Defi has become the hottest new trend in 2020. Meanwhile, revenues from the multi-billion dollar gaming industry continue to grow each year, and the global video gaming market is estimated to be worth more than $ 178 billion by the end of 2021.
But what if we integrate the two highly successful industries? The community of game and blockchain enthusiasts has already integrated Defi and games, and it’s only grown in popularity since the pandemic.
The branch is called “Game Fi”. So how does GameFi work and how can you make money with video games?
What is the GameFi?
As you can imagine, the name “GameFi” is a combination of the words “game” and “finance.” GameFi combines cryptocurrencies, blockchains, NFTs, game rules, and mechanics to create a virtual world where players can participate, have fun and make money in the process.
The origin of the term “Game Fi” is unknown, but it is believed that this concept was first introduced by Chinese blockchain game developer MixMarvel at the 2019 World Blockchain Conference in Wuzhen, China. Before the meeting, MixMarvel had already released HyperSnake, the world’s first multiplayer real-time blockchain game. HyperSnake was shut down in September 2020, but the game served as a template for future games game development.
However, before the term was first used, games like CryptoKitties and Axle Infinity already offered Ethereum users the opportunity to win crypto through games.
How Does GameFi Work?
This means that players will be rewarded financially for playing the game and advancing to that level. In this case, cryptocurrencies, in-game tokens, and NFTs act as financial incentives. However, what`s new is an innovative technology that enhances today’s GameFi games. Users can convert the tokens earned from the game to other well-known cryptocurrencies such as Ethereum, Bitcoin, and Stablecoin and then exchange them for fiat currencies.
However, a general requirement is that the player must own a cryptocurrency wallet to store game tokens or NFTs. Cryptocurrencies must also be preloaded into the wallet. Many games require you to purchase a starter character before you can start.
How to earn money on Games?
This means that players will be rewarded financially for playing the game and advancing to that level. In this case, cryptocurrencies, in-game tokens, and NFTs act as financial incentives. However, what`s new is an innovative technology that enhances today’s GameFi games. Users can convert the tokens earned from the game to other well-known cryptocurrencies such as Ethereum, Bitcoin, and Stablecoin and then exchange them for fiat currencies.
However, a general requirement is that the player must own a cryptocurrency wallet to store game tokens or NFTs. Cryptocurrencies must also be preloaded into the wallet. Many games require you to purchase a starter character before you can start.
Safe property
Incorporating NFTs into games opens up opportunities for monetization of video games and establishes true ownership in the digital space. The fact that in-game item purchases and transfers are recorded in the distributed blockchain ledger means, for example, that it is the player who owns the costume, not the game developer. Items being played cannot be destroyed or forged. In the event of a technical power outage in the game studio, players can rest assured that their purchases will not be deleted.
GameFi games also create customer loyalty by monetizing ownership of digital assets.
