The prototype of Metaverse business? This article explains the attack road and development prospects of GameFi

On December 14, CCTV Finance reminded the public to be alert to those scams under the banner of Metaverse , and conducted specific investigations and narrations using a metaverse blockchain game called “XX World” as an example. It can be said that GameFi and Metaverse have been mixed with each other from the explosion to the present, and the disputes continue.

However, it is undeniable that with the participation of many big companies and celebrities, such as Facebook’s renamed “Meta”, etc., Metaverse has moved from science fiction to reality . However, for the time being, the computing power and computing speed in the blockchain field are far inferior to the Internet world, and the Metaverse will more often be presented in the form of GameFi.

Compared with the Internet 3.0 through the application of AR and VR to achieve virtual reality interaction, in what form does GameFi present the Metaverse of the blockchain world? With this question in mind, let’s take an in-depth interpretation of GameFi in this article.

GameFi: Game+NFT+DeFi

The concept of GameFi was proposed in 2019, initially defined as Game Finance, that is , elements of financial attributes are added to the game . In September 2020, Year.Finance founder Andre Cronje released a related tweet with the following content:

At that time, the development of DeFi mainly tended to traDeFi (transactional DeFi), and in the future, the attributes of DeFi will become more gamified.

At this time, GameFi was again added to the concept of DeFi (decentralized finance).

The GameFi concept took shape after February 2021. GameFi was defined as a comprehensive concept of Game+NFT+DeFi. Through the distributed structure of the blockchain, the game presents decentralized finance and NFT (non-homogeneous digital assets). )the value of.

On the one hand, the game has the concept of buying and selling investment with financial attributes, and on the other hand, it makes GameFi assets unique and non-tamperable, and guarantees the security of participants’ assets.

After March 2021, starting in Southeast Asia, some of the Blockchain games of the GameFi concept have successfully attracted a large number of followers. In 7 months, the number of Blockchain games of the GameFi concept has rapidly increased from more than a dozen to 863.

The popularity of DeFi and the popularity of NFT have provided a living ground for GameFi, which has made the market performance of many GameFi projects more active and quickly formed an independent field, ranking alongside DeFi and NFT as the most popular blockchain field in 2021.

As of mid-November 2021, the market has extended several game types with different focuses in the GameFi concept:

1. Native GameFi games

Decentralized finance is similar to “K mining” income effect by using NFT assets through DeFi. Most of these games are card games, the secondary market is relatively prosperous, and the head chain games have a complete ecosystem and a huge user base.

2. Realistic financial mapping GameFi

This kind of chain game maps the real financial system into the blockchain industry. GameFi plays a part of the role of a centralized bank. In this kind of chain game, players can fully experience the financial aspects of all traditional finance such as stocks, funds, and futures. Way.

At present, there are not many such chain game projects in the GameFi field.

3. GameFi based on gaming experience

This kind of chain game focuses on immersion, adds to the attributes of the game, and takes into account the ecology of the digital assets in the game, so that the game can produce digital assets similar to mainstream digital assets on the basis of fun.

The digital assets of this type of game are usually not reserved for the developer team. The development team is more like a type of participant in this type of chain game. After completing the entire game, it will compete with other players on the same starting line.

At present, due to technical reasons, such GameFi is rare in the field.

Reasons for rapid development: incentive mechanism, economic model, community, game guild

The explosion in any field has deeper reasons behind it, such as the impact of the general environment, industry leaders, market recognition, user trust, capital investment, and so on. The rapid development of the GameFi field is precisely affected by the above-mentioned reasons. It can be roughly summarized into the following categories:

1. The mapping theory of reality and virtual world caused by the concept of Metaverse

2021 is called the first year of the Metaverse. The Metaverse maps reality into the virtual world, and the concept of ultimately affecting the real world from the activities of the virtual world has become the main direction of the future development of the Internet.

However, the Internet’s approach to mapping the real world into the virtual world is still in its infancy. Some Metaverse projects remain in the partial mapping of reality , such as somatosensory games and VR games.

GameFi’s mapping of images and sounds is far less than Internet technology. The reason why GameFi is also called “Metaverse” benefits from the distributed structure of blockchain technology. Through the distributed structure and the confirmation of the rights of assets through the blockchain, It perfectly mirrors the real world at the relatively general level of “system”.

At present, GameFi’s mapping of the financial system, bank loan system, and value storage system is quite mature.

The mature system mapping has become an influencing factor for GameFi’s rapid development.

2. The rapid development of related industries caused by the global epidemic

The epidemic has caused great changes in people’s production, life, and entertainment methods throughout 2020 and the first half of 2021. People find that it is more important to conduct meetings, work, shopping, and entertainment in a non-contact virtual environment.

Some resource-exporting countries (such as Southeast Asia) have caused economic crises due to the epidemic in economic globalization, and to pass on this crisis, it is necessary to seek new economic growth points outside of resource exports, and this new growth point is precisely mapped by GameFi The economic system allows ordinary people to earn a certain amount of income through the virtual world in the reality of high consumption and low income.

Therefore, for low-income people, GameFi is more like a real “Peach Blossom Spring”, a beautiful and futuristic world.

The prototype of Metaverse business? This article explains the attack road and development prospects of GameFi

3. GameFi ‘s unique incentive mechanism

GameFi’s incentive mechanism is different from traditional games and the blockchain digital asset market. It is different from the “consumption for entertainment” advocated by traditional games and the “work to obtain rewards” adopted in the blockchain digital asset market. GameFi’s incentive mechanism is more biased towards participation. .

In many GameFi games, there are certain thresholds for participation, but once you participate, you can almost let it go, and wait for the game currency and governance digital assets to appreciate as more and more users of the game. This incentive method has attracted a considerable number of players who are “fear of trouble”.

4. Play-to-Earn economic model

The core of the Gamefi field is the Play-to-Earn economic model. Unlike the Free to Pay (free game) model in the traditional game industry, players in blockchain games can earn real money through encrypted assets and participate in the construction of a virtual economy. Players of the game earn rewards through their own participation behaviors, and then sell them in the market for revenue.

At this time, the development team of the blockchain game has changed from the traditional game development team’s game service provider identity to the company architect , and the player has changed from the player who spends money to play the game to the employee who contributes to the company’s development and expansion. , This is the biggest contribution made by the Play-to-Earn economic model.

The change in the identities of both parties has made it a job for players to spend money to play games, and blockchain gamers can instead ask for rewards from the market through games. Players are more like working, giving time and labor to earn income for the family.

5. GameFi’s more sticky community

The explosion of chain games is not accidental, but an inevitable result determined by its “service itself is a product” characteristic. This means that the service itself is a product , and this feature is a prerequisite for blockchain technology to be used in the gaming industry.

Therefore, GameFi must create its own benefit distribution plan. The community is completely bound by the interests of the game itself, forming a more united and sticky group.

6. The positive role played by game guilds

The influence of game guilds in the field of GameFi cannot be underestimated. Game guilds are the best link between project parties and players. On the one hand, game guilds guide members to benefit by mining high-quality Gamefi games. On the other hand, the governance of the community also needs to rely on. The guild coordinated.

The most important thing is that the game guild is the initial capital gathering place for players, and it can have a greater influence on the game market than individuals through unified arrangements.

The master of blockchain technology: collection, transaction, gift, financial management, savings, shopping

There is no doubt that GameFi has become the blue ocean field of the blockchain industry, and the popularity of individual head chain games has ignited the madness of the entire GameFi track.

According to statistics from Dappradar, BSC became the most active public chain with 65.8w independent users in July. The number of daily active wallets for some public chain blockchain game interactions increased by 1082% year-on-year.

The emergence of GameFi has benefited from the maturity of DeFi and NFT technologies and products. NFT introduces differentiated assets based on scarcity to DeFi, and DeFi also endows NFT with commercial value through financial means. The combination of the two brings new vitality to on-chain games.

With the further popularization of the Metaverse concept, the research results of various major companies on the basis of the Metaverse concept have been implemented one by one, and the ” Internet +” will inevitably be replaced by the “blockchain +” with more clear rights.

The same is true for the game industry. The determination of game assets, props, and equipment can completely affect the global game industry. From the perspective of players, GameFi has realized independent transactions, completely improved the traditional game model, broke barriers, and created new feelings and new values. It will be the next frontier in the game industry.

According to the NFTGO platform data, 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%. GameFi still has considerable room for growth.

The perfect combination of NFT and GameFi makes GameFi more than just games. Maybe one day we will see people collect, trade, and give away in the form of games, and manage money, save, and shop in the form of games.

At present, global art sales are basically stable at around 60 billion U.S. dollars, and growth is slow, while 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.

Therefore, GameFi’s market structure is actually different from other areas of the blockchain industry. Just like Metaverse and the Internet, GameFi is a master of blockchain technology, and the future is full of huge space.

summary

Of course, it is currently in the stage of barbaric growth in the GameFi industry. It is a common phenomenon that the overall quality of the market is low, and it cannot be avoided without further breakthroughs in technology and concepts.

But in the long run, through the window of GameFi, we can get a glimpse of the alluring aspects of this virtual world, such as open interconnection and value sharing. The more inclusive GameFi has a clearer future.

END

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-prototype-of-metaverse-business-this-article-explains-the-attack-road-and-development-prospects-of-gamefi/
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