GAMEFI — Earn money through Blockchain
GENERAL CONCEPT OF GAMEFI
Before progressing, it is important to understand the general concept of “gamefi”. Firstly, gamefi is a connotation of two words game and fi. For a better understanding, we shall be explaining the two connoting words separately. Simply put, games are activities we put our minds for fun and amusement. Therefore games can come in various ways, forms or pattern but the end goal is to provide fun to the player.
The second connoting world “fi” simply stand for finance which is all about money. Joning the two words gives us Gamefi. Flowing from our explanation above, we can now refer as ‘gamefi’ as ‘fun-money’.
Human life has been very much encircled in so many activities especially on those activities that tend to improve the financial position of our lives and then we hardly had time for leisure. Gamefi, hence, came into being not just foster earning earnings but to ensure we do that with enjoying ourselves. In other words, gamefi, allows us to earn while having fun and keeping our mind and soul happily active. This is simply one of the ground-breaking innovations brought into the world by the blockchain industry.
Now What is Gamefi?
Judging from the general concept of gamefi we have already explained above we can now see that Gamefi is very simple to understand. It is simply an activity where one earns by simply playing a game and having fun. Surprised? This is the reality on ground. Just like conventional games, Gamefi comes in so many forms, hence the techniques by which a player can generate income while playing differs.
History of GameFi
Gamefi has been around for a while now and can be said to be as old as bitcoin. Despite the term only entering popular usage more recently, GameFi’s history is almost as early as Bitcoin. This is when we consider activities like Bombermine and peer-to-peer services which enable gamers to monetize mainstream titles with bitcoin. This represents some of the earliest efforts in the field that we now consider GameFi.
However, Gamefi came fully on stage when MixMarvel, a blockchain game publishing platform founders gave speeches at the Wuzhen World Blockchain Conference which was held in China in November 2019. The speeches were on how the technology underlying cryptocurrencies could revolutionize the video gaming industry. More famously and more recently, the term was clearly first used by Andre Cronje, the founder of Yearn in one of his tweets. Since then, the term has been used with far more clarity and certainty to describe games with financial elements enabled by the the blockchain technologies. Ethereum, in 2015, presented new opportunities for video game developers by virtue of the sophistication of their programming language. This means programs could be stored and executed on-chain for the very first time thereby enabling the creation of applications. For example, blockchain games like CryptoKitties, which makes use of in-game assets in the form of non-fungible tokens (NFTs) represents a huge innovation in this industry.
Now, we have started to see the fruits of these efforts and blockchain gaming is growing sporadically at the world stage. This is evident in the success of Axie Infinity (Irrespective of the recent hack). In August 2021, Axie Infinity became the first blockchain game to surpass $1 billion in total token sales. It has also hosted more than a million daily active players and the progress has been mind-blowing. But how does it work?
How GameFi games work
Just like other traditional blockchain technology-driven activities, Gamfi operates on the distributed ledger technology. This is not only important for helping players provide verifiable asset ownership, but also for building trading markets, inside and outside the game.
In this innovation, all objects are represented as tokens on the blockchain network. Therefore, every sword, armor and other digital asset can be owned by you or anyone else in the blockchain-based game. In other words, in a blockchain-based game, each player is both a participant as well as an owner. Playing a good game allows you to accumulate more game coins. The key here is that once you have earned your assets, you can exchange them for other cryptocurrencies in the market-or fiat currencies like the US dollar-for disposable income.
Generally, in-game items are as non-fungible tokens (NFTs). They are usually in various forms. You own any of them you acquire and they become your asset. Players earn these items as they play and can trade them on NFT marketplaces.
In addition to growing your level in the game and claiming rewards, there are also many other ways you can make extra money in GameFi. There are some projects that allow you to make money by predictions while you bet on competitions. Some others allow you acquired, like Land and other items can be rented out. Also users can increase their gaming revenue by engaging in competitions. GameFi ecosystem is safe because all information about rewards, achievements and ownership and so on are stored in the public blockchain. This mechanism allows users to fully own and control the game assets other than by a third party.
WAYS TO EARN IN GAMEFI
There are so many ways to earn in gamefi but we will, at this moment, restrict ourselves to the two most important or common of them. They are
- PLAY-TO-EARN (P2E) : This is the most popular model. Game-Players get rewarded after completing gameplay objectives/requirement. The rewards that flow from this model originates from a reserve of native tokens held within a smart contract.
- ASSET OWNERSHIP : In this game model, players have the capacity to create some unique things in-games that they can easily sell, rent out to other intending or willing users and thereby making some money. Bitcoin introduced digital scarcity by the blockchain, and NFT technology by etherum expanded on it. NFTs have the flexibility to represent all kinds of assets no matter the nature and features. Hence this allows the users so much control of what you produce and here, your talent comes into play and you have the capacity not just to be a player but a creator and you dictate how much you sale your work in the digital market.
There are also so many other ways to earn via gamefi such as by mining, staking etc.
First things to do prior to playing blockchain games
Every blockchain game is unique in its own way. We will focus on the basic ways you can get started with Gamefi.
- Firstly, you need to create a web 3.0 wallet. This is because most blockchain games do not utilize our commonly used username and password account model. Hence, a player must identify and control things by using a Web 3.0 wallet. Click here to learn more about web3.0
- Secondly, you have to know your fantasies or what you really want, this will enable you to take a decision on the nature and type of game that interests you, then you go for it.
Note: Always ensure to read up on the rules guiding each game as this varies from game to game.
From our discussion so for, we have clearly explained what gamefi is all about, that is, the concept, history, how to play and how to earn on this platform. Gamefi simply represents your ability to earn through a combination of fun and your fantasies through game playing with maximum control of everything with you. This is another unique innovation that shows how blockchain technology is the future of, not only the world’s economy, but also the way humans live their lives and will live their lives going forward. The harder and smarter you play, the higher you are surely going to earn. Play hard, play smart, have fun and then make money as the bye product.
So, what are you waiting for to start making some fun money? Also, do not hesitate to drop your reviews on what you learnt and the topic you will like me to write next.
About the Author
Igwe Ihuoma Patience is a self-taught creative and industry specific content writer, cryptocurrency enthusiast with 2years plus experience and knowledge of the constantly evolving blockchain space.
I am skilled in content creation, copy writing, curating captions, video editing & graphic designing with mobile phones and I teach others how to get started in the cryptocurrency and blockchain space and My goal is to make blockchain learning and updates easy for anyone to understand.