Play-to-earn vs play-to-own are two methods used in the crypto gaming industry to gain profit. In the Play-to-Earn method, you get crypto tokens in return for the points you earn through the gameplay. It incentivizes the players for their engagement with the platform. In the case of play-to-own platforms, the players can own in-game digital assets and upgrade them based on the level of their gameplay. These digital assets have real-world value so that you can trade them in secondary markets later.
Keep reading this article to learn about the key differences between the play-to-earn vs play-to-own games.
Features Of Play-to-Earn And Play-to-Own Games
Before we discuss in detail the key differences between Play-to-Earn and play-to-own platforms, let us understand the key features of these two types of games.
The following are the features of Play-to-Earn games.
- Smart Contracts: Smart contracts are used by Play-to-Earn games to better deliver the game outcomes and reward the players. Smart contracts also help users to have a strong, decentralized bond with the gaming platform.
- Micro Transactions: Players of Play-to-Earn games can get started on the platform even by contributing a small amount of money. Moreover, play-to-earn platforms do not involve any transaction fees.
- Digital Assets Ownership: Play-to-Earn games can be considered as a means of owning digital assets and NFTs. You can trade the NFTs you have earned on any NFT marketplace to earn more rewards.
Play-to-own games have the following features.
- Own and Sell: In the case of play-to-own games, the receives a digital asset as a game reward instead of crypto tokens. The reward can be in the form of anything including a plot of land, a home, a store, or other real-world assets.
- Sense of Ownership: play-to-own games give you complete ownership and control over digital assets. They also have the freedom to sell this asset in the secondary market.
- Rarity Of Assets: The digital assets that you get from the play-to-earn platforms are one of a kind and rare, unlike what you earn through traditional gaming platforms.
Key Differences Between Play-to-Earn And Play-to-own Games
In this section, you will read about the key areas of differences between Play-to-Earn and play-to-own Games.
1️⃣The Effects On The Gaming Industry
Play-to-earn games can have a significant impact on the gaming industry as there is a huge community of gamers surrounding each game. On the other hand, play-to-own is a rather new concept that concentrates on single-player mode. The effects of play-to-own games on the gaming industry are negligible compared to that of play-to-earn games.
2️⃣Utilization Of Assets
Play-to-earn games prompt users to earn digital money and buy real-world assets using this money. On the other hand, you directly become the owner of the assets offered by play-to-own games.
3️⃣The Potential For Leisure
With a high focus on earning tokens, play-to-earn gaming platforms focus heavily on gaming rather than providing a feeling of enjoyment to the players. On the other hand, play-to-own games focus more on the leisure aspect of the games.
4️⃣Value Distribution
In terms of value distribution, play-to-own games are a better deal for both the game developers and the players. It provides safety of ownership and permission for long-term usage through value building. Play-to-earn games focus on the financial gains that a player can get through gameplay rather than the value they get.
5️⃣Tokenomics
There is also a significant difference in the tokenomics of play-to-earn and play-to-own games. Since play-to-earn games are rewarded using in-game cryptocurrencies, their prices may change due to market conditions. You can earn profit or incur loss in the case of play-to-earn tokens depending on the market condition.
On the other hand, Play-to-own games are based on the blockchain. The players only need to focus on asset ownership or the ownership of NFTs in gaming. Blockchain will ensure the ownership and security of the assets you own in the game. Moreover, players can trade, sell, or buy new assets from any blockchain-based or NFT marketplace.
The Bottom Line
Play-to-earn and play-to-own games are unique in their own right. Use should use these gaming platforms according to your unique use case and requirements. There is no doubt that you will earn good prospects with either of the two games.
