GameFi – an interesting combination of Gaming and Defi is increasingly gaining traction not only in the Crypto market but also by gaming lovers around the world. GameFi projects are also reshaping the player experience in games from owning in-game assets to making money with their favorite games. So what is GameFi and how does GameFi operate? Let’s find out with Weakhand in this article.
What is GameFi?
GameFi aka “Game Finance” was originally coined by the founder of Yearn Finance Andre Cronje refers to Gaming projects that incorporate Defi elements. Each GameFi project typically has a combination of blockchain technology, Non Fungible Tokens (NFT), and game mechanics to create a virtual environment in which players can generate reward income simply by playing and enjoying enjoy their in-game experience.
What is GameFi
GameFi has opened a new way for developers and gamers to participate in a whole new digital gaming ecosystem. According to estimates by Zion Market Research, the global GameFi Market size is valued at approximately $10.2B USD by 2022 and is estimated to reach approximately $95.3B USD by 2030.
How Does GameFi Work?
GameFi is a new trend in the field of blockchain and Gaming-related projects, combining component elements of DeFi. The operating model of Gamefi projects often includes the following components:
- Token Economics – the heart of GameFi projects: GameFi projects often issue their own tokens and build game economies around them. Players can use Tokens to purchase in-game products such as purchasing in-game characters, clothes, and other items.
- Blockchain: Gamefi uses underlying Blockchains such as: Ethereum, BNB Chain,… to easily manage and support in-game activities, ensuring transparency and security for all transactions.
- In-game assets: Gamefi allows players to own and manage digital assets such as cards, in-game items, and other items. In addition, players can also exploit in-game resources to earn rewards in the form of project tokens.
- Defi activities: Gamefi integrates DeFi features into the game allowing players to make profits through participating in investment activities or gaming. DeFi activities can include lending, leasing, liquidity, and many other forms of profit generation.
In general, the operating model of Gamefi projects focuses on bringing new gaming experiences, integrating utilities and benefits from DeFi and blockchain into the game allowing players to create value and profit. profit.
Some Popular GameFi Games
There are many GameFi projects appearing on the market, here are some popular projects:
Axie Infinity
Axie Infinity is a popular Play To Earn game that revolves around unique pets inspired by the axolotl originating in Mexico. To participate in the game, players need to buy Axie on NFT Marketplace then build a squad of 3 Axies to compete with other players in different game modes. They are rewarded for winning battles and completing missions with SLP tokens. At its peak in November 2021, Axie Infinity attracted 2.7 million daily active users on the platform.
Gods Unchained
Gods Unchained is a strategy card built on the Ethereum blockchain. In the game, players build decks of cards to battle and defeat opponents. Additionally, players can also buy or sell tokens on the NFT Marketplace platform, with some extremely rare tokens selling for several hundred thousand dollars.
Sorare
Sorare is a fantasy football game where players can collect NFT player cards and participate in tournaments based on the players’ real-life achievements. Players can manage and choose a suitable squad and compete in tournaments to earn rewards.
The Sandbox
The Sandbox is a virtual Metaverse where players can participate in building, experiencing and owning virtual assets in the game. In the game, players can use construction tools and in-game resources to create a virtual society in the game. Players can also rent or sell them on the NFT Marketplace platform in exchange for ETH tokens.
Mobox
Mobox is a Play to Earn platform deployed on BNB Chain. Players can participate in various games on the platform to receive virtual rewards. The native NFTs on the platform are called Momo and can be obtained through mystery boxes. Users who receive these NFTs can trade them, stake NFTs to farm MBOX tokens, or use them as collateral for other uses in the ecosystem’s games. Furthermore, Mobox is a community-driven GameFi platform and empowers users to participate and experience the platform.
How to Get Started with GameFi
Set up a cryptocurrency wallet
Before participating in GameFi games, users need a cryptocurrency wallet to be able to store in-game assets. Another point to note is the blockchain platform the game is running on such as: Ethereum, BNB Chain,… to choose the appropriate wallet. Currently, people can use some popular cryptocurrency wallets such as: MetaMask, Trust Wallet,…
Connect wallet to game
Unlike traditional games that require a username and password, blockchain games use a cryptocurrency wallet as your account. So, users need to connect a cryptocurrency wallet to the game to participate in the platform.
Check the game’s requirements
Some GameFi games are free to play, but some games require users to own NFTs to participate in gameplay. For example, Axie Infinity will require you to purchase three Axies before starting the game.
summary
With a unique combination of Gaming and Defi, GameFi is bringing gaming into a new era. As web3 continues to grow, we can expect GameFi to gain widespread adoption among users not only in the Crypto market but also in the traditional Gaming sector.
