The financial market is a dynamic environment that goes through ups and downs in cycles. The…
Gamefi is another element in the cryptocurrency space that focuses on games where people can earn. This blog post may be helpful if you are a newbie crypto investor and game enthusiast.
In this blog post, let us learn more about what gamefi is and how one can play.
GameFi Meaning in Crypto
From the word itself, gamefi is a blended word formed from ‘game’ and ‘finance’.
Gamefi in crypto refers to play-to-earn p2e blockchain games that provide rewards to players. Players can continuously level up throughout the game by finishing tasks and battling other players. Thus, this qualifies the player to receive cryptocurrency and NFT rewards.
One difference between traditional video games and GameFi is that players can transfer their earned assets from one p2e platform to another. Gamers can earn from their assets by trading or selling their items.
Another choice for gamers is to collect digital assets and let it accumulate value over time.
Getting started with GameFi
There are multitude choices of blockchain games and all of them require a crypto wallet in order for a user to start playing. Its is safer that one creates a new wallet because there are still risks of scams and fake websites in crypto gaming.
First, you need to create a crypto wallet. The two popular wallets used for GameFi are MetaMask or TrustWallet. Nevertheless, different blockchain games have their own specifications on what wallets to use.
Second, connect your wallet to the game. Your crypto wallet acts as your gamer account. Traditional games require a username and password. On the contrary, gamefi just requires players a crypto wallet and their official signature to get started.
Third, there are some games that don’t allow players to join without holding a certain amount of cryptocurrency in their wallets. So, in order for you to play, you will have to deposit the required crypto token that the blockchain game uses.
Key Components of GameFi
Gamefi projects operate using a blockchain’s distributed ledger. The Ethereum Network houses the majority of the blockchain games. Nevertheless, developers are now building Gamefi apps on Solana, Polygon and Polkadot because their blockchains have higher capacity and better speed. Building games on a blockchain’s distributed ledger does not only make way for ownership but also guarantees transparency and fairness.
In-game purchases in traditional video games locked the assets inside a specific game. Nonetheless, play to earn models allow their players to own the tokenized in-game assets. Players can exchange it for another cryptocurrency or convert it to fiat.
Non-Fungible Tokens (NFTs)
NFTs represent assets and facilitate transactions that occur in the Gamefi marketplace. P2E NFTs also protect the uniqueness of all in-game assets. Also, they uphold the authenticity of all assets.
Furthermore, many P2E games encourage their players to level up while monetizing their virtual assets and enhancing their digital avatars (the characters that they play).
A lot of GameFi projects incorporate DeFi into the games wherein players can earn passive income via staking their tokens. Similarly, players can earn additional in-game rewards by locking their gaming items and cryptocurrency as part of a yield farming program.
Top GameFi Platforms
In a Metaverse Awareness Survey, results showed that 40% of the study’s respondents are “interested in pursuing a mix of both the ‘playing’ and ‘earning’ aspects of the metaverse”. On the other hand, 11% stated they want to focus on earning while 49% stated that their only interest is in the playing aspect.
Along with the figures stated above, 53% of the participants stated they would be happy to engage in virtual games if it means that they could earn digital currency.
Here are the top blockchain games that people engage with.
The Vietnamese Studio, Sky Mavis developed this NFT-based video game. Players can collect and breed digital creatures called Axies and use them to battle other users.
Accordingly, players gain rewards when they win battles and for trading their Axies. You can earn thousands of dollars if you successfully breed a rare Axie. SLP AND AXS are the tokens that power the Axie Infinity economy.
Cryptoblades is a play-to-earn web-based RPG (role-playing game) that Riveted Games developed and launched on the Binance Smart Chain. Players can produce their own characters and weapons to earn $SKILL tokens. They can also trade their characters and weapons in a marketplace. Also, players can bet their accumulated SKILL token earnings to gather even more tokens.
Axie Infinity used to be the leading Gamefi coin based on market capitalization. However, that top spot belongs to Decentraland’s coin now. MANA is the Ethereum-based cryptocurrency token that Decentraland uses.
Players can purchase virtual land using the MANA coin. Then, they can rent it out or sell that piece of digital land they own.
What is the Future of Blockchain Games?
People speculate that Gamefi will continue to grow over the years since there are an estimated 3.24 billion gamers all over the world. Moreover, investors spent over US$36 billion into the crypto gaming industry in 2021 alone.
While there are people who are pessimistic about the blockchain technology being used in games, GameFi enthusiasts remain positive that the upward trend will continue as long as people keep an open mind to the benefits of blockchain games.
There are still roadblocks to the real world integration of GameFi. Regulations might affect how games are played and how players interact with the software.
The combination of entertainment and potential income surely attracts the interest of many people but this might affect their mindset. They might end up focusing on the monetary part instead of enjoying the gaming experience.
Balance is the key to bring in more participants into the Gamefi ecosystem. As the Gamefi progresses, hopefully it will promote a healthy mindset among its users.