The Rise of GameFi in the Crypto World
Traditional games have given us such marvelous opportunities and endless enjoyment in exchange for our time and money. But things are about to change because GameFi is now a thing, and they will soon revolutionize the multi-billion dollar gaming industry. And the change is all for the better.
Decentralized games, also known as play-to-earn blockchain games or GameFi, will shake the entire gaming market. Unlike traditional games, players will benefit from playing blockchain games due to their unique game mechanics that utilize blockchain technology and use cryptocurrencies as the in-game currency.
GameFi will also allow players to trade any items inside and outside the game, and effectively allowing players to actually earn real life money in the process of playing.
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GameFi in a nutshell
GameFi is derived from “gaming” and “decentralized finance,” which refers to blockchain games that reward their players with NFTs, cryptos, and other digital assets that have real-world value. And players can simply participate in accomplishing tasks and in-game events to earn rewards.
Awesome, but what exactly is a blockchain?
The blockchain is composed of smart contracts that record all transactions done within it. And once information is encoded on each block, it would be almost impossible to change or tamper with it. And that makes an impenetrable defense for all digital data against hackers.
Additionally, blockchain technology is a public ledger that provides a vast virtual space where players can store and transfer any digital information. It works by recording all previous and present owners, granting actual ownership that can be verified within the blockchain.
How does GameFi differ from traditional games?
Blockchain games come with multiple advantages over outdated traditional games today. Since GameFi is supposed to be decentralized in nature, no single entity or company owns it. But as of writing this, this still isn’t the case.
I suppose we can call it semi-decentralized for now, where the game’s developers allow its users, or a portion of it, to make decisions about the direction of the game – organizations that operate like this are called Decentralized Autonomous Organizations (but in this case, it’s a semi-DAO). But I suppose right now we can consider them as revolutionary, since game assets are actually owned by the players.
In any case, traditional games and blockchain games also differ in several functions and mechanics, and below are the most glaring differences showing the superiority of GameFi over traditional games today.
How GameFi works?
GameFi games partially run on the blockchain, serving as permanent public storage that everyone can access. As mentioned above, blockchain grants true ownership to all your in-game items.
And blockchain games simply need centralized servers to store game logic and files, while all transactions are encoded in the blockchain. Unlike with traditional games where all assets and logs are only stored in the game developer/studio’s servers, out of reach from the public.
True ownership over your account
Traditional games can shutdown or ban you without you being able to do anything. All your hard-earned items, experience, achievements, time, and money invested in it will be permanently lost.
But unlike traditional games where you don’t have the final say in your account, GameFi could continue to operate and be playable because of its self-sustaining economy, and as I mentioned, the DAO, even if the developers choose to abandon their project.
Play to earn
Most traditional games don’t allow in-game trades between players because the developers don’t profit from it. There are ways to bypass such limits, but it’s considered an illegal transaction, and the developers could penalize you or even ban your account.
So whenever you need to buy any in-game items, you’ll have to purchase them directly from the game, and most of those funds will go towards the developer’s deep pockets.
In contrast, blockchain games allow peer-to-peer transactions, and you can do whatever you want with your items. It’s even possible to take in-game items outside and sell them on NFT marketplaces, allowing you to earn money outside of the game.
Not only that, but GameFi uses cryptocurrencies as the in-game currency that’s exchangeable for any asset or fiat currency, making it possible for you to make a living by playing a game.
Sovereignty and transparency
Since GameFi is decentralized, no single entity or company owns it (or, again, fully owns it). And the entire community who holds a piece of its token is eligible to vote and decide on the game’s future.
But the weight of your vote also depends on the total of governance tokens you own. Nonetheless, your opinion matters and directly impacts the game’s direction and economy.
And since the information is available to the public, it builds confidence and trust for the community, knowing that no secrets can occur and all plans are laid out for the public to see.
Top GameFi projects that you can follow
Back in the early days of gaming, we often fantasized about playing our favorite games and earning money from them. Nowadays, such a thought is no longer far-fetched, especially after blockchain games like Axie Infinity went viral and blew up.
And it’s only the beginning. Many groups and organizations have started their own GameFi projects. And below are some of the hottest blockchain games worth tuning in.
1. Axie Infinity
Seeing Axie Infinity as the number one contender isn’t a shocker. And you’ll see this game being mentioned in almost all blockchain gaming articles. After all, it’s the one game that popularized blockchain gaming, garnering billions of dollars since the beginning of the pandemic.
But in case you didn’t know, Axie Infinity is a play-to-earn blockchain game set in a fantasy world where adorable but fearsome creatures called “Axies” roam the land.
You can capture, breed, and battle other Axies and players with your own team. And these Axies are also considered NFTs that you can sell on the NFT marketplace for a hefty sum of money.
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Decentraland is a metaverse project where players can buy and own virtual lands. The land plots you can own are considered NFTs and therefore tradable on the NFT marketplace. Furthermore, Decentraland is like a real-life economy where you and other players around the world can play and roam the land.
And if you opt to own a plot of land yourself, you can create your own gameplay experience that you can monetize by charging entrance fees for other players.
You can also innovate your virtual land and set up your business virtually by building a virtual shop, casino, or even a private club that you can rent to others. The possibilities are just endless.
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3. The Sandbox
The Sandbox is quite similar to Decentraland. They also offer virtual lands that you can own and build upon. Developers can create their own games inside their virtual and hold other fun activities like virtual parties, amusement, and all that jazz.
Some celebrities and companies joined in and bought their own share of land. And it shows that everyone is acknowledging the fact that these games will go big in the future. Overall, The Sandbox is an immersive game with a lively community. And might want to check that out yourself!
4. Gods Unchained
Gods Unchained is a turn-based NFT card game that runs on the Ethereum blockchain. It quickly became a hit due to its exquisite game design and gameplay mechanics that give your strategic brain a challenge.
Players can choose a deck of 30 cards and challenge an AI or other players in a one to one duel. Players can also mint any card as an NFT by combining identical cards. And they can earn digital cards by simply playing a game.
Gods Unchained was first launched in 2018 and became one of the top blockchain games with one of the largest market caps.
Last but most definitely not the least is Illuvium. This game hasn’t been released yet, but there are more than enough leaks, footage, and other content out there that proves that Illuvium is more than just hype.
Illuvium has made quite a buzz on social media as players wait for its official release, and many believe that Illuvium will become one of the top play-to-earn blockchain games in the future.
And in case you’ve been living under a rock, Illuvium is an open-world exploration game where you can hunt and battle majestic creatures known as “Illuvials,” and these creatures are collectible NFTs that you can trade for money. The game developers were also generous and didn’t hold back to enhance the game’s graphics, utilizing Unreal Engine to create breathtaking visuals.
Disclaimer: These GameFi projects look great on paper. And although they have sufficient data to prove their potential, it’s not guaranteed that they will perform just as well in the future. So due diligence and thorough research is highly advised.
GameFi is taking the gaming industry by storm, and it will inevitably become the mainstream platform for gaming. Significantly after the pandemic increased the number of audiences for play-to-earn blockchain games as it ravaged our economy and businesses.
Many people found themselves jobless, leaving them desperate and with nothing to do. So people turn to their phones and computers to access the internet and escape the real world to socialize in a fun virtual world for entertainment.
And this consequent event created ripple effects that allowed players and crypto investors to profit from the blockchain. This may be old news, but it sparked the growth of the GameFi industry, and now we’re in for a wild ride!