Play-to-earn brings much-needed change to the gaming industry

Maciej Zieliński

29 Dec 2021
Play-to-earn brings much-needed change to the gaming industry

Play-to-earn may be the hottest word in the whole gaming industry. Check how you can join the trend that rocks players all around the globe!

Earing by playing games isn’t necessarily a new idea. Even 20 years ago best players of such games as Diablo II or Runescape were able to make money on selling digital assets they acquired during the game. Not to mention the professional players, who in the last decade became able to generate significant profits from their e-sport activity. 

Yet, through time many new restrictions emerged, making earning from playing more and more difficult for amateur players. Of course, solutions such as Steam marketplace are available. Yet, they are not free from burdensome limitations. For example, on Steam it’s not possible to withdraw money from your account. Other ways of trading in-game assets, which involved less popular or not adapted platforms, often fail when it comes to security. 

NFTs may give us a chance to change it. And everything indicates that players are interested. 

What does play-to-earn mean?

Essentially play-to-earn refer to earning real profits just by… playing. Simple, right? As we mentioned the core idea isn’t new. Yet, it is thanks to modern solutions such as NTF, that this phenomenon may be facilitated for the broader audience.

Currently, play-to-earn is most often used in the context of so-called crypto games. These gaming platforms allow their users to earn their native cryptocurrency during the game. For example, users can get tokens for winning fights or selling limited items. Eventually, those tokens can be exchanged for other cryptocurrencies or fiat money.

Why are investors interested in launching their own crypto games? With the growth of the game’s environment, the value of the game’s native currency increased as well. The more players game has, the more transactions are facilitated in-game, and eventually the higher demand for the currency is. 

Play-to-earn gaming and crypto games are two phenomenons highly connected with each other. Hence, to bring closer the first one, we will also discuss the second.

Crypto games

Crypto games are without a doubt the hottest trend in the Blockchain industry. Despite a modest start, crypto games slowly became one of the most revolutionizing factors in the modern gaming landscape. From CryptoKitties, through NBA Top Shot, to Axie Infinity - crypto games from simple collectible games have grown into revolutionary projects, which influence goes far beyond the gaming industry. How was it possible? All thanks to NFT tokens…

Yes, that’s right. You hear about NFT almost everywhere. Collins dictionary even named NFT the Word of the Year for 2021! But among all NFT’s implementations, one seems to be particularly exciting for blockchain entrepreneurs - games. Recent events, such as Immutable X’s ICO, show us how important this branch became for the whole industry. 

How NFTs may be used in video games? Below we briefly described that issue. 

What are NFTs?

NFTs - 2021 was definitely their year. Spectacular events, such as record-breaking art sales, incredibly expensive virtual land plots, or fashion icons launching their own NFT collections made headlines all across the globe. Here you can find more about particularly significant NFT projects from 2021. But besides a buzzword, what exactly are NFTs? 

NFT stands for non-fungible token. Non-fungibility means that every token in the system is unique. NFTs don’t have a common value and often do not allow for an equal exchange (NFT for NFT). Each token represents unique information of ownership or identity.  

Among various blockchain token types, we differentiate between fungible and non-fungible tokens. (You can read here more about token types) Examples of the first kind are Bitcoin or Ether. Fungible means that a single token is indistinguishable from others in the same ecosystem. Just like in regular currency. Thus, they can be used for payment transactions. 

Although NFT tokens became popular just recently, they’ve been with us for much longer. First, and still most popular NFT standard - ERC was created in 2016. Yet, for a long time, NFTs were left in the shadow of their fungible counterparts. This year delivered dozens of groundbreaking projects that changed this trend. 

NFT games 

NFT games are almost as old as NFTs themselves. After all their first commercial usage was a game: CryptoKitties. The game allows players to buy, collect, and sell virtual kitties, which are saved on blockchain as NFTs. Since the game’s debut in 2017, its creators - Dapper Labbs made over $40 million on it. 

CryptoKitties were the first game of this kind which started a whole new trend. Yet, the recent projects enabled us to unlock the true potential of NFT, which goes far beyond simple collectibles.

NFT and gaming assets 

Everywhere where users collect and trade virtual gaming assets, NFTs can highly improve their gaming experience. Essentially, they assure players about the authenticity and scarcity of gaming assets and allow them to keep full ownership of the purchased assets. 

As an example, let’s take multiplayer games like the aforementioned LOL or Fortnite. Possessed skins and champions are of great importance to the players. What if the players had complete control over the ownership rights to their game assets?

Play-to-earn gaming

Ok, all of that sounds tremendous. But what the whole industry is talking about are play-to-earn possibilities that NFTs bring. As creators of one of the top NFT games - God’s Unchained, say: “You don’t own assets if you can’t sell them”. This is the main idea behind the majority of NFT games right now. Their game itself is one of the projects that aim to enable players to earn on in-game assets saved as NFT. But how exactly do NFTs facilitate play-to-earn?

Let’s imagine an online card game where users unclocked new characters and equipment by participating in a quest and winning fights. What if they would like to sell their character? Many games of this type actually allowed players to do so. Yet, often it’s only possible in exchange for the game’s coins which don’t represent any real value. Furthermore, such coins are usually characterized by the same problem as any other in-game assets - players don’t possess any ownership rights to them.

As we mentioned before, NFTs are unique digital assets that represent encoded information about their identity and ownership. There is a thing with blockchain: changing such data requires consensus reached among every node. In practice, it means that NFTs can be considered as authenticity and ownership certificates of themselves. Moreover, every action involving NFT is extremely treatable and secured against fraud. 

Therefore, saving in-game assets as NFTs allowed players to possess ownership rights to them. Such assets can be traded on both internal and external marketplace. Sometimes for fiat currencies or popular cryptocurrencies, sometimes for the game’s native tokens, which then can be eventually exchanged for “real money”. This is how NFT may unlock true play-to-earn possibilities in numerous types of games. We listed just a few of them: 

Games’ native tokens are another phenomenon that deserves our attention. In contrast to the usual game’s coins, those tokens can be listed on external exchanges, and represent particular value even outside the game. Why? In case of their case, fungible tokens are used. Therefore, essentially we can speak about game-specific cryptocurrencies. What’s important for games’ creators, those tokens gain value, with the game ecosystem’s growth. 

Scarcity is nothing new for the gaming industry. Unique skins, armors, and other digital assets are commonly present in it almost from the begging. Through the years different markets have been created to facilitate users’ trade. Yet, there were always limitations. For example, usually direct exchanges to “real money” were impossible. NFT may change that for good. 

As we mentioned, gamming assets saved as NFT can be traded on both internal and external marketplace. The same goes to games’ native currencies. What’s important, this trade can be decentralized. 

It needs to be noted that behind video games stands an industry worth over $330 billion. Play-to-earn gaming my by a way to share part of this spectacular growth with players. 

The new generation of embed finance?

Although paying a real-life rant fee in game’s coins may sound absurd, it already happens. Axie Infinity is a blockchain game that enables players to earn native tokens by winning fights and selling avatars. Eventually, those tokens can be exchanged for other cryptocurrencies or fiat money on external exchanges. Therefore, without a doubt we can speak about the truly play-to-earn game.

Yet, what’s unique about Axis is the unpredicted implementation of the game’s native tokens that emerged in the Philippines, where the game has 40 % of its players. According to Sky Mavis for 25% of Axie's players, the game's wallet is the first financial service they’ve been able to access. Arianna Simpson, a partner at Andreessen Horowitz - one of Axie's main investors, claims that in some places in the Philippines people are even paying their rent with the game’s tokens.  

Most popular play-to-earn games

Play-to-earn games: Axie Infinity
Play-to-earn games: Axie Infinity

Axie Infinity

The public heard about Axie Infinity for the first time after the spectacular sale of a digital land plot. In February 2021, user Flying Falcon bought eight genesis plots worth approximately $1.5mln. This event may be considered a milestone for the NFT market. But what is so special about Axie Infinity?

Axie resembles Pokemon, but on a Blockchain. The core of the game is combat between cartoon characters - Axies. What differentiates Axies from Pokemons is the fact that they are NFTs stored on the game’s Blockchain. Essentially they are NFTs-based digital creatures.

To create new characters, players “breed” them using the game’s native token, which can be earned through the game or bought from an exchange. By selling Axies or winning fights, players earned the currencies. Then they can sell them on the open market, making a profit.

Currently, dedicated players earn as much as thousands of dollars a month playing Axie Infinity. 

Play-to-earn games: God's Unchained
Play-to-earn games: God's Unchained

God’s Unchained 

If you are up to date with the ICOs’ world, without a doubt, you’ve heard about Immutable X. Get to know the blockchain game created by its godfathers.

Gods Unchained is a trading card game that aims to give its players complete ownership over in-game items by using NFTs. Essentially its players collect digital playing card NFTs

Their motto is, “If you can’t sell your items, you don’t own them.” Thus the game allows users to sell their cards and other items for native GODS tokens, which can be exchanged for fiat money. 

It’s worth noting that God’s Unchained remains a free-to-play game. Cards can be unlocked simply by playing the game. Therefore Gods Unchained should be considered one of the truly play-to-earn games, which stands contrary to the standard model of gaming commerce.

Play-to-earn games: The Sandbox
Play-to-earn games: The Sandbox

The Sandbox

The Sandbox is one of the NFT-based games that created their own metaverses. To date, it is one of the most popular NFT games for creating and trading in-game assets.

Like Minecraft or Roblox, this NFT game is voxel-based and offers an excellent opportunity to free users’ creativity. The Sandbox provides them with tools for creating and animating NFT objects that can be used in-game or sold on designed markets. But that’s not all - on the platform, users can also develop and play their games. Since users are able to make real money on their creations, The Sandbox is another example of play to earn the game.

Does play-to-earn gamming predicts how metaverse will look like

It’s no secret that many NFT games describe themselves as blockchain-based metaverses. Just take Sandbox as an example. According to many similar models of transection that we can observe in NFT games will be also present in metaverses. Without a doubt, there are significant factors that make them suitable for that purpose. 

Business model for play-to-earn game
The business model for play-to-earn game

Implementing play-to-earn model

If you consider launching your own NFT game that will facilitate a play-to-earn model, you should be aware that its success requires skills and knowledge regarding both the technical and business sides of the Blockchain industry. That’s why many projects decide to hire an external blockchain company as a technological partner.

At Nextrope, we can call ourselves pioneers of Blockchain technology in CEE. We conducted one of the first tokenization in the world and since that we keep up to date with the industry. NFT games aren’t an exception. 

Do you want to know how Nextrope’s team can boost your NFT game on a new level? Feel free to contact our specialists who will gladly answer all your questions.

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AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!

The Ultimate Web3 Backend Guide: Supercharge dApps with APIs

Tomasz Dybowski

04 Mar 2025
The Ultimate Web3 Backend Guide: Supercharge dApps with APIs

Introduction

Web3 backend development is essential for building scalable, efficient and decentralized applications (dApps) on EVM-compatible blockchains like Ethereum, Polygon, and Base. A robust Web3 backend enables off-chain computations, efficient data management and better security, ensuring seamless interaction between smart contracts, databases and frontend applications.

Unlike traditional Web2 applications that rely entirely on centralized servers, Web3 applications aim to minimize reliance on centralized entities. However, full decentralization isn't always possible or practical, especially when it comes to high-performance requirements, user authentication or storing large datasets. A well-structured backend in Web3 ensures that these limitations are addressed, allowing for a seamless user experience while maintaining decentralization where it matters most.

Furthermore, dApps require efficient backend solutions to handle real-time data processing, reduce latency, and provide smooth user interactions. Without a well-integrated backend, users may experience delays in transactions, inconsistencies in data retrieval, and inefficiencies in accessing decentralized services. Consequently, Web3 backend development is a crucial component in ensuring a balance between decentralization, security, and functionality.

This article explores:

  • When and why Web3 dApps need a backend
  • Why not all applications should be fully on-chain
  • Architecture examples of hybrid dApps
  • A comparison between APIs and blockchain-based logic

This post kicks off a Web3 backend development series, where we focus on the technical aspects of implementing Web3 backend solutions for decentralized applications.

Why Do Some Web3 Projects Need a Backend?

Web3 applications seek to achieve decentralization, but real-world constraints often necessitate hybrid architectures that include both on-chain and off-chain components. While decentralized smart contracts provide trustless execution, they come with significant limitations, such as high gas fees, slow transaction finality, and the inability to store large amounts of data. A backend helps address these challenges by handling logic and data management more efficiently while still ensuring that core transactions remain secure and verifiable on-chain.

Moreover, Web3 applications must consider user experience. Fully decentralized applications often struggle with slow transaction speeds, which can negatively impact usability. A hybrid backend allows for pre-processing operations off-chain while committing final results to the blockchain. This ensures that users experience fast and responsive interactions without compromising security and transparency.

While decentralization is a core principle of blockchain technology, many dApps still rely on a Web2-style backend for practical reasons:

1. Performance & Scalability in Web3 Backend Development

  • Smart contracts are expensive to execute and require gas fees for every interaction.
  • Offloading non-essential computations to a backend reduces costs and improves performance.
  • Caching and load balancing mechanisms in traditional backends ensure smooth dApp performance and improve response times for dApp users.
  • Event-driven architectures using tools like Redis or Kafka can help manage asynchronous data processing efficiently.

2. Web3 APIs for Data Storage and Off-Chain Access

  • Storing large amounts of data on-chain is impractical due to high costs.
  • APIs allow dApps to store & fetch off-chain data (e.g. user profiles, transaction history).
  • Decentralized storage solutions like IPFS, Arweave and Filecoin can be used for storing immutable data (e.g. NFT metadata), but a Web2 backend helps with indexing and querying structured data efficiently.

3. Advanced Logic & Data Aggregation in Web3 Backend

  • Some dApps need complex business logic that is inefficient or impossible to implement in a smart contract.
  • Backend APIs allow for data aggregation from multiple sources, including oracles (e.g. Chainlink) and off-chain databases.
  • Middleware solutions like The Graph help in indexing blockchain data efficiently, reducing the need for on-chain computation.

4. User Authentication & Role Management in Web3 dApps

  • Many applications require user logins, permissions or KYC compliance.
  • Blockchain does not natively support session-based authentication, requiring a backend for handling this logic.
  • Tools like Firebase Auth, Auth0 or Web3Auth can be used to integrate seamless authentication for Web3 applications.

5. Cost Optimization with Web3 APIs

  • Every change in a smart contract requires a new audit, costing tens of thousands of dollars.
  • By handling logic off-chain where possible, projects can minimize expensive redeployments.
  • Using layer 2 solutions like Optimism, Arbitrum and zkSync can significantly reduce gas costs.

Web3 Backend Development: Tools and Technologies

A modern Web3 backend integrates multiple tools to handle smart contract interactions, data storage, and security. Understanding these tools is crucial to developing a scalable and efficient backend for dApps. Without the right stack, developers may face inefficiencies, security risks, and scaling challenges that limit the adoption of their Web3 applications.

Unlike traditional backend development, Web3 requires additional considerations, such as decentralized authentication, smart contract integration, and secure data management across both on-chain and off-chain environments.

Here’s an overview of the essential Web3 backend tech stack:

1. API Development for Web3 Backend Services

  • Node.js is the go-to backend runtime good for Web3 applications due to its asynchronous event-driven architecture.
  • NestJS is a framework built on top of Node.js, providing modular architecture and TypeScript support for structured backend development.

2. Smart Contract Interaction Libraries for Web3 Backend

  • Ethers.js and Web3.js are TypeScript/JavaScript libraries used for interacting with Ethereum-compatible blockchains.

3. Database Solutions for Web3 Backend

  • PostgreSQL: Structured database used for storing off-chain transactional data.
  • MongoDB: NoSQL database for flexible schema data storage.
  • Firebase: A set of tools used, among other things, for user authentication.
  • The Graph: Decentralized indexing protocol used to query blockchain data efficiently.

4. Cloud Services and Hosting for Web3 APIs

When It Doesn't Make Sense to Go Fully On-Chain

Decentralization is valuable, but it comes at a cost. Fully on-chain applications suffer from performance limitations, high costs and slow execution speeds. For many use cases, a hybrid Web3 architecture that utilizes a mix of blockchain-based and off-chain components provides a more scalable and cost-effective solution.

In some cases, forcing full decentralization is unnecessary and inefficient. A hybrid Web3 architecture balances decentralization and practicality by allowing non-essential logic and data storage to be handled off-chain while maintaining trustless and verifiable interactions on-chain.

The key challenge when designing a hybrid Web3 backend is ensuring that off-chain computations remain auditable and transparent. This can be achieved through cryptographic proofs, hash commitments and off-chain data attestations that anchor trust into the blockchain while improving efficiency.

For example, Optimistic Rollups and ZK-Rollups allow computations to happen off-chain while only submitting finalized data to Ethereum, reducing fees and increasing throughput. Similarly, state channels enable fast, low-cost transactions that only require occasional settlement on-chain.

A well-balanced Web3 backend architecture ensures that critical dApp functionalities remain decentralized while offloading resource-intensive tasks to off-chain systems. This makes applications cheaper, faster and more user-friendly while still adhering to blockchain's principles of transparency and security.

Example: NFT-based Game with Off-Chain Logic

Imagine a Web3 game where users buy, trade and battle NFT-based characters. While asset ownership should be on-chain, other elements like:

  • Game logic (e.g., matchmaking, leaderboard calculations)
  • User profiles & stats
  • Off-chain notifications

can be handled off-chain to improve speed and cost-effectiveness.

Architecture Diagram

Below is an example diagram showing how a hybrid Web3 application splits responsibilities between backend and blockchain components.

Hybrid Web3 Architecture

Comparing Web3 Backend APIs vs. Blockchain-Based Logic

FeatureWeb3 Backend (API)Blockchain (Smart Contracts)
Change ManagementCan be updated easilyEvery change requires a new contract deployment
CostTraditional hosting feesHigh gas fees + costly audits
Data StorageCan store large datasetsLimited and expensive storage
SecuritySecure but relies on centralized infrastructureFully decentralized & trustless
PerformanceFast response timesLimited by blockchain throughput

Reducing Web3 Costs with AI Smart Contract Audit

One of the biggest pain points in Web3 development is the cost of smart contract audits. Each change to the contract code requires a new audit, often costing tens of thousands of dollars.

To address this issue, Nextrope is developing an AI-powered smart contract auditing tool, which:

  • Reduces audit costs by automating code analysis.
  • Speeds up development cycles by catching vulnerabilities early.
  • Improves security by providing quick feedback.

This AI-powered solution will be a game-changer for the industry, making smart contract development more cost-effective and accessible.

Conclusion

Web3 backend development plays a crucial role in scalable and efficient dApps. While full decentralization is ideal in some cases, many projects benefit from a hybrid architecture, where off-chain components optimize performance, reduce costs and improve user experience.

In future posts in this Web3 backend series, we’ll explore specific implementation details, including:

  • How to design a Web3 API for dApps
  • Best practices for integrating backend services
  • Security challenges and solutions

Stay tuned for the next article in this series!