GameFi is a hot topic in the ever-expanding blockchain game development industry. There is a wealth of opportunity, and it’s made all the more fascinating by the plethora of new play-to-earn games that have just emerged.
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Join the blockchain game development industry in its infancy. The answers are mind-boggling. The development of technology also has advantages for you.
Continue reading as we explain how GameFi works and break down other misconceptions around play-to-earn crypto games.
When you play a GameFi game, you earn crypto tokens as you go.
Discussions on GameFi may be heard all around the crypto community. It’s a combination of “Game” and “Finance,” then.
It summarises the concept of “gamifying” financial institutions to make money through “play-to-earn” cryptocurrencies. Although the idea behind GameFi may sound futuristic, it has real-world roots. It is predicated on the gaming industry, blockchain technology, and various DeFi (decentralized financial) goods.
DeFi provides multiple services, including NFTs, yield farming, borrowing, lending, and more. Andre Cronje, CEO of Yearn Finance, is credited as the original coiner of the term “GameFi” in a September 2020 tweet. The phrase has since come to be extensively applied to games that feature Defi components backed by blockchain technology.
GameFi is fascinating because it combines two interesting phenomena: the widespread interest in video games and the original characteristics of digital currencies. Generally speaking, the value of in-game assets purchased by players exists solely within the confines of the game itself. The fact that players spend real money to acquire these assets without any say in how they are used further compounds the problem.
In contrast, GameFi revamps the idea with blockchain technology, cryptocurrencies, and DeFi products to create a financially rewarding system that is more exciting and rewarding for players.
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Here are some intriguing details about GameFi and the crypto-gaming industry:
- As of February 2022, the total market cap of GameFi was US $55.38B.
- The market value of all blockchain-based video games is predicted to reach $50 billion by 2025, representing a compound annual growth rate of 10 times that of the traditional gaming industry.
- By 2028, the predicted value of the global GameFi market is USD 38.27 billion.
- According to one estimate, the value of the global fintech-as-a-service platform market will reach $949 billion by 2028, expanding at a CAGR of over 17% between 2022 and 2028. (Source)
- Community (69%), Team (67%), and Gameplay (51%) were cited as three of the most significant aspects to consider when purchasing GameFi.
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How Play-to-Win (P2W) Games Work
Here, we’ll discuss Play-to-Earn (P2E) video games. P2E methodology underpins all GameFi endeavors. These are the most popular blockchain-based online games.
P2E is a straightforward business concept where participants can play and gain cryptocurrencies.
As a result, the games allow players to gain tangible benefits for their efforts. Even competing with other players or reaching certain level milestones earns you these bonuses.
Just what advantages do you have?
Virtual real estate, crypto tokens, skins or trading cards, weaponry, and other non-fungible tokens are examples of in-game assets.
Spending more time increases the quantity and quality of a player’s assets. The fascinating thing is that because these games are decentralized, players may trade, purchase, and sell their in-game assets for cryptocurrency or real money outside of the game’s virtual realm.
Additionally, player-to-player (P2P) games allow virtual goods redistribution. Because of this, players who actively participate in the game’s economy benefit themselves, their other players, and the game’s creators.
So, how exactly do these “play to win” games function?
There are clear distinctions between the play-to-earn model and the conventional video game play-to-play notion. P2E’s main selling point is the potential for gaining rewards while participating in blockchain-based digital entertainment. To a greater or lesser extent, game creators are now accepting blockchain game development and incorporating real money into play. Among the many games that find a home here are Gods Unchained, Axie Infinity, and Splinterlands.
Blockchain is integral to the infrastructure of a pay-to-play game. Using them, players can access virtual items that have tangible value in the real world. Many games have in-game rewards that may be cashed in for digital assets like digital currency, NFTs, or decentralized marketplace tokens. Axie Infinity’s in-game currency, smooth love potions (SLPs), can be traded for real money or stablecoins.
Additionally, there is a market where users can buy, sell, and exchange NFTs representing digital goods like land and weaponry. The fact that these things are tokenized is intriguing. As a result, they constitute inherently irreplicable resources. A distributed ledger also serves as a safe repository for the tokens associated with these commodities. Like in the game Decentraland, players can buy and sell virtual land.
If your assets are kept in a blockchain, you may rest assured that they will be safe. More importantly, what? You would completely own these assets. As a result, neither the publisher nor the developer would have any claim to ownership. As a result, there is plenty of ways for players to earn money from their collections by employing the blockchain. Take a look!
Earning Potential from Product to Event
Obtaining cryptocurrency via video games
A chance to acquire in-game property is presented to players here. They can participate in games, contests, duels, and other activities and earn rewards for doing so. In addition, they’ll have more time to put into leveling up and perfecting their in-game avatars.
Earning or trading virtual goods (using NFTs) in a game
Creatures, skins, virtual land, and add-ons created by players can all be sold as NFTs. The caveat is that as their rarity increases, so does their market value. When demand rises, prices naturally follow suit.
Investing to Earn Cryptocurrency
Let’s take a moment to consider the impact of Axies, a game built on the blockchain. The in-game assets are the primary factor in the price increases. Many NFTs have evolved into financial assets that mirror their counterparts in the real world. This is a significant selling point for P2E among investors.
It has fueled the development of “guilds,” online communities where gamers may pool their resources and lend them to one another in exchange for a cut of the earnings. P2E gamers interested in staying abreast of the latest industry news can do so by checking out resources like the Blockchain Gaming Alliance.
How Play-to-Win Games and the Blockchain Will Evolve in the Future
Gaming is changing, and as new tech trends are added, the value of gaming is only going to go up. Here are some exciting things that show how blockchain gaming has a bright future.
In 2021, the number of game projects will grow significantly, and the industry will be worth more than $2.8 billion in 6 Yrs. The global NFT market was worth $2.5 billion in the first half of 2021.
Also, now that NFTs are on the market, more companies want to start blockchain gaming businesses. As of June 2022, there are more than 1,550 blockchain games available. Many blockchains, such as Ethereum, Polygon, Harmony, Solana, and BNB Smart Chain (BSC), now offer popular games. Blockchain game development is already shaking up the gaming world in a big way, and this is a trend that will stick around.
However, the scope of the gaming universe is only limited by the advancement of blockchain technology. It is expected that the GameFi expansion pattern will change in this setting due to the rapid growth of blockchain technology. Especially in developing countries, GameFi is popular because it lets players own in-game assets and make money from them.
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The 5 Best Crypto Games to Play to Earn
1. Axie Infinity
Axie Infinity’s total sales have just gone over $4 billion. As a primer, please consider the following; One of the best P2E crypto games is Axie Infinity. It has a three-token economy; the utility token is the smooth love potion (SLP). In addition, players collect “non-fungible tokens,” or “Axies,” digital pets that can’t be traded. What’s fun about the game is that the creatures can breed and fight each other.
The game is changing, and recently, Axie Infinity has implemented a market for NFT runes and charms that can be minted on the Ronin network. Also, the people in charge of the game plan to give rewards to players who use Origin’s ranked system.
2. Alien Worlds
In addition to being the most-played game on the BNB Chain, Alien Worlds also consistently ranks first on GameFi. DappRadar, a company that collects and analyses data, says that AlienWorlds is one of the best blockchain gaming platforms. It has about 491,000 users, which is a lot. The game’s design reflects the virtual nature of its setting by making use of a token economy.
Additionally, the gaming universe comprises various in-game artifacts from which players can mine Trillium (TLM) and potentially mine new NFTs for games.
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3. Splinterlands
Blockchain-based A player-to-player (P2P) trading card game, Splinterlands, can be played online. Each card in the game is owned as an NFT are traded similarly to how cryptocurrencies like Bitcoin and Ethereum are traded. The game allows players to make money in crypto while enjoying the battles and wins in the game. An essential new phase in Splinterlands’ development began when the company formed a strategic alliance with EMP Money.
For this reason, EMP Money is an Ethereum-based cryptocurrency with the same purchasing power as Ethereum. As a result, players can now use it to buy and sell items in-game.
4. The Sandbox
The Sandbox (SAND), released by Pixowl in 2011, is based on the Ethereum blockchain. It is a unique virtual world in the form of a game where players can build, own, buy, and sell digital assets. It uses decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs) to make the decentralized platform.
The Sandbox wants to bring in crypto and non-crypto game fans by offering the benefits of actual ownership, digital scarcity, making money, and working with other games. Even though its price dropped a few times in 2022, the token is still popular among gamers.
5. Pegaxy
The game Pegaxy (Pegasus Galaxy) is a mech-horse racing game with a futuristic mythology theme. In the game, each race’s elements, such as wind, water, fire, speed, and more, are chosen at random.
Also, players can get Vigorous (VIS) tokens by breeding, renting, seeing, and racing the Pega horse. It is built on the Polygon/Matic Layer 2 Solution and has a rewarding mode for both P2P and PVP. The game also changed to work in 3D, and there are plans to make it more significant.
Finalizing
People are very interested in how well GameFi and P2E games have done for a long time. Due to new technologies and innovations in the landscape, the game projects have better gameplay. It’s a great time to stretch out of your comfort zone and develop your skills. The gaming industry is headed in an exciting direction, and entrepreneurs can tap into the crypto-verse by using games.
So it’s a great time to push the limits of the current GameFi space and bring in high-quality game projects that raise the bar and help shape the future of blockchain gaming. SDLC lets you make influential blockchain games. GameFi and P2E could change the way people play games in a big way. It’s time to think carefully about creating long-lasting business models that focus on making games that are fun and immersive.
Talk to us if you want to make intense blockchain games but need help figuring out where to start. We are a company that develops websites and apps for every device in India that has won many awards and has a tonne of experience helping businesses build thriving gaming ecosystems.
