Imagine a future where playing video games can make you money. Money that helps you pay bills and keep food on the table is not just fake money in the game. Think about how much money you could make in the real world if you could buy and sell everything in a game.
This is what GameFi, one of the hottest industries on the Web3, offers gamers. Some of the most active participants in this space claim that this is already a reality.
The term GameFi refers to blockchain games that reward participants for their participation. It is common for players to be rewarded with cryptocurrencies or NFTs for completing tasks or fighting other players.
Unlike traditional video games, blockchain games allow players to take their gaming belongings outside of the game’s virtual realm. Now NFT markets and cryptocurrency exchanges are open for players to trade their goods.
What is GameFi?
Since the emergence of Axie Infinity, GameFi has taken control of the traditional gaming market. To attract players, the game allows them to earn money while having fun. How is GameFi different from the video games we are used to playing?
According to industry veteran Tracy Spaight, it’s one of the fastest-growing categories in the video game industry. At Synesis One, a company that claims to be the world’s first decentralized autonomous organization (DAO) for data exploitation, Spaight is the company’s head of gamification. When asked what excites him most about GameFi, he stated that it is the “new form of ownership” that makes the industry structure possible.
The gaming industry previously relied on centralized servers controlled by a single company, which could turn off the internet whenever it wanted. Additionally, players did not own the clothing, weapons, and other goods they obtained through their character. From what I could understand, they had no real use outside of the game itself.
Due to its decentralized structure and reliance on blockchain technology, GameFi assets do not have this problem.
According to Spaight, there’s a growing acceptance that having digital assets in a game gives you more power as a player than simply being cool.
GameFi are a subscription service:
Tokens and in-game assets such as virtual lands, avatars, weapons and outfits are possible rewards in GameFi. In each GameFi project, the game model and economy will be unique. The virtual currency in games is usually a non-fungible token called an NFT, which can be sold on a blockchain-based NFT marketplace. In other cases, players must first convert their in-game assets into NFTs in order to trade or sell them.
In most games, in-game assets offer players specific advantages that allow them to earn additional rewards. Aside from gameplay and income, some games also contain avatars and cosmetics that are for aesthetic purposes only and have no impact on gameplay.
Tasks, battles with other players, and building commercial buildings are possible ways to obtain prizes in some games. Some games also allow users to earn money without actually playing the game, by betting or lending their gaming assets to other players. Let’s consider some of the most common features of GameFi.
Beginner’s Guide to GameFi
Blockchain-based games come in all shapes and sizes, each with a unique business strategy. For the first time, players can buy and sell virtual assets outside of a game’s virtual environment, such as NFTs or cryptocurrencies, on a marketplace like OpenSea, or exchange their crypto earnings for cryptos like Bitcoin on an exchange like Coinbase. The important thing is that GameFi requires a cryptocurrency wallet like any other Web3 service. After that, it’s all about finding safe games and being responsible with your money.
What you should know before you start:
Set up your cryptocurrency wallet
Whatever game you want to play, you will need to set up a cryptocurrency wallet for it. Cryptocurrency wallets, unlike traditional wallets, do not actually store money, but instead contain encryption keys linked to digital assets, allowing you to access, send and receive bitcoins. However, most games require the use of certain types of wallets and currencies. Be sure to go to the official site of the game you are interested in to find out which wallets it recognizes.
Link your cryptocurrency wallet with the game
With this method, you will be able to enter the game. Blockchain games differ from most online games because you don’t have to make a username and password or use your email address as an account. When you link your wallet, make sure you are on the real website, not a fake one that looks like it.
Learn about the game requirements you need to meet to play
In many play-to-earn games, users must earn their in-game cryptocurrency tokens or NFTs before playing. Overall, it is essential to consider how profitable the game is compared to how dangerous it is, including how long it takes to get your money back and start making money. If you don’t have enough money to buy an NFT or don’t want to take the financial risk, you can look into an in-game scholarship program that allows you to borrow NFTs from other players. If you choose that option, you will have to share your profits with the owners of the NFTs.
Beware of fake sites that claim to be connected to GameFi. As a general rule, you should make a new cryptocurrency wallet for every game you play so that you are less likely to lose coins that you can afford.
Long-term outlook for GameFi
In 2021, there were many more GameFi projects, and this trend will likely continue in the near future. As of March 2022, DappRadar had a list of over 1,400 blockchain games. We now have popular games on various blockchains, such as Ethereum, BNB Smart Chain (BSC), Polygon, Harmony, Solana and many more…
As blockchain technology improves, GameFi is expected to continue growing rapidly. Even in developing countries, many people like GameFi because it allows them to own in-game items and earn money by playing.
