How do play-2-earn blockchain games work?

As the name suggests, blockchain games also do something with the blockchain. 

But before you run away hard, you should know that as a user, you don’t have to be a blockchain expert to understand blockchain games.

Here’s roughly what games do with the blockchain:

First, blockchain games create their own crypto token that the user can use as a means of payment.

Second, things like logins and payouts are handled by your personal blockchain account.

So you need an account on the blockchain to play such a game, we also call this a blockchain address or wallet.

You might be wondering, ‘why does it necessarily have to be through the blockchain and not just through my email? I already have enough accounts.’

This is because blockchain has a very unique addition for the user: control.

Unlike traditional games, blockchain games have no control over your account.

The tokens that are in your account are worth money and you can do what you want with them when you want and without approval from the game developers.

This creates a free market, or in other words, the possibility for players to exchange game items with each other for money.

This can be done through marketplaces, exchanges, or even without an intermediary by making a deal among themselves, for example.

This form of control is also called decentralization – the absence of a central party with more power – and this is also the reason why people dare to invest a lot of money in these types of games.

Don’t worry if you feel a bit overwhelmed. Creating a wallet is quite easy these days. 

Of course, you will learn how to do this later on.

In the next chapter, you will learn more about the crypto money you store in your wallet, aka tokens.


Next Lesson

What are tokens?