What if in the future it becomes possible to make money simply from playing video games? Not virtual currency, but real cash that may be used to cover expenses and buy meals. Consider that all in-game items, such as characters, outfits, and weapons, may be purchased and sold in the real world as well. In a nutshell, this is what GameFi, one of Web3’s biggest phenomena today, promises. And some of the most active participants in the sector believe that the day when this becomes a reality is not too far off, either.
The term “GameFi” is used to describe blockchain-based games which let players profit in the real world. GameFi games can be as simple as lottery-based games or as complicated as full-fledged MMOPRGs. GameFi covers Gamification, Play-to-earn (P2E) games, NFTs, and DeFi. GameFi is a smartphone application that enables users to play games and win real-world rewards. There are a variety of games available on the app, including puzzle, strategy, and action games. The top spot on the scoreboard is up for grabs among users as well.
How does it work?
Depending on the game, incentives in GameFi might take many various forms. They might be in-game items like virtual real estate or avatars, or they might be transformed into NFTs that can be exchanged on NFT exchanges. Players often receive specific advantages from in-game items, such as the capacity to create more prizes.
Players can earn rewards using a variety of GameFi features. These consist of fulfilling missions, engaging in combat with fellow players, or erecting buildings on their land that can be sold for money. By staking or lending in-game assets to other players, some games allow users to earn passive revenue without actively participating in the game.
In contrast to the pay-to-play (P2P) paradigm utilised by conventional video games, GameFi initiatives employ a play-to-earn (P2E) concept. Players must pay money up ahead to play P2P games such as Call of Duty or World of Warcraft. P2E makes gaming more profitable and engaging by allowing gamers to earn prizes while participating.
Video games and GameFi
In-game currency and digital resources can be gathered by regular video game players to evolve their characters. These items, however, cannot be traded in the real world, outside the game. They are generally of limited use outside the confines of the game, and gamers are frequently prohibited from commercializing or exchanging their items in real life, even when they are allowed to.
Blockchain games frequently use cryptocurrencies and NFTs as their in-game currency and resources. While players are usually allowed to convert in-game assets into NFTs if they so want, some blockchain games use virtual tokens instead of crypto or NFTs. This suggests that users can store their earnings in their bitcoin wallets as well as trade them on marketplaces for new technologies (NFT). Then, they can convert any bitcoin earnings they have into fiat money.
How to play GameFi games?
The following are the steps to playing GameFi games:
1. Make a cryptocurrency wallet
You’ll need an ETH wallet, like Trust Wallet or MetaMask, that supports GameFi in order to enter the GameFi universe. Based on the game you’re playing, you could also need to use various wallets or connect to different blockchain networks. For instance, you must first connect your MetaMask to the BSC network in order to play blockchain-based games on the Binance Smart Chain, known as BNB. Trust Wallet or other compatible cryptocurrency wallets can be used as well. To find out what the game supports, visit the game’s official website.
2. Integrate the game with your wallet
To access the majority of the games on the Ethereum network, you need to link your Ethereum wallet to the Ethereum blockchain. To conserve money and enhance performance, certain games, like Gods Unchained and Axie Infinity, also create their own wallet.
Although the Ronin network was created as a sidechain, Axie Infinity is based on Ethereum. As a result, interacting with the Axie Infinity ecosystem requires you to use the official Ronin Wallet. The cost of breeding and trading Axies is significantly decreased by the Ronin network as a sidechain, which lowers the total cost of playing.
3. Verify the game’s prerequisites
The majority of GameFi initiatives demand that you acquire their in-game NFTs or cryptocurrency tokens. Every game has an own set of requirements, but one must always assess the potential rewards against the overall risks. Next, determine how long it will take for you to start profiting from your initial investment.
You need three Axies to be in the game wallet in order to play Axie Infinity. The Axie Marketplace is where you may buy them. Axe purchases can only be made using wrapped ETH (WETH) stored in your Ronin Wallet. You can buy ETH on cryptocurrency exchanges like Binance and then use the Ronin bridge to transfer it to your Ronin Wallet.
The way ahead for GameFi
In 2021, the number of GameFi initiatives skyrocketed, and this trend is anticipated to continue in the coming years. A number of blockchains, such as Ethereum, Polygon, Solana, Harmony, BNB Smart Chain (BSC), and several others, now offer well-known games.
It is anticipated that the GameFi growth trend will accelerate as blockchain technology develops. Additionally, GameFi is incredibly appealing, especially in developing countries, due to the possibility of owning in-game items and making money from such games.
Conclusion
NFTs, DeFi, and the Metaverse have come together to create a new type of virtual gamespace. Players can get the cash prizes that traditional games cannot give them right away. According to a report by DappRadar, the metaverse NFT trade volume reached over $402 million in Q4 2021, an increase of 615% from the third quarter of 2021. Additionally, in Q4 2021, nearly 50,000 distinct NFT investors joined.
By 2030, Morgan Stanley projects that the metaverse and NFT GameFi settings will generate $56 billion in revenue in the luxury market. According to Grayscale, a cryptocurrency investment company, the value of game worlds in the Metaverse will also increase from $179 billion in 2020 to $400 billion in 2025, indicating a flourishing future for the world of GameFi.
