What is GameFi, and How Can I Join the Play-to-Earn Movement?
GameFi, which combines decentralized finance (DeFi) and non-fungible tokens (NFTs) with blockchain-based online games, is one of the hottest new trends in the crypto market.
Unlike many traditional online games, GameFi employs a “play-to-earn” concept, which allows users to purchase upgrades to gain an advantage over their opponents. Giving players financial incentives to play and develop in the game is the basis of this notion. This type of gaming has allowed some players to make a full-time living.
How it Works
In these games, all things are represented by NFTs, which are digital tokens that verify ownership of scarce intangibles. Consider digital properties such as avatars, costumes, weapons, and gold bars as examples. After finding and acquiring these goods in-game, many players can trade them for other NFTs or sell them for cryptocurrency on digital marketplaces.
Users can enhance their earning potential by leveling up and improving their characters, creating monetized constructions on their land that other players pay to use, or competing against others in tournaments, depending on the game.
All NFTs and cryptocurrency transaction data are maintained on a public blockchain to track what each player possesses. This is a network of computers-based distributed digital record-keeping technology. Using this technology in-game has several advantages, including:
- Players can simply demonstrate their ownership of in-game items.
- Because there is no single point of failure, players are no longer at risk of losing track of their belongings if the underlying game firm experiences technical difficulties.
- It is impossible to counterfeit, erase, or destroy items obtained during the game.
- It is possible to send and receive game-specific cryptocurrency without the use of a middleman for settlement, clearing, or custody.
Staking is a DeFi feature in some games, where players can lock away tokens to receive annual interest and other benefits that can be used to buy other in-game items or unlock new content.
What Do I Need to Play?
To start enjoying play-to-earn games, you must complete the following steps:
Create a Wallet
Users must create a wallet to store virtual currency and NFTs, conduct in-game transactions, and create a cryptocurrency wallet. Depending on the blockchain the game is built on, you’ll require a different wallet. For example, any GameFi game created on Ethereum is compatible with MetaMask, an Ethereum-based crypto wallet service.
Purchase Starter Items
All GameFi games can be downloaded for free. However, in order to get started, several games need players to first buy characters, native crypto tokens, card decks, or upgrades.
Pre-Fund your Crypto Wallet
In order to purchase items and progress, you must first pre-fund your crypto wallet with a certain cryptocurrency.
What’s Next for GameFi?
GameFi has already gained significant traction, with the collective market capitalization of its top games surpassing $14 billion. However, key opinion leaders in the crypto industry believe that this new sector has much more to offer.
GameFi is expected to be the next big thing that makes DeFi, NFT, and the entire crypto space easy to understand and participate in. As a result, many crypto startups and gaming companies are already racing to capitalize on this explosive trend.