Ever since the explosion of crypto in the last few years, people have been looking for more ways to integrate it into their daily lives. With the rapid growth of online gaming in 2021, the blockchain industry might have finally found an answer. GameFi is set to revolutionise both the gaming and blockchain industries. With its unique blend of decentralised finance and unique multiplayer experiences, perhaps this is what finally brings crypto into our daily lives.
Introduction To GameFi
GameFi combines the principles of DeFi with the ecosystem of online games to produce a fantastic result. This allows games to create immersive experiences and enable entire marketplaces to function within the games. Users can buy, sell, collect materials and build their own spaces with GameFi while being rewarded for doing the same.
With GameFi, your in-game items can have real-world value. They may also have applications outside the game. The rise of play-to-earn (P2E) games has shown this is a successful model capable of transforming the gaming landscape.
How Does GameFi Work And What Is The Future?
GameFi works based on making value for you, the user. It implements several DeFi concepts such as staking, smart contract incentives, NFT minting and yield farming. This allows you to gain resources in-game and earn income outside it too. Additionally, marketplaces for trading resources present another opportunity to earn more through the game.
NFTs also form a crucial part of the GameFi experience. They allow you to truly own the resources you collect. These are stored as digital assets in your crypto wallet. With this feature, you own your items outside the game, which can then be traded, rented out or even used in other supported games.
The most essential factor in determining its success is user choice. One of the most appealing features of GameFi is the decentralised nature of its DeFi rewards and markets. If the industry becomes more monopolistic, then it is the users who will suffer. If GameFi is controlled by a small number of companies, they will have the power to influence the industry to their liking. This may go against the interests of the user.
GameFi Vs Normal Gaming
Is GameFi Changing the Online Gaming Industry?
GameFi has had a huge impact on people’s lives across the world. The most popular play-to-earn game currently, Axie Infinity is valued at over $3 billion. The game involves collecting, fighting and breeding creatures known as “axies”, each of which is an NFT you own.
With its opportunities to earn in-game, it has changed the lives of tens of thousands of players. In some countries like the Philippines and Venezuela, many gamers earn more by playing Axie Infinity than the country’s average salary.
The combination of the metaverse and GameFi provide the perfect opportunity for a new virtual ecosystem. With its real-world incentives, it can offer players a whole new way of engaging with their games. It is only a matter of time before more games adopt this model.
The Future of Metaverse With GameFi
For the metaverse to be successful, it must be worthwhile for users. This can be done through incentives, user agency and control. GameFi will help secure the decentralised future of the metaverse.
Since GameFi gives users the power to influence change, it can be an important tool in raising user interest in the metaverse. When more people wish to join the metaverse and engage with the advantages it brings, it will gain more investment and developer support.
Additionally, the digital economies of the metaverse are going to be boosted by engagement with GameFi. When there are more possibilities for using your digital assets, the metaverse is sure to thrive.
Final Thoughts
GameFi is influencing change in the gaming and blockchain industries. It offers what we sorely need as we move forward with Web3, giving control back to users. Its implementation of DeFi concepts also creates fantastic ways for users to earn while playing. However, GameFi’s success hinges on its ability to stay decentralised. As long as it upholds its principles of user choice, influence and rewards, it can change the way we think about gaming.
