GameFi has recently become a very popular term in the gaming and blockchain sector. Those who are accustomed to subscribing to play online games, and those are players of traditional video games, are drawn to blockchain video games because they may profit from their time and work.
In the following article, we’ll explain what GameFi really is and we’ll list some popular GameFi games.
What Exactly Is GameFi
The term GameFi comes from merging two words: games and decentralized finance (DeFi). It was first coined in a tweet by Andre Cronje, CEO of Yearn Finance, in 2020. Since then, the term has been actively used to denote video games with decentralized financial components supported by blockchain technology. However, the origins date back to 2013. Some early initiatives in this field included Bitcoin integrations into Minecraft servers and other games like Bombermine that rewarded players with real bitcoins.
Games in GameFi add unique blockchain features to the concept of traditional video games that allow players to possess a variety of virtual elements such as skins, characters, objects, or even game areas. Some games still reward players with real cryptocurrencies instead of game points that have value only within the game.
How Does GameFi Work and How Can You Make Money Through It?
The so-called “play-to-earn” concept is what makes GameFi genuinely distinctive. Unlike traditional games where you have to buy in-game assets such as weapon masks, which have value only within the game, GameFi allows you to earn assets that are valuable in the real world as well. Items such as avatars, badges, land, weapons, and clothing are presented as NFTs that can be unlocked while playing the game.
To make money, you’ll need to work on your inventory, find interesting items, and then trade them on the NFT market. Many games also directly reward players with cryptocurrencies, which in turn can be traded for fiat money on the stock exchange. Well, that’s not how it works. Since everything is recorded in a blockchain book, it’s very easy to prove ownership of everything you own in the game. This allows players to generate different revenue streams while playing GameFi-based games by borrowing their assets such as avatars and passive revenue-generating pieces of land. The best part is that players can do all this without depending on a centralized payroll organization, as these transactions have been authorized as smart contracts that execute on their own.
Another advantage of GameFi games is that most of them are designed for a casual audience. In other words, most of these games don’t use mechanics that require hours of grinding to master, unlike eSports games that found their way to the betting industry as well and are on offer on Flexepin betting sites and many others. Instead, they focus on time and strategy and are generally fairly easy to play. However, this can also be considered a drawback, as the simplicity of these games may not seem appealing to fans of AAA titles and competitive games.
How Can You Start Using GameFi?
- Make a wallet for cryptocurrencies
To store in-game currencies and NFTs that you’ll collect while playing the game, you’ll need to create a wallet that’s compatible with the game. In the world of blockchain games, your identity isn’t a username but your cryptocurrency wallet.
- Add cash to your wallet
All GameFi games are free to download. However, to actually play some games like Axie Infinity, you’ll need a starter kit that in most cases can include your digital avatar. To purchase this, you’ll need to set aside an initial amount of money to add to your wallet in the form of a compatible cryptocurrency.
- Buy basic digital gaming assets
Once you’ve got funds in a compatible cryptocurrency in your wallet, you’ll need to exchange them for the digital assets necessary to start playing.
The Most Sought-After GameFi Games?
Axie Infinity is the most popular online video game based on NFT. It became the first blockchain game to exceed $ 1 billion in token sales, a fifth of which happened in one week. It has more than 1.8 million active players a day. Trading, mating, and accumulating digital species called “Axies”, which have been digitized as NFTs, are all part of the game. You can train these creatures and cross them to create better Axies with higher values and sell them in the market.
Axies generally cost from just $ 10 to even $ 1,000, depending on how unique and rare they are. For example, the unique Axie NFT known as the Mystic Axie was sold for 300 ETH in 2021.
Decentraland is a platform for a 3D open-source virtual world with potentially unlimited possibilities. It allows users to buy virtual plots on a platform like NFT using the cryptocurrency MANA, and then monetize that piece of land in many ways.
Simply put, Decentraland is the Minecraft equivalent of the GameFi world, where you can create houses, buildings, markets, and interact with other players. The difference is that, unlike Minecraft, the digital land in Decentraland has great value. In fact, part of Decentraland’s assets was sold for $ 2.4 million in 2021.
Illuvium is an RPG open-world game that runs on the Ethereum blockchain. It’s the first AAA blockchain game with graphics that are impressive enough to attract hardcore gamers as well. The goal is to wander the vast open world and fight to capture a monster called Illuvial. Different Illuvials belong to different classes, have different sets of skills and strengths, and can also interbreed to create a new breed.
It’s more or less like the Axie Infinity, but with much more advanced graphics and a larger open-world ecosystem.
Built on the Ethereum blockchain, CryptoKitties is a game that allows players to collect and breed adorable cats. Each generated CryptoKitty is a unique NFT and can be sold at a high price.
“Dragon”, the kitty known as #896775, is the most valuable CryptoKitty till today, which was purchased for 600 ETH.
Alien Worlds is a metaverse game with a focus on NFT, based on the blockchains Ethereum, WAX, and Binance Smart Chain. The game focuses on exploration and mining and allows players to own land, use helpers to fight wars, and collect tools and avatars. Once you’re in the game, you take on a 2055 research guide with a mission to explore the metaverse, go to different planets, and dig up their resources, which in this case is Trillium (TLM).
In addition to mining TLM, you can also make money by selling the NFTs you collect and monetizing the land you buy in the Alien world.
CryptoBlades is a very interesting game based on fights with other players. You will need to constantly upgrade your character and weapons to keep up with the competition and strengthen your avatars. After the battle, the winner is rewarded with SKILL tokens that can later be exchanged for fiat money.
In addition, you can sell your characters for a good amount of SKILL tokens which also adds an aspect of breeding to the game.
The Future of GameFi
GameFi is a disruptive technology that could be at the forefront of the future of the gaming industry with an ever-growing gaming library and players. Right now, the GameFi industry is gaining quite a bit of popularity and paving the way for a completely different direction in gaming based on the earnings gaming model.
Major players in the gaming industry, such as Ubisoft and AMD, have shown support for blockchain games and are making significant efforts to enter the sector as well. In Ubisoft’s latest game, Tom Clancy’s Ghost Recon Breakpoint, the company has even launched its own cryptocurrency called Quartz, which can be used to purchase various NFTs in the game.
With events like this, it’s fair to say that GameFi will continue to grow and is likely to gain even more market share in the gaming industry. Also, given the types of responses popular arcade games like Candy Crush Saga have gained over the years, it makes a lot of sense to say that arcade games that don’t require long-term commitments would jump sharply in downloads when they start earning and entertaining their players.
Is It Necessary to Spend Money in Order to Participate in GameFi?
There are many free blockchain games, but the more popular ones with a huge user base and earning potential generally have some front-end costs.
They can be very high for very popular games and can become an obstacle for people who want to enter the world of blockchain games.
How Much Money Can You Make With Blockchain Games?
Much would depend on your skills and luck, but with some knowledge and experience, it’s possible to earn about $ 50 to $ 100 a day. However, there’s no upper limit and it would ultimately depend on your creativity, strategy, and also on your upfront investment.
GameFi NFTs sometimes end up selling for millions of dollars.
Do You Need to Have a Top-Notch Gaming Computer to Enjoy GameFi?
No, that’s not necessary. GameFi games generally don’t load systems because they are not graphically very intensive.
Axie Infinity will be able to run on most computers that can run Windows 10. Typically, these games are in 2D (two-dimensional).
Is It Possible to Earn Enough to Live By Playing GameFi Games?
Since the income you earn by playing GameFi games is very variable, it’s a little early to say that it can be seen as a full-time earning opportunity, especially if you are in a country with a high cost of living.
However, there are a few cases where people from countries like the Philippines have managed to earn more than the minimum wage by playing GameFi-based games.