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What is GameFi? The game of the future can actually make money while playing?

Dec 27, 2021

With the invention of smart phones, mobile games have allowed the video game industry to grow explosively. Coupled with the epidemic, the game industry has also been boosted. At the same time, the game industry on the blockchain has also begun to rise. This game industry Players can make money while playing (Play to earn), so that players can get substantial and immediate returns for their time and energy. This kind of game is based on the decentralized financial industry on the blockchain, so it is called GameFi.

What is GameFi

GameFi is a word composed of Game and Finance. It is called gamified finance in Chinese, which refers to the gamification of decentralized financial products. GameFi, like DeFi , is a decentralized finance built on the blockchain, but GameFi integrates finance into the game. The props in the game are NFTized, so that the player is the only owner of the props. When the props are valuable, others will use tokens to buy the NFT props, and the tokens are all circulated in the cryptocurrency market and can be exchanged for cash.

The well-known Alice coin before is a similar game cryptocurrency. The name of this game is My neighbor Alice. It is a bit like an animal forest friend club in the encrypted world. Players can use Alice coins to buy land, houses, pets, etc. etc., you can also create your own game props to bind NFT and sell them in the market. When more people play the Alice coin in this game, the higher the circulating coin price, players can put the Alice coin on the cryptocurrency exchange, such as selling it and converting it into cash.

The difference between blockchain games and traditional video games

The blockchain game is decentralized, and the game itself does not belong to any development. The operation of the entire game is organized by users to develop and support each other.
Traditional video game developers independently develop all equipment to sell, so only developers can make a profit. In blockchain games, users win NFT equipment and do business in the game, which can make all players profitable. It also achieves the possibility of decentralized finance.

How GameFi Works

Then there may be questions about how GameFi's financial system works? In fact, it is to combine the liquidity mining in DeFi with the game, so that players can achieve the effect of mining as long as they provide capital flow or time. The combination mode is mainly divided into two types. One is to build liquidity mining into the game foundation, allowing players to obtain NFT items or equipment in the process of the game, and then earn profits by selling NFT items. The other is that players must pledge game tokens or NFTs to start the game, so liquidity mining is provided by staking tokens.