What is GameFi?

GameFi is a medium platform that connects players with the newly adopted concepts of NFT games. Ever since cryptocurrency started to gain its power in the economy, many have sought to ride on these waves that might one day take over the future. As a result, the idea of GameFi was born.

GameFi brings about a combination of Game and DeFi, where the concepts of a real world marketplace has now been embraced in leisure platforms. The field of gaming now welcomes even investors and future millionaires, as progress made and assets accumulated in game can be traded within the decentralized market or translated into actual money.

A Revolutionary Movement in the Field of Gaming

Decentralized System of Virtual Assets

When compared to traditional games, it would be obvious that NFT games are more appealing to their players. The world of a traditional game is centralized, meaning if the system were to be taken down by hackers, all the belongings of players would be gone. However, under the concept of NFT games, players’ assets are not linked to the game itself, meaning the assets would remain even if the game crashes.

Play to Earn

In addition, traditional games follow the ideas of Pay-to-Win, Pay-to-Play, Free-to-Play (with in-game purchases), where the cash flows only go to the game developers, but players’ properties in NFT games hold actual value in real-life, and belong to the owners. The developers will earn their shares from service fees required for in-game transactions or similar activities.

Anti-inflation Value

Items from conventional games also lose their uniqueness over time, since they can be duplicated with no copyright issues, which diminishes the value of those items. NFTs, on the other hand, forever remain to be one-of-a-kind, and can even increase their value if being auctioned.

Stable and Interconnected Worlds

Keep in mind that the period for a game to maintain its relevance isn’t always significantly long, which forces the producers to create more games to attract players. However, GameFi presents its users with a huge variety of open-world NFT games, where players can switch around between different games and still gather tokens and collectibles that all go to their cumulative assets.

NFT – Non-fungible Token

NFT, which stands for non-fungible token, is a unique digital asset. NFTs are widely known as highly secured properties that range from real-world possessions like works of art, music videos, to virtual goods in-game characters and collectibles. In the virtual world, NFTs are under the protection of blockchain, a highly advanced technology that requires cyber attackers to strike every single device linked to the system, preventing NFTs from unauthorized access and forgery. What’s more, once created, purchased, or traded, NFTs grant total ownership to their current owners, meaning previous owners no longer have any connection with them. In other words, NFT is your safest asset in the form of virtual tokens!

GameFi Overview and Mechanisms

With developers that have had years of experience in the field of blockchain and cryptocurrency, GameFi sure is a promising project that would shape the future of gamings and even a big slice of the economy. GameFi utilizes Polygon as its platform, and because of the ever-growing users and demand in this field, it soon will expand to other networks.

GameFi has developed multiple features to maximize the satisfaction of both gamers and investors that wish to enter the NFT gaming world. Its launchpad is where users are presented with IGO (Initial Game Offerings), which are not limited to just tokens but early game access is also offered for players to experience the gameplay. GameFi Accelerator is also provided to help assist individual games with technological challenges, such as which networks work best for the game, like BSC, Polygon, Ethereum, etc. The accelerator aids even further by connecting these games to KOLs from many countries, namely China, South Korea, the Philippines, India, and Indonesia. There already exist stable communities in China, Korea, and Vietnam, and more communities will soon spring up in other nations.

Looking into the games, all items, assets, collectibles are ready for purchases and transactions in the Marketplaces. GameFi’s future goal is to include negotiating and bidding into the system so that the market would more closely resemble a real-life one. With the built-in Aggregator, players can check their cumulative balance from all the games they play, as those games have already been linked to the platform GameFi. Other than the mainstream games offered, GameFi consists of mini games as well. These mini games seek to bring to their players the best first-hand experience of a Play-to-Earn game, while costing little to nothing for them to enter.

Business Model

The way GameFi developer team gets their earnings is from issuing and selling $GAFI tokens, NFT transaction fees, and the renting cost of NFTs. NFTs can be in-game characters, weapons, or some virtual items that could be used to create virtual assets. Therefore, investors can rent them to players that spend more time in the gameplay so they can earn some tokens, or earn the tokens for the investors.

Regarding the issuance of $GAFI, $GAFI stakers can enjoy exclusive perks, such as discounts in transactions, having early game access, attending special campaigns for stakers, like an NFT selling fair, airdrop events with stakers’ exclusive pools, etc. Furthermore, they can propose ideas to improve the communities, for example suggesting a potential game to be launched on GameFi.

Non-stakers can still benefit from events, but their pool would be larger and more competitive, which calls for luck as a factor to win.

Security and Trustworthiness

Besides the high level of security provided by the blockchain technology, GameFi also ensures the legitimacy of the game projects that get listed on the platform. Specifically, they have to be recommended by reliable partners, which reduces the scamming possibility to near zero.

If an investor who purchased tokens from a project’s IDO changes their minds, refunds can still be carried out within a fixed amount of time after the purchase, as long as the tokens have yet to be claimed.

Given the benefits and safety provided by the enhanced technological mechanisms, the expansion of NFT games is inevitable in the near future. As a matter of fact, a lot of people have taken their first steps into this field since COVID-19 struck the world and its economy. Even well-known streamers and gamers have started to switch to NFT gaming, and big names in the game industry, such as EA Sports, Activision, Blizzard also showed great interest in going down the route of NFT games. It is safe to say that in the foreseeable future, NFT will become one of the major areas that define the economy, and GameFi is a significant factor that would launch this development even further.

Significant GameFi Projects:

CryptoKitties

Being one of the first blockchain games ever created, CryptoKitties has once been in the world where people barely understood the concept of NFT. In this game, the virtual assets that players could hold, a.k.a NFTs, are digital cats that can be collected or bred. Since it was produced in the time where knowledge of NFT and blockchain was still scarce, CryptoKitties sought to bring the limitless potential of the blockchain technology to light.

The challenges that CryptoKitties has seen were numerous. Firstly, when digital collectibles are issued, there’s nothing to stop them from being recreated, as discussed previously. This makes the values of the originals go down, and at one point they could become worthless. Secondly, collectibles are connected to their creators. In other words, if the creators vanish, the collectibles will too. And thirdly, people were not seeing any meaningful functions or uses of the properties they collect, making them go to waste and diminish the players’ interest in the game over time. Thus, CryptoKitties hopes that the blockchain technology will be widely accepted and adopted to turn these virtual assets into real-life valuables.

Decentraland

Decentraland is an NFT game that presents players with a bounded 3D virtual world, where the LANDs are situated adjacent to one another, and also are the NFTs of this game. Multiple LANDs can be grouped and formed into communities called Districts. Players with shared interests would create their own Districts for multilateral benefits between each other.

Decentraland’s token is $MANA, which can be used to buy LANDs and in-game goods. They are currently facing the problems of having low downloading speed, unavailability of content for certain parts of the network, and inappropriate content that has to be filtered, but they will be able to solve these problems in the near future.

Axie Infinity

Despite still being in its early stage, Axie Infinity has made a sounding name for itself by being ranked #1 Ethereum game from daily, weekly, and monthly community votings. Its cumulative ETH has reached 13,000, translating to over 16 million US dollars. The project of Axie Infinity was operated out of the belief in the bright future of NFT games.

The token used in this game is Axie Infinity Shards ($AXS), which holders can claim from staking, participating in the gameplay, or attending and contributing to communal activities, such as voting. What’s more, interactions with the Axie community can earn users rewards, along with holdin onto the $AXS tokens.

The development team of Axie Infinity is from Vietnam, with well-trained experts that have won countless competitions regarding gaming design and production. They have chosen Ethereum as their initial platform but are sure to expand beyond what they had previously expected.

 

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