Everything you need to know about Play-to-Earn on Algorand in 2022

The gaming industry is diverse and expanding, and recent developments prove the same is true for blockchain-powered gaming. As the latest estimates suggest, the number of crypto wallets related to gaming witnessed an astonishing increase from 29,563 in early 2021 to a whopping 754,000 in the third quarter of 2021. With this impressive growth rate, it’s no surprise that savvy crypto investors have focused on the next big thing in the crypto market: playing to earn gaming.

For example, Axie Infinity reached an astonishing market cap of $7.8 billion, which some experts believe sparked a frenzy for P2E games. Other P2E games, such as The sandpit, saw an increase in activity and reached millions of users worldwide. So far, most of these popular P2E titles are based on the gold standard of smart contracts, Ethereum.

However, in the same way for the DeFi space, both users and investors have started to express concerns about Ethereum’s limitations, namely scalability and high transaction costs. To address these issues, P2E game developers turned their attention to Ethereum alternatives that can really support the growth of this nascent industry.

With a multi-billion dollar market cap, Algorand ($ALGO) is undoubtedly one of the most prominent Ethereum challengers in 2022. Since its launch in 2019, the ecosystem has seen many migrations of both existing and new projects, including several P2E developers. So without further ado, let’s take a look at everything Algorand has to offer the P2E industry right now.

Why choose Algorand over Ethereum?

Algorand fans often describe the blockchain as one of the world’s most decentralized, scalable and secure DLT infrastructures. It has a huge ecosystem of projects, including advanced NFT marketplaces, some of the leading crypto tools and resources available in the market, and projects that are trending in the DeFi economy.

Technologically speaking, Algorand comes with all the Layer-1 features and capabilities that crypto enthusiasts have known since Ethereum – including the smart contracts, Algorand Virtual Machine (AVM), atomic transfers and rekeying functions. One of the most notable features is the AVM.

What AVM adds to smart contracts is that it interprets Transaction Execution Approval Language (TEAL) programs, consisting of a series of opcodes, to implement smart contract logic and smart signatures. In a nutshell: it makes the process more scalable, faster and safer, less risky, cheaper and faster. And with a block time of less than five seconds and transaction costs of less than $0.0013, Algorand is one of the most efficient Layer 1 solutions on the market today.

Algorand’s atomic transfer functions make complex transfers run smoothly and quickly. Supplemented by a nominal transaction fee, these transfers are significantly low execution costs. These atomic transfers are compatible with all Algorand assets and multi-party transfers, which is a significant advantage for P2E developers and players

Finally, Algorand’s rekeying feature helps solve operational bottlenecks by giving users the ability to change their private spend key without changing their public address. In addition to efficiency, rekeying also brings flexibility without losing continuity in the process.

Algorand and P2E

Algorand’s ecosystem is growing, and it’s growing fast. According to official numbers, there are now more than 500 organizations worldwide using the blockchain. When it comes to playing to earn, the Algo Gaming Guild could verify north of 40 projects currently being built on Algorand. This includes trading card games such as Algo Clashracing games including Drone Racing Leagueand real-time strategy games like zCircuit and Cosmic Champions

Sayan Mukherjee, Head of Business Development of Algorand as a platform for P2E Games, talks about the benefits of Zonean Algorand-based P2E game, says its development team chose Algorand for two main reasons.

First, there are speed, scalability and low transaction costs. “The Algorand blockchain is very fast with instant transaction finality. It allows us to provide gamers worldwide with a near-web2 experience in terms of speed,” said Mukherjee.

Second, Mukherjee says, Algorand is carbon negative. “Zone has a huge NFT ecosystem with the AFK Elephants (afkelephants.com), who also act as P2E rewards. Building the GameFi ecosystem on Algorand solves global ESG issues while providing the users with a premium user experience. It gives the popular game term “gg” a whole new meaning – green gaming!

Earn vs Play

While the P2E industry is growing every day, experts have already noted a bottleneck that could curb the space’s popularity. While gamers usually value economic rewards for their playtime, many have pointed out that today’s P2E titles “earn” more than “play”. In other words, they’re just not fun to play.

Unsurprisingly, the Algorand community has high hopes for one of the most promising upcoming P2E titles, Cosmic Champs. The project, already named this year as one of the top NFT games by CoinMarketCap, and praised by the media as Algorand’s “most technically advanced game design”, is on a mission to become a contender for the top P2E release on all blockchains in 2022.

Cosmic Champs, a universe of real-time battle arenas developed by the gaming studio Mad Shapes, is the first three-dimensional real-time P2E game to land on Algorand. The studio has a lot of experience developing 3D mobile games and was involved in the creation of several successful titles before plunging into P2E.

Plus, unlike most P2E projects, Cosmic Champs is frictionless and extremely easy to use – players don’t even need to have a wallet or previous crypto knowledge. As Matt Blanchard, Cosmic Champs co-founder, says, “Our game will be free to download and free to play. It’s important that the P2E economy has a level playing field where everyone, anywhere in the world, is welcome. That is the key to mass adoption.”

Of course, despite its focus on gameplay, Cosmic Champs still offers significant economic incentives to its player base. In fact, as a result of better gameplay mechanics, the team expects player loyalty and thus user rewards to be quite competitive, possibly exceeding the earning potential of most of its peers. To bolster this idea, the developers have added a native token to the game’s NFT rewards, which is slated to launch on April 21, 2022.

According to Blanchard, the usefulness of the $COSG token and a future DAO will not only make users feel actively involved in the governance of the game, but it will also help further grow the Cosmic Champs game into a full-fledged game. gaming metaverse. Use cases of $COSG include staking rewards, purchasing from an NFT marketplace, creating new NFTs, and gameplay benefits.

In addition, Cosmic Champs also enables fractional NFTs that help maintain the high-quality character aesthetics needed to make the game a success in the long run, while helping to create a significant number of NFTs that form the basis for a thriving user base.

Overall, the game is inclusive, engaging and exciting for casual and novice participants and hardcore gamers. It’s a very democratic arena where anyone can play without the Cosmic Champs NFTs. Going forward, by leveraging and expanding on successful DeFi concepts such as staking and earning, the project could grow exponentially – and of course, this also bodes well for the entire Algorand ecosystem.

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