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The interesting story about the birth of the coin “under Bitcoin but over ten thousand other coins” will take you certainly by surprise because Ethereum cryptocurrency is created from Vitalik Buterin’s inhibitions with centralized game publishers - World of Warcraft. That’s the reason that he became a decentralized virtual product publisher and created Ethereum Blockchian and NFT.
After this interesting story, we can understand that the problem of the traditional Games is the reason for the birth of GameFi because GameFi opens the door for the most perfect association of Game and Blockchain and is ready to take the place of traditional Games.
Let us help you to dig deeper into GameFi and answer the question “Why is GameFi the future of the traditional Game Industry”.
What is GameFi?
What is GameFi?
GameFi (ie Game Finance), simply understood game finance. It refers to a business model focused on P2E (Play To Earn, earn money while playing games), which has attracted wide attention from the outside world due to the explosion of blockchain game Axie Infinity in the early stage. Following the explosion of Axie Infinity is the birth of hundreds of projects such as Decentraland, The SandBox, Star Mons, Binemon, CryptoZoon,...
The core value of GameFi
's core value is to return ownership of game digital assets to players, solving the problem of mutual trust between game makers and players.
GameFi and DeFi have many similarities. For example, in Uniswap, users earn UNI by granting liquidity and receive fee shares as rewards, while Binemon players receive rewards which are converted into real money through game battles. As rewards for Binemon players, it is equivalent to replacing “liquidity mining” in DeFi with the “playing and mining” method in GameFi.
Furthermore, in addition to making money by playing games, GameFi has more lasting significance in that it provides a rare window for real-world users to see the come to life.
Why does GameFi become the future of the traditional Game Industry?
Why was GameFi created?
Amidst the complicated developments of the Covid pandemic, the GameFi trend has exploded as a means of livelihood for people around the world. was created to satisfy people's needs: entertainment and making real money.
The value of the worldwide gaming market has increased significantly over the past decade and is forecast to reach the $200 billion mark by 2023. The total capitalization of the NFT market increased from $338 million from the end of 2020 to the landmark of $22 billion in 2021. A huge part is being focused on games, blockchain-based gaming industry has huge potential in giving gamers many opportunities to increase their income.
Why is GameFi NFT becoming the future of traditional gaming?
GameFi NFT increases the right of ownership for in-game assets, player is owner:
For traditional games, the host companies are the ones who hold the full control. Gamers invest a lot of money from in-game trading but never fully own the item. That causes pain for gamers when the items in the game are always under the complete control of the game owner.
Fairness and transparency in GameFi NFT
Virtual props and in-game fairness in the game world are key for players to be able to play fair games on the same platform. Before the advent of blockchain games, the fairness of the game could hardly be unaffected by the gain probability, and the hidden performance (lucky value) would not be public and transparent. Blockchain games can fully reveal all properties and probabilities. For example, the success rate and difficulty in Battle in PVP, PVE playmode of Binemon can be revealed and expressed as specific values.
Virtual asset security in GameFi NFT
The potential dangers of virtual game security are due to the higher the value of the game, game props, equipment, and even accounts, the more easily hacked. The blockchain game is built on the public chain. The distributed structure of the blockchain can effectively resist hackers. The more active the public chain is, the less likely it is to be tampered with by hackers and the higher the security of the virtual assets.
Apply Play To Earn business model:
In fact, we always consider gaming as a kind of inadequate business, but if we change our mind, when we humans enter the Internet world comprehensively, when the era of super universe arrives, the Internet world is the real world of our other half. Then play the game in this world for money or earn money through some of the scenes inside. Entertainment plus money, then this form of behavior will become a very normal behavior, just like we can earn money through some interesting activities in real life, there are some occupations like this.
GameFi is the inevitable result of the development of DeFi and NFT. Its value lies in allowing participants to enjoy the fun of the game while being able to derive real benefits from it. Compared with the traditional game "Recharge to play", GameFi is "Play to earn money", the former is to spend money to recharge and then play the game, the latter is to earn money while playing the game, the difference that the game This brings can be described as revolutionary. GameFi has also given NFT more practical value through game settings. The NFT items inside are not only items for sale on the NFT trading platform, but can also be traded directly on the in-game market, and the whole trading process is simpler than a traditional game.
GameFi does not need to provide liquidity, but it is necessary to purchase in-game props and spend a certain amount of time and energy in the game playing the game, and then reward the corresponding token. This token can be understood that the achievement is the initial equity of the game company. In essence, it is money to pledge your property and then give you a space of possible value.
Conclusion:
Through detailed instruction to the concept and the advantages of the GameFi NFT, we firmly believe that the investors have basically mastered GameFI NFT. Currently, NFT is used in more games and games owned by players. Items can also be exchanged and entire game records can be transferred, which improves player authenticity and enthusiasm. Moreover, NFT is widely used in different situations and can also be used for identity verification and document recording, which greatly improves living standards. In general, the development of GameFi NFT has unlimited possibilities,which stimulates investors to take a long-term view, and have a strategy to invest carefully and avoid risks.
