Will Metaverse be the development direction of GameFi?

Both GameFi and Metaverse are among the most popular concepts in the crypto market in 2021.

The meta universe is a very broad concept, and many people think that it will be the focus of the human narrative in the next century. However, due to the immaturity of the current technology, although the meta-universe is favored by many capitals, it is still invisible and invisible. We can only get a glimpse of its truth in the movies “Number One Player”, “Out of Control Player” and other literary works. appearance. (Able to solve the interoperability of GameFi)

GameFi is one of the very specific directions of the encryption industry, and it is one of the four main trends in the development of NFT. The other three trends are: on-chain artwork and generative art, NFT avatar community, and personal works uploaded by traditional artists and photographers.

However, despite the rapid development momentum of GameFi, there are still hidden dangers and may affect the development of the entire sector in the future. And Metaverse will become a killer to solve GameFi problems.

GameFi solves the unsustainable problem of traditional chain games

In traditional games, although the game props and gold coins belong to us in name, the company often becomes a vested interest when judging the ownership. Tencent once sued the game “Dungeon and Warriors” account and gold coin ownership issues, its OTC transaction, Tencent believes that the game product “Dungeon and Warriors” account and the ownership of virtual items belong to Tencent, and players can only use it. right. Therefore, the player is more like a consumer than an investor.

In addition, there are also problems with interoperability between games. Although we can enjoy the role interaction between different games provided by the game developer Bizzard, all of its games are not interoperable, and the props of game A cannot be used in game B. This is a normal thing in the traditional game world.

And blockchain games are working to solve this. Previous blockchain games tended to focus on NFT collection and gambling track.

The initial form of chain games is NFT collection, and Cryptokitties has attracted a lot of attention. But after the carnival, Cryptokitties also left a place. Unsustainable gameplay caused Cryptokitties to be unable to capture liquidity and value over a long period of time, which is also doomed to the final downturn of Cryptokitties.

The gameplay of gambling is also unsustainable, lacking a large amount of liquidity support, and is essentially gambling in the cloak of chain games. These forms of games previously existed widely on EOS.

The emergence of GameFi is solving this problem-unsustainable.

GameFi is a combination of Game and Finance. Its real core lies in “Finance”, which is a sustainable economic system. Therefore, GameFi will derive a “play to earn” model. In essence, GameFi is a financial activity-a Finance activity that lowers the barriers to entry through the form of Game. If this economic system is sustainable, the game can survive for a long time.

Axie Infinity, the leading GameFi protocol, has emerged. In Axie Infinity, players can raise and breed Axie s, and let Axies participate in the battle. The winner can get Axie Infinity’s native token Smooth Love Potion (SLP). Similar to gold coins in traditional games, but SLP can be sold directly, and players can exchange them for other cryptocurrencies or legal currencies.

The economic system of Axie Infinity is driven by two core gameplays-breeding and fighting. On the value consumer side, players need to spend AXS/SLP to breed offspring, and AXS/SLP needs to be purchased on exchanges or AMM. On the value creation side, players can benefit from winning SLP/AXS through battle, and they can also benefit from selling Axies (NFT). At the same time, players can also get Stake rewards by staking AXS and participate in game governance. In the flow of value, Axie Infinity’s economic system has formed a closed loop, which means that Axie Infinity will continue to develop.

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What limits GameFi’s continued expansion?

If we observe the overall development of the GameFi sector, we will find that the faults in the GameFi sector are very serious and have formed a top-heavy pattern. According to statistics from Coingecko, only Axie Infinity ranks in the top 50 by total market capitalization. Although other GameFi protocols perform well, they are basically behind the 100th in total market capitalization. This is inconsistent with the innovation trend in the crypto market triggered by GameFi.

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Of course, this is not accusing Axie Infinity’s dominance in the GameFi sector. The success of Axie Infinity is the inevitable development of the crypto market. But if GameFi wants to succeed, it needs more innovation and the emergence of leading agreements.

The crypto market has never lacked innovation, and the same is true for GameFi. At present, many new games have emerged in the GameFi field. However, their development is still restricted by the following factors:

threshold

The encryption industry and DeFi operations are the first threshold. Access to gold channels and on-chain operations of wallets requires a certain learning cost, which is fatal to the entry of players outside the industry. However, this can be solved by simple learning. And then, players need to spend real money to participate in the game-which is unacceptable for many players.

Similar to pledged liquidity mining, we need to lock LP assets in smart contracts to obtain income, and GameFi is the same. But it is worth noting that the form of GameFi is slightly different from liquid mining. GameFi requires us to first exchange assets into game props NFT to participate in game activities.

The difference between the two causes a change in the player’s psychology. Players will start to worry that if the NFT cannot be sold, they will lose all their assets. Many players are reluctant to face such risk exposure.

Although mature GameFi such as Axie Infinity do not need to worry about this situation, their economic system has been successful, and more players willing to “play to earn” will continue to influx, but a new and unfamiliar game will be due to its economy. The problem of immaturity of the system has been questioned, and sufficient players and liquidity cannot be obtained to support the development of the game.

Performance and form

The performance of the public chain also restricts the development of GameFi. This is already an Ethernet Square, old problems, scalability and confirm the time restricted the number of players increase. However, with the introduction of high-performance public chains such as BSC, Solana, and Avalanche, performance and cost issues are gradually being resolved.

However, it is worth noting that due to the problem of the blockchain architecture, many game formats are not suitable for deployment on the traditional Layer 1 public chain, and the limitation of previous financial thinking has led to the fact that most of the current blockchain game formats are very simple and cannot be used. The player presents a deep and interesting game world.

For players, such games are very easy to cause aesthetic fatigue.

However, technical problems can be solved in technological development. Just like the Ethereum side chain built by Axie Infintiy, some public chains focused on carrying blockchain games have begun to appear. The KardiaChain and WAX blockchains equipped with chain games such as My DeFi Pet, AlienWorlds and Thetan Arena have gained a certain user base.

According to the statistics of KardiaChain Explorer, there are currently more than 34 addresses on KardiaChain, and the number of transactions exceeds 14.83 million.

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The number of accounts on WAX has exceeded 6.94 million.

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How does Metaverse empower GameFi?

As mentioned above, technical problems can be solved by technical means, while the problems of liquidity and the number of players need new forms of empowerment to solve.

Judging from the current gameplay and form of chain games, Metaverse is a concept that is very suitable for empowering GameFi. And many chain games have also begun to move closer to the meta universe.

For example, the GameFi protocol Copuppy hopes to gain a certain degree of market attention by launching the dog universe and catching the wind of the meta universe. Sandbox is also taking the route of the meta-universe, where players can transform every piece of land and build their own kingdom. However, it should be noted that the “meta universe” introduced by a single agreement is only nominal, and their size cannot support the world view and liquidity of the meta universe. Many agreements have begun to accumulate money under the name “Meta Universe”. This point requires our attention and diligence.

So, how will Metaverse empower GameFi?

We can imagine the existence of a meta-universe that can accommodate a large number of games, and this meta-universe supports developers to create games in it.

Interoperability

All games in this meta-universe can achieve interoperability-only an efficient NFT market can be achieved. At the same time, thanks to the support of Metaverse, games can also complete linkage-different characters can play other game worlds. Just like the children’s movie “Invincible Destruction King”. We can understand this as that Metaverse supports the interoperability between NFT and games.

It is conceivable that if there is a decentralized Bizzard in this meta-universe, we only need to purchase a character NFT to play “Overwatch (FPS first-person shooter)” and “Heroes of the Storm (MOBA multiplayer online battle arena) Game)” Two games, the gameplay of the two games is completely different.

fluidity

The liquidity mentioned above has also been resolved. In the meta-universe, after achieving interoperability, we will look at liquidity from a holistic perspective. We don’t need to buy new characters and props again before playing a new game. By using the original NFT assets, we can easily participate in the new game.

With the development of the metaverse, universal NFTs will appear. With the universal NFT, we can enjoy most of the game services of Metaverse. This means that when new games are launched, they will get an initial liquidity. If the game is good enough, the liquidity will present a positive feedback loop.

Therefore, there will be more high-quality games in the meta universe itself, and more liquidity will flow into the meta universe.

Rich game form

Whether the game is fun is also the focus of our attention.

Although the focus of GameFi is Finance, “play to earn” itself is only a financial act and cannot promote the influx of a large number of game players. In the ranks of “play to earn”, most of them are speculators or gold miners who come to make money because of the regional economy. Therefore, the “play to earn” model will prevail in Southeast Asia.

Web3.0 is an open world. We must not forget to rely on financial profit to attract everyone to join. Many people value not the economic benefits that can be brought to them by playing games. The game experience will determine the number of players. The vastness of the meta universe can fully support game developers to build various games on it, so as to provide players with a rich gaming experience.

Concluding remarks

However, the current technical support is still unable to support the operation of a huge meta-universe. At the same time, NAVEEN JOSHI wrote in “Why is it that people’s expectations for the immersive virtual world of the metaverse are both beautiful and absurd?” “It is mentioned in the article that Metaverse intends to introduce all the positive aspects of the real world into the virtual world, but it will also bring about data security, privacy and legal issues.

The road in the future will be long and difficult. We can only imagine how wonderful the linkage between Metaverse and GameFi is, but the specific realization path still needs us to explore and work together.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/will-metaverse-be-the-development-direction-of-gamefi/
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