There has lately been a lot of interest in the notion of GameFi in both the gaming and the blockchain worlds. Users who are accustomed to paying to play online games are drawn to blockchain video games, where they may be rewarded for their time and work instead of having to pay for the privilege.
From 2021 to date they’ve been launched numerous Play2earn games with the simple objective of paying players for having fun. GameFi refers to blockchain games that allow users to make money while playing. Players can typically earn cryptocurrency and NFT rewards by completing activities, battling other players, and progressing through the various game levels.
There’s no doubt that the rise of Axie infinity has brought wide recognition to the blockchain gaming market and many investors like Yield Guild Games, Merit circle, and Animoca Brands have invested Billions to make sure game players are rewarded for their by awarding them cryptocurrency and NFT With economic value.
What is GameFi?
GameFi is a fusion of the words Gaming and Decentralized Finance ( DeFi ). It refers to the play-to-earn gaming model that offers players the freedom to make money from competing against other players as they play these games.
The technology used for this type of video game is blockchain technology, which allows players to be the sole and verified owners of the virtual elements of the game. In classic video games, players must pay to acquire an advantage such as upgrading, lowering waiting time, or buying a virtual product. GameFi introduces the “play-to-earn” approach. In this situation, players profit from their expertise or time invested.
To win at GameFi, players need more than simply luck. The activities that reward talents and involve strategy differ depending on the game.
The History of Gamefi
GameFi arose as a result of conditions that posed a threat to the creation of the NFT phenomena CryptoKitties, which was developed on the Ethereum network.
The NFTs economy was a viral success, with CryptoKitties reaching 14,914 users per day at its peak. Unfortunately, the popularity of these NFTs choked the Ethereum network, causing significant jumps in transaction fees and slower transaction confirmation times.
Since then, developers have shifted to more advanced blockchains that promise faster transaction speeds, more scalability, and lower fees. BSC, Solana, Polkadot, Polygon, Wax, and Cardano are among them.
On the 29th of March 2022 during the BianaceBlockchainWeek in Dubai, the BNB Chain Team announce the Roadmap for 2022 which include a new technology that will allow game creator and NFT Artist to create amazing Projects without Paying excessive gas fees.
The rise of Decentralized Finance (DeFi) platforms encouraged GameFi acceptance, as new blockchain-native financial platforms based completely on smart contracts appeared. This offered the infrastructure necessary for users to launch, sell, lend, or stake their in-game tokens.
How does GameFi Games Works
Play-to-Earn Model (P2E)
The Play-to-earn gaming model is a revolutionary model of gaming that has helped many gamers earn good income from their gaming habits. Unlike the Pay to play model of traditional games where players break banks to acquire expensive in-game assets, the play-to-earn model gift player the opportunity to earn from playing blockchain games.
These GameFi games use NFTs, thus users may have to purchase these NFTs to begin playing, however, any NFTs purchased or gained in the game are fully owned by the player. it is critical to always DYOR and assess the risks. If a P2E game needs a large initial commitment and offers minimal benefits, you are more likely to forfeit your early investment.
In most cases, traditional video games won’t generate any financial returns for players, and their in-game assets are controlled and held by the gaming company. In contrast, P2E games can give players full control over their in-game assets while also offering opportunities for them to make money.
DeFi applications
Some GameFi initiatives also include DeFi goods and services including staking, liquidity mining, and yield farming. Players may often wager their in-game tokens to obtain awards, unlock unique products, or get access to additional gameplay levels. Incorporating DeFi components can also help to decentralize crypto gaming.
Unlike typical game studios, which have centralized management over game updates, certain GameFi initiatives allow the community to participate in decision-making. Through decentralized independent groups, they may propose and vote on future improvements (DAOs).
Decentraland players, for example, may vote on in-game and organizational regulations by storing their governance tokens (MANA) in the DAO. The more tokens they lock, the more votes they have. This enables users to connect directly with game creators and affects the game’s development.
Digital Asset Ownership ( Non-fungible Token )
As we’ve talked about, blockchain technology allows for digital asset ownership, which means that players can make money from their in-game assets in many different ways.
It’s just like in video games, where you can have avatars and pets and houses. You can also have weapons and tools and much more. They can also be made into NFTs in the blockchain with GameFi (also known as NFT minting). This means that players can have full control over their assets, with real and verifiable ownership.
Some of the most popular metaverse games, like Decentraland and The Sandbox, deal with the idea of land ownership. They let people make money from their virtual land. In The Sandbox, gamers can buy virtual pieces of real estate and build them up to make money. These people can charge other players to visit their land, earn tokens for hosting content and events or rent their land to other players.
How to Get Started Playing GameFi Games
Every industry has a unique way it works and GameFi is not an exception because it has a few procedures that every beginner my comply with in other to play these games.
1. Create a Wallet
To access the GameFi realm, you’ll need a bitcoin wallet compatible with GameFi, such as Trust Wallet or MetaMask. Depending on the game, you may be required to utilize a variety of different wallets or connect to a variety of different blockchain networks.
To play blockchain games on the BNB Smart Chain (formerly Binance Smart Chain), for example, you must first link your MetaMask to the BSC network. Additionally, you can use Trust Wallet or any other compatible cryptocurrency wallet. Consult the game’s official website to determine which charities they support.
Additionally, you may connect your cryptocurrency wallet to the Ethereum blockchain and have access to the majority of Ethereum-based games. Nonetheless, certain games, such as Axie Infinity and Gods Unchained, will develop their own wallet in order to save money and increase speed.
Axie Infinity is based on Ethereum, however, the Ronin network was constructed as a sidechain by their team. As such, you must engage with the Axie Infinity ecosystem using the official Ronin Wallet. As a sidechain, the Ronin network significantly reduces the cost of trading and breeding Axies, lowering the cost of entry.
2. Add Money to Your Wallet And Connect to the Game
This step will require you to deposit funds into your wallet in order for it to be completed. Based on the game, you may be required to utilize one or more digital currencies (cryptocurrencies).
As an example, fans of the Cryptoblades game must download MetaMask, acquire Binance (BNB) money, then convert it for the game’s native cryptocurrency, SKILL, before they can play the game.
Instead of using your standard online gaming account, which requires you to create a username and password, most blockchain games use your cryptocurrency wallet as a gaming account, and you will most often be required to sign a message on your wallet before you can connect to the game.
Check the Requirements And Buy the Basic Digital Assets to Play
To earn money in the majority of GameFi games, you must do it using your avatar or equivalent digital assets. This implies that you will need to purchase them before to playing. For instance, Axie Infinity demands that gamers have three Axies in their wallet before they can begin playing.
To play Axie Infinity, you must have three Axies in your game wallet. They are available for purchase on the Axie Marketplace. Axies may be purchased using wrapped ETH (WETH) in your Ronin Wallet. You may purchase ETH on cryptocurrency exchanges such as Binance and transfer it to your Ronin Wallet using the Ronin bridge. For further information, see How to Use the Ronin Wallet?
If you lack funds or are unwilling to take chances, try applying for a scholarship program. They enable you to borrow NFTs in order to play, but you must split your gains with the owners of the NFTs.
Top GameFi Project Examples
Axie Infinity
Axie Infinity is a blockchain-based online video game developed by the Vietnamese company Sky Mavis. It utilizes the Ethereum-based cryptocurrencies AXS and SLP.
As a result of the game’s NFT technology, players may acquire, breed, combat, and trade “Axies” (axolotl-based characters). The Arena and Adventure modes in this game allow players to earn AXS and SLP.
The Sandbox
There’s no question that the Sandbox games are another Gamefi Project that will expand the popularity of Blockchain games with the current news and Alpha Demo season 2 announcement.
In the Sandbox, players may play, develop, own, and monetize their virtual worlds. The Sandbox’s native token, SAND, serves as the foundation for all interactions and transactions in the game’s ecosystem.
Decentraland
Decentraland is a user-run virtual world. Each plot of land and each element on the virtual earth are NFTs. Decentraland had an average of 1,500 daily active users in early 2021. It surpassed 10,000 in March.
The Future of GameFi
The number of GameFi projects increased significantly in 2021 and is expected to continue growing in the next years. As of March 2022, DappRadar lists over 1,400 blockchain games. We currently have popular games available on a variety of blockchains, including Ethereum, BNB Smart Chain (BSC), Polygon, Harmony, and Solana.
As blockchain technology advances, the GameFi growth trend is projected to accelerate. The opportunity to own in-game assets and earn revenue from games makes GameFi extremely appealing, particularly in emerging markets.
