Just imagine a future where playing video games may earn you money. The money that helps pay the bills and keep food on the table, not the false, in-game money. Think about how much money you could make in the real world if you could buy and sell all the stuff in a game.
This is what GameFi - one of the trendiest Web3 industries - has to offer players. Some of the most active participants in space claim this is already a reality.
The term GameFi refers to blockchain games that reward participants for their participation. It's common for gamers to be rewarded with cryptocurrencies and NFTs for accomplishing tasks or combating other players.
Unlike traditional video games, Blockchain games allow players to take their gaming stuff outside the virtual realm of the game. NFT markets and crypto exchanges are now open for gamers to barter their wares.
What is GameFi?
Since the rise of Axie Infinity, GameFi has taken over the traditional gaming market. To entice players, the game allows them to earn money while having fun. How does GameFi differ from the video games we're used to?
According to industry veteran Tracy Spaight, it's one of the fastest-growing categories in the video game industry. At Synesis One, a company that claims to be the world's first decentralized autonomous organization (DAO) for data yield farming, Spaight serves as the company's head of gamification. When asked what excites him the most about GameFi, he stated the "new type of ownership" made possible by the industry structure.
The gaming industry previously relied on centralized servers controlled by a single business, which could turn off the internet whenever it wanted. Moreover, players didn't own the clothes, weapons, and other goods they gained through their character. As far as I could tell, it had no real utility outside the game itself.
Because of its decentralized structure and dependence on blockchain technology, GameFi goods do not have this problem.
It's becoming more and more accepted that having digital assets in a game offers you more power as a player than merely being cool, Spaight said.
GameFi is a Subscription-Based Service:
Tokens and in-game assets such as virtual land, avatars, weapons, and outfits are all possible rewards in GameFi. In each GameFi project, the model and economics of the game will be unique. Virtual currency in games is typically a non-fungible token called an NFT, which can be sold on a blockchain-based NFT marketplace. In other circumstances, gamers must first convert their in-game assets into NFTs to trade or sell them.
In most games, the in-game assets provide players with specific advantages that let them earn additional rewards. Aside from gameplay and revenue, some games also contain avatars and cosmetics that are only for aesthetic purposes and have no bearing on gameplay.
Tasks, battles with other gamers, and the construction of commercial constructions are all possible ways to gain prizes in some games. Some games also allow users to earn money without actually playing the game by staking or lending their gaming assets to other players. Consider a few of GameFi's more standard features.
GameFi Starter's Guide
Blockchain games come in all shapes and sizes, each with a unique business strategy. For the first time, players can purchase and sell virtual assets outside of the virtual environment of a game, such as NFTs or cryptocurrency, on a marketplace like OpenSea, or trade their crypto earnings for real-world currency like Bitcoin on an exchange like Coinbase. The bottom line is that GameFi requires a crypto wallet just like every other Web3 service out there. After then, it's all about finding safe games and being responsible with your money.
What you need to know before you get started:
1. Configure your cryptocurrency wallet
Regardless of what game you want to play, you'll need a cryptocurrency wallet set up for it. Crypto wallets, unlike traditional wallets, don't really keep money, but they hold encryption keys linked with digital assets, allowing you to access, send, and receive bitcoin. However, most games demand the use of certain types of wallets and currencies. Make sure you go to the official site of the game you're drawn to discover which wallets it recognizes.
2. Link your crypto wallet with the game
With this method, you'll be able to get into the game. Blockchain games differ from most online games because you don't have to make a username and password or use your email address as an account. When you link your wallet, make sure you are on the actual website, not a fake one that looks the same.
3. Learn about the game requirements you need to meet to play
Users must get their in-game cryptocurrency tokens or NFTs before playing in many play-to-earn games. Overall, it's essential to consider how profitable the game is compared to how dangerous it is, including how long it takes to get your money back and start making money. If you don't have enough money to buy an NFT or don't want to take the financial risk, you could look for an in-game scholarship program that lets you borrow NFTs from other players. You'll have to share your profits with the NFT owners if you go that route.
Watch out for fake sites that say they are connected to GameFi. As a general rule, you should make a new crypto wallet for each game you play so that you're more likely to lose coins you can afford.
GameFi's Long-Term Prospects
In 2021, there were a lot more GameFi projects, and this trend is likely to continue for the foreseeable future. As of March 2022, DappRadar had a list of more than 1,400 blockchain games. We now have popular games on several blockchains, such as Ethereum, BNB Smart Chain (BSC), Polygon, Harmony, Solana, and many more...
As blockchain technology gets better, GameFi is expected to keep growing quickly. Even in developing countries, many people like GameFi because it lets them own in-game items and make money from gaming.
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