What is GameFi
GameFi is a word made up of two things one is Video Game and another is Decentralized Finance(DeFi). These video Game uses Blockchain Technology by which player who plays games on them are the sole and verified owner of the virtual elements of the game.
The traditional model of the video game is “Pay-to-win” in which the player must pay to gain an advantage such as upgrading, trading digital assets, etc.
GameFi, On the other hand, is “Play-to-earn” where through quests, trading, or other mechanisms, GameFi allows gamers to earn digital assets for their in-game efforts.
So, now you have understood the basic difference between traditional Gaming and GameFi. But the main difference other than the above is in traditional gaming players could lose their investment at any time if the publisher shut the game down or went out of business. GameFi games, on the other hand, keep their assets stored on a distributed network. These operate independently of any single organization, substantially derisking the digital assets.
How to start playing a GameFi game ?
To start playing a GameFi game you will have to do the below-given things:
- A Crypto Wallet
- Fund Your Wallet
- Buy the basic digital assets to play
Crypto Wallet: You will need a crypto wallet to hold crypto and NFTs. But as currently there is no cross-compatibility so you will have to select the wallet according to the platform you are playing On. As the blockchain game Axie Infinity, for instance, was built using the Ethereum protocol, so you’ll need an Ethereum-compatible wallet, like MetaMask, to play.
Fund Your Wallet: Some of the platforms need you to buy their cryptocurrency before you can start playing on their platform. So you will need to fund your wallet so that you can start playing.
Buy the basic digital assets to play: In most GameFi games, in order to generate profits, you need to do so through your avatar or similar digital assets. This means that before playing you will need to buy them. For example, Axie Infinity requires its players to have three Axies in their wallets to start playing.
Some of the GameFi Platforms are as:
Decentraland: It is a virtual world run by its users. Every piece of land and every element in the virtual earth is an NFT. In early 2021, Decentraland had an average of 1,500 daily active users. In March, it reached more than 10,000.
Axie Infinity: It is an NFT-based online video game developed by the Vietnamese studio Sky Mavis, which uses the cryptocurrency AXS and SLP based on Ethereum. Axie Infinity has rapidly become one of the biggest blockchain games in the world. Players collect, train, and battle creatures — NFTs called Axies — to progress through the game.
The Sandbox: It is a virtual Metaverse where players can play, build, own, and monetize their virtual experiences. SAND, the native token of The Sandbox, is used across the Sandbox ecosystem as the basis for all kinds of interactions and transactions in the game.
Forest Knight: It is one of the first mobile GameFi games, Forest Knight is a turn-based fantasy RPG that hooks its users by giving them the chance to earn rare NFTs while they beat back the forces of evil. The game currently has three NFT item types — weapons, accessories, and skins — but the publishers will soon introduce numerous new types — like pets and property — to deepen the game’s economy and trading experience.