The growth in the GameFi sector is a result of the play-to-earn (P2E) trend that is bringing innumerable opportunities contributing to the emergence of GameFi unicorns.
But what exactly is GameFi? GameFi offers economic incentives to the players through its play-to-earn blockchain games. Players can complete the tasks, battle with other players, progress through different game levels, and earn cryptocurrency & NFT rewards.
Unlike traditional video games, most blockchain games let their players transfer the gaming items out of the game’s virtual world, allowing players to trade their crypto earnings on crypto exchanges & items on NFT marketplaces. Since the rise of Axie Infinity, GameFi is rapidly taking over the traditional gaming industry.
GameFi supports the idea of an open economy by combining the terms ‘game’ and ‘finance,’ and players are rewarded with NFTs and game tokens here.
Various parties like players, investors, NFT game developers, and crypto are involved in a GameFi game. Let’s go a little further into the benefits GameFi offers to blockchain game development and whether it is correct or not to invest in GameFi development. Here we go:-
GameFi enables users to earn money with its game-based economic model that includes blockchain & cryptocurrencies by having internet access. So through this, we can easily understand that the most happening benefit of GameFi is to make revenue through gaming crypto tokens & to earn money.
It offers tremendous investment potential, and investors are seizing the opportunity in crypto games. Based on four key pillars, this GameFi mechanism works, and they are:-
Now let’s have a detailed look at the combination of the above four that allow users to monetize their actions in a game:-
The fundamental basis of all the GameFi projects is the blockchain, with many games built on smart contract-enabled networks. One of the most popular GameFi development platforms is Ethereum, which has limitations as Ethereum’s block space is limited.
The moment the amount of block space is exceeded, the cost of transactions quickly rises. Due to this limitation of Ethereum, Blockchain game developers started shifting towards Polygon Network, Solana, and Polkadot, which are higher-capacity & faster GameFi protocols.
In the blockchain, all transactions are open, fair, and transparent, whether buying, selling, or exchanging items, as their data are stored on the decentralized public blockchain. In this, players own the assets and not the game developers, and it is how the blockchain stores data on who owns which item.
The game items such as avatars, land, weapons, and gold are represented as non-fungible tokens or NFTs in the play-to-earn crypto games. During the gameplay, players acquire these items, and they can exchange them for cryptocurrencies that, in turn, can be exchanged for fiat money.
NFTs make the game items or the characters unique that cannot be copied or faked. Players can monetize their land assets, battle other users in tournaments, and improve their earnings by enhancing their characters. In this way, there are many levels to progress through in the GameFi projects.
Users can trade their valuable assets and exchange them in play-to-earn games. If you take, for example, the Axie Infinity game, for achieving the game’s objectives, this game rewards the players with a portion of the game’s AXS token.
So, GameFi projects allow users to receive rewards upon completion of gameplay objectives like winning a tournament or a battle. It is entirely in contrast to the play-to-win games.
GameFi presents players with innumerable opportunities with digital ownership of unique assets. The in-game assets belonging to the users are represented in the form of NFTs, which cannot be faked.
One can trade a game plot on a marketplace and can sell or lease your assets for other gamers to use. So through virtual shops, casinos, concert venues, and many more, one can monetize their virtual land.
Some of the top GameFi projects or games are:- Axie Infinity, CryptoBlades, The Sandbox, CropBytes, and Star Atlas are gaining popularity as they turned out to be successful. Now, other games are also following a similar model to generate revenue.
GameFi projects attract investors and gamers owing to their DeFi elements, game tokens, and appealing themes. Another factor leading to the massive adoption of GameFi is the metaverse’s growing popularity, which is profitable for investors and game developers.
If you are looking for the best Blockchain Game Development company, Juego Studios is the top game development company specializing in these services. If you want to collaborate with projects in this arena, we can be your top choice, delivering quality and meeting your requirements.
Get in touch with us to learn more about our services and how we can help you develop GameFi projects for your business!!