.
P2E Is More than Gaming
Indeed P2E is more than gaming. Developing nations realize that the concept provides financial freedom opportunities. Moreover, play-to-earn allows participants to earn many dollars monthly. Furthermore, about one-quarter of the player are underserved or unbanked by traditional financial arrangements.
Centralized platforms seemed to fail these clients with hurdles to withdraw rewards. Moreover, they take a large portion of users’ profits. Blockchain systems solve this issue, allowing gamers to exchange earned tokens without intermediaries. That way, users access more tasks and games, translating to increased earnings.
However, the growing industry faces new challenges. The space should address scalability and privacy issues. Let’s dive dip.
Privacy remains a concern for online gamers that worry about losing their data. Moreover, some individuals appear to intimidate by businesses that target them for marketing purposes. Meanwhile, P2E games do not want to violate users’ privacy.
As mentioned above, developing nations use play-to-earn games to make a living. That way, online privacy remains vital to prevent cases such as financial fraud.
Scalability also remains a challenge in the play-to-earn marketplace. Most games struggle to satisfy the growing in-game rewards demand, resulting in long waiting durations, frustrating gamers. As P2E games succeed, they translate to surging transaction fees and network congestion, limiting blockchains’ usefulness.
Scalability is necessary to curb the issues of the high cost. For that reason, developers prefer platforms allowing them to develop sidechain apps, avoiding competition for bandwidth, therefore scaling as needed.