Why does GameFi need NFT? Reinterpretation from the perspective of meta-universe

No matter what you think of the GameFi boom that Axie Infinity has set off in recent months , some may think it is a product of a new era with great transformative significance, or some may think that it is still a silly game, but what I have to admit is this In the summer, GameFi has become a popular concept in the crypto market. In the previous article “Analysis of the relationship between Metaverse, NFT and GameFi” by OKEx Academy, we briefly analyzed the relationship between GameFi and NFT. In this article, we will further discuss GameFi and NFT on the basis of the previous article. In a deeper connection.

What was the game industry like before the emergence of NFT?

Before we formally discuss “Why GameFi needs NFT”, we might as well take a step back and take a look at what position the game industry occupies in today’s economy and society. And before the large-scale application of NFT, how did the game industry operate? What needs to be improved?

In the paper “Economic Analysis of China’s Online Game Industry” published by Shi Hexin, School of Economics, Central University of Finance and Economics, there is a statement: “The online game industry can now be regarded as one of the national pillars of a country. Development determines whether a country can promote the modernization process and the development of the capitalist economic process. In the prevailing stage of the market economy, the development of national interests is inseparable from the rich benefits generated by the online game industry. It is like a link, online games The development of e-sports platforms affects the development of the interests of e-sports platforms, and the development of the interests of e-sports platforms affects the development of the national economy.” Moreover, on the Wanfang data knowledge service platform, the number of research papers on the game industry alone has reached nearly five thousand. Articles, and most of them were published after 2010. Here we will not comment on the viewpoints in Shi Hexin’s paper for the time being. Just from the increasing attention paid to the game industry in the academic world in recent years, we can also get a glimpse of the increasing importance of the game industry in today’s economy and society.

So in the field of actual production and consumption, how does the game industry perform? According to data compiled and released by the Prospective Industry Research Institute, between 2015 and 2020, the global game market compound growth rate (CAGR, that is, the continuous growth rate in a few years) reached 13.4%, and the global game market will reach 164.6 billion in 2020 The U.S. dollar is expected to reach 196 billion U.S. dollars in 2022, reaching the 200 billion U.S. dollar mark.

Why does GameFi need NFT? Reinterpretation from the perspective of meta-universe

The market scale of the global game industry from 2015 to 2020, source: Qianzhan Industry Research Institute

In addition, according to the “2021 Global Game Market Report” recently released by Newzoo, the current global game player group is close to 3 billion people, and due to well-known reasons since 2020, the number of game players is still growing. situation. In addition to the continuous increase in the number of game players, the changes that have been quietly taking place in the game industry in recent years are that the way game players spend their leisure time has become more and more complicated. This objectively proposes to the producers of the game industry. To meet higher requirements, but on the other hand, it undoubtedly provides GameFi with an excellent opportunity for corner overtaking.

Why does GameFi need NFT? Reinterpretation from the perspective of meta-universe

Distribution of global gamers in 2021, source Newzoo

As long as you have a little understanding of the game industry, you can know that the current game market participants present an obvious dualistic structure-upstream producers and end consumers, both of which are insurmountable on the issue of benefit distribution The gap. Specifically, upstream producers mainly include game developers and other IP owners, game publishers, game distribution channels, etc. Some market participants play multiple roles in the industry value chain, and in some cases participate at the same time In the game development, distribution and distribution links, they dominate the development of the game industry and at the same time occupy most of the profits created by this industry. The end consumers, that is, as many as 3 billion game players, are one of them. On the one hand, it provides a steady stream of capital investment for the game industry. On the other hand, it is difficult to a large extent to have real ownership of the production materials such as accounts, equipment and props obtained by spending time and money in the game. This status quo It’s hard to call it fair. This is the first and most important problem to be solved by GameFi and NFT.

NFT helps GameFi, deeply transform the game industry

With the gradual improvement of the global situation, people have begun to truly feel the changes that have taken place in the entire world over the past year or so. The most prominent point is that as online communication has penetrated into our daily lives more and more during this period. And every corner of our work, we accidentally discovered that many things in the real world that originally required offline contact can actually be solved very well through online methods. Reality and virtuality do not seem to be and need not be so. Clear boundaries. In the crypto market, the concentrated reflection of this change is the rise of Meta Universe and GameFi.

More importantly, once this trend starts, it will have an irreversible impact to a certain extent, because in this process, the meaning of the game is also quietly changing. From what we have observed so far, games have gradually changed from pure recreational attributes to multiple attributes such as entertainment and social interaction. As the game scenes brought by GameFi become more three-dimensional and personalized, digital virtual characters are becoming an important part of people expressing themselves and highlighting their individuality. At the same time, starting from this dimension can also help us better understand why NFT avatars It can continuously surpass people’s conventional cognition and refresh transaction records. Whether it is GameFi or NFT avatar, the reason why it has been generally favored by the crypto market in the near future is essentially an extension of the unique and personalized social needs in the real society.

Let us focus on GameFi again. In the previous article, we mentioned the current contradiction between game producers and consumers in the game industry. So how does GameFi solve this problem? Here we have to introduce the important role of NFT in it. With the help of NFT, every game item obtained by game players in the game (whether through purchase or through gold) has a unique, non-counterfeit, and irrevocable “identity authentication”, which greatly facilitates players The process of confirming the rights to the props and equipment that you own. In other words, with NFT as the underlying technical support of GameFi, players can control all the ownership and disposal rights of their game props, and it is even expected to realize the transfer between different games.

Take Axie Infinity, a typical representative of the GameFi field, as an example. In the game, each Axie elf obtained by the player is unique and completely belongs to the player, whether it is the developer, publisher or other player of the game. It cannot be obtained illegally without permission. Of course, the most important point is that, unlike the current situation where producers take most of the profits in the current game industry, about 95% of Axie Infinity’s operating income is allocated to players, and most of the games on other GameFi tracks also The profit is distributed to the players, the only difference is that the proportion of shares is slightly different. Before the rise of NFT and GameFi, such a situation was simply unimaginable, but after NFT, the issue of trust between game players, developers, and publishers and the issue of balance of interests appeared more imaginative solutions. In the plan, the two parties are no longer a simple relationship between producers and consumers, but tend to establish a more equal and harmonious relationship. In this transformation process, NFT has made great contributions. From this point of view, GameFi and NFT are undoubtedly subversive to the real business model of the game industry.

From the data point of view, according to official Axie Infinity news, at the beginning of this month, its daily active users have reached 993,000, which is only one step away from millions of users. According to the statistics of tokeninsight, the market value of the current Axie Infinity governance token-AXS has reached 4.308 billion U.S. dollars, ranking 41st in the crypto market, with transaction volume exceeding 634 million U.S. dollars within 24 hours. From the above data alone, it is hard to imagine this. It is a game that has only been in existence for less than a year, and this just reflects the booming momentum of GameFi.

Concluding remarks

At present, pioneers in the Internet industry, including the encryption market, have paid unprecedented attention to the meta-universe. Although everyone cannot describe a clear meta-universe scene, it is certain that GameFi, DeFi, Web3.0, etc. Elements must be an important part of the future meta-universe. So let’s imagine how to become a more critical link in the meta-universe? In other words, in the world of Metaverse, what will be the core competitiveness? From the topic of GameFi today, a preliminary answer we can give here is: attention.

Undoubtedly, from the past to the present, and then to the future, the information received by everyone is increasing exponentially. In this case, attention will inevitably become a scarce resource. Who can attract more attention, who can become an important traffic portal for the meta-universe world. In this battle, the game world built by GameFi based on similar scenarios and gathered a large number of players can give The unprecedented social and interpersonal experience brought by humans cannot be achieved by any kind of TradeFi or other media, and it is also irreplaceable. Therefore, in the future, the integration of NFT and GameFi will have a high probability of building a positive cycle, forming an upward spiral of “because good, so better”.


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-does-gamefi-need-nft-reinterpretation-from-the-perspective-of-meta-universe/
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