The gaming industry continues to develop day by day using different technologies. Game manufacturers also help the game industry grow financially with the values and diversity they offer to users. The traditional gaming industry is differentiating day by day. Major changes in the world of technology have a significant impact on the structure of the gaming industry. Especially in recent years, the widespread use of blockchain technology and the integration of the gaming industry into this technology draws attention as one of the biggest factors in changing the traditional understanding of gaming. With the combination of blockchain and the gaming industry, a new financial understanding, GameFi, is emerging. In this article, you can find the answer to the question of what GameFi is.
With the integration of the gaming industry into the blockchain, new business models have started to emerge where users can generate income. With blockchain-based games, users try to earn income while enjoying the gaming experience. This has led to the emergence of GameFi, a new financial system. The concept of GameFi was created by combining the words Game (Game) and Finance (Finance) in English. It refers to the financial organization of the gaming industry. GameFi projects work on the blockchain. All transactions made in the game are recorded on the blockchain and players gain the concept of ownership.
In GameFi projects, players own materials such as avatars, tokens, and costumes. These objects are included in the game as NFTs. Players can obtain these ownership materials, which vary in each project, by playing games and can offer the objects they earn for sale in NFT marketplaces.
How did GameFi come about?
Before the GameFi concept emerged, professional gamers could earn money by playing games with the pay-to-earn business model. With the popularization of the GameFi concept, monetization models through games have diversified and users have started to earn income with many transactions performed in the game, not just playing the game.
The concept of GameFi was first introduced on September 10, 2020. Andre Cronje, the founder of the DeFi system, was the first to mention this concept. With the widespread use of blockchain technology, project producers started to create blockchain-based games. The adoption and popularization of blockchain-based games by users in a short time led to the GameFi concept becoming more prominent.
How Does the GameFi System Work?
The GameFi system works with the logic that games are blockchain-based and create an income model for users. The exchange of materials earned in-game for real money or cryptocurrency gives games the chance to generate revenue. In GameFi projects, the materials earned in the game can vary. Different items such as costumes, avatars, gold, coins are collected by players. Players can trade these items in NFT marketplaces.
GameFi and P2E Game Model
Play to earn works on a system of earning as you play. Players can have fun with their hobby of playing games and create an income model at the same time. By playing games regularly, users can earn tokens that they can use to generate income. Project developers also create a marketing method by publishing their games in accordance with this business model. Although the play to earn business model has been around for a long time, it has been applied more and more with the increasing use of blockchain technology and the widespread use of cryptocurrencies.
What is a Blockchain Game?
In blockchain-based games, the assets that users create and earn in the game are stored on the blockchain. In this way, players own the assets they earn. With the feature that the blocks in the blockchain are unchangeable, there is no situation such as deleting the data of the players. It is possible for users to move their assets between blockchain-based games. The blockchain facilitates asset transfers between players and stores the values earned by players in blocks. In blockchain-based games, the possibility of cheating is low as the transactions are auditable on the blockchain. At the same time, blockchain-based games offer players the opportunity to earn income by using the P2E business model.
5 predictions for blockchain technologies 2022
ApeCoin (APE)
APE is a decentralized project inspired by Yuga Labs’ Bored Ape Yacht Club project. Bored Ape Yacht Club is a collection of NFTs built on the Ethereum blockchain. APE is supported by the APE Foundation.
Axie Infinity (AXS)
Axie Infinity, one of the projects where blockchain is used in the gaming industry, is a blockchain-based battle game. Players can adopt Pokemon-like digital creatures (Axies) and raise, trade, and battle them against their opponents. Axie Infinity is a blockchain-based game using the Ethereum blockchain. The main digital asset of its platform, AXS, is an ERC20 smart contract built on the Ethereum blockchain. Axies, one of the cornerstones of the game, are created as the preferred ERC721 smart contract for blockchain-based games and NTFs.
Decentraland (MANA)
The 3D, navigable and limited space of the Decentraland virtual world is called LAND. LAND is a unique digital asset (NFT) generated as a smart contract on the Ethereum blockchain in ERC721 format. Just like in the real world, the world of Decentraland is divided into parcels. These plots can be purchased with MANA, Decentraland’s digital asset. Users can develop applications in the purchased areas.
Enjin (ENJ)
Enjin is one of the popular projects bringing blockchain to the gaming industry. The Enjin network is an interconnected ecosystem of blockchain-based gaming products. Enjin is a social gaming platform that provides users with websites, in-game products and virtual stores where they can trade these products. Through the Enjin platform, software developers can digitize their game products on the Ethereum blockchain. Digital goods produced on the platform can be traded through the platform’s digital asset, the ERC20-based Enjin Coin (ENJ).
Gala (GALA)
Gala develops games in various categories for players. These games can be purchased through Gala’s web-based gaming platform or free/trial versions are available on the Gala web app. To access the games, you can register a free player account on the Gala web app. In-game merchandise is available in the Store section of the Gala web app. To purchase in-game merchandise or game characters for sale, you need to set up an Ethereum wallet on the Gala web app and transfer GALA and ETH to your account.
The Sandbox (SAND)
The Sandbox is a blockchain-based virtual world gaming platform. It offers players the opportunity to create a virtual life experience, produce in-game products and earn income from these products in a virtual reality-supported game world called Metaverse.
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