GameFi — New gaming model, A whole new big bang

It is not difficult to imagine GameFi taking increasingly bigger bites out of the global video games market worth $175 billion. Soon it will be taking over the traditional game.

As cryptos rock the internet world and continue to be a global phenomenon, people start to looking a way to incorporate this revolutionary technology into their industries. Online gaming, in particular, has become a breeding ground for exciting innovations in this space. Dev communities incredibly inventing new methods to leverage cryptos to buy and trade in-game products, cosmetics, collect characters, and even more.

According to a 2020 research, the global gaming market was estimated around $173.70 billion USD, and is predicted to reach $314.40 billion USD by 2026, with a CAGR of 9.64% between 2021 and 2026. In fact, top video gaming companies like Sony, Tencent, Nintendo, and Microsoft, each having gaming revenue of over 10 billion dollars. And leading the chart is Sony with $25 billion USD of revenue.

While COVID-19 brought great impact to every single industries and 2020 shut down the economy, video gaming industry was one sectors that experienced an unexpected boom. People staying inside and looking for several way to entertain, video game is booming more than ever.

BUT WHY CRYPTO GAMING — GameFi?

Traditional game makes players pay moneys to buy equipments, get more lives, continue playing higher levels, or even to start the game. With crypto game, players can actively engage in real commerce with digital access and receive profits from various actions, such as completing tasks or generating revenue from their assets within .

Players can collect and trade virtual assets that sure can be exchanged and traded worldwide. Not to mention it is secure and simple.

Spending your time and effort, while being entertained and earning cryptocurrencies at the same time is undeniably tempting. Who would say no? The crypto game is clearly taking over the traditional game, since it allow players to earn while playing.

WHEN IT ALL STARTED

Some of the concept that is easier to relate to GameFi is World of Warcraft, SIMS, and FIFA. They are all having incorporated buying in-game tokens, and CryptoKitties was using blockchain technology back in 2017.

The true is the term GameFi became more popular in 2020 by the founder of Yearn.finance, Andre Cronje. The concept evolved from mere in-game tokens to full incorporation of DeFi. With its progression and major gains in popularity, GameFi is proving that DeFi offers more than simply rebranding existing financial projects as crypto, showing that it has the versatility to be applied in different sectors.

GET TO KNOW GameFi

GameFi is the start of virtual reality through cryptocurrency. Simply, it is when you mix “games” with the concept of “finance”. So how GameFi applications are structured?

  • Play2Earn (play-to-earn): Play2Earn allows for players to earn assets within the game. Unlike a normal game, however, these GameFi finances are transferable to the tangible world through cryptocurrency trades. By participating in the game’s ecosystem and using their native coins, players will benefit the developers and the other players. The more popular these games become, the higher their tradable value. Meanwhile, the more players earn in the game, the more they can sell their coins for. Popular GameFi tokens listed on the CoinEx exchange have increased in value by up to 400%, proving that there really is a lot to be earned here.
  • Non-fungible tokens (NFTs):Many GameFi games use NFTs as characters or assets (potions, weapons, animals, houses, etc.), which in turn leads to an additional outlet for rare NFT design or trading. These NFTs can then be traded on ECOMI’s VeVe platform, thereby leading to a whole new gaming and collector market.
  • Native tokens: In order to run the games, distribute rewards, and maintain the value of GameFi projects, each game uses its own token. Some, like Axie Infinity, even use two tokens — one for governance (Axie Infinity Shards (AXS)) and one for rewards (Smooth Love Potions (SLP)).
  • DeFi features: As well as offering Play2Earn income features, some GameFi projects offer passive incomes. These come in the form of DeFi features, including staking, yield farming, and liquidity mining.
  • Blockchain technology: GameFi games were originally built on Bitcoin’s blockchain, however, with expansion and increased complexity it has become necessary for them to move to blockchains based on building with DApps, such as Ethereum. The issue here, however, is that Ethereum’s fees remain high, and it favors security and decentralization over speed — and speed is essential in gaming. Thus, many GameFi applications are found on faster blockchains, such as Wax and Solana.

TO WRAP UP

More than 2.7 billion video gamers worldwide are familiar with digital items, tokenization and in-game currencies. Moreover, GameFi brings appealing game stories, themes, missions and other elements to inspire players to join and produce value while being entertained. Blockchain technology empowers these gamers in a way that has clear benefits — both financially and in terms of a title’s development.

It is not difficult to imagine GameFi taking increasingly bigger bites out of the global video games market worth $175 billion. Soon it will be taking over the traditional game.

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The Nowl Age is an NFT gaming ecosystem aiming to build a vast Fantasy metaverse living on Block Chain.