What is GameFi and how does it work?
GameFi aims to make money on blockchain games that offer players economic incentives. Players can usually earn rewards for cryptocurrencies and NFTs by completing quests, fighting other players, and going through different levels of the game.
Unlike traditional video games, most blockchain games allow players to transfer game items from the virtual world of the game. It allows players to sell their items on the NFT markets and their cryopresults on cryptobours. Introduction
Since the arrival of Axie Infinity, GameFi has quickly replaced the traditional gaming industry. It attracts players by offering them a chance to make some money while having fun. What is GameFi and how is it different from the video games we know?
What is GameFi?
GameFi is a combination of words game and finance. It is about blockchain play-to-earning games that offer players economic incentives. The GameFi ecosystem uses cryptocurrencies, unmistakable tokens (NFT) and blockchain technology to create a virtual gaming environment.
Players can usually earn rewards in the game by completing quests, fighting other players, and going through different levels of the game. They can also transfer their ability to sell from the game on crypto-exchanges and NFT markets.
How does GameFi work? In GameFi, rewards can take various forms, such as cryptocurrencies or assets in the game, such as virtual earths, avatars, weapons and costumes. Each GameFi project adopts a different game model and economy. In most cases, there are NFT assets in the game that run on a blockchain, which means they can be sold in NFT markets. In other cases, however, the assets in the game must be transferred to the NFT before players can sell or sell them.
Gaming features often provide players with specific benefits and allow them to generate more rewards. However, some games also have avatars and cosmetics that are purely visual and have no effect on the game and revenue.
Depending on the game, players can earn rewards by completing tasks, fighting other players, or creating monetary structures according to their destiny. Some games also allow players to generate passive income without playing the game, betting, or lending their game assets to other players. Let's look at some common GameFi features.
Earnable Model (P2E)
At the heart of GameFi projects, we have play-to-earn (P2E) as a revolutionary game mode. This differs from the pay-to-play model used in traditional video games. Pay-to-play requires players to invest before they can start playing. For example, video games like Call of Duty require players to purchase licenses or return subscriptions.
In most cases, traditional video games do not generate financial returns for players and their in-game assets are controlled and held by the gaming company. In contrast, P2E games give players full control over their assets in the game while offering them opportunities to make money.
Keep in mind, however, that it all depends on the model and game design adopted by GameFi projects. Blockchain technology can (and should) give players complete control over their in-game assets, but this is not always the case. Before you introduce P2E, make sure you understand how the game works and who supports the project.
Another thing to note is that P2E games can be played for free and still generate financial rewards for players, but other GameFi projects require you to purchase the NFT as a crypto asset before playing. . As such, DYOR and risk assessment are always important. If P2E requires a large investment in the beginning and the rewards are small, you are more likely to lose your initial investment. One of the most popular games you can earn is Axie Infinity. This is an NFT game based on Ethereo, which has been growing in popularity since 2018. Players can use their NFT (Axies) pets to gain SLP chips by completing daily tasks and fighting other players.
They will also receive AXS rewards when they reach a PvP rank. In addition, AXS and SLP can be used to breed new Axies that can be used in the game or sold on their official NFT market. In addition to buying and selling Axies, players can lend their Axies to other players, giving owners the chance to earn without playing the game. This model of loans is known as scholarships. It allows researchers to use borrowed Axies to play and earn rewards.
In other words, Axia owners can generate passive income, while scholars can play the game without investment. The awards are then shared between scholars and Axies owners. Ownership of digital assets
As we mentioned, blockchain technology allows you to own digital assets, which means that players can monetize their assets in the game in many different ways.
Like video games, players can have avatars, pets, houses, weapons, equipment and more. But in GameFi, these features can be released or created as an NFT blockchain (also known as NFT embossing). It allows players to have complete control over their assets with reliable and verifiable ownership.
Some popular metaverse games, such as Decentraland and The Sandbox, focus on the concept of land ownership. They allow players to monetize their virtual land. At The Sandbox, players can buy digital parts of real estate and develop them to make a profit. For example, they may charge other players to visit their country, earn token rewards for organizing content and events, or lease their regular land to other players.
Other GameFi projects also offer DeFi products and features such as strike, liquidity extraction and revenue management. Players can usually place their chips in the game to earn rewards, unlock exclusive items or gain access to new levels of the game. The performance of the DEFI elements can also be motivated by the crypt. Unlike traditional game studies in centralized control of its updates of the game, some Gamefi games can participate in their decision. They can imagine and vote for future updates through decentralized autonomous organizations (DAOS).
For example, DESCINDRALAND players can vote for organizational organizations Policy locking their management tokens (Mana) in Dao. The more chips locked, her voice is higher. It allows players to communicate directly with the game's developers and influence the course of the game.
Are video games considered GameFi?
Traditional video game players can also earn game currency and raise digital assets to improve their characters. However, these chips and items cannot (or should not) be sold out of play. In most cases, they do not carry any amount outside the game. Although so, players are always prohibited from monetizing or selling their assets in the real world.
In blockchain games, the tokens and assets in the game are mostly cryptocurrency and NFT. There are some blockchain games that use virtual tokens instead of cryptocurrencies or NFTs, but players still need to transfer their gaming assets to NFTs if they want to. This means that players can convert their income into cryptocurrencies and sell their assets on cryptobours like NFT markets. They can also convert their crypto income into fiat money.
How do GameFi games start? There are thousands of blockchain games on the market and each of them will work differently. Beware of fraudulent projects and fake websites. Linking to your wallet or downloading games from random websites can be dangerous. Basically, you need to create a new cryptocurrency specifically for this purpose and use only the means you can afford to lose. Once you are sure that the game you have found is safe, start by following these steps. Create a cryptocurrency
To access the world of GameFi, you need a matching cryptocurrency wallet, such as Trust Wallet or MetaMask. Depending on the game you play, you can use different wallets or connect to different blockchain networks.
For example, if you want to play blockchain games on BNB Smart Chain (formerly Binance Smart Chain), you must first connect your MetaMask to the BSC network. You can also use the Trust Wallet as another supported cryptocurrency. Check out the game's official website to find out what they support.
You can also connect your crypto-wallet to the Ethereum blockchain and gain access to most games running on the Ethereum network. However, some games like Axie Infinity and Gods Unchained will create their own scholarships to reduce costs and improve performance.
Axie Infinity was founded by Ethereum, but its team developed the Ronin network as a side chain. So you will need to use Ronin's official wallet to interact with the Axie Infinity ecosystem. As a side chain, Ronin's network reduces the cost of selling and breeding Axies, which reduces gaming costs.
2. Attach your wallet to the game
To play the blockchain game, you must attach your wallet. Make sure you link to their official website and not to a fake copy. Go to the game's website and look for a way to connect to your crypto exchange. Unlike traditional online games, which require a username and password, most blockchain games use your crypto wallet as a game account, so you will probably be asked to sign a message in your wallet before you can join the game.
3. Check the game requirements
Most GameFi projects will ask you to purchase their cryptocurrency tokens or NFTs in the game to get started. Requirements vary from game to game, but you should always consider the potential returns and overall risk. Remember to estimate how long it will take for your initial investment to return and start earning. If you want