I have been in the crypto and blockchain space for over five years now and every day, the still nascent technology is evolving and there are a lot of decentralized apps, blockchain-related services, and use cases coming. Today, we shall understand what exactly is GameFi or Play to Earn, a new way to earn through playing games.
In this article, we looked at DeFi, a new decentralized financial system, and got to understand its basics. Play-to-earn games have been around and many teens and people are joining the space to not only earn crypto but also cope with trends.
What is GameFi?
GameFi is the suitcase of decentralized finance and gaming. It is a portmanteau of the word “Game” and “Finance.” It is a virtual world made by combining cryptocurrencies, non-fungible tokens (NFTs), and play-to-earn (P2E) gaming features.
GameFi refers to the financialization of video gaming. It is characterized by its ‘play-to-earn’ (P2E) business model, and mainly refers to blockchain games that offer tokenized incentives to players while enabling frameworks for player-as-owner rather than the standard player-as-consumer.
Also Read: What Is a Crypto Wallet?
Examples of Play-to-Earn Games
The term “play-to-earn games” gives you a good clue of what these games are. Yes, players can really earn money by playing games and I have personally tried two games from this list. Let’s start with the most popular ones;
- CryptoKitties: An Ethereum-based blockchain game that allows players to buy, gather, breed, and sell virtual cats.
- Axie Infinity: One of the most well-known play-to-earn games on the scene right now, Axie Infinity lets players collect cute creatures known as “axies.” Axies can be bred with other axies, or battled against each other to earn crypto tokens called “smooth love potions,” or SLP for short.
- Decentraland: This is a 3D world where players can purchase virtual land, build on it, and afterward lease or offer it for sale to different players in return for MANA, a cryptocurrency that runs on the Ethereum blockchain.
- DeFi Kingdoms: Set in Gaia, a fictional medieval world, Defi Kingdoms requires players to farm NFTs and its cryptocurrency Jewel.
- STEPN: STEPN basically needs to pay individuals to be dynamic. To partake, players should purchase a virtual set of sneakers as an NFT and start jogging.
Also Read: What is P2P Cryptocurrency Trading
All those games reward players with tokens, which can be spent in-game on upgrades or cashed out for money. You must have the basics of crypto to get started. Other games that you could try include;
- Alien World
- Blankos Block Party
- Gods Unchained
- The Sandbox
- Zed Run
Getting Started with GameFi
To get started with play-to-earn gaming, you ought, to begin with investigating. Take some time to learn about the types of these games and which ones appear to be enjoyable to you. You might need to begin with a free game just to get its hang.
On the off chance that you choose to invest in a game, ensure you comprehend how the game functions and how you can bring in cash. Then, at that point, you’ll have to make a crypto wallet, purchase-related crypto, and ultimately purchase NFTs. I am not a financial advisor nor related to all these crypto games.
Conclusion
If you forget everything, just remember that GameFi powers blockchain games. During these games, players are monetarily compensated for the time and exertion they put into playing.
This model is otherwise called Play-to-Earn. Financial motivations could incorporate tokens, overhauls, symbols, virtual land, and significantly more. With the metaverse headed its way, we expect to see a lot of development and use cases in nearby future.