The blockchain gaming subsector has rapidly become one of the most popular things in the space. However speculations are whether or not Gamefi will replace the existing $175 billion global video game market. Thanks to technological advances in gaming creation, developers have carried their games to the next level, with the power to give a full-time functionality to the public at large. GameFi has surfaced as a saviour for all the gamers.
GameFi is a technology that integrates Defi, video gaming, and NFT. Playing Play-to-Earn (P2E) games allows the players to earn in-game money.
Axie Infinity, Alien Worlds, and CryptoBlades are some of the most popular P2E games. The catch here is that gamers can buy, keep, or resell in-game assets. The games run on the distributed ledger of a blockchain, which allows individuals to have certified ownership of digital goods even if the server is inaccessible.
What makes GameFi unique?
GameFi is, in actuality, drawing a significant set of participants and investors, indicating that it has a great deal of promise. As a result, some blockchain analysts claim that bitcoin and other digital asset growth will be fueled by crypto games. Furthermore, the infusion of NFTs into the video gaming business is anticipated to disrupt the market, resulting in an advanced user experience. As the metaverse progresses, experts expect GameFi will reap the benefits of other breakthrough technologies such as virtual reality (VR), augmented reality (AR), and extended reality (XR), among others.
There are several tiers to progress through in GameFi projects. Players can earn good profits by investing in refining their characters, monetizing their land assets by constructing buildings that other players pay to visit, or engaging in tournaments.
All information is stored on a decentralized public blockchain, which records track as to who owns what. Therefore, the assets belong to the gamers, not the game producers.
Some Advantages of GameFi
Like every other blockchain-based initiative, GameFi has begun to disturb the mainstream online gaming market. GameFi is reinventing online gaming by combining DeFi, NFTs, and blockchain technologies.
But the question is, what sets GameFi apart from traditional gaming? Let’s look into whether or not Gamefi will replace the trad gaming markets.
1. Asset Ownership
In GameFi, in-game assets are depicted in the form of NFTs that pertain to users and cannot be spoofed, as we previously described. Digital ownership of one-of-a-kind goods expands a world of endless possibilities for gamers. Do you want to sell or rent your assets to other gamers? It’s not a problem in the least! What about selling a game plan online? That’s also a possibility.
2. Play-to-Earn Model
Unlike pay-to-win games, which earn profit through in-app purchases, GameFi games compensate users for fulfilling gaming objectives like winning a battle or championship. Axie Infinity, for example, pays players a percentage of the game’s AXS token if they meet the game’s objectives. Users can also trade and exchange their significant goods in play-to-earn games.
3. Built on Blockchain
All transactions such as the purchasing, selling, and trading of goods will be accessible, open, and traceable. Since, all of the assets, as well as their related components are maintained on a decentralized public blockchain. The blockchain records the information about who owns specific items, meaning that the goods belong to the players rather than the gaming companies.
The game-based economic structure, which includes blockchain and cryptocurrency, allows individuals to add money simply by being online. Blockchain-based games can increase job opportunities, thereby, tackling structural unemployment and other fiscal problems.
With its massive potential, Gamefi will replace the traditional gaming space?
GameFi has climbed to the forefront of the industry’s fastest-growing fields. GameFi will garner significant awareness and interest as the metaverse concept becomes more popular.
Even though the daily trading volume in the GameFi industry has now exceeded $100 million, the platform’s potential in terms of market diversity and asset engagement advantages is yet to be completely realized.
After all, it’s only been a little over a year since GameFi was first announced and the sector is still in its initial phases of development, its potential growth and promises are unquestionably fascinating.