Simar Marwaha
    Simar Marwaha
    Published on November 7, 2022 5:35 PM

    Updated on January 16, 2023 1:40 PM

    The term "GameFi," which combines the terms "gaming" and "decentralised finance" (DeFi), refers to the incorporation of blockchain technologies in the gaming industry for monetization and other uses.
    Source: Bepay Finance

    What is GameFi?

    The GameFi platform falls under the category of Decentralized Finance (DeFi). Defined games that use non-fungible tokens (NFTs), decentralised finance (DeFi), gamification, and a play-to-earn approach are known as GameFi. This is one of the fastest-growing divisions in the video game business and offers the general public a promising opportunity to earn rewards or even make a living through gaming.

    Games on GameFi include massively multiplayer online role-playing games and lottery-based games (MMORPGs). Each game has a unique model and in-game currency. However, most of these digital assets give their users some financial gain, whether from selling an NFT they acquired in-game, winning a battle and earning cryptocurrency, or charging other users rent for using their virtual property.

    An ecosystem based on player empowerment has been made possible thanks to GameFi and play-to-earn. This tendency is not exactly something to laugh about. After all, billions of dollars poured into this area of the market as the blockchain gaming sector had an astonishing 2000% rise between last year and the first quarter of 2022. Developers' embrace of blockchain technology is fueling the industry's advancement.

    GameFi's Origins

    The first GameFi project, Cryptokitties, debuted in November 2017. In the game, players may acquire, purchase, and nurture virtual cats. In instance, they can fetch three times their initial cost when sold as NFTs. At the time, Cryptokitties had a daily user base of over 14K players.

    We can see that GameFi as a concept and technology has advanced significantly as of the year 2022. The growth of Decentralized Finance (DeFi) platforms increased GameFi's appeal. Due to the development of new blockchain-based financial systems that only rely on smart contracts. Users now have a wide variety of games to choose from on the GameFi network because this provided them with the necessary tools to launch, sell, lend, or wager their in-game tokens. 

    Working of GameFi

    As we've already established, GameFi uses the play-to-earn business model. Players may earn in-game currency by winning fights, completing daily tasks, and mining for minerals. Native tokens have been included in the ecology of games on GameFi. Both governance tokens and utility tokens are available.

    Utility tokens enable specific in-game character upgrades and assist consumers in purchasing digital items from their gaming characters. Users can vote on actions taken on the gaming site using governance tokens. There are only so many games that additionally contain a third token that is used only to award incentives in the form of these tokens. Each game has a different quantity of in-game tokens.

    As we previously said, GameFi uses non-fungible tokens to represent digital assets such as land plots, avatars, virtual apparel, special powers, and weapons. This allows players to claim ownership of these items. Playing the game will enable you to gain more things, which you can trade on an NFT marketplace both within and outside the game, creating new revenue streams.

    Each game has its own particular prizes, varying from accomplishing chores, creating mini-games, and creating virtual infrastructures to designing wearables and competing against other players.

    There are countless blockchain games, and each one has a unique economic structure. All of this is to suggest that GameFi needs a crypto wallet just like every other aspect of the developing Web3 environment. The next step is locating secure games and practising responsible money management. So here is a fast three-step approach to getting your GameFi set up.

    1. Create a cryptocurrency wallet: Set up a cryptocurrency wallet that is appropriate for the game you wish to play. Crypto wallets contain the encryption keys linked to digital assets, enabling you to access, transmit, and receive bitcoin, though they don't technically keep money the way a regular wallet does.
    2. Connect wallet to the game: Connect your wallet to the game so you can log in using it. Blockchain games employ your crypto wallet as an account, unlike conventional online games that require you to create a username and password or provide your email address. Make sure you are connected to their legitimate website and not a bogus look-alike when you link your wallet.
    3. Lookout for game requirements: The initial step in many play-to-earn games is to buy the player's in-game cryptocurrency token or NFTs. In general, it's wise to balance a game's earning potential against its overall dangers, taking into account factors like how long it will take you to recover your original investment and start generating money. Consider looking for an in-game scholarship programme that enables you to borrow NFTs from other players to get started if you need more money to buy a token yourself or want to avoid assuming financial risk. Of course, if you choose that path, the NFT owners will receive a portion of your profits. Additionally, GameFi has a good proportion of fraud, so watch out for fake websites and practise safety.

    GameFi's top three games

    Now that you know how to use GameFi, you might be curious to find out which blockchain games are the greatest right now. Although numerous well-known games are out there, and a list may go on forever, we are only presenting the top 3 games on Gamefi for your consideration.

    1. Axie Infinity: Axie Infinity is an online video game with non-fungible tokens that was created by the Vietnamese company Sky Mavis. It is well-known for its cryptocurrency-based in-game currency system. This game is really engaging and straightforward to play. All you have to do is engage in user combat while breeding and collecting cute digital critters called Axies. By winning battles and exchanging their priceless pets, players receive incentives. Players may make tens of thousands of dollars by breeding rare Axies. The two tokens driving the Axie Infinity economy are SLP AND AXS.
    2. MOBOX: An NFT-powered game platform is MOBOX. MOBOX is a GameFi platform that is driven by the community and aims to empower users by paying them for their participation and enjoyment. In order to build a genuinely free-to-play, play-to-earn gaming paradigm, this particular game was designed on the Binance Smart Chain and blends yield farming in DeFi with gaming NFTs. In the end, MOBOX hopes to introduce a virtual world named MOMOverse to deliver more exciting application possibilities for NFT and DeFi technologies.
    3. Sorare: In the football fantasy game Sorare, users use digital player cards to build, trade, and manage a virtual club. The game was created in 2018 and leveraged Ethereum-based blockchain technology. In the fantasy game Sorare, users may exchange player cards that have been granted official licences. You may keep track of your favourite players, collect them, manage a team, take part in weekly virtual tournaments, and win rewards.

    The Future of GameFi

    It is thought that GameFi is rolling in a new era of gaming by fusing the most outstanding gaming elements, decentralised finance, and blockchain-powered features like NFTs and cryptocurrencies. Due to the fundamental role played by its play-to-earn model, the new virtual world developed by GameFi has significant potential that will keep players interested, motivated, and engaged to remain on the GameFI platform. We would want to draw the following conclusion from this: As additional themes, such as the metaverse and Web 3.0, continue to develop, we may anticipate an ever-wider adoption of GameFi across audiences, platforms, and use cases.