Have you ever thought that you could get paid for playing games? Most traditional video games have added paywalls or paid subscriptions to get additional content or features, but GameFi allows you to get paid for playing video games, with the gaming community bringing finance and gaming together using Web3.
GameFi is an ecosystem that allows players to earn digital assets by playing. It exists to help increase investment opportunities for newcomers. With the combination of entertainment and financial gain, it’s possible for gamers to earn by playing. This opens the possibility for blockchain gaming to be the next big thing.
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GameFi wants to leverage earning by gaming
Players can obtain in-game incentives through competitions, level advancements, and task completions. The difference here is that the things you get in GameFi are completely marketable. Using blockchain technology, a virtual gaming ecosystem is set up with NFTs, in-game currencies, digital assets, collectible avatars, and cryptocurrencies. Users can also trade or exchange cryptocurrency and NFTs by transferring their assets outside the game. The platform uses a play-to-earn approach, unlike traditional games where the main motivation is to win by mostly using a pay-to-play model.
GameFi projects are built on a blockchain’s distributed ledger which makes sure all transactions are transparent and keeps track of player ownership. Each game has a unique economy and model. Mostly, they provide gamers with some sort of financial gain through digital assets. Decentralized finance (DeFi) may be present in many of its projects, like staking, liquidity mining, and yield farming. This gives gamers more opportunities to earn token assets. If you are familiar with DeFi games, then you know you have to invest an initial sum of money before you start playing.
Assets can range from cryptocurrencies to virtual real estate in the metaverse, a conceptual virtual realm in the digital world to be. Play-to-earn games allow users to own in-game currency that also has worth outside of the game. Players have sole ownership over their tokenized and purchased assets, which they can trade in crypto exchanges or NFT markets, and later convert their crypto profits into fiat money. Tokens from these networks can increase in value over time. The digital items you own in the game can be profitable, from land and vehicles to skins and weapons.
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Getting started
Most games are free to sign up and play, so first, you’ll need to set up a user account and password. You’ll also need a crypto wallet to store your virtual currencies and conduct in-game transactions. GameFi projects use a player’s account and crypto wallet, so you will need to connect your crypto wallet to your account.
To avoid scams and meet any game requirements, players should download wallets from official app stores. It’s also recommended to use a different wallet for each game played. For the majority of GameFi platforms, you’ll need to buy their cryptocurrency or NFTs to get started and fund your wallet with compatible cryptocurrency. Every game has different requirements, so it’s best to think about how much time it will take to break even before getting any type of return.
One of the best and most capitalized crypto games is Axie Infinity which offers multiple rewards. It racked up $3.6 billion worth of transactions in-game, making it one of the top NFT games. Here, you can battle opponents or leverage virtual Axie creatures. This game offers PVP arena and PVE adventures. Other games you can play in GameFi include the likes of The Sandbox. Here, you can own virtual real estate and create your own world, monetizing the unique items and real estate you have to get passive income.
YouTube: GameFi Explained | Taking A Glimpse into the Future of Gaming / Animation
Photo credit: The feature image has been done by Cole Keister.
Source: Business Insider
