What is GameFi – A definition of Play-to-Earn and Blockchain Games

What is GameFi – A definition of Play-to-Earn and Blockchain Games

What is GameFi – A definition of Play-to-Earn and Blockchain Games

In the world of drastic changes and technological revolutions, the development of the blockchain gaming industry is not surprising at all. With an entirely new shape and features, GameFi games entered the market and instantly took the trophy of the leading player. And it was somewhat expected, as the concept of making money while playing and having fun couldn’t possibly slide from the playing enthusiasts’ eyes and ears.

And while the digital world and game developers still wonder about the many aspects of this newly adopted gaming concept, including GameFi cybersecurity, protocols, supported currencies, and the possible future of GameFi projects, these games have already successfully conquered the hearts of crypto space members.

So what is GameFi, and how different are these crypto games from the traditional games we are all familiar with? Let’s find the answers together in this article.

What is GameFi, and How Does It Work?

In recent years, with the creation of Axis Infinity which managed to surpass the limit of $1 billion in token sales and reach a million daily active players, GameFi has been increasingly surpassing the traditional gaming industry. The main focus of this gaming concept is on the play-to-earn blockchain games that offer economic incentives to users and players. Additionally, the GameFi industry uses NFTs, cryptocurrencies, and blockchain technology to provide a virtual gaming environment.

The rewards in GameFi can come in multiple forms, including in-game items and assets such as virtual land, weapons, avatars, etc., or in-game tokens and cryptocurrencies. Generally, each project in the blockchain game environment has a different game economy and model; however, most games use NFTs that run on blockchain technology as in-game assets, enabling video gamers to trade them on various marketplaces.

Players can get crypto and NFT rewards by battling other players, completing daily quests, winning battles, and leveling up within the game stages. Some crypto games also let players generate passive income even without playing the game through staking or lending game assets to other users. Unlike traditional video games, most NFT games let users transfer the crypto gaming assets out of the game’s virtual world, enabling them to trade the items and crypto earnings on NFT marketplaces and crypto exchange platforms.

Common Features of GameFi Projects

To get an in-depth understanding of GameFi games, it’s essential to look at their features and characteristics. Here are the most vital ones.

Play to Earn Model

The revolutionary concept of the GameFi industry is the play-to-earn model following the idea of early Minecraft servers. However, unlike traditional games that use a pay-to-play model and require players to invest before playing, play-to-earn games are totally different. They give users various opportunities to earn money while playing and enable them to have complete control over their in-game digital assets. In contrast, traditional video games don’t create financial returns for gamers, and their assets are held and controlled by the gaming company.

However, it’s also worth noting that although most play-to-earn games are free to play and let you earn in-game rewards, some GameFi projects require players to purchase non-fungible tokens or crypto assets before playing. That’s why it’s always important to carefully review and evaluate the existing risks to eliminate the chance of losing your initial investment.

In-Game Assets Ownership

As you already know, GameFi projects use blockchain technology, enabling gamers to have digital asset ownership rights and monetize their in-game assets in multiple ways. Moreover, there is a unique organization known as the Blockchain Game Alliance created to increase the popularity and awareness of GameFi.

Like any other video game, a blockchain game allows players to own pets, avatars, tools, weapons, etc. The only difference is that gamers can use these assets to issue and create NFTs with verifiable ownership.

Moreover, some online games, including Sandbox and Decentraland, focus on land ownership. Here gamers can monetize their virtual lands. For example, in the Sandbox, you can purchase digital pieces of real estate and expand them to generate revenue. In addition, you can earn token rewards through hosting content, charging other players visiting their estate, or renting customized land to other gamers alike.

Defi Applications

Most GameFi projects offer Decentralized Finance services and products, including mining, staking, yield farming, Bitcoin blockchain, and liquidity. Generally, the users can stake their in-game currencies to get rewards, open new game levels, or unlock exclusive items.

The features of DeFi components can also make the video gaming industry more decentralized. Therefore, unlike traditional game studios with centralized control over the video game updates, GameFi projects enable gamers and developers to participate in the decision-making process by giving them the voting power to vote through the decentralized autonomous organization.

How to Get Started With Blockchain Games

There are numerous GameFi projects available in the market, and each of them has different features and working mechanisms. However, most of them require almost the same procedures you need to take to enter the game industry and start playing. Just choose from the video games you want to play and follow the instructions below.

  1. Create a Digital Wallet – A crypto wallet is the number one requirement of most popular blockchain games. Choose among the most secure and popular options like Trust Wallet and Metamask and open an account. Depending on the crypto game you are playing, you may need to connect to multiple blockchain networks or use different digital wallets. To know the list of supported wallets and required currencies, you can check the game’s official website for details. For instance, you need to have three Axies in your wallet to be able to play Axie Infinity.
  2. Link Your Crypto Wallet to The Game – In order to start playing, you need to connect your wallet with the chosen game. First, always double-check their website to avoid fake copies and scam pages. Then, navigate to the official web page and search for the option of connecting the wallet. In blockchain games, you can use your digital wallet as a gaming account, unlike traditional online games that require a username and password.
  3. Check The Game Requirements – Before you begin playing, it’s essential to carefully look into the requirements and specifics of the game and evaluate the overall risks. For example, most GameFi projects will require players to store or purchase in-game NFTs, digital assets, or crypto tokens to get started. However, there is also an option for players who don’t want to spend money on games or take risks. For playing a game, they can borrow NFTs, but they need to share the earnings with NFT owners.

FAQ Section

 

How to buy GameFi?

GameFi tokens are among the cryptos that are hard to acquire. However, there are specific steps you can take to make a successful purchase.

1. Go to CoinMarketCap and check where you buy GameFi and available currencies.
2. Choose a platform to make the purchase.
3. Follow the instructions of the platform and complete the purchase process.

How do I get into GameFi?

After you choose the game you want to play and ensure that it’s secure, you can follow the steps below:

1. Create a digital wallet. You can choose from the options of MetaMask or Trust Wallet.
2. Connect your crypto wallet to the game.
3. Check the requirements of the game.
4. Start playing.

How do you get tokens on GameFi?

Token purchases can be made through Ethereum or Bitcoin or via fiat gateways through currencies like EUR or USD. Additionally, players can earn tokens by participating in games or challenges and purchasing the GameFi service.

What is GameFi protocol?

It is the first protocol of the GameFi mining pool that aims to build the first worldwide GameFi aggregation platform. The GameFi protocol uses GFI as its governance token.

Where can I buy GameFi?

There are two options to buy GameFi tokens: peer-to-peer marketplaces or public Exchanges such as Kucoin, Binance, and HitBTC. You can sell and buy GameFi from fiat currency to ETH and BTC using one of those exchanges.

From marketplaces, you can try LocalBitcoin, which matches sellers and buyers across different categories, including GameFi.