Can playing video games become a legitimate way to earn a living? Some developers in the blockchain gaming industry believe it's possible, even if the law hasn't quite caught up yet. These games, known as GameFi and play-to-earn (P2E), allow players to earn crypto or non fungible tokens (NFTs) by participating in virtual activities.

Blockchain games possess distinct characteristics that set them apart from traditional video games. Here are some characteristics:

1. Decentralization

Blockchain games utilize decentralized technology, allowing players to truly own in-game assets, such as characters, items, and currencies. Players have control over their possessions without relying on a central authority.

2. Tokenization

These games often incorporate blockchain-based tokens or cryptocurrencies. Players can earn, trade, and use these digital assets within and outside the game environment.

3. Transparent Transactions

Blockchain provides an immutable ledger, ensuring transparency in the creation, ownership, and transfer of in-game assets. Every transaction is recorded on the blockchain, reducing fraud and ensuring the legitimacy of assets.

5. Cross-Platform Compatibility

Blockchain games often support interoperability, allowing players to use their assets across different games or platforms that support the same blockchain standards. This creates a unified gaming ecosystem.

7. Limited Edition Assets

Nonfungible tokens (NFTs) in blockchain games create unique and scarce in-game assets. This scarcity adds value to these items, and players often seek rare or limited edition NFTs.

While these characteristics make blockchain games unique, the industry is still evolving, and developers continue to explore innovative ways to leverage blockchain technology in gaming.

In places like a small community in the Philippines, playing blockchain games has turned into a form of employment. However, questions arise about how existing worker protections and labor laws apply to this emerging concept.

Gip Cutrino, COO of Web3 platform Runiverse, acknowledges the lack of clarity in laws due to the relatively new technology. He expects regulations to emerge as blockchain gaming gains more mainstream attention. Cutrino emphasizes the global and connected nature of blockchain gaming, making it challenging to apply existing laws.

Cutrino points out concerns about income law implications and how regulators might define this category of income for gamers. Some countries are already considering laws that classify tokens with an expectation of profit and projects stimulating liquidity pools as securities.

Despite the legal uncertainties, Cutrino remains optimistic that blockchain games will play a role in providing employment opportunities. He sees potential for impactful opportunities in the GameFi space, relying on tokenomics and circulation for sustainable growth.

Adam Bendjemil from BNB Smart Chain believes that earning a wage through blockchain games could be a viable business model if workers are well-protected. However, he highlights the need for a well-designed token economy to adapt to market conditions and the number of players, addressing potential pitfalls like market volatility.

Bendjemil doesn't think earning a living through playing Web3 games is currently sustainable. He emphasizes the importance of fixing token economy design and player numbers to avoid past issues like "brutal pump-and-dumps."

Karl Blomsterwall, CEO of Nibiru Software, sees the Web3 gaming space as in its infancy, making it challenging to separate gaming and labor. He believes that as adoption increases, regulations will adapt to encompass GameFi and play-to-earn. While blockchain games are evolving, Blomsterwall acknowledges the industry's need for both regulatory clarity and further development.

In conclusion, the idea of earning a living through blockchain games is intriguing but faces legal and regulatory challenges. The industry is still in its early stages, and as it evolves, the legal landscape may need to catch up to ensure the protection ofp layers engaging in this novel form of employment.