Introduction

Blockchain gaming is a rapidly growing sector that combines the benefits of decentralized technology with the entertainment value of video games. Blockchain games allow players to own, trade, and earn digital assets that are tokenized on the blockchain, such as cryptocurrencies and non-fungible tokens (NFTs). These assets can have real-world value and can be used to access various services and platforms in the decentralized world.

One of the most popular and innovative models of blockchain gaming is the play-to-earn (P2E) model, which enables players to earn in-game rewards simply by playing the game. Unlike traditional games that rely on in-app purchases or advertisements for monetization, P2E games reward players with tokens or NFTs that they can sell, exchange, or stake for more income. This creates a powerful incentive for players to engage with the game and its economy, as well as a new source of income for many people around the world.

The P2E model has been especially successful in emerging markets, such as the Philippines, Indonesia, and Venezuela, where many players have found a way to earn a living by playing blockchain games. According to a report by Yield Guild Games, a decentralized gaming guild that invests in and supports P2E games, some of its members in these countries have been able to earn more than the minimum wage by playing games like Axie Infinity, a popular P2E game that features cute creatures called Axies that can be bred, battled, and traded.

However, the P2E model is not limited to these regions. In fact, it has a huge potential to grow and thrive in Africa, a continent that has a large and young population, a high demand for digital and financial inclusion, and a vibrant and innovative gaming culture.

The State of Gaming in Africa

According to a report by PwC, the gaming industry in Africa is expected to grow at a compound annual growth rate (CAGR) of 12% from 2018 to 2023, reaching $1.8 billion in revenue by 2023. The report also states that mobile gaming is the dominant segment in the region, accounting for 57% of the total gaming revenue in 2018. This is due to the widespread adoption of smartphones and mobile internet in Africa, as well as the preference for casual and social games among African gamers.

However, the gaming industry in Africa also faces some challenges, such as the lack of infrastructure, regulation, and funding, as well as the high cost of data and devices. Moreover, many African gamers do not have access to formal banking services or digital payment methods, which limits their ability to participate in the global gaming market and benefit from its opportunities.

This is where blockchain gaming and the P2E model can offer a solution. By using blockchain technology, P2E games can provide a secure, transparent, and accessible platform for gamers to play, earn, and spend their digital assets. Moreover, P2E games can leverage the existing mobile gaming market in Africa and offer a more engaging and rewarding experience for gamers, as well as a new source of income and empowerment for many people.

The Opportunities of P2E Gaming in Africa

There are several factors that make Africa a promising market for P2E gaming, such as:

• The large and young population: Africa has a population of 1.3 billion people, of which 60% are under the age of 25. This means that there is a huge potential for P2E gaming to reach and attract a massive and youthful audience that is eager for entertainment and innovation.

• The high demand for digital and financial inclusion: According to the World Bank, only 43% of adults in Sub-Saharan Africa have an account at a formal financial institution, and only 21% have a mobile money account. This means that there is a high demand for digital and financial inclusion in the region, which P2E gaming can help address by providing a gateway to the decentralized economy and its services.

• The vibrant and innovative gaming culture: Africa has a rich and diverse gaming culture, with many local developers and communities creating and playing games that reflect their identity and values. For example, some of the popular games in Africa include Afro Warriors, a fighting game that features African warriors and mythology; Aurion, a fantasy RPG that draws inspiration from African folklore and history; and Mzito, a casual game that aims to awaken the sleeping lions of Africa. These games show that African gamers are not only consumers, but also creators and storytellers, who can use P2E gaming as a platform to express their creativity and culture.

Some Examples of P2E Games in Africa

There are already some P2E games that are being developed or played in Africa, such as:

• CryptoBlades, a role-playing game that allows players to create and upgrade their own characters, weapons, and skills, and earn SKILL tokens by defeating enemies and completing quests. The game has been popular among African gamers, especially in Nigeria, where some players have reported earning up to $200 per day by playing the game.

• Splinterlands, a collectible card game that features hundreds of different cards that can be used to build decks and battle other players in various modes and tournaments. The game rewards players with DEC tokens and NFT cards that can be traded on the marketplace or used to enhance their gameplay. The game has also attracted many African gamers, who have formed guilds and communities to support each other and compete in the game.

• Upland, a virtual property trading game that uses blockchain technology to create a parallel digital world that mirrors the real one. The game allows players to buy, sell, and trade properties that are represented by NFTs and earn UPX tokens that can be used to access various features and services in the game. The game has recently expanded to Africa, starting with Cape Town, South Africa, where players can explore and own properties in the city.

The Challenges and Risks Of P2E Gaming in Africa

While P2E gaming offers many opportunities for Africa, it also comes with some challenges and risks, such as:

• The volatility and regulation of cryptocurrencies: The value of cryptocurrencies and NFTs can fluctuate significantly, depending on the market demand and supply, as well as the technical and security issues of the blockchain networks. This can affect the earnings and incentives of the players, as well as expose them to potential losses and scams. Moreover, the regulation of cryptocurrencies and NFTs is still unclear and inconsistent in many African countries, which can create legal and tax implications for the players and developers.

• The accessibility and affordability of devices and data: While mobile gaming is prevalent in Africa, many gamers still face barriers to access and afford high-quality devices and data that can support P2E gaming. For example, according to GSMA, the average cost of 1GB of mobile data in Sub-Saharan Africa was $6.6 in 2020, which is more than 7% of the average monthly income in the region. This means that many gamers may not be able to play P2E games regularly or effectively, especially if they require high bandwidth or storage.

• The education and awareness of blockchain gaming: Blockchain gaming is still a relatively new and complex concept for many gamers and developers in Africa, who may not be familiar with its benefits and challenges, as well as its technical and economic aspects. This can create a knowledge gap and a trust issue for the adoption and growth of P2E gaming in the region. Therefore, there is a need for more education and awareness campaigns to inform and empower the potential players and developers of P2E gaming in Africa.

The Future of P2E Gaming in Africa

P2E gaming is a promising and exciting trend that can transform the gaming industry and the gaming experience in Africa. By combining the advantages of blockchain technology with the fun and engagement of video games, P2E gaming can offer a new way for gamers to play, earn, and spend their digital assets, as well as a new opportunity for developers to create and monetize their games.

However, P2E gaming also faces some challenges and risks that need to be addressed and mitigated, such as the volatility and regulation of cryptocurrencies, the accessibility and affordability of devices and data, and the education and awareness of blockchain gaming. These challenges require the collaboration and coordination of various stakeholders, such as the gamers, developers, investors, regulators, and educators, to ensure the sustainability and scalability of P2E gaming in Africa.

Conclusion

P2Egaming is not a panacea or a get-rich-quick scheme, but rather a potential catalyst and enabler for the development and empowerment of the gaming industry and the gaming community in Africa. As more and more P2E games emerge and evolve, it is up to the African gamers and developers to embrace and shape this trend, and to unleash the potential of play-to-earn models in African blockchain games.