What is GameFi?
Crypto for Advanced
GameFi, sometimes known as "play-to-earn," combines gaming with blockchain-based financialization. GameFi allows users to gain digital goods for their in-game activities through missions, trading, and other methods. Traditional games have enabled players to accumulate and trade digital assets for decades, but they may lose their investment at any point if the publisher decided to close the game or go out of business. GameFi games, on the other hand, use a dispersed network to store their assets. These work independently of any business, significantly reducing the risk associated with digital assets.
Almost all play-to-earn games in crypto and NFT world requires player to have a crypto wallet, where they receive a reward later.
While you may download GameFi games for free, you won't be able to play most of them until you make a purchase — usually a character or an upgrade — in the world. These goods might be rather costly. To access the universe of Axie Infinity, for example, you'll need to purchase three NFTs, which would set you back roughly $600 even at the low end.
To reach more players, GameFi initiatives collaborate with gaming hubs and guilds. Millions of players receive scholarships to play and evaluate the games at these centres. There are two benefits. For starters, the input received from the scholars aids the improvement of associated games. Second, these play-to-earn hubs have a good influence on the lives of scholars who are often from low-income nations. These guilds also invest in the NFT assets of the linked games. The Good Games Guild is one of the most well-known, allowing NFT owners to rent their NFTs to academics from all over the world. The platform's native coin, GGG, may also be staked.
Here is the list of the most popular GameFi cryptocurrencies and games, connected with them:
- MANA - Decentraland
- SAND – The Sanbox gaming ecosystem
- AXS – Axie Infinity
- TFL – True Flip Token
- ENJ – The Enjin blockchain platforms
Since play-to-earn games are rather new, we can expect that in the future there will be many more of them.
A new sort of virtual gaming environment has arisen because of the confluence of DeFi, games, NFTs, and the metaverse. Players can immediately gain the money rewards that aren't available in traditional games. According to research by Dapp Radar, metaverse NFTs generated over $402 million in trade volume in Q4 2021, up 615 percent from Q3 2021. In addition, in Q4 2021, over 50,000 unique NFT traders registered.
According to Morgan Stanley, the luxury industry alone has a $56 billion income potential for NFT and metaverse gaming environments by 2030.