Gaming has undergone significant changes in the last 20 years thanks to the development of the internet. Blockchain and cryptocurrency expert Matthew Sgherzi explains that video games that used to be only played in arcades or on in-home consoles and computers can now be played by millions of people on the internet at the same time.
But, in the last few years, a new revelation has been made in the gaming sector -- Play-to-Earn gaming, or P2E, which is a form of crypto gaming. Now, instead of just playing video games for fun and bragging rights, gamers can extract real-world value from all the effort they put in.
As Matthew Sgherzi says, "The ability for gamers to enjoy gaming while simultaneously earning via utilization of distributed ledger technology is the modern convergence of old school and new school being brought together in a manner where everyone stands to benefit. "
The P2E revolution is just that -- a monumental change in gaming that could change the industry forever.
What is P2E?
P2E is sometimes called crypto gaming, since it's a combination of traditional video games as well as blockchain technology, which powers all cryptocurrency.
These games give players a chance to earn certain crypto coins for all they're able to accomplish within a particular game. This is a significant diversion from the video games in the past, where the rewards you earned in the game held no value outside of the game's environment.
P2E was created, in fact, by people who became frustrated with all the time and effort they were putting into their characters in certain video games, only to never benefit from it (at least not monetarily). Instead, only the big gaming companies were benefiting from all the players' efforts.
The core of P2E gaming is that players can earn tangible rewards for the effort they put into the game. This adds an entirely new dimension to gaming, one in which motivation to achieve more can revolve around actual assets that hold value.
Matthew Sgherzi explains, "With P2E via blockchain technology, we see the ability for players to hold and receive ownership over purchased items. Gone are the days of wasted funds spent on a game that ends up being on the back burner after being bored with that game. Instead, you can now claim real ownership over those items on the blockchain, giving real utility of DLT to gamers."
How P2E Works
P2E uses many similar technologies that cryptocurrency uses to run -- everything from tokenization to smart contracts to blockchain.
In P2E games, players have full ownership of the assets they earn in-game. Most of these come in the form of NFTs, or non-fungible tokens. They include things such as weapons and skins of the characters they use.
When they achieve certain things in games -- such as finishing quests, winning head-to-head battles or more -- they earn rewards that come as crypto tokens.
All of these assets then have value outside of the game because of the form they take. They are fully tradable and exchangeable on any decentralized marketplace, giving players a way to gain value in the real world for different items they earn in games they play.
Breaking the Barriers of Traditional Gaming
Matthew Sgherzi says that, in many ways, P2E gaming is putting power in the hands of the players, instead of allowing all of that power to reside in the hands of the large corporate gaming producers.
Now, instead of just getting entertainment out of playing games that the gaming companies profit from, players can realize real-world value for all the time, effort and -- sometimes -- money they invest into the game.
More and more people are embracing the P2E revolution, as it's expanding at a rapid pace. There seems to be no stopping this significant development in the gaming industry.
About Matthew Sgherzi
Matthew Sgherzi is an entrepreneur with a knack for trendspotting. Holding a degree in Information Systems from National University, he is known for navigating emerging trends ranging from Amazon FBA to cryptocurrency and Web3 technology.
Sgherzi is also dedicated to philanthropy and public service, serving as a previous Elder and current IT Administrator at his community Church and supporting the James Project in Central America. Matthew's contrarian approach sets him apart in the entrepreneurial landscape, consistently capitalizing on emerging opportunities.