GameFi meaning and explanation 📖
GameFi is a meshing together of gaming and blockchain-powered financialization.
Blockchain-based games that allow their players to receive real-world, tradable financial benefits come under the banner of GameFi. It allows players to get access to secure ownership, and privacy and eliminates the central authority.
The term itself was first used in 2019 by the founder of MixMarvel, which is a blockchain game publishing platform. However, its conceptual origins can be traced as far back as the creation of Bitcoin in 2008.
GameFi works on the Play-To-Earn (P2E) model as opposed to the Pay-To-Play (P2P) model, which is more commonly adopted by traditional video games.
In traditional games players can’t generate any assets for themselves and their in-game assets are of no use in the real world.
Enter GameFi. It plays a revolutionary role with its P2E mode and gives players full control over their in-game assets that they can trade to make money.
So that next time you play a game, you earn some money as well.
GameFi works on blockchain and is managed + governed by the community. Even players can participate in the decision-making of a project. So far it only uses Ethereum-based ERC2O tokens which can be purchased using ETH, BTC and USDT (Tether).
Many GameFi projects provide financial services (DeFi) like staking, liquidity mining, and yield farming as well.
Prerequisites of GameFi
- Create a crypto wallet like MetaMask
- Connect your wallet to the game
- Check the requirements to play a particular game i.e. you may need to purchase tokens or in-game NFTs depending from game to game.
Popular GameFi projects
1) Axie Infinity: a digital pet community in which you buy creatures called Axies. Axies can be battled, collected, and even used to earn cryptocurrencies with real value.
2) Decentraland: a decentralized virtual reality platform powered by the Ethereum blockchain where you can buy and sell land, estates, avatar wearables and names.
3) Forest Knight: a turn-based strategy mobile game that allows players to build their dream team and collect NFTs based in the Forest Knight Realm. The rarer the NFTs are, the higher their value.
Given the success of Axie Infinity and other GameFi platforms running on different blockchain protocols, GameFi is welcome addition to the gaming industry.