GameFi projects are rapidly gaining popularity, although there isn’t much information about it on the internet. Let’s take a look at what GameFi is and how to earn cryptocurrency by playing games. Finally, we will look at an example of a real GameFi project.
How does GameFi work?
If you are getting paid to play a computer game, there may be several options:
- You are a professional player and you participate in tournaments with big prizes.
- You are a publisher or blogger who makes money with your charisma.
- You are a beta tester.
- You are playing a GameFi game.
Most people are familiar with the first three options, but the fourth option may be interesting to many.
GameFi games are blockchain games based on the win-win principle. The concept is that you earn virtual currency that can be withdrawn to a cryptocurrency exchange and exchanged for real money. You may have heard of Counter Strike and Dota 2. Game items and skins from these games can be sold for real money – hundreds or thousands of dollars. The in-game demand for “currency” gives it real value. Cryptocurrencies work the same way. The more people play GameFi, the higher the price of the currency.
Game creators are interested in attracting new players, so they create favorable conditions. In general, the earlier you start playing, the more you can win. In the GameFi concept, the player acts as a kind of miner. Your game is mining or betting designed for fun play. It can be a double-dollarsik or a snake-like mini-game. Unlike other games, you not only waste your time, but also invest your time in cryptocurrency. You can invest your money by purchasing a digital token and waiting for it to grow. You can also invest time and money.
GameFi and the technology behind it
Let’s find the name first. “Game” is just a game. “Fi” here implies the term De-Fi (decentralized finance). DeFi technology allows you to transfer money directly from user to user by admiring banks and payment systems. Many cryptocurrencies are also called De-Fi, but this concept includes more digital tokens. Ethereum (the second largest cryptocurrency after Bitcoin) is also a De-Fi coin.
Another technology behind GameFi is NFT (non-changeable token). NFT is about data exchange, but not about finance. For example, Bitcoin and Ethereum are not NFTs as they are exchangeable (you can easily exchange one BTC for another). Immutable tokens are used to transfer digital information and are also embedded in the architecture of some cryptocurrencies, including Ethereum.
We tried to convey the essence of technology as briefly and clearly as possible. If you are interested in this topic, you can find more information yourself. To summarize, GameFi is based on De-Fi, NFT and the game itself.
What are the expectations for the coming years?
The Game-Fi concept is not very old. From the beginning of 2020 to 2021, we can say that its popularity has grown. Increasing interest in such projects is associated with:
- The growth of the crypto market in 2020-2021
- DeFi trend;
- Gamification trend;
- The emergence of new players in the market.
In August 2021, TRON created a foundation called JustPlay in collaboration with APENFT and WINKLink. Over the next three years, 2021-2023, the fund will support the development of GameFi, “De-Fi content” and “entertainment communities.” As a result, we can expect excitement in this industry for at least a few more years.
Example “Play to win”
Cryptosnake. game is the game of 2021. The core of the game is a snake powered by cryptocurrencies. The larger your snake, the higher its profitability. To earn even more, you can raise your pet or destroy it by withdrawing money to the cryptocurrency exchange. You can also send tokens to Binance Smart Chain to receive passive staking income. Cryptosnake provides various sources of income for the player:
- Token emission
- Demand growth slower than supply growth
- Inactive token burning
- Pharming bonuses
- Distribution of 30% of the first trade of each new player among the rest
- And others
An additional source of income available only to new players, halving every six months. If you started playing before the halving, your profitability will remain the same. Therefore, the sooner you create a snake, the greater your benefit will be. You can read more about Cryptosnake in the project resources:
- t. me/Cryptosnake_en
- medium. com/@cryptosnake. game
- twitter. com/cryptosnake_en
People like to play games and people like to make money. Not surprisingly, the “play to win” section is gaining popularity. Most likely, more people will want to join the GameFi and NFT gaming community in the near future. This is beneficial for the development of the crypto market in general, so it’s good news.
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