Consider a world where you can earn real money just by playing video games.
Consider the possibility that all the assets in a game — the characters, outfits, and weaponry — might be purchased and sold in the real world.
This is promised by GameFi, one of the hottest Web3 industries. And it’s a reality that some of the industry’s most active participants believe isn’t far off.
Previously, video games were stored on centralized servers owned by a gaming business with the implicit right to turn off the world whenever they pleased.
Moreover, players had no genuine ownership of the goods they earned through their avatar – the clothes, the weapons, the awards. It all existed just within the bounds of the game and had no real-world significance.
That is not the case with GameFi products, which are decentralized and rely on blockchain technology.
What is GameFi?
The term “GameFi” is a combination of two words, “game” and “finance.” It refers to blockchain games that allow users to make money by playing. The GameFi ecosystem creates a virtual gaming environment by utilizing cryptocurrencies, non-fungible tokens (NFTs), and blockchain technology.
In-game awards are typically earned by completing tasks, defeating other players, and progressing through the various game levels. They can also trade their assets on crypto exchanges and NFT marketplaces outside of the game.
How Does GameFi Work?
In GameFi, the reward can take many forms, including bitcoins or in-game assets such as virtual land, avatars, weapons, and costumes. Each GameFi project will have its own model and game economy.
Most in-game assets are NFTs that run on the blockchain and may be exchanged on NFT marketplaces. However, in other circumstances, in-game assets must be turned into an NFT before players can trade or sell them.
In-game assets typically provide various benefits to players, allowing them to earn greater rewards. However, some games offer avatars and cosmetics that are just decorative and have no effect on gameplay or earnings.
Depending on the game, users can earn prizes by completing activities, engaging in battles with other players, or constructing monetized constructions on their piece of land.
Some games also allow users to create passive revenue without actively participating in the game, either by staking or by lending their gaming assets to other players.
How to Get Started with GameFi?
There are thousands of different blockchain games, each with its own economic model. Unlike traditional video games, play-to-earn games allow players to purchase in-game assets and then move them to a virtual world outside of the game – they may sell their NFTs on a marketplace like OpenSea or trade their crypto earnings for money on a crypto exchange like Coinbase.
This means that GameFi requires a crypto wallet like every other aspect of the rapidly growing Web3 space. Then it’s only a matter of finding safe games and managing your money sensibly.
Here’s an essential guide to getting started.
Step 1-Create a Crypto Wallet
Set up a crypto wallet that works with the game you wish to play. Crypto wallets retain encryption keys connected with digital assets, allowing you to access, send, and receive cryptocurrency. They don’t store money the way a typical wallet does.
There are numerous wallets and currencies available, but most games demand the use of specific wallets. You’ll need to visit the game’s official website to see which wallets it supports.
Step 2-Connect the Wallet with the game
Connect the game to your cryptocurrency wallet. This will also be your method of logging into the game. Unlike typical online games that require you to create a username and password or provide your email address, Blockchain games use your crypto wallet as your account.
Ensure you’re connecting to their legitimate website and not a bogus look-alike when you link your wallet.
Step 3-Be Familiar with the Rules Before You Play
Become familiar with the game’s unique requirements. To begin playing many play-to-earn games, gamers must first acquire their in-game cryptocurrency token or NFTs. In general, it’s a good idea to balance a game’s earning potential against its overall dangers, such as how long it takes to recoup your original investment and start making money.
If you don’t have enough money to buy a token or don’t want to risk your money, seek an in-game scholarship program that allows you to borrow NFTs from other players to get started. However, you must share your gains with the NFT owners if you go that path.
Keep in mind that, like anything else on the internet, GameFi has its fair share of frauds, so be cautious. Additionally, a smart rule of thumb is to create a new crypto wallet for each game you play, as this will ensure that you only lose coins that you can afford to lose.
Top GameFi Games
Following are some of the popular GameFi projects. Let’s investigate their details
CryptoKitties
It was one of the first blockchain games ever created, and it was previously a world where the concept of NFT was hardly comprehended.
The virtual assets that players can own in this game, known as NFTs, are digital cats that can be collected or bred.
CryptoKitties wanted to bring the boundless potential of blockchain technology to light because it was created at a period when knowledge about NFT and blockchain was still limited.
CryptoKitties has faced a variety of difficulties.
- Firstly, there is nothing to prevent digital collectibles from being reproduced. This lowers the value of the originals, and they may eventually become worthless.
- Second, collectibles are linked to the people who created them. In other words, if the creators disappear, so will the collectibles.
- Finally, users did not see any significant purposes or use for the attributes they were collecting, causing them to waste and waning players’ interest in the game over time. As a result, CryptoKitties expects that blockchain technology will be widely embraced and implemented to convert these virtual assets into real-world assets.
Decentraland
Decentraland is an NFT game in which players are presented with a constrained 3D virtual world in which the LANDs and NFTs are near to one another. Multiple LANDs can be put together to form Districts, which are communities. Players with similar interests would create their Districts to gain from multilateral benefits.
The Decentraland token is $MANA, and it may be used to purchase LANDs and other in-game items. They are now experiencing issues with slow download speeds, content availability for select sections of the network, and unsuitable content that must be filtered, but these issues will be resolved soon.
Axie Infinity
Despite its early stage, Axie Infinity has built a name for itself by being voted the #1 Ethereum game by the community daily, weekly, and monthly. The Axie Infinity project was founded on the conviction that NFT games have a bright future.
Axie Infinity Shards ($AXS) are the game’s tokens holders can earn by staking, participating in games, or attending and contributing to communal activities like voting. Furthermore, users can receive prizes by interacting with the Axie community and holding onto the $AXS tokens.
Axie Infinity’s development staff is Vietnamese, with well-trained experts who have won numerous gaming design and production competitions. They have picked Ethereum as their initial platform, but they will undoubtedly go beyond their initial expectations.
Advantages of GameFi Projects
GameFi projects provide numerous benefits to their players. Let us see what they are.
Gaming Incentives
The play-to-earn gaming paradigm, which debuted with GameFi, was a watershed moment in the gaming industry. The new principles rejected traditional game income systems, which mostly rely on in-app purchases and advertising. Furthermore, users cannot use their in-game assets outside the gaming environment.
On the other hand, Blockchain-based games allow players to trade in-game tokens and objects for bitcoin. As a result, gamers can use their in-game assets outside of the game.
Participation at a Low Cost
Most Gaming Finance games are entirely free to download and play. You can gain from the accessibility of P2E games compared to traditional games. The vital value advantage associated with projects on a GameFi list is the low cost.
A Simple Learning Curve
Because of their reservations about the new P2E strategy, many consumers are suspicious of GameFi games. However, you do not need to follow any complicated methods or instructions to play such games.
On the other hand, one of the most attractive characteristics of GameFi projects is simple gameplay approaches. As a result, there are almost no barriers to entry into P2E games.
Take Control of Your Gaming Experience
The certainty of complete ownership over your assets is the most acceptable value benefit in the world of GameFi.
Gaming Finance projects permanently save all data relevant to your in-game assets and non-fungible tokens on blockchain networks.
Even if the game fails, you are not at risk of losing all your valuables. Players have complete control over all assets in the game and are free to use them in any way they like.
The Future of GameFi and Crypto Games
The GameFi growth trend is expected to accelerate as blockchain technology progresses. GameFi is particularly appealing in underdeveloped economies since it allows users to own in-game assets and earn cash from them.
GameFi has been there since the beginning of bitcoin, but it is only now becoming popular with the public. GameFi titles’ fan base is constantly rising because of the attractive earning potential they provide to gamers.
According to several industry analysts, gaming will be the most popular way to mass blockchain adoption, and we couldn’t agree more! With the increasing popularity of GameFi projects, gamers worldwide are becoming more familiar with tokenization, NFTs, and in-game currency.
As a result, GameFi popularises several crucial blockchain concepts as it grows in popularity.
“As of February 2022, GameFi’s entire market cap was 55.38 billion dollars. By 2025, blockchain gaming is expected to be worth $50 billion, a 10x increase over traditional gaming”.
Conclusion
I believe that we are only touching the surface of GameFi and the metaverse since there is still more to learn as the metaverse develops.
NFTs are important in the evolution of P2E gaming as they reward players and shift the narrative from traditional gaming to P2E.
Unsurprisingly, the ability to compensate players for their time and effort is at the root of the rapid popularity of these play-to-earn games. Who doesn’t like to make money while having a good time?
The future of GameFi appears bright– let’s keep our eyes peeled and see where the best GameFi games of tomorrow take us.