Imagine living in a society that only allows you to play video games. It is not the fake in-game currency that will pay your bills or keep you nourished. Money that pays your bills helps to pay your bills. Imagine all the assets of a game, including characters, clothing, and weaponry, being able to be bought and sold in real life.
This is GameFi, one the Web3’s most popular industries. GameFi is a new invention in the gaming and blockchain industries and has enjoyed a lot of success. Traditional video game players are attracted to blockchain video games and are used to paying for online gaming because they allow them to get paid for their time and work. Some of the most active space players claim it is possible.
GameFi, which is a hybrid of gaming and decentralized bank, is attracting a lot more interest from the crypto community – developers and gamers alike. GameFi’s combination of attractive elements is changing the way investors and players interact with online gaming and digital experiences. From owning assets to making money playing our favorite games, GameFi will change how they interact.
Learn more about GameFi It continues to be a leader in technological advances that are changing the game business.
What is GameFi?
As was already mentioned, Andre Cronje (CEO of Yearn Finance) first used the phrase “GameFi” in a tweet in 2020. It’s a combination of “game” and finance. GameFi is a platform that uses blockchain technology, non-fungible tokens, and game mechanics to create a virtual world in which users can interact and earn tokens.
These games are also known by the name “Play-to-earn” (P2E). GameFi was founded on the convergence of blockchain technology and gaming and other decentralized financial products, These include algorithmic stablecoins and yield farming, non-fungible tokens like NFTs, borrowing, lending,
Industry veteran Tracy Spaight says GameFi is one the fastest-growing segments of the video game industry. Spaight has over 20 years of experience in game design and is currently the head of the gamification at Synesis One. This company is known as the first DAO to data yield farm in the world. The “new sort of ownership” made possible by the industry’s structure, he claimed, He is most excited about GameFi, despite it being a relatively young sector.
Video games were stored previously on central servers that belonged to a gaming company, which had the implicit authority of turning the world off whenever they wanted.
Players didn’t own any of the items they acquired through their characters. This included clothes, weapons, and rewards. Everything lived within the game’s boundaries and had no real value beyond that. GameFi goods are distributed and rely upon Blockchain technology. This is not the case.
In typical video games, The in-game items that you purchase are not worth anything outside of the game’s context. These properties are not owned by the players, even though they may make financial investments. GameFi can alter this idea through the use of blockchain technology, cryptocurrency, and DeFi goods.
Nearly all these blockchain-based games include an in-game currency, market, and token economy. These are often managed and regulated by the community. This paradigm allows players to control their in-game possessions and not developers. It eliminates the need for server infrastructure and reduces the possibility of hacking or cheating.
GameFi has introduced the world to a new use case for cryptocurrencies By creating an economic model that allows you to play while earning money.
GameFi’s appeal lies largely in the fact that: in contrast to traditional games, the environment does not govern by a single entity. The underlying blockchain technology also makes it possible to make zero-fee transactions allowing players to trade, buy, and sell digital assets without having to pay any fees
Let’s take a closer look at GameFi’s main components before we move on.
Blockchain is the underlying technology of GameFi platforms. Blockchain is the underlying technology behind most blockchain games. Other GameFi protocols such as Polygon, Polkadot, and Solana, which have faster speeds and greater capacity, are also becoming more popular.
In addition to enabling player ownership, A game is run on a distributed blockchain ledger. This ensures that all transactions are transparent, fair, and open.
Non-fungible Tokens (NFTs)
NFTs can be used in P2E games to represent assets and facilitate transactions in the market. NFTs can also be traded in-game for cryptocurrencies or fiat money.
P2E NFTs are different from traditional online games in that each in-game asset can be unique and cannot be duplicated or falsified in any way. Many P2E games are designed to encourage players to complete levels and earn virtual currency.
GameFi will Pay you for playing. This is in contrast to pay-to-win gaming, where players must pay to gain access to the game and advance through gameplay. You’ll earn money and paly NFTs, which are digital treasures.
In exchange for completing daily missions or winning fights, players are often required to complete objectives. These resources are valuable and can be traded, bought, or sold on the market.
Many GameFi initiatives include components that decentralize finance (De-Fi). Some games offer passive income through token staking, while others allow you to gain in-game incentives by yield farming. This is where your assets and in-game currency are locked in smart contracts.
How does GameFi function?
GameFi refers to games that use blockchain technology to provide financial incentives for players. It is also distinguished by its “play to earn” business model. This means that players can earn money by playing these games and completing new levels.
The majority of rewards are NFTs, in-game tokens, and bitcoin. In-game tokens can be exchanged for other cryptocurrencies such as Bitcoin or Ethereum. These tokens can then be converted to fiat money.
Important to remember that “playing to win” is not a new concept. There is still much hype surrounding GameFi apps due to their cutting-edge technology and play-to-earn model.
These games have many aspects that make them stand out from other games and make them better options, including smart contracts and blockchain technology.
NFTs can be purchased in land, clothing, gear, or skins. These NFTs are available for sale outside the game, as collateral, or to farm on De-Fi platforms.
There are many games in the Game-Fi area, each with its own mechanics and specifications. Users must have crypto wallets to store their in-game currency. To function, your wallet must be preloaded with bitcoin. To play multiple games, you will need to acquire starter characters.
How to get started with GameFi?
Create a cryptocurrency wallet
You’ll need an ETH wallet, such as Trust Wallet and MetaMask. that supports GameFi to enter the GameFi Universe. Depending upon the game you’re currently playing, You may also need to connect to other blockchain networks or use different wallets.
To play blockchain games on BNB Smart Chain (formerly the Binance Smart Chain), you will need to first connect your MetaMask with the BSC network. You can also use Trust Wallet and any other compatible cryptocurrency wallet. Visit the official site of the game to learn more about the people who support it.
Also read: How to Develop Cryptocurrency Wallet
Integrate the game with your wallet
Link your Ethereum wallet to the Ethereum blockchain to access most of the games available on the Ethereum network. Certain games like AxieInfinity and Gods Unchained will create their wallets to save money and improve performance.
The Ronin network was originally created as a sidechain. AxieInfinity, however, is built on Ethereum. To interact with Axie Infinity, you will need to use the official Ronin Wallet. The Ronin network is a sidechain that reduces the cost of breeding Axies and trading them.
Verify the game’s prerequisites
Most GameFi initiatives require that you obtain their in-game NFTs or cryptocurrency tokens. Each game is different, so you need to weigh the risks and the benefits. Next, calculate how long it will take to make your first investment.
To play Axie Infinity, you will need to have three Axies in the game wallet. You can buy them at the Axie Marketplace. Wrapped ETH must be stored in your Ronin Wallet to make an axe purchase. You can purchase ETH on cryptocurrency exchanges such as Binance, and then transfer it to your Ronin Wallet using the Ronin Bridge.
Metaverse and GameFi 2.0:
Although GameFi is still a young concept, the shift to play-and-earn signals the dawn of “GameFi 2.0”. Video games can be considered entertainment. The primary goal should not be to win money. This paradigm has been deformed by the play-to-earn features. These have resulted in the creation of many unstable gaming economies.
Axie Infinity demonstrated that games can still be changed. The viability of a dual-pronged strategy is demonstrated by its new Origin mode. Origin is distinguished by its lack of upfront outlay. Three NFTs are required to start playing Axie Infinity. Users will need to pay a few hundred dollars before they can play a game that they may not like.
Origin offers a free Origin beginning pack that lowers the entry hurdles and makes GameFi 2.0 more available to all players. It emphasizes the importance of gaming being first, rather than designing components for a game economy. GameFi 2.0’s development could determine Web3 gaming’s success and the attraction of the metaverse.
The MonkeyLeague, a game-and-earn soccer game, will host a GameFi 2.0 roundtable conversation to emphasize the importance of this paradigm shift. The roundtable discussion will focus on the current state of Web3 gaming, as well as initiatives to promote the use of cryptocurrency and blockchain games.
GameFi & The Metaverse’s Future:
To be successful, the metaverse must be useful to users. This can be achieved by incentive programs, user agency, control, and other means. GameFi will help ensure the future decentralization of the metaverse.
GameFi is a great tool to increase user interest in the metaverse, as it allows users to make changes. As more people decide to take part in the metaverse and reap its benefits, developers will be more willing to invest in and support it.
GameFi engagement will also help to strengthen the digital economies in the metaverse. Your digital assets will be more widely used and the metaverse will thrive.
The GameFi industry is a rapidly growing sector with an estimated 3.24 million players around the world. In 2021, investors invested over US$3.6 billion in crypto gaming companies. This is a landmark year for the sector.
AxieInfinity, and other GameFi platforms using other blockchain protocols, is a clear indication that GameFi has a bright future. Blockchain technology is constantly evolving, however. It is hard to predict what future GameFi platforms and technologies will define future GameFi platforms.