GameFi, like any other blockchain-based innovation, is shaking up the traditional online gaming sector. GameFi is revolutionising online gaming by combining DeFi, NFTs, and blockchain technologies.
GameFi projects take various forms, but the majority of successful crypto and NFT games have elements that make them unique from ordinary online games.
Difference Between GameFi Games and Traditional Online Games
Read the differentiating factors given below:
#1. Play-to-Earn Model
The play-to-earn approach used in GameFi initiatives is groundbreaking. In-app sales, affiliate marketing, and advertising are all ways that traditional online games earn money. As a player, you spend a lot of money on in-game things that will help you win or give you an advantage over other players. That money goes directly to the developers.
Furthermore, if you're like most gamers who grew up playing online video games like Minecraft and PUBG, you'll be accustomed to highly wanted in-game coins that have no worth outside of the gaming environment. Apart from amusement, you receive nothing in exchange for your time and work spent playing these online games.
#2. GameFi’s New Paradigm
Play-to-earn cryptocurrency games flip the script by allowing players to add real-world value to their in-game transactions. In-game objects and products are stored on a blockchain, which is a distributed public ledger that runs on a crypto network. This blockchain technology enables the trading of in-game tokens and products for cryptocurrencies and, eventually, genuine cash.
To improve their gaming experience and advance, online gamers purchase stuff such as coins, weaponry, extra lives, custom characters, clothes, avatars, and accessories straight from the game. Traditional gaming entails purchasing content from game makers' stores, benefiting the developers rather than the gamers. This can limit players' online gaming experiences, particularly those with limited financial resources. In contrast, in crypto gaming, these payments are made with cryptocurrency and frequently include gamers trading valuable goods.
Digital ownership is possible in regular online games. However, they lack the monetary value that cryptocurrency games provide. You cannot trade your in-game assets for money with other players. This is in stark contrast to the decentralised operations of GameFi initiatives, in which users control globally dispersed digital assets that aren't just for gaming.
#3. Little to No Upfront Cost
Most GameFi games are available for free download and play, making them more affordable than traditional games. Though there are no upfront expenses, certain games may need you to buy in-game tokens, avatars, and other goods in order to get started.
#4. Constant Ownership of In-Game Assets
GameFi participants' assets and NFTs are permanently kept on the blockchain. In contrast, traditional games can be terminated at any time, forcing players to lose all of their in-game achievements. The game developer owns all assets, and gamers have no authority over the life span of the gaming system. If the game developer declares bankruptcy, gamers can expect no further development of the game.
Traditional online games are also less secure than blockchain-based crypto games, rendering them subject to attacks. A cyber incident can cause players to lose all of their valuables.
#5. Easy-to-Learn Mechanics
GameFi projects use simple gaming techniques, which makes them simple to learn and navigate. This straightforward technique lowers the barrier to entry, resulting in significant acceptance. Gamers of all ages and levels of skill are welcome.
The Future of GameFi Games
Although GameFi can be traced back to the early days of cryptocurrency creation, it is just now beginning to acquire public acceptance. The huge popularity of Axie Infinity is a frequently cited example that highlights the rise of this fascinating new trend.
The continually evolving technology underlying crypto gaming has progressed to the point where new GameFi initiatives are garnering massive fan audiences as well as institutional finance. Crypto gaming, according to industry analysts, is the most likely portal for mass adoption and use of blockchain. As GameFi projects find traction with traditional gamers, public awareness of cryptocurrency will only expand.
As one might assume, GameFi is capturing a larger share of the $175 billion gaming market. Video game players have long enjoyed and become acquainted with the notions of in-game currency, rare digital commodities, and tokenization, all without acquiring monetary worth. Undoubtedly, GameFi ventures that incorporate all of these components while directly empowering people monetarily will be more appealing.
GameFi is in an exciting period. The Blockchain Gaming Alliance, an organisation formed to raise awareness of GameFi, includes leading industry participants such as gaming companies Ubisoft and MOBOX, as well as semiconductor company AMD. BGA claims to advance the cause of cryptocurrency gaming by offering infrastructure for game production, forums for creators and players to network, create, and share expertise, as well as defining common standards.
GameFi’s Recent Growth
GameFi is fast expanding, and the combined market capitalization of the biggest blockchain games has surpassed $14 billion. However, given the huge scale of the gaming business, the total addressable market provides even more room for expansion.
With the meteoric rise of crypto games such as Axie Infinity and CropBytes, the future of GameFi is promising. Newer advancements are to be planned with many more GameFi games in the development. Among the crypto gaming initiatives currently in development are:
- Star Atlas
- Ember Sword
- Guild of Guardians
- The Sandbox
- Dr. Who: Worlds Apart
The GameFi technology is clearly superior to existing internet games. As blockchain and NFT games show, the play-to-earn mechanism is ultimately the passport to widespread crypto acceptance. So it's not strange that this exponential trend shows no signs of abating. If current trends continue, GameFi and NFTs will serve as a rallying point for DeFi. Prospects for this new business are infinite, thanks to the rising public interest and an injection of finance.