​From obscurity to fame, GameFi’s attack road

In just one year, the crypto market has experienced multiple waves such as the DeFi summer and crazy “animal coins”. In the summer of 2021, the baton was finally handed over to GameFi, making it the most interesting game of the moment. Tao.

The three formerly independent ones-DeFi, NFT, and Game, are now embracing each other and setting off an upsurge of “financial gamification”, namely GameFi.

From obscurity to fame, GameFi’s road to attack is magnificent!

In this issue of “No Depth, No Chat”, “Hi, Big Brother!” “, Wang Xuejing, co-founder and editor-in-chief of Hunting Cloud Finance, specially invited the industry leaders who know GameFi very well to talk about GameFi-related matters with everyone.

They are SHE, head of Chinese area of ​​CryptoLions and Kolobok.io, Coco, head of market of NFTGO China, Fan Liang, co-founder of Guguo Sequence, and VP Journey of Xinyou Business.

Public chain performance improvement paves the way for GameFi’s popularity

Wang Xuejing: Why do you think GameFi suddenly started up? What is the opportunity or reason for this?

Coco: I think the recent popularity of GameFi is inseparable from the two major areas of DeFi and NFT. The emergence of NFT provides a basis and carrier for the value consensus and ownership of game assets; with the support of DeFi applications, NFT assets in the game can enter more scenarios, such as collection, trading and even lending.

2020 is known as the first year of DeFi. With the popularity of some projects and the continuous growth of the DeFi market, bottlenecks will soon appear. For example, difficulty in innovation, single business model, etc.

This year, the DeFi industry has moved from “TradeFi” (trade finance) to the “GameFi” (game finance) stage. In a decentralized financial game, capital can be turned into goods and equipment in the game.

At the same time, NFT entered the public’s field of vision in 2021. Since the Beeple’s sky-high auction, the NFT boom has swept across fields including entertainment, games, sports, social, luxury goods, etc., and major manufacturers have entered the game one after another.

According to data from the NFTGO platform, the market value of the NFT market has grown from 47 million at the beginning of this year to 1.3 billion US dollars, an increase of nearly 30 times. The NFT single-day trading peak even set an astonishing record of US$260 million on May 5 this year. From the data level, we can see the powerful funding effect of the NFT market.

​From obscurity to fame, GameFi's attack road

I think the popularity of NFT and the rise of GameFi can be said to be leveraging each other. According to NFTGO data, more than half of the NFT projects with the top 10 holders are GameFi games.

​From obscurity to fame, GameFi's attack road

In addition, the rise of GameFi is also due to the improvement of public chain performance.

Early, GameFi project focused on Ethernet Square on the chain, such as the well-known encryption cat CryptoKitties, once caused congestion Ethernet Square, seriously affecting the user’s gaming experience.

Now, Layer 2 and other high-performance public chains have come out one after another, solving some of the pain points for game users. While alleviating congestion, it also reduces Gas costs and paves the way for the popularization of GameFi projects.

With the combination of “DeFi+NFT” in the two major areas, as well as better support for the underlying public chain, GameFi is still a little hotter than large-scale development.

“Play-to-earn” (P2E for short), a new encrypted commercial game model, really promoted the arrival of GameFi in the fall.

This year , typical GameFi such as Axie Infinity , Illuvium, My Neighbor Alice ignited the first fire for GameFi with the P2E model.

This method of game finance that integrates DeFi and NFT not only allows users to earn real income while playing, but also allows game developers to find the best point of the P2E model here.

To make a summary, GameFi games leveraged the two major combinations of “DeFi+NFT” to successfully detonate the market under the impetus of the new P2E game model. At the same time, the improvement of public chain performance has paved the way for GameFi’s popularity.

PK traditional games, what is the GameFi record?

Wang Xuejing: From the perspective of the business model, can you roughly describe the development of the game for us? Compared with traditional games, if the perfect score is 100 points, how many points will GameFi get? Why?

Journey: Based on the total market size of China’s game industry of 278.7 billion yuan last year, the top two companies, Tencent and NetEase, have a more distinct market pattern.

Although the game industry presents a “2+N” pattern, there is still room for growth of the game companies in Central China. They may have rich product reserves, or focus on a certain segment, or have their own unique resources, and still have a strong position. The survivability of the tail game company is small and mostly concentrated in the casual game category.

Our Xinyou has been engaged in game research and development and publishing since 2006, and has a deep understanding of data. In 2020, the number of domestic games in the global Chinese mobile game market has been further increased, and Chinese domestic games have entered the top 100 local mobile game market. .

In addition, in the local market, the turnover growth rate of Chinese-made mobile games has a significant advantage over non-domestic games. Among the top 100 mobile games in the United States, Japan, South Korea, the United Kingdom, and Germany, the total turnover growth rate of Chinese-made games is all More than 30%, reflecting the strong overseas expansion capabilities of Chinese game makers.

Compared with traditional games, if the perfect score is 100 points, GameFi should have 90 points. First let me talk about what is GameFi? A bit of popular understanding is game+defi, adding financial realization to the game. Present financial products as games, gamify DeFi, NFT-based game prop derivatives, introduce PK battle mode, increase user/player interaction, increase interest, and make money while playing in the game.

Why is it only 90 points? Because the players he faces are limited, the audience of the game is relatively narrow, between 18-55 years old.

Would you spend tens of thousands of USDT to buy a JPG?

Wang Xuejing: Some people say that NFT introduces differentiated assets based on scarcity to DeFi, and DeFi also gives NFT commercial value through financial means. Do you agree with this view? Why?

SHE: I agree with this view. NFT, Non-Fungible Tokens, or NFTs, that is, non-fungible tokens, or non-fungible tokens, are non-fungible, non-fungible, and unique encrypted assets on the blockchain, that is, they are scarce and Differentiation. In addition, some properties of NFT are connected with finance, such as leasing, lending and other functions.

DeFi, Decentralized Finance, or decentralized finance, aims to use technology to eliminate intermediaries between parties in financial transactions. NFT itself has value, which is more commonly reflected in the value of art collection. Its combination with DeFi makes it commoditized and brings a wider audience and market.

Wang Xuejing: Some people say that NFT introduces differentiated assets based on scarcity to DeFi, and DeFi also gives NFT commercial value through financial means. Do you agree with this view? Why?

Fan Liang: The market trend based on the combination of NFT and DeFi is obviously a fait accompli, not a viewpoint that needs to be recognized and discussed.

I think there is an important reason behind the formation of this trend, which is the gamification of GameFi and DeFi.

Since the rise of the DeFi industry, there has been a view that monetary policy based on DeFi will move towards gamification. This view was very advanced in the early days of DeFi. At that time, the mainstream thinking of most practitioners still believed that the composability of DeFi was the core application value of DeFi.

NFT in the same period is actually not a new concept, but the value of digital assets with NFT as the carrier has been questioned. The voice of spending tens of thousands of USDT to buy a JPG has still existed until now.

Who supports the application value of DeFi and who gives the meaning of NFT assets? The answers to both questions point to gamification. Although the combination of the two is more like a strange cross-border combination in the early days, it is actually DeFi gamification and NFT gamification. The inevitable result.

We know that the concept of the game is very broad, its imagination space is very large, and it may also be the main manifestation of the meta-universe.

But no matter how original new imaginations appear in gamification, its systematic design must be realized based on various differences and scarcity designs. These differences and scarcity designs may be all over all aspects of game design, but The most intuitive thing is reflected in the assets.

When everything is aimed at gamification and scarcity management, the combination of DeFi and NFT is logical, and the combination of the two is a win-win situation.

From the perspective of gamification, spending tens of thousands of USDT to buy a JPG is more like buying an experience, buying a cultural totem, or paying for the possibility of gamification of digital assets.

We know that many of the early DeFi+NFT projects used collection to realize the game experience. Just looking at the gameplay of “collection” is not innovative enough and not very interesting, but based on the composability of DeFi, these digital assets The possibilities in the future gamification process are immeasurable.

More importantly, although it seems that we still need to wait a long time for blockchain games with excellent experience, NFTs with good scarcity management have been able to rely on serving as social tokens to maintain their popularity.

To be optimistic, relying on these social values ​​to allow asset holders to safely wait for the best experience of the game may make us really lucky one day that “spending tens of thousands of USDT to buy a JPG” is not a stupid thing.

The diversified integration of GameFi platform game modes is one of the standards

Wang Xuejing: According to our observations, there are currently nearly a thousand GameFi platforms on the market. How should players select platforms worth participating in?

SHE: Straightforwardly, Play to earn, whether the GameFi platform can make money, whether NFT can be sold profitably in the secondary market, it is of little significance to have a price but not a market.

Professional aspects:

1. The resource cost of the GameFi platform is reduced, or the game is deployed on a side chain with relatively more abundant resources and low price.

2. Investigate the digital asset standards used behind the NFT of the GameFi platform and the credibility of the project party. Because the digital asset standards adopted behind the NFT determine the security, interoperability and permanence of the NFT, these attributes will not disappear due to the bankruptcy of a company. Players who are interested in this aspect can check the digital asset standard-Simple Assets.

3. The NFT of the GameFi platform has smooth secondary market trading channels and active trading.

4. The GameFi platform game mode/planning mode is a diversified integration rather than a single mode, and the platform is constantly updated. For example, the user’s assets (NFT) will become game equipment, which can be transferred and sold; playing games to win NFT or tokens, which can be transferred and sold. A variety of game cooperation token exchanges, or build a comprehensive platform to integrate various NFTs or games to form an ecosystem.

5. The project party creates a communication community, establishes contact with players, and provides channels for problem feedback and resolution and suggestions.

GameFi’s goal is not just to disrupt the game market

Wang Xuejing: “In the historical gold rush, the people who made the most money were those who sold tools, while those who dig gold went bankrupt. The same is true in this’gold rush’ of GameFi.” What do you think of this view? In addition, among GameFi-related roles, which one do you like most?

Fan Liang: Being a water seller on the gold rush road, this looks very beautiful.

But in fact, in the GameFi field, it is difficult to divide into two groups of gold prospectors and water sellers. One of my basic views: the classic business philosophy of gold prospectors and water sellers can only be applied to economic fields with limited goals.

If we define GameFi’s goal as developing a game that is combined with DeFi and has a better experience, then obviously, Axie Infinity may be a gold digger, YGG (Yield Guild Games) may be a water seller, and many media and social media Group service organizations, content providers, and even asset trading giants such as Opensea can all be regarded as sellers on the gold rush.

But in fact, we know that GameFi’s goal is more than that, not just to subvert a free-to-play game market through the “play and earn” model.

The vast majority of All in GameFi practitioners are undoubtedly referring to the meta-universe, and the meta-universe is a typical infinite goal. No one knows what the ultimate meta-universe will be like and how “thorough” it will be. It may be as complete time and space as the real world, but the game is still in the embryonic stage of the meta-universe.

If we who are discussing current issues agree that we are in the historical process of migrating to the meta-universe, then whether it is a practitioner of GameFi, a guild and DAO organization such as YGG, or social media that is still in the Web2.0 stage And content providers are both gold diggers in Meta Universe.

The business needs and business logic that exist in the real world will most likely be needed and accepted by Metaverse. From this perspective, we are all gold prospectors and each other’s water sellers.

Speaking of this, it may be a bit too emotional. Going back to the problem itself, putting aside the concepts of gold prospectors and water sellers.

Roblox defines eight elements for the meta-universe: identity, friends, immersion, low latency, diversification, ubiquity, economic system and civilization . I think I personally like “civilization” the most. If it is placed on the scale of GameFi, I Personally, the most optimistic is the provider of “creative, content, concept and story” (Guojian?), which actually provides some aspects of the big term “civilization”.

In contrast, identity management (identity), social systems (friends/distribution), gaming experience (immersion, low latency, anywhere), and economic systems are more rational, challenging the logical rigor of the system level, while civilization ( Diversified creativity, content, ideas and stories) require emotion and perception.

GameFi is the next frontier in the game industry

Wang Xuejing: In your opinion, is the current GameFi Red Ocean or Blue Ocean? What opportunities are there?

Journey: I think it should be the blue ocean. The madness of the leader Axie Infinity directly detonated the entire GameFi track. According to dappradar statistics, in July, BSC became the most active public chain with 65.8 independent users, and WAX ranked second with 33.6. In the last quarter, the number of daily active wallets for WAX interacting with blockchain games increased year-on-year. 1082%!

Going back to GameFi itself, the emergence of GameFi benefited from the maturity of DeFi and NFT technologies and products. NFT introduced differentiated assets based on scarcity as the standard for DeFi, and DeFi also gave NFT commercialized value through financial means. The combination of players brings new vitality to the on-chain game.

GameFi mode is currently used to realize the cold start of the game and promote the optimal solution for the transaction of game assets. As various industries are realizing blockchain, the development of blockchain is accelerating.

The development trend of the game industry today is obviously that mobile games are more popular. From the development of blockchain games, we have seen the application opportunities and opportunities of the times of blockchain. From the perspective of players, we have realized independent transactions and gained more Sense of self-worth. The decentralization feature of the blockchain technology itself is obvious, and it can also prevent the risk of tampering, so it has a sufficient experience in the game.

GameFi has completely improved the traditional game mode, broke barriers, and created new feelings and new values. It is believed that it will be the next outlet for the game industry.

GameFi is full of huge investment space

Wang Xuejing: In your opinion, is the current GameFi Red Ocean or Blue Ocean? What opportunities are there?

Coco: Of course, the red sea and the blue sea are often a relative concept, not necessarily everyone’s standards are the same; so today I mainly show you the current development status of GameFi from the data dimension, as well as some challenges and opportunities that may exist in the future. .

​From obscurity to fame, GameFi's attack road

According to data from the NFTGO platform, the market value of game items accounted for 10.08% of the total market value of NFT, while the collectible NFT accounted for half of the total market value, reaching 58.66%. In this regard, I think there is still a lot of room for growth in Game NFT.

In addition, from a traditional point of view, the current global art sales are basically stable at around 60 billion US dollars, and the growth is slow. The total value of global games has reached 180 billion U.S. dollars; therefore, for the crypto world, the market space of GameFi assets will be much larger than that of encrypted artworks.

The increase in the value of artworks is mainly generated in the resale and handover between users, and the platform captures less of its value. The cost of creating game assets for game development platforms is very low, and the platform captures greater value , so I think GameFi is still in an alpha stage.

Everyone should be familiar with Axie Infinity, and it is currently recognized as the leading project. The current market value of AXS is close to US$4.1 billion, and the total market value of the second to fifth places is less than US$1.5 billion.

Analogous to the Internet game market, the high update speed and the freshness of players demand faster iterations, but the competition between games for users is not prominent, and there is no strong leader or Matthew effect. There can be hundreds of large-scale Internet in the market. Games coexist. Because users have enough time to accommodate multiple games and pay for each game.

Therefore, GameFi’s market structure will be very different from DeFi, full of huge investment space.

In the future, I think the “game + finance” model will accelerate the integration, and even become a scene of mutual prosperity.

Currently GameFi will also face some challenges, and I think the most worth mentioning is the playability of the game.

Currently in the stage of barbaric growth in the GameFi industry, the overall quality of chain games on the market is low, which is unavoidable. There is a phenomenon of P2E for P2E and NFT for NFT. However, whether users are purely for making money should also be relatively dualistic. It is just that making money and entertainment drive many users to different degrees.

So what should the final form of GameFi look like?

I think there is a truth with the final form of AI, that is, when we no longer realize that this thing is AI, then this AI is its final form. In other words, in the end, GameFi may become an indispensable part of our lives. 

At present, this matter still has a long way to go. It may have a bubble in a short period of time, and then the bubble will burst, and then there will be a new bubble, and there will be a cycle. But in the long run, this matter is an inevitable result that will inevitably happen.

GameFi is still in its infancy, and I hope that it will not be too restrictive, and use our inherent thinking to limit its development and unlimited possibilities.

Generally speaking, we are optimistic about the future development of GameFi. In the long run, with the maturity of Web3.0, Gamefi is one of the markets that cannot be underestimated in the future.


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/%e2%80%8bfrom-obscurity-to-fame-gamefis-attack-road/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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