GameFi 101: Everything To Know

What Is GameFi?

As a buzzword in the cryptoverse, GameFi refers to blockchain-based games allowing players to gain real financial benefits. In other words, unlike the traditional “play-2-win” gaming model, GameFi uses a “play-to-earn” (P2E) model: play and earn money for game progress.

Explosive Growth Of GameFi

Around 2017, there were collectible trading games on the market that merged blockchain’s “transaction properties” and “the only private features of assets” with the gameplay. However, at this period, blockchain games can only be defined as chain games and do not own the GameFi features.

GameFi vs Traditional Gaming

You can find the comparison between GameFi and traditional gaming in the table below.

Play To Earn

As mentioned above, play-to-earn is the unique selling point making GameFi special. During the game, participants will not only enjoy playing the character but also obtain game tokens, equipment which can be traded in a decentralized marketplace.

Updates/Roadmaps Are Decided By Players

GameFi games are not owned by anyone or companies like traditional games. In other words, players can contribute to a game change. Typically, users receiving game tokens have the right to vote to enhance and upgrade the game for a better gaming experience. This can lead to a higher level of interaction and engagement between the players and the games.

Into The GameFi World

It’s a dream, right? Earning money just by playing video games. But, how do you begin playing GameFi games? Don’t hesitate to follow these steps to get started.

Create A Cryptocurrency Wallet

Firstly, you need to build a compatible wallet to store the in-game currencies and NFTs earned during the game. In the universe of GameFi, your identity is your cryptocurrency wallet, not your username.

Put Money in Your Wallet

All GameFi games are available for free download. However, some games, such as Axie Infinity, may require a beginning package, which in most cases will include your digital avatar. To purchase it, you will need to deposit an initial sum of money into your wallet in the form of a suitable cryptocurrency.

Purchase Essential Digital Assets

Once you have the funds in your wallet in a compatible cryptocurrency, you must exchange them for the digital assets required to play the game.

Conclusion

GameFi can be defined as the combination of blockchain-based games (Gaming) and decentralized finance(DeFi). With easy access and some benefits over traditional gaming, the GameFi industry is expanding rapidly and expected to outclass the DeFi sector.

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Rikkei Finance

Rikkei Finance

Rikkei Finance is a Web3 platform, encompassing a DeFi lending protocol and an NFT Marketplace; with a focus on NFT rentals and NFT based lending and borrowing.