GameFi refers to blockchain games in which players can earn money from playing. The GameFi ecosystem creates a digital gaming experience using cryptocurrencies, non-fungible tokens (NFTs), and blockchain technology.
In most cases, in-game awards are acquired through performing chores, defeating other players, and moving through the various game levels. They can also trade their assets on crypto exchanges and NFT marketplaces outside of the game.
Are NFT and GameFi a good match?
The term “non-fungible token” refers to real-world assets maintained on the blockchain as digital assets. An NFT can take many different forms, ranging from photos and movies to passes and real estate. NFTs, unlike fungible tokens like Bitcoin, are special and have unique characteristics. NFTs made a buzz in the art world because they empower artists to profit from their work without relying on intermediaries like galleries or auction houses.
Gamers have also welcomed the merits of introducing non-fungible tokens into the gaming experience: it’s now legal to market in-game assets and participate in P2E (pay to earn) games, where the goal is to make money while playing.
NFTs are one-of-a-kind cryptographic tokens that are viable due to their reliability and uniqueness. These tokens can be used to create unique financial services when paired with decentralized financial services. One of the primary drivers of NFT growth is the industry’s capability to generate value for creators, as demonstrated by novel use cases such as GameFi (video games).
GameFi, which integrates decentralized finance (DeFi) and gaming, use a play-to-earn paradigm rather than a win-to-win model. The concept of financial incentives delivered through gameplay and progress through games distinguishes these two gaming approaches. Users can increase their earning potential by levelling up and upgrading their characters, with all data kept on the blockchain. As a result, players benefit from the fact that they own all assets. As a result, even if a server is switched down, any in-game assets remain in their control. Crypto games are more than just amusement for these reasons. They may even provide opportunities to make real money while having fun.
As a result, Griffin Art’s platform aims to better integrate NFTs and GameFi on the Binance Smart Chain (BSC). Griffin Art is a GameFi initiative and a decentralised NFT marketplace.
Defi and GameFi
There are numerous parallels between GameFi and DeFi, but there are also some key variations. The DeFi sector is more organized, but it hasn’t seen any substantial advances in recent years, whereas GameFi is a brand-new industry with many norms and guidelines yet to be defined. Furthermore, GameFi is less susceptible to crypto whale manipulation. It also has a greater chance of attracting non-crypto users to the crypto market, and developing markets, by assisting with both education and conversion.
The GameFi investment opportunity has another facet to it. Many of the early users of play-to-earn chances are gamers from developing countries, whose typical wages have been severely impacted by the two-year lockdown. GameFi and play-to-earn are considered ways to earn money in the virtual world without having to deal with the issues that plague the real world.
GameFi is set to revolutionize the Gaming world. By collaborating with various platforms like NFT and DeFi, it is set to bring the revolution that is much needed and expected.