We tell you which blockchain apps utilize the GameFi mechanics, allowing players to earn cryptocurrency
To start by answering the question of what GameFi is, it is a combination of the words “game” and “finance” that represents a new trend in the blockchain gaming industry. GameFi is a platform or project that uses elements of decentralized finance (DeFi) in game mechanics, allowing players to earn cryptocurrency and digital assets (e.g. tokens and NFTs) as they play. Unlike traditional games, GameFi projects offer users real economic value in gameplay by turning their virtual achievements into assets with market value.
GameFi allows players to capitalize on their efforts in games by earning tokens that can be sold, exchanged for other cryptocurrencies, or used to purchase digital goods and services. This is made possible through the use of blockchain, smart contract and NFT technologies that ensure each game asset is transparent, secure and unique.
The history of the emergence of GameFi in the cryptocurrency market
The emergence of GameFi was made possible by the development of blockchain and cryptocurrency technologies. The first GameFi project, CryptoKitties, was launched in 2017 on the Ethereum blockchain. The game, in which users could buy, sell and breed virtual cats based on NFT technology, quickly gained popularity. CryptoKitties showed how the blockchain could be used to create unique game assets and laid the groundwork for future GameFi projects.
With the development of DeFi (decentralized finance) in 2020, GameFi gained momentum. Games like Axie Infinity and The Sandbox emerged that integrated elements of DeFi, including steaking, farming, and token borrowing, into game mechanics. This allowed players to not only earn tokens by playing, but also use them in a variety of financial transactions, leading to an explosive growth in GameFi's popularity.
Operating principles of GameFi projects
GameFi's core principles are to use blockchain technology to create transparent and decentralized gaming ecosystems. GameFi's key features include:
A token-based gaming economy. Each game in the GameFi ecosystem has its own token or multiple tokens that are used to reward players for completing tasks, winning competitions, or other achievements. These tokens can be traded on cryptocurrency exchanges and have a real market value.
NFT Usage. Non-Futurable Tokens (NFTs) are unique game assets such as characters, items, plots of land, or skins. They can be sold or exchanged between players, giving them the opportunity to earn rare or unique items.
Decentralized Management: In some GameFi projects, players can participate in the management and development of the game by using tokens to vote on important issues, such as changing gameplay or introducing new features.
Play-to-Earn model. Unlike the traditional Free-to-Play model, where players can play for free but pay for additional features or items, GameFi focuses on rewarding players for their time and effort. Each player can earn tokens or NFTs simply by participating in the game.
What types of popular GameFi projects are categorized into
Popular GameFi projects can be divided into several categories:
Play-to-Earn. Games that allow players to earn tokens and NFTs for completing game tasks and participating in competitions.
World creation and management. Games in which users can create their own virtual worlds, manage assets and interact with other players.
Collecting. Games that focus on collecting unique items or creatures that can be traded or sold.
Games with DeFi elements. Games that integrate decentralized financial products, such as steaking or token farming, into gameplay.
How GameFi is different from regular games
The main difference between GameFi and traditional games is the integration of financial elements and blockchain technology into the gameplay. In GameFi, players can not only enjoy the gameplay, but also earn real money through token sales and NFTs. Unlike conventional games where in-game assets have no real value outside of the game, GameFi allows players to own, exchange and sell their assets in open markets.
GameFi also provides a decentralized management option where players can influence the development of the game and make decisions regarding its future. This makes GameFi not just entertainment, but part of the decentralized Web3 ecosystem.
Most GameFi games are developed on the Ethereum blockchain due to its extensive features and smart contract ecosystem. However, there are other blockchains that support GameFi projects including Binance Smart Chain (BSC), Polygon, Solana and Ton. These platforms offer various benefits such as lower transaction fees and faster processing, making them attractive to game developers.
The future of GameFi gaming
GameFi is well positioned for further growth and development as it combines the gaming industry with decentralized finance and blockchain. In the future, GameFi is expected to become more accessible and diverse, attracting not only cryptocurrency enthusiasts but also a mass audience. The development of new projects, support from major market players and integration with meta-universes could make GameFi a staple of the Web3 ecosystem.
