What is Player Payout?
Let's find out Player Payout meaning, definition in crypto, what is Player Payout, and all other detailed facts.
Player payout is a new automatic method for compensating online gaming players immediately after a tournament ends. All payments made with cryptocurrencies such as ETH, MATIC, DAI, USDC, and others are handled instantly thanks to the underlying blockchain network and smart contract technology.
Automated player payouts are a great solution for the gaming industry, especially for the e-sport community, which is one of the fastest-growing communities that exceed billions of dollars in revenue. E-sports competitions attract large sponsorships from VC firms, Fortune 500 organizations, and major media networks due to their increasing demands and expanding audience globally.
However, e-sports tournament organizers are known to hold off on paying players for weeks or even months. It's understandable to some extent, given that organizers must personally distribute rewards to all winners.
Traditional transaction models such as wire transfers, ACH transfers, paper checks, and so forth are used by the majority of organizers. These approaches are costly, reliant on human resources, and painfully slow, resulting in payment delays.
Player payouts come to the rescue in this case. Tournament organizers can automate the process of distributing rewards and transferring them immediately to the winner's crypto wallet by using smart contracts and decentralized exchanges (DEXs).
Not only does this allows both parties to avoid paying excessive transaction fees to banking institutions, but it also encourages more organizers and players to join the Play2Earn gaming revolution.
How Do Player Payouts Work?
If we’re talking about the e-sports industry, each tournament contains a prize pool of money that is divided among a limited number of winners. Organizers can tailor and control payments based on each player's performance in the competition using smart contracts stored on a blockchain network. In addition, smart contracts make a tournament's structure and payout schedule more transparent.
Smart contracts are electronic contracts that perform transactions automatically based on pre-defined parameters. Consider the following scenario to see how an Ethereum-based smart contract for an e-sports tournament functions. Note that tournament contracts deployed on the Polygon network, or any other smart contract ecosystem, would go through the same procedure.
The Ethereum blockchain is powered by a network of computers (known as nodes) that constantly confirm and log all network transactions. The payout distribution is pre-configured by tournament organizers, who choose how many participants will be paid out and what percentage of the contract funds each place will receive. The Ethereum blockchain is then used to deploy the tournament smart contract.
The prize pool is usually made up of player entry fees and/or sponsor donations that are sent in and held in escrow while the tournament is taking place. The organizers only need a little amount of ETH to start the smart contract-powered player payout procedure after the tournament is finished.
The defined transactions are processed and documented on the underlying blockchain as the players achieve the ranking conditions. Since there is no third party involved, tournament winners get paid almost promptly and for a small fee.
Relay Chain can be thought of as <strong>the core of Polkadot.<\/strong> Essentially, it connects different parachains. Parachains, on the other hand, are similar to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-plasma/">Ethereum Plasma chains<\/strong><\/a>. Basically, they can conduct transactions without relying on the Relay Chain. As a result, parachains can significantly <strong>improve blockchain scalability.<\/strong><\/p>\n<p>Parachain projects need to lease a slot for their parachains through the <strong>Parachain Slot Auction<\/strong> if they want to connect to the Relay Chain. Projects stake <strong>DOT<\/strong> tokens to bid for a spot in the auction. The ones that stake the biggest amount of DOT tokens become the parachains of Polkadot. They can lease a slot for around 3 to 22 months.<\/p>\n<p>The staked DOT is locked into the project's slot auction bid once the users engage in the crowdloan. The tokens stay locked in the parachain slot until the lease of a slot ends.<\/p>\n<p>You might be wondering how to get the DOT tokens. <strong>This is where Polkadot Crowdloan comes in <\/strong>since it can be used to obtain these tokens. Essentially, crowdloan is a <strong>crowdsourcing system.<\/strong> In a crowdloan, users stake DOT to support the parachain projects they favor. For doing that, they get various rewards, including tokens from the parachain they support.<\/p>","definition":"the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","status":"published","meta_title":"What is Polkadot Crowdloan? Definition & Meaning | Crypto Wiki","meta_description":"Polkadot Crowdloan meaning: Polkadot Crowdloan - the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.","meta_keywords":null}" :prev-section="{"id":604,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Blockchain_game","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-17T18:12:31.000000Z","slug":"what-is-play-to-earn-play2earn","title":"What is Play-to-Earn (P2E; Play2Earn)?","section":"P","keyword":"Play-to-Earn (Play2Earn)","content":"<p><strong>Play2Earn (P2E, or play-to-earn) <\/strong>games are a type of gaming in which a network allows its users to acquire any type of in-game commodity that can then be transferred to the physical world as a desirable attribute. By playing a particular game regularly, each player has the possibility to earn more items or tokens to sell and generate income.<\/p>\n<p>The method of each game may change, but the benefits are typically derived through <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-staking/">staking/strong>/a>, <strong>cultivating in-game currency<\/strong>, or creating tradeable <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFT/strong>/a> products. Users in previous blockchain games relied purely on mere luck to benefit. Play-to-earn has given rise to in-game economies and business concepts in which gamers may make an income.<\/p>\n<p>Video game business models have evolved to a whole new level as technology has become more available to the general population. Formerly, arcade machines in designated gaming arenas were the only places where you could play games. With a sack full of quarters, players would compete for the highest score. <\/p>\n<p>Things changed dramatically, though, when the technological revolution introduced games to our cellphones, home computers, and gaming consoles such as the PS5, Xbox, and so on.<\/p>\n<p>Currently, the world was introduced to a new gaming model known as play2earn, particularly from the blockchain perspective. It successfully provides players with the possibility to generate revenue by partaking in games.<\/p>\n<p><strong>Gamers generate value<\/strong> for other gamers as well as developers by interacting within the in-game environment and gaining assets for their participation. These digital assets can be anything from coins to accessories that have been <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-tokenize/">tokenized/strong>/a> on the blockchain.<\/p>\n<p>As a consequence, the play-to-earn business model complements blockchain gaming well.<\/p>\n<p>Moreover, the NFT industry has already topped $2.5 billion in sales in 2021, and this figure is expected to rise dramatically as new NFT games hit the market. The rise of NFT is spawning a new era of revenue streams within the blockchain world. It may not be long until it outpaces just about every major business.<\/p>\n<p>A fitting illustration of P2E is <strong>Axie Infinity (AXS).<\/strong> In this particular game, Axis are cute animals that players get, breed, and then use to battle and obtain rewards. Every Axie is, in fact, a non-fungible token, so it is a one-of-a-kind virtual collectible.<\/p>\n<p>Besides, there is a world called <strong>Lunacia<\/strong>, which is a whole new economy within the game. In there, users can get land and breed Axies utilizing their in-game tokens, Axie Infinity Shard (AXS), and Smooth Love Potion (SLP).<\/p>\n<p>The advantages are also transferred to the physical world.<\/p>\n<p>Play-to-earn games such as Axie Infinity, are already assisting individuals around the globe in earning a good amount of capital. For instance, people in the Philipines are earning $1,500-$2,000 a month just by playing Axie Infinity as a hobby.<\/p>","definition":"a style of gaming where the players can obtain any type of in-game product, which can subsequently be transferred to the real world.","status":"published","meta_title":"What is Play-to-Earn (Play2Earn)? Definition & Meaning | Crypto Wiki","meta_description":"Play-to-Earn (Play2Earn) meaning: Play-to-Earn (Play2Earn) - Play2Earn (play-to-earn) games are a style of gaming where the players can obtain any type of in-game product, which can subsequently be transferred to the real world.","meta_keywords":null}" :model="{"id":593,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Lottery_payouts","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-17T18:21:13.000000Z","slug":"what-is-player-payout","title":"What is Player Payout?","section":"P","keyword":"Player Payout","content":"<p><strong>Player payout<\/strong> is a new automatic method for compensating online gaming players immediately after a tournament ends. All payments made with <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies/strong>/a> such as ETH, MATIC, <strong>DAI<\/strong>, USDC, and others are handled instantly thanks to the underlying <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain network<\/strong><\/a> and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a> technology.<\/p>\n<p>Automated player payouts are a <strong>great solution for the gaming industry<\/strong>, especially for the e-sport community, which is one of the fastest-growing communities that exceed billions of dollars in revenue. E-sports competitions attract large sponsorships from <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Venture_capital/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong><strong>VC firms<\/strong><\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Fortune_500/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Fortune 500 organizations<\/strong><\/a>, and major media networks due to their increasing demands and expanding audience globally.<\/p>\n<p>However, e-sports tournament organizers are known to hold off on paying players for weeks or even months. It's understandable to some extent, given that organizers must personally distribute rewards to all winners. <\/p>\n<p>Traditional transaction models such as <strong>wire transfers<\/strong>, ACH transfers, paper checks, and so forth are used by the majority of organizers. These approaches are costly, reliant <strong>on human resources<\/strong>, and painfully slow, resulting in payment delays.<\/p>\n<p>Player payouts come to the rescue in this case. Tournament organizers can automate the process of distributing rewards and transferring them immediately to the winner's <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">crypto wallet<\/strong><\/a> by using <strong>smart contracts<\/strong> and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized exchanges (DEXs)<\/strong><\/a>. <\/p>\n<p>Not only does this allows both parties to avoid paying excessive <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-transaction-fee/">transaction fees<\/strong><\/a> to banking institutions, but it also encourages more organizers and players to join the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-play-to-earn-play2earn/">Play2Earn gaming revolution<\/strong><\/a>.<\/p>\n<h2>How Do Player Payouts Work?<\/h2>\n<p>If we’re talking about the e-sports industry, each tournament contains a <strong>prize pool of money <\/strong>that is divided among a limited number of winners. Organizers can tailor and control payments based on each player's performance in the competition using smart contracts stored on a blockchain network. In addition, smart contracts make a tournament's structure and payout schedule more transparent.<\/p>\n<p>Smart contracts are <strong>electronic contracts that perform transactions automatically based on pre-defined parameters<\/strong>. Consider the following scenario to see how an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum/strong>/a>-based smart contract for an e-sports tournament functions. <em>Note that tournament contracts deployed on the Polygon network, or any other smart contract ecosystem, would go through the same procedure.<\/em><\/p>\n<p>The Ethereum blockchain is powered by a network of computers (known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-node/">nodes/strong>/a>) that constantly <strong>confirm and log all network transactions<\/strong>. The payout distribution is pre-configured by tournament organizers, who choose how many participants will be paid out and what percentage of the contract funds each place will receive. The Ethereum blockchain is then used to deploy the tournament smart contract.<\/p>\n<p>The prize pool is usually made up of player entry fees and\/or sponsor donations that are sent in and held in escrow while the tournament is taking place. The organizers only need <strong>a little amount of ETH to start the smart contract-powered player payout<\/strong> procedure after the tournament is finished.<\/p>\n<p>The defined transactions are processed and documented on the underlying blockchain as the players achieve the ranking conditions. Since there is no third party involved, tournament winners get paid almost promptly and for a small fee.<\/p>","definition":"an automated method for immediately paying online gaming players after a tournament is over.","status":"published","meta_title":"What is Player Payout? Definition & Meaning | Crypto Wiki","meta_description":"Player Payout meaning: Player Payout - an automated method for immediately paying online gaming players after a tournament is over.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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