In recent years, the popularity of NFTs has led to the rapid growth of the original NFT market and has also affected Blockchain gaming. Due to the popularity of Chinese games, the play-to-earn games concept has gradually become the largest outlet in the realm of cryptocurrency in the second quarter of 2021.
Many investors are looking forward to investing in play-to-earn crypto games and purchasing in-game assets to take advantage of this opportunity and make a profit. Justifying the rage of the GameFi, in August, the OEC launched the GameFi Hackathon. The Chain Game Project began to enter the field of consumer perspective. Many games have chosen to embark on the OEC Chain.
What is GameFi?
GameFi, in simple terms, is about realizing financial recovery in the game. It is a concept of “gamification finance” under Defi and NFT. Additionally, it presents financial products in games, including gameplay of Defi rolls, NFTization of game props and derivatives, and traditional game battles, social and other gameplay. Similarly, it increases participants’ fun and interaction to increase personal interest in the gaming world.
GameFi combines three key markets: decentralized finance (Defi), non-fungible tokens, and Blockchain-based play-to-earn games. Blockchain is primarily addressing the issue of lack of transparency. Based on this technology, GameFi fulfills the same mission of solving significant problems in the traditional gaming industry. However, to play GameFi based games, players need NFTs.
Difference between GameFi and Common Games
Financing video games refers to GameFi. It combines the terms “game” and “finance,” similar to the famous crypto phrase Defi, or decentralized finance. GameFi systems are built on Blockchain’s distributed network, allowing participants to gain legitimate and quantitative access to virtual player content. Unlike traditional gaming, where visitors only worry about winning, the GameFi project uses a play-to-earn games model.
The important thing is that this platform is not for gaming. Players are an essential part of this fast-growing industry and combine skill and strategy to make money. While the opportunity is a crucial part of the gameplay, it may not be essential in deciding who wins or deserves a prize.
Play-to-Earn Mechanism in Gaming
Some Blockchain or best play-to-earn games reward players who play for a profit from the gamer’s diverse assets. The first difference is that players are more engaged and can edit or modify the game. Unlike traditional game companies that plan and design gameplay, scenes, characters, etc., each player in the game can improve and upgrade the entire game.
There are governance tokens in the game. Players can play games to earn crypto while playing the game. Players can upgrade and improve the game through token voting, to have a better experience in the future. There is high interaction between the players and the game.
Second, Chain has no central control of the Games and no unified operations center. A single company does not own the Chain Games, but developers and players are jointly run and maintained. The market influences the popularity of games. The better the game experience for players, the greater the number of users. Online games are not under the company’s control. However, the company cannot control the game’s future development or is forced to shut it down. Everything has to do with the consumers themselves.
Ownership of the Assets
On a decentralized public Blockchain, all the information is kept, which keeps track of who owns what. The non-fungible tokens or digital assets belong to the gamers, not the game producers.
The money an individual earns as a gamer inside the game must be kept with them, whether the device is turned off or the video game company faces technical glitches.
It makes blockchain gaming a source of entertainment and a legitimate source of income for gamers. However, many players may earn a living from their hobbies.
The online NFT car racing games allows its inhabitants to earn their time by owning assets, while games are not in the strictest sense. The concept of land ownership is central to locations.
Owners can convict their plots in as many ways as possible in the real world. They can create a lucrative income generation or sell the property directly. Moreover, they can rent it out for commercialization. If you go around one of these shared virtual environments, you will see many attempts to commercialize the land. However, virtual stores, casinos, music venues, and many more are on the way.
Future potential of GameFi
In contrast to traditional game genres, GameFi has achieved a breakthrough by combining DeFi, NFT, and blockchain technology elements. Therefore, several “giants” in the traditional game industry have announced their plans to develop into GameFi, including: Ubisoft, Square Enix, Epic Games, etc.
According to DappRadar, there are 1.09 million daily blockchain game players (as of February 13, 2022). Footprint Analytics estimates 1.03 million daily GameFi players (as of February 13, 2022).
In addition, it is predicted that 10 million wallets will interact with blockchain games on a daily basis by the end of 2022, according to Gabby Dizon of Yield Guild Games. This speaks volumes about the future of GameFi.
In the coming years, more GameFi projects will be released as there is still an untapped market of gamers who are able to convert from traditional games to money games. There is a positive outlook for a more developed and popular GameFi future, as well as a more unique game content and a sustainable in-game economy in the future. GameFi systems are built on Blockchain’s distributed network, allowing participants to gain legitimate & quantitative access to virtual player content. Hyper League is providing best nft car racing and virtual hover racing games.
Inspired by the heat of NFT, this is a brand new opportunity for GameFi and play-to-earn games. In addition, large companies are developing Metaverse. As a new field of entertainment and social interaction, GameFi and P2E games fits some of the concepts of Metaverse. Future development is still waiting. If you want to participate in the GameFi Games, it’s time to join now. In this article, we hope to provide you with a better understanding of what GameFi is.