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Today, about 3 billion people around the world play video games and build a complete set of Internet infrastructure around professional games, creating huge wealth opportunities for top players, covering a wealth of software, hardware, and intellectual property.Importantly, almost all game-based economic activity is centralized, and the developers and publishers have ownership of all the profits generated in their games.
This historical centralized hosting model of ownership and profit sharing continues to exist in —— with the development of the industry, but with the advent of the so-called "P2E (earn while playing)" game era, it is at the forefront of transformation.This type of P2E allows players to actually earn and own digital assets and to sell them outside the game at their discretion.
Hand digital identity, assets, and ownership to the player
Building an underlying trust in the persistence of their commodity value and economic robustness is critical if an individual user is to allocate lots of time, attention, and investment to the Web3.0 digital environment.The current direction suggests that this can indeed be done through blockchain technology.Play-to-earn games rely on blockchain technology, including using NFT as the basis for value creation.
P2E is still an emerging blue ocean market, but it's not just the game that it can redefine.In fact, the author believes that it is possible to change the way users interact and perceive traditional socio-economic structures such as financial institutions, market and government.This is because the "P2E" model provides proof of concept for the self-sovereign financial system, the open creator economy, and universal digital ownership, all applicable to a variety of emerging digital environments and forms of value creation.
In fact, P2E games are leading a bigger trend: the increasing integration of the physical and digital worlds.This comes the creation of the metaverse, at which point in time, digital identity and assets are more meaningful than their physical counterparts.Our transition to the metacverse via the P2E model inspires a socioeconomic transition to technological connectivity.
P2E2.0: Evolutionary metacosmic gameplay
In the latest P2E game model, we first note that the NFT plays a central role in the game player's play-earning system.Similarly, they all represent different categories of rarity, which guarantees that the supply of certain rare NFT is limited, rather than causing inflation as the game grows as a whole.
Another innovation of P2E is the addition of NFT revenue sources that can be earned by interacting with NFT in games, such as fighting in Axie Infinity effectively creates revenue-generating NFT, increasing the value proposition to NFT holders and making lending NFT more mobile.New players in the ecosystem use these innovative attributes to acquire a useful NFT and lend it to gamers in exchange for some of the proceeds.
NFT provides extremely flexible tools for P2E games, allowing users to own in-game items and build a recyclable economy around it.The core is to combine the NFT mechanism with native governance tokens to further enhance its DAO governance function and gain value in the most effective way.Secondly, P2E 2.0 games are built and developed based on each other's portfolio design.We expect the DAO-driven P2E to continue to innovate.
Web3.0's value proposition is much more diverse
Having an "open and decentralized" metaverse is ideal because no single entity can control the user's data and assets.Companies like Facebook are centralized identity businesses, which means that the digital identities and content created by users on their platform are stored in centralized servers beyond the user's control.This means that these companies play multiple roles as technology providers, decision makers, and data owners.
The techniques of Web 3.0 and the metaverse map perfectly to each other.Web 3.0 is a decentralized network that can serve as a basis for metaCosological connections.On the other hand, the creator economy in the Metaverse can very well complement Web 3.0's vision to develop a whole new financial world by implementing decentralized solutions.
As we move towards decentralized Web 3.0, it is important to have an interoperable open-source public chain.Since the metaverse is a fusion of virtual and physical worlds to ensure that different virtual worlds can link to each other, users can seamlessly transfer assets from one to another, the first problem P2E2.0 needs to face.
While Web 3.0's vision has grown well recently with the exponential growth of NFT, P2E games and DAO, there is still a long way to go and plenty of room for technology, which will take the experience to a complete level.
*The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of SparkDAO. Every investment and trading move involves risk, you should conduct your own research when making a decision.
