From the earlier days of the video game industry, developers have aimed to create worlds as powerful as real life. While technological growth in graphics, computation, and games still need many of life’s basic incentives, like the ability to earn a living, for the huge majority of players. But GameFi, a developing crypto gaming sector, has the ability to make playing a full-time business.
GameFi has recently become a quite prominent concept in the gaming and blockchain industries. Traditional video game users, who are used to spending on online games, are turning to blockchain video games where they can be rewarded for their time and effort.
In this blog, we'll take a deep dive into the world of GameFi games and it consists of, how it functions and what are the expectations for the future of GameFi and their examples.
What is GameFi?
GameFi is related to the financialization of video gaming. Furthermore, the popular crypto term is Defi, or decentralized finance. GameFi may have different financial elements to each other. GameFi allows gamers to earn digital investments for their in-game activities. Gamers, on the other hand, protect their assets stored on a distributed network. It works independently of any single organization, substantially derisking the digital assets.
For example, some blockchain games reward players for finishing in-game tasks while others may be able to develop revenue from various assets owned by the player.GameFi has been used with enhancing regularity to characterize games with financial elements enabled by blockchain technology.
How does GameFi work?
1. NFTs – Non-Fungible Tokens
As in traditional games, users can own animals, homes, equipment, etc. depicted in NFT. From there, users can spend their resources on enhancing their digital assets and subsequently exchange them for cryptocurrencies, thus creating an extra profit.
2. DeFi – Decentralized Finance
DeFi is an exploratory form of finance that does not depend on central financial intermediaries, such as banks, and rather uses smart contracts on the blockchain. In some games projects, gambling is permitted, for example. Players can thus block some of their tokens to attain some interest.
What are Play-to-Earn Games?
P2E games are blockchain-based games and their players are rewarded for assigning more time and more effort to the game. It’s a quite new sensation in the cryptocurrency market. In play-to-earn, money-making is no longer limited to gamers and developers. Users can now receive money by playing their favorite games, building opportunities for economic inclusion.
In some blockchain games, players collect financial rewards for finishing off gameplay objectives. Example in Axie Infinity these are the rewards behaviours:
Gaining a victory in battles and tournaments
Growing your plot of land
Buying on the Axie Infinity marketplace
The number of Play-to-earn games is rising by the day. Many of them have already fascinated enough players to admire a thriving virtual economy while others are still in development but are eagerly awaited by the crypto industry and gaming community.
Play-to-Earn money with crypto gaming
Crypto games are video games that move on a cryptocurrency network and implicate completely or partially on distributed ledgers, providing players verifiable ownership over the virtual products contained in the games. As a result, players can buy and sell real products for cryptocurrency, which can be traded for real money.
All this while, it was merely developers of the game who made payments from the virtual coins that were sold to the gamers or users because these assets had only pride value to them. This meant that almost everything you could purchase in a game (e.g., skin, shield, upgrades, etc.) had only a fixed value, despite users paying real money to buy them. Crypto games make fun with the enhanced advantage of earning virtual money while playing. Every time a player buys an asset, they indirectly raise the value of the game economy.
GameFi Project Example
Some of the most well-known examples from the GameFi project are:
The Future of GameFi Games
In the future, GameFi and other platforms that depict this idea are going to see huge growth that this project has initiated for the NFT gaming sector. The GameFi universe does not look to be slowing down any time soon.
It is endless. An always cited example that depicts the development of this exciting new trend is the huge success of Axis Infinity. On the other hand, the advantage of playing games to earn is that gamers develop some value that can be sold. Even when they want to pay something to start playing, these items can still be sold for a potential profit.
The ever-evolving technology behind crypto gaming has reached the point where new games projects are fascinating large fan bases as well as institutional funding. Industry experts concur that crypto gaming is the most likely outlet for extensive adoption and use of blockchain technology. As the GameFi project increases its foothold with traditional gamers, familiarity with crypto can only be gained.
Recent growth in GameFi
GameFi is quickly rising, and the collective market capitalization of leading blockchain games has exceeded $14 billion. But given the huge size of the gaming industry, the total addressable market gives even greater development opportunities.With the runaway fame of crypto games like Axie Infinity and CropBytes, the future of these games seems bright.
With many more games in the works, newer innovations are to be determined. The newer games will open even more chances for gamified profit and a feature-rich gaming occurrence.
The Bottom Line
This NFT game concept is an improvement on existing online games. The development of the online gaming industry is something that crypto gaming should seek to use since it has obvious benefits for both players and developers.
Crypto gaming improves the overall gaming experience for gamers while investing new income streams for developers and it increases the levels of safety and security. Definitely, in the coming years, we are going to see a lot of movement in this industry and all related technologies.