Where is the low-key take-off GameFi, which is catching up with Metaverse and surpassing NFT?

Playing games can support the whole family. Where does GameFi, the savior of the unemployed, win?

In 2020, in the northern part of Manila (MANILA), Philippines, in Cabanatu City, New Ecija Province, an unemployed young man named Art Art stumbled upon a blockchain game called Axie Infinity. He used 15 days to make money. 20 dollars, but it means a lot to him.

Due to the impact of the epidemic, the Philippines’ GDP will shrink by 9.6% in 2020, which is the largest annual decline since 1946. At the same time, according to research findings, the latest lockdown of the epidemic affected approximately 26 million Filipinos-close to a quarter of their total population. The continued economic downturn has caused countless Filipinos to lose their jobs and even unable to guarantee their basic lives.

Driven by Art Art, more and more locals join Axie ’s games, including the 75-year-old shop owner and his 65-year-old wife: “When I’m in the shop, I’m playing. Even if I If I lose, I will play as well. I hope Axie can keep playing.”

Where is the low-key take-off GameFi, which is catching up with Metaverse and surpassing NFT?

 (The picture shows the elderly players of Axie)

” For cryptocurrency investors, getting 300 or 400 dollars a month may not mean much, but for these people, it means the whole world. This is the food on their table and the life-saving for their families. Money, and when they can’t leave home to make money during the epidemic, Axie can save them.” said Gabby Dizon, the Filipino co-founder of mobile app development company Altitude Games.

Don’t underestimate the 300 US dollars per month, it has exceeded the average monthly salary in the Philippines. Good players even bought a motorcycle, changed a new phone, bought a piece of land, and even bought a few houses.

Axie not only saved Filipinos who had no source of income, but also greatly improved the original lives of some people.

Where is the low-key take-off GameFi, which is catching up with Metaverse and surpassing NFT?

Where is the low-key take-off GameFi, which is catching up with Metaverse and surpassing NFT?

(The picture shows a full-time Axie player)

Axie Infinity is created by Vietnamese startups Sky Mavis, is an Ethernet Square decentralized applications on the block chain, in which players can breeding, feeding, fighting and trading digital cute little animals called Axies of.

The biggest highlight of this blockchain game is that it can make money. This “Play to Earn” model is exactly the core value of GameFi.

GameFi favored by capital

In 2019, at the Wuzhen Blockchain Conference, Mary Ma, Chief Strategy Officer of MixMarvel, proposed the concept of GameFi for the first time. The so-called GameFi is the integration of NFT (non-homogeneous tokens) and DEFI (decentralized finance) into the game. It is a form of gamification of DEFI rules, NFTization of game props, and realizing wealth through playing games.

Unlike the meta-universe where people frequently “add firewood”, GameFi has not caused the public platform of the super giants since its appearance until now, nor has it caused too much topic traffic. The only thing that people talk about is the success of Axie Infinity ( Its single-day income is more than twice that of “Glory of the King”), but capital will not deceive people, they always stick to the favorable end.

In October, Sky Mavis, the production company of Axie Infinity, announced that it had completed a B round of US$152 million in financing, led by Silicon Valley venture capital firm Andreessen Horowitz; in November, the blockchain sandbox game The Sandbox completed a US$93 million financing. SoftBank Vision Fund 2 led the investment.

According to statistics from Blockchaingamer.biz, as of now, the total investment in the field of blockchain games has exceeded 1 billion U.S. dollars. The total investment in 2020 is 72 million U.S. dollars, a year-on-year increase of approximately 39%. Among them, a16z, Coinbase Ventures, Dragonfly Capital (Dragonfly Capital), DAO Maker , LD Capital, Metrix Capital and other investment institutions have participated in the investment, and Sequoia China and Ma Yun and Cai Chongxin’s family wealth fund Blue Pool Capital have also entered the market.

“Gamefi will lead the next block chain era as strong as Defi, and WINkLink and APENFT Foundation will all in this new outlet.” The release of this tweet also announced the founder of TRON. Justin Sun officially entered Gamefi.

Where is the low-key take-off GameFi, which is catching up with Metaverse and surpassing NFT?

On one side is the enthusiasm of capital to enter the market, and on the other side is the continuous influx of registered users. The daily transaction volume is constantly refreshing. The total market value of GameFi has been pushed to a new height in the near future, completing a breakthrough in the $100 billion mark. .

GameFi’s excellence

It can make a lot of capital optimistic, Gamefi must have its advantages. Compared with traditional games, the innovative form of Gamefi is indeed worthy of our careful consideration. The following summarizes the reasons for the popularity of Gamefi:

First, P2E mode (Play to Earn). In GameFi, the user’s assets in the game can be monetized. Compared with traditional games, the chain game allows users to no longer just be the sheep who are stalked by the platform, but to make users become stalkers. This kind of role change , So that users feel extremely comfortable. In the post-epidemic era, this feature gives people in countries with continued economic downturns to see hope. Just like the beginning of the article, it is not a problem to support their families on games. The P2E model is the fundamental reason for users to adopt Gamefi.

Second, the rule maker. In traditional games, users are always the passive group of people, and the game company is the game rule maker. They can change the game at will, manage game props, and even close the game at will, allowing users to buy it at a high price. “Game assets” were wiped out in an instant. But Gamefi is different. Its essence is the distributed management of the blockchain. Every user is a builder. They can participate in voting whether to upgrade and modify the game. This feature is very important for experienced players, especially When the game is tied to money.

Third, eternal assets. As mentioned in the previous article, the game assets in traditional games are ultimately determined by the game developer. When the game is alive, they are just one-time consumer goods you buy. After the game dies, they become worthless. However, Gamefi’s game assets can be traded in the secondary market at any time, and can be directly turned into money. If a good game is distributed, the liquidity of the assets will be good.

Fourth, the entrance to the meta universe. It must be admitted that GameFi is indeed an important entry point into the meta-universe, which is also one of the reasons why investors are optimistic about GameFi. It comes with the attributes of the virtual scene, which just fits with the second parallel space of the meta universe. It can perfectly combine technologies such as VR/AR and NFT. Tencent and ByteDance entered the meta universe by investing in game development platforms Roblox and games respectively. Developer code universe.

Fifth, lower the threshold. GameFi is more biased towards Defi between Game and Defi (decentralized finance). It successfully simplifies the complex Defi logic in the way of games. It lowers the threshold for people to participate in Defi, considering the confusing and confusing chain games. Playability is worse than simple financial attributes.

Games built on the blockchain are essentially different from games built on the Internet. The distributed storage method of the blockchain, open and transparent data information, secure and encrypted private content, and “rewards” for contributors “They have become the weight of GameFi competing with traditional games.

Embarrassing reality

Back to reality, even though GameFi is gaining popularity, its million-level user base is nothing compared to the global 2.7 billion gamers. Its monthly income of more than 300 U.S. dollars is also insignificant. It’s just that it is more attractive to economically backward areas, because in addition to making money, the playability of chain games is really hard to explain. What is more embarrassing is that its underlying logic seems to be built in the Web1.0 era.

Take Cryptokitties as an example. This chain game caused quite a stir in 2017. It is actually a cat-growing game. Each cat is an NFT, and the most expensive cat can be sold for 115,000. US dollars, the event that made it famous is that it caused super congestion in Ethereum. According to statistics from netizens, there are nearly 20,000 transactions on the road in a period of time, which makes people seem to see the Ethereum version of the expressway during the 11th long holiday.

Speaking of this, I have to talk about the transaction patterns on the blockchain.

TPS (Transactions Per Second) is the number of transactions processed per second. It is an important indicator used to visualize transactions on the blockchain. Bitcoin’s TPS is only 7, while Ethereum is slightly better. TPS is about 10-20. , And the centralized Alipay has a peak TPS of 650,000 in 2020.

What concept? If a restaurant can accommodate 20 tables of guests at the same time, if many people come to eat at the same time, then I’m sorry, I can only wait in line.

At this time, the store depends on your sincerity. Those in the queue who give more tips will have the priority to eat. This is Gas (a benefit fee for miners). The congestion of Ethereum has also caused a substantial increase in Gas.

Congested TPS and high gas have become two important factors hindering the development of chain games. No matter how well your game is done, if you end up blocking a highway on the realizing road, then you can only Game Over.

The sharding technology and the proposal of Layer 2 will be able to completely change the current status quo.

Fragmentation technology is a traditional concept expansion technology based on dividing the database into several fragments. It changes the original one toll gate into N toll gates. Simply put, it adds crossings and can process multiple transactions at the same time;

Layer2 is another road built under the original highway (Layer1). We refer to the public chains of Bitcoin and Ethereum as Layer1. They are mainly responsible for security, consensus, decentralization and other functions. Layer2 handles transactions, which is simple In terms of division of labor, to improve efficiency.

Of course, it is not easy to achieve these two directions, so everything that happens on the blockchain is directly related to the development of the underlying technology.

At present, we can alleviate the congestion of one road by building multiple highways. With the advent of public chains such as Flow and Bsc, more chain games have chosen to break away from Ethereum, but too many roads may bring New problems, so the status of the boss of Ethereum cannot be shaken. It is the kingly way to solve the problem fundamentally.

The future of GameFi

In the blueprint drawn by the meta-universe, it is another real world. It rebuilds the world based on current technology. You can gain identity, friends, immersion, low latency, diversification, anywhere, and economic system in it. And civilization.

According to a research report by Guotai Junan, there are currently four basic characteristics that satisfy the meta-universe, among which the establishment of the economic system is completed by blockchain games.

We don’t seem to worry too much about the experience that GameFi will bring to users in the future. After all, with the development of VR and AR software and hardware technology, the progress of 3D digital content manufacturing technology, visual effects, user experience, sense of participation, independent creation, social mode, etc. Innovative, GameFi will continue to meet the higher-level experience needs of users, but it is up to the underlying technology to decide which step it can develop.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/where-is-the-low-key-take-off-gamefi-which-is-catching-up-with-metaverse-and-surpassing-nft/
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