A Deep Dive Into GameFi Platforms

GameFi combines video games with earning money, using the tech behind cryptocurrencies. It’s a new trend where playing games can also mean making money, not just having fun.

Imagine being rewarded with items you can trade for real cash just by playing your favorite game. In simple terms, GameFi is like when you play a game and collect coins, but in this case, those coins can be worth real money.

Last year, this idea really took off, with tons of players jumping in and games making lots of money. It’s not just for fun anymore; people are playing these games as a new way of earning money. This is changing how we think about playing games online.

In this guide we will explain what is GameFi and its other details. So, let’s explore!

What is GameFi, and How Does GameFi Manifest into Use Cases?

GameFi combines elements of decentralized finance (DeFi) with gaming to create a unique, financially incentivized gaming experience. This is achieved by integrating cryptocurrencies, Non-Fungible Tokens (NFTs), and the play-to-earn gaming model.

1. Decentralized Games Featuring DeFi Elements

Games designed on decentralized networks like Ethereum or Binance Smart Chain use their inherent financial system to award players with cryptocurrency rewards. 

For example, players may earn in-game tokens for completing quests or battles, which can be traded in a game’s marketplace or staked for additional returns. This encourages engagement while offering a potentially profitable experience.

2. DeFi Platforms Incorporating Gaming Mechanics

On the other hand, DeFi platforms can introduce gaming-like elements to make their financial services more entertaining and interactive. For instance, Yield Farming can be presented as a virtual farming game where the crops represent interest-earning tokens.

Various games utilize DeFi, from simple chance-based games like digital lotteries to immersive, complex MMORPGs with sophisticated in-game economies. The unifying element is using DeFi to provide real-world financial value to in-game actions and assets.

This combination can draw a tech-savvy, younger demographic who are already comfortable with digital interactions and open to exploring new financial opportunities.

How Does GameFi Work?

GameFi is a blend of ‘gaming’ and ‘finance.’ It’s a new way to play and earn money simultaneously. By playing games, you can earn cryptocurrency rewards.

1. The Gaming Element

You start by choosing a game you like. This could be anything from a fantasy adventure to a farming simulation. While playing, you complete missions or challenges.

2. Earning Through Play

As you play, you can earn in-game items like swords, skins, or even virtual land. These items are often NFTs – unique digital tokens. You can sell these on various marketplaces for real money.

3. The Role of Cryptocurrency

Most GameFi platforms have their own currency. You earn this by playing the game, and you can use it inside the game or exchange it for other cryptocurrencies or even real money.

4. Investing to Earn More

Some games let you invest by buying special items or ‘staking’ your cryptocurrency. This can give you better rewards as you play.

5. Community and Governance

In many GameFi games, you can have a say in how the game develops. You can vote on new features or changes in the game using the tokens you’ve earned.

How are GameFi Platforms Different from Regular Video Games?

Many GameFi games are out there, each with its distinct mechanisms and prerequisites. For instance, players are required to hold crypto wallets for storing their tokens.

Moreover, these wallets need to be charged with crypto before you can dive into the games. Some games even require players to buy starter characters to kickstart their gaming journey.

Traditional games also offer digital currency and assets. All these players can use it to enhance their characters and enjoy the gaming experience further.

However, these digital assets are confined within the game’s ecosystem, holding no value outside the gaming platform. Consequently, players cannot trade or monetize these assets, making them economically non-beneficial for players.

Contrastingly, GameFi platforms grant players tokens and assets, often NFTs or cryptocurrencies. Even if some blockchain games leverage virtual tokens, players can swap their in-game assets for NFTs when necessary.

Furthermore, they can transfer their earnings to their crypto wallets or NFT marketplaces, turning them into traditional money.

Earning Real Value

Regular video games often have in-game currencies and items, but they usually don’t have real-world value. GameFi platforms, on the other hand, allow players to earn cryptocurrency and NFTs that can be traded for real money.

Ownership of Assets

In traditional video games, the items and characters you work hard for remain within the game. In GameFi, thanks to blockchain technology, you truly own the assets you acquire, and you can sell or trade them as you wish.

Play-to-Earn Model

Most regular video games follow a pay-to-play or free-to-play model. GameFi introduces a play-to-earn model, where your gaming efforts are rewarded with assets that have real-world monetary value.

Decentralization

GameFi platforms typically operate on decentralized networks. This means they’re not controlled by a single entity, unlike regular games, which are owned and managed by specific companies.

Investment Opportunities

While you can spend money on regular games to buy items or upgrades, GameFi can be an investment. Players can put money into the game’s assets or cryptocurrency, potentially earning a return.

Community Governance

Regular video games are developed and updated according to the game studio’s decisions. In GameFi, players often have a voice in the game’s development through token-based voting systems.

The Profound Benefits of GameFi

The benefits of GameFi platforms are:

1. Playing and Earning

GameFi platforms reshape the conventional gaming models, moving from a pay-to-play and play-to-win approach to a play-to-earn model. In most traditional games, players shell out real money to enhance their gaming experience with upgrades and assets.

However, these costs remain unrecouped as players can’t make money from these games. On the other hand, GameFi platforms democratize earning potential, allowing players to make money while enjoying their favorite games.

A testament to this is the game Axie Infinity, which became a primary source of income for Filipinos who lost their jobs due to the 2020 lockdown. Reports showed that these players earned more than the country’s minimum daily wage through the game, making it a full-time occupation for many.

2. Secure Ownership with NFTs

Integrating NFTs in decentralized games enhances the monetization potential and offers players true ownership of their assets.

With in-game items being bought and transferred on a blockchain ledger, the ownership is not vested in the game developers. Moreover, these items are safe from being duplicated or modified, ensuring players that their in-game purchases are secure.

How to Get Started with GameFi?

To get started with GameFi follow the easy steps below:

1. Setting Up a Crypto Wallet

The first step towards your GameFi journey is creating a compatible cryptocurrency wallet. Some games might need different wallets, so the choice of wallet, whether MetaMask, Trust Wallet, or others, depends on the games you’re inclined to play.

For games running on specific blockchains, you’ll need to create and connect a compatible wallet to that blockchain. Some GameFi platforms, such as Axie Infinity, have even developed their wallets, like the Ronin Wallet, to reduce costs and enhance performance.

2. Linking the Wallet with the Game

Once your crypto wallet is ready, the next step is to link it with the game. Head over to the game’s website and follow the instructions to link your crypto wallet. 

Since blockchain games are different from traditional online games, you don’t need a username or password, but you connect to the game through your crypto wallet.

3. Understanding the Rules Before Diving In

Before starting your gaming journey, ensure you understand the game’s rules. Most GameFi platforms require players to purchase in-game tokens or NFTs to fund gaming experiences.

Consider both the potential earnings and risks associated with playing a particular game. Calculate the time to recover your initial investment and start making profits.

All in all, the evolution of GameFi has revolutionized both the gaming and financial industries, offering players an engaging and rewarding gaming experience.

The Growth and Future of GameFi

GameFi platforms took the gaming and blockchain world by storm in 2021 and continue to hold their ground, thanks to the “play-to-earn” gaming revolution. 

Today, players can choose from many play-to-earn games available on various blockchains, such as Ethereum, Polygon, Harmony, and Solana. A report by DappRadar reveals the existence of more than 1,400 blockchain-centric games, showcasing the widespread acceptance of GameFi.

While the roots of GameFi can be traced back to the genesis of cryptocurrency, it’s only recently that it has caught the attention of mainstream gamers. A shining example of GameFi’s success is the popularity of Axie Infinity.

It made history in August 2021 by becoming the first blockchain game to register over $1 billion in token sales. According to active players.io, in April 2022, Axie Infinity witnessed an impressive average of 2,670,416 daily players, symbolizing GameFi’s escalating popularity globally.

GameFi and the Future of the Gaming Market

The global gaming community is increasingly warming up to GameFi platforms, and it’s anticipated that GameFi will carve out a larger piece from the $175 billion video games market pie.

Presently, GameFi’s market capitalization stands at approximately US $55.38 billion, as per data from crypto.com. The enticing earning opportunities presented by GameFi platforms have been pivotal in broadening their fanbase.

Some industry pundits even forecast that gaming will pave the way for blockchain adoption on a larger scale. This sentiment resonates with us!

The rising popularity of GameFi platforms is simultaneously educating gamers worldwide about tokenization, NFTs, and in-game currency, thus promoting a broader understanding of crucial blockchain concepts.

The Road Ahead for GameFi

Without a doubt, GameFi is at the dawn of a promising future, as evidenced by the success stories of Axie Infinity and other GameFi platforms operating on different blockchain protocols.

However, predicting the novel features and technological advancements that will shape future GameFi platforms can be challenging, given the relentless evolution of blockchain technology. 

Future blockchain innovations promise to be smarter. But their impact on GameFi and the ways they could enrich and monetize existing experiences remain a thrilling mystery.

Final Thoughts

Creating a BEP-20 token opens up a world of possibilities in digital currencies. It’s not just about having a new kind of money; it’s about building a community and an economy around your project or idea.

Did this guide shed light on the token creation process for you? Are you excited about the potential of your own BEP-20 token? Your thoughts and experiences are valuable to us, and we’d love to hear about them.

Whether you’re just starting out or looking to expand, every bit of feedback helps us help you better. 

If you’re ready to take the next step, want to build a GameFi app and bring your token to life, contact Webisoft. Our expertise could be the bridge between your concept and the market. Let’s innovate together—contact Webisoft today to start your journey into the blockchain world.

Frequently Asked Questions

What are some popular GameFi platforms?

There are several, including Axie Infinity and Decentraland, known for their robust economies and player earnings.

Do I need to invest to start with GameFi?

Some GameFi projects require an initial investment, while others are free to start with earning mechanisms built-in.

Is GameFi secure?

GameFi security depends on the platform, but blockchain’s inherent security features make many GameFi projects quite secure.

What kinds of games are available in GameFi?

GameFi spans multiple genres, from role-playing games to simulations and strategy games.

How do NFTs work within GameFi?

NFTs can represent in-game assets like characters, items, or land, which players can own, trade, or sell.