In the summer of 2021, the rise of blockchain games and the success of the P2E (Play-to-Earn) model make GameFi the most watched track at the moment.
Since the beginning of this year, the NFT game project has developed rapidly, and the transaction volume of several popular games represented by Axie Infinity ushered in explosive growth in June and July. At the same time, many game projects have also won the favor of capital. According to Blockchaingamer.biz’s blockchain game investment list statistics, as of August 2021, the investment in the blockchain game field has reached 1.1 billion US dollars, far exceeding the total investment of 72 million US dollars in 2020.
The current grand occasion seems to be developing as predicted by Andre Cronje (the founder of Yearn.finance) in September last year, “DeFi monetary policy has become gamified, and your funds have become tools used in DeFi games. Next we will enter GameFi”.
So what exactly is GameFi? What are the items on this track worth paying attention to? How can users participate? This article will answer you one by one.
What is GameFi?
GameFi is not actually a newly created concept. According to data, in the second half of 2019, Mary Ma, Chief Strategy Officer of MixMarvel, first proposed GameFi, or Game Finance, in a speech at the Wuzhen Summit at the time. Simply put, GameFi refers to the presentation of decentralized financial products in the form of games, the gamification of DeFi rules, and the NFT of game prop derivatives. One of the most notable features is that the user’s assets have become equipment or tools in the DeFi game. In turn, the user can obtain income or rewards during the process of participating in the game.
The concept similar to GameFi is NFTFi. At that time, many liquid mining projects represented by MEME introduced NFT, which pushed up a new wave of DeFi craze. However, the “drawing card” gameplay is inevitably a bit monotonous, without too high technical content and experience, so that the NFTFi popularity does not last long. And now GameFi= DeFi+NFT+games, DeFi is still the core of GameFi, NFT is a necessary means of decentralization, and games are the shell of GameFi.
At present, most of the DeFi game play methods mainly include role-playing, virtual space, nurturing combat, and multiplayer construction. In terms of liquidity compared to the previous mining mode, GameFi project in interactivity with the user’s experience and a stronger sense of immersion, the same time also have more fun , for example, many games will be carried out using the NFT small pets Breed, use NFT equipment to improve skills, pledge NFT to gain income, or introduce a PK battle mode, participate in battles, and complete tasks, so that users can make money while playing games.
P2E is the biggest highlight of the current GameFi project, which is to make money while playing. Compared with the traditional game “Deposit to Play” or “free to play”, this difference is revolutionary. Players can develop incubation and upgrade to fight monsters in the game. Not only can they get the pleasure of playing the game, but they can also sell the tokens, equipment, props and other NFTs they obtain in the trading market to obtain income.
The head of the GameFi track
There are many types of GameFi projects at present, but they can be roughly divided into two modes. One is to give gamification functions based on the traditional liquid mining mode. Such games usually require users to pledge tokens or project NFTs before they can start. Game; the other is to directly transform the entire game process into a mining mode, allowing users to play the game immersively, and the game props or NFT equipment obtained in the process can be sold for profit.
According to data from DappRaddar (August 18), the top 5 games in the past 30 days are Alien Worlds, CryptoBlades , Axie Infinity, Upland, and My DeFi Pet.
Ouyi OKEx has organized some GameFi projects, which are summarized as follows:
Some games have certain funding thresholds, such as Alien Worlds, Axie Infinity, etc. You need to purchase props or game pets (NFT) before you can start the game. If you consider the cost issue, players can also pay attention to some blockchains that do not require tokens. game.
How do ordinary users participate?
GameFi not only changes the traditional game world, but also gives DeFi, which has not been innovative for a long time, more new gameplay and opportunities. On the basis of integrating the fun of games, GameFi provides liquid mining and other methods, and has brought the popularity of the secondary trading market, bringing the possibility of more income to ordinary users.
So what are the ways for ordinary users to participate in GameFi?
1) Participate in GameFi games
First of all, users can experience participating in these GameFi projects. These NFT games can give players the opportunity to obtain corresponding token rewards, pledge rewards or props NFT based on different design mechanisms.
2) Invest in GameFi tokens
Different projects usually issue tokens that need to be used in their own games. You can choose some tokens for investment based on your own value judgment and interest preferences.
In addition to the blockchain game project itself, you can also pay attention to some institutions or teams that serve GameFi, and whether the distribution of tokens has investment value according to their development scale and prospects.
The current popularity of GameFi may be an inevitable product of the mature development of DeFi and NFT products. It is enabling the next generation of encrypted assets to simultaneously integrate financial attributes and fun and make it a trend, which is a blockchain game and even a blockchain world. Bring a new imagination.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-gamefi-what-are-the-items-worth-paying-attention-to/
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