The Complete Guide To GameFi (Updated 2023)
Almost everyone has a soft spot for games. Humans all enjoy the rush of competition and earning. A thrill comes with winning, be it a simple mobile game, card game, or more complex ones like those on gaming consoles.
However, imagine if you can somehow play these games and get cash from them? With GameFi, you are capable of turning your hobby into a source of income. What GameFi is mostly about is changing the manner folks engage with gameplay in 2023.
Today, GameFi is among the hottest topics in the cryptocurrency industry. When it comes to getting into this sector, now would be the ideal moment because there are fewer obstacles. It also provides opportunities to study and become a pro.
Table of Contents
What is GameFi?
Gaming and finance are combined uniquely to create the term GameFi. There are many applications, but the most common use pertains to gameplay that allows participants to win money by playing them.
To form a unique online gaming experience, the GameFi platform utilises digital currencies (cryptocurrency), NFTs (Non-fungible tokens), and blockchain-based technology.
It is common for gamers to be rewarded for task completion, competing with other players, and making significant advancements to unlock gaming items through the various game levels.
Players can even sell their commodities beyond their games on cryptocurrency trading and NFT platforms.
GameFi's origins and development
GameFi was born out of the circumstances that impeded the growth of the Ethereum-based NFT (Non-fungible token) trend CryptoKitties.
As CryptoKitties peaked at 14,914 consumers per day, the NFTs market experienced a huge boom. The NFTs’ progress saturated the Ethereum blockchain, leading to high transaction costs and delayed transaction confirmation periods.
Ever since, programmers have shifted to newer blockchain technology that boasts significantly faster rates, better stability, and lower fees.
With the advent of DeFi (Decentralised finance)networks, innovative blockchain technology and financial services that operate effectively on smart contracts, debuted. Tokens could be traded, lent, or staked in the form of virtual currency through this system.
What are popular GameFi platforms?
What are the mechanics of a GameFi game?
A wide variety of GameFi games are available today. There are numerous ways for players to make money from their games. Nevertheless, there are still a few crucial points to keep in mind. A handful of the most recent trendiest blockchain games utilise these elements to generate revenue:
It’s the play-to-earn concept that drives everything done at GameFi. This method encourages gamers to spend more than just their time and energy on their games.
The completion of gameplay goals in certain blockchain games can earn gamers money. A smart contract holds a contingency fund of tokens used to pay out the rewards.
The Ethereum-based game, known as Axie Infinity, has a section of the game designated to reward players who engage in certain habits, such as:
- Completing missions.
- Achieving success in competitions and wars
- Taking care of your garden
- Using the Axie Infinity trading platform
- Axies being bred
Gaming experiences of the future motivate gamers to take ownership of their crypto assets.
The play-to-earn concept does not really make it absolutely necessary for compromise in the gaming space. However, it guarantees that gamers have extra ways to make cash.
2) Possession of assets
Possessing rare virtual currencies is at the heart of several blockchain games these days. Bitcoin used the blockchain to adopt digital exclusivity, and NFT technology improved that phenomenon.
NFTs can depict a range of resources, both real and virtual, including gaming goods and tools.
Digital possession of special and rare goods opens up previously unimaginable commercial potential. For example, in the games CryptoKitties and Axie Infinity, users can mix two NFT-based monsters to generate a new monster.
They can then use this new asset to take advantage of a game’s playing and earning features, purchase, or even decide to rent it to other game players.
The earnings are then divided between the asset owner and the person who borrows it.
Online virtual worlds allow their occupants to monetise their labour through asset ownership, despite not being video games in the truest sense.
3) Applications for DeFi
There are several DeFi services and options available in most GameFi initiatives. Gamers can often use gaming reward points to acquire incentives, acquire unique items, or get access to different gaming stages.
DeFi features can also help decentralise cryptocurrency gaming. Unlike typical game studios, which have centralised authority over game modifications, many GameFi initiatives let users take part in decision-making processes.
How to start playing blockchain games
It’s impossible to generalise about blockchain games. As a result, this article will offer broad advice on beginning with GameFi. It is suggested you review the game’s manual for more in-depth assistance.
1) A web 3.0 wallet should be created
All the blockchain games don’t use a typical user ID login and generic method. Web 3.0 wallets are used for account creation and to log in to the the game instead of creating a regular account.
The wallet needed to participate in a game will vary on the platform it is played on. You’ll need an Ethereum-compatible Web 3.0 wallet like OKX Wallet or Metamask to play Axie Infinity.
2) To play, you will have to obtain any necessary resources
You must own several or more gaming products to play several blockchain games.
For instance, to play Axie Infinity, you’ll need a minimum of three Axies in your Web 3.0 wallet to get started. A digital currency may be required in some other games. Many of these currencies are available for purchase on or within the game itself.
3) Login using your Web 3.0 wallet
You can play the majority of the world’s most common GameFi games right from your browser. If you want to play some games, you’ll have to use the Web 3.0 wallet you generated beforehand.
Search for a “Link Your Wallet” button on the game’s official website to complete this process. To complete the transaction, the wallet will request your signature. You only have to validate your identity by pressing the Sign button provided by the wallet.
When your account is linked to your Web 3.0 wallet, you’ll constantly be aware of all of your achievements. Based on their compatibility, there’s also the option to utilise your product collection to play these games.
GameFi is a great way to earn money while playing games. Who says you can’t mix business with pleasure? GameFi gives folks a unique gaming experience.