PlaytoEarn (P2E)

Application of cryptocurrency in online gaming keeps growing everyday, and the application can be likened to buying and selling of crypto through digital wallets making use of crypto exchanges. Since the launch of cryptokitties in 2017, blockchain and online gaming has been one and it keeps getting better.

GameFi is the new kid when it comes to blockchain, and it is bringing online gamers closer to cryptocurrency and the opportunity to earn while playing their favourite games. GameFi combines NFTs and Decentralized Finance, giving players the opportunity to earn NFTs or even buy them, collateralize the assets and earn more.

Crypto gaming has taken online gaming to another level as users get to add values to their in-game assets and also to keep the game developers from cheating and rigging the game in a way where those interacting with the game lose out. Without blockchain, there will be no cryptocurrency or NFT. The blockchain, a distributed ledger, provides the platform where in-game NFTs can be exchanged for cryptocurrencies. The assets are globally distributed and not limited solely for gaming purposes, which is worth taking note of.

There are two terms to be picked from these; crypto gaming and NFT gaming. These two have a significant difference, and the difference is often overlooked.

Crypto gaming: This is the part of GameFi that focuses mainly on the use of cryptocurrency to serve as the medium of transaction between players. It can also be referred to as video gaming that runs on a cryptocurrency network and includes a completely or partially distributed ledger architecture, providing players verifiable ownership over the virtual products contained in the games. Players can then get to trade virtual products for cryptocurrency, which can be traded for real money. More like a "play to earn" model.

NFT gaming: Native tokens are used to generate or gather NFTs here, any in-game assets can become NFT and can easily be owned, transferred and sold. This type of gaming is based on the "pay to earn" model.

It can be safe to say crypto gaming transitioned into NFT gaming.

About OKEx
A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks.

We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

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