Gamefi: everything you need to know about the "play and earn" game economy

With cryptocurrency and NFT The rise of , Playing money making games is becoming more and more popular . before , People spend money playing video games , But now , Gamers have the opportunity to enjoy the most exciting video games , And make a lot of money by doing this .

In all the ways that blockchain technology affects the world , Blockchain games are probably the most profitable , It gave birth to GameFi And the powerful game making game economy . But before we delve into the subject , Let's quickly review GameFi The history of .

GameFi The history of

“GameFi” It is the abbreviation of game finance , Go back to  2019 year 11 month , Blockchain game distribution platform MixMarvel Founder in China Delivered a speech at Wuzhen world blockchain conference .

although Mary Ma Is the first time to use GameFi This term , It marks the beginning of the sensation surrounding the technology , but GameFi The basic concept of has existed long before the presentation （ The title is “ GameFi- The path of technology driven innovation in the game industry ” For anyone interested in viewing it ）.

in fact ,GameFi The concept behind it is almost as old as bitcoin itself , Go back to 2013 year , It was like “ Minecraft” and “ Bombermine” Such a game is being tried with  BTC  Integrate . More specifically , By leveraging peer-to-peer services in the game , These games enable gamers to monetize their gaming experience , Use BTC As a medium of exchange . 

Many years later , We built on the Ethereum network  “ CryptoKitties ” And so on GameFi More precise exploration of .

CryptoKitties With irreplaceable tokens (NFT) Game assets represented by . Players get these NFT To breed a unique cat , Then you can trade in a special market . 

Interestingly , although CryptoKitties Due to network congestion 、 Developers' ability to implement complex game functions is limited 、 Poor game experience and lack of competitive market in the blockchain industry , Not much success , It does constitute what we know today GameFi A wave of new ecosystem projects paved the way .

that , What is? GameFi？

For those who are not familiar with the game , Let's say ：GameFi In the traditional game industry ,DeFi In traditional finance . essentially ,GameFi It aims to completely change the traditional game infrastructure by combining and integrating blockchain technology and decentralized finance . 

Unlike traditional games ,GameFi Enables players to monetize their gaming experience in two steps —— First , Through the tokenization of in-game assets , secondly , By using in-game play and earn (P2E) economic .

for example , In a typical video game , Winning will get some form of ranking points 、 integral 、 The rating 、 Stars and in-game currency —— All of these have the effect of mental stimulation , Provide a sense of victory . But the key is that you can't take these rewards away from the game , Nor can they be used in any valuable form of exchange .

Use GameFi, The narrative has changed . Because they are based on blockchain 、GameFi Protocol or game title , Provide players with rewards that can be easily monetized in the real world . These awards are usually in cryptocurrency and NFT In the form of , When players get these rewards , It can be converted into real legal tender .

Many people have passed GameFi Get rich , They are proud to have fun while making money . Because of economic benefits , Parents who used to warn their children to play video games began to support them .

GameFi How it works ？

GameFi Like most blockchain based projects , Survive through distributed ledger technology , Distributed ledger technology is another term of blockchain technology . However , Every GameFi The project has its own unique mechanism in terms of technical elements and types of incentive systems being implemented .

in any case ,GameFi Blockchain is usually used as the underlying infrastructure , Provide players with proven ownership of assets , And establish a decentralized market , Traders can exchange in-game and out of game token items in this market (NFT).

for example , At every GameFi Agreement , Such as weapons 、 The skin 、 Gold coin 、 Pets 、 Artifacts and other in-game items are marked and represented as NFT. 

therefore , When players compete and acquire any of these in-game items , They will automatically claim full ownership of these items , And the ability to trade , Whether through the exclusive market of the agreement or outside the game world .

In some cases , The assets in the game are not NFT, But you can use Hoard Exchange And other third-party applications to convert it to NFT , Then sell it for a profit .Hoard Exchange To bridge NFT The gap between technology and the traditional game industry . You can learn more about this project through the following links . 

Hoard Exchange bridge NFT The gap with the conventional game industry

in other words , If you are not in a hurry to get economic benefits , Players can continue to accumulate victory and in-game assets by refusing to sell . in fact , It is even beneficial to do so , Because most games have systems , Allow in-game assets to be exchanged for better tools 、 More powerful items and other enhancements , It's easier to win more .

The financialization of game agreements to motivate players has produced “ Games make money ” Game mode . Now , Every real GameFi Almost all agreements must have an incentive model or reward system .

Again ,DeFi Functionality is also incorporated into most GameFi In the project , As a secondary reward system . This allows integration from DeFi Known concepts in the field , For example, income agriculture 、 Liquidity mining and pledge , So as to provide a passive way to generate revenue when playing games .

Some famous blockchain games have been integrated into the above DeFi Concept , Include “ Axie Infinity ”、“ Decentraland ”、“ Aavegotchi ”、“ DeFi Kingdoms ”、“ Nine Chronicles ” wait .

Understand the game economy

Because players can monetize the bonuses they get from blockchain games , This means that in addition to having fun , Players can also pay for their time . therefore , The in-game economy of a particular video game will determine how much time players spend playing it .

This is because the game cycle is designed to keep players engaged and happy , It also supports its core plot and natural dynamics .

From an economic point of view , In order to keep players engaged 、 Extend the time spent in the game and increase the amount of money players can make from the game , The game economy must have the following five characteristics .

Player base takes precedence over governance

If a game doesn't have a perfect design , Not enough players are playing , Then there is no need to govern the system .

under these circumstances , Governance refers to governance tokens —— A cryptocurrency , It gives the communities around the project the right to vote or make major decisions for the future of the blockchain project , under these circumstances , Is the direction of the game .

Loyal player groups must be achieved before any major governance takes effect , Otherwise it will be wasted . 

Consider multiple economic entities

When considering traditional games , Game developers and players are usually the two main drivers of game success . in fact , The ideas of other influential agents are often overlooked . 

however , When it comes to games that make money through games , There are other factors that must be considered , That is, investors who drive the in-game economy 、 Builders and collectors .

Investors are financial supporters of the game . Although many of them may have bought on speculation , But their money has helped make game development a success . 

Collectors may not actively participate in the game , But they were involved NFT Work on , Produced to make P2E Requirements for system operation . contrary , The builder may generate value supply inside and outside the game .

Even if there is no “ To make money ” A game that can stand on its own

Although blockchain games are really profitable games , And attracted their players , But partly for the value they can generate , The game must be built in such a way , That is, their survival depends not only on these incomes . The game should always be able to attract players at the entertainment level , The financial aspect should not be put in the first place .

If video games are more about making money than experiencing pleasure and fun , Then it will be unsustainable , Because the user base will decrease rapidly . This is not P2E Unique to the game , Because even in traditional games , lack “ The final game ” The game will also lose popularity . This is a good indication that one aspect alone is not enough , There must be a balance between entertainment and value .

Higher passive income = Lower player activity

As mentioned above , If the whole video game is focused on Finance , that “ Play to make money ” The economy will die ; If the only attraction is money , Then there is no participation . 

Again , If people are not actively involved in the completion of such tasks as robbing banks and obtaining loot 、 Kill monsters to earn points 、 Racing and winning prizes and other tasks , Can make money from the game , that P2P Trade and other economic activities will decline .

Seeking to attract players with passive income GameFi The project must include modes such as leasing , This model allows people to make money by borrowing items such as safe houses or weapons , These items will be actively used by others in the game itself .

Player generated must be protected NFT The value of

If the game economy of game design revolves around the players to create their own NFT Content , Then enough investment must be made to protect their interests and the value of the generated content .

How to get started GameFi

Those already familiar with cryptocurrencies and NFT Traders will find this very easy to do . Of course , As a gamer , You also have an advantage over any novice who wants to start playing for money .

however , If you do not fall into any of the above categories , Then don't worry . The whole process is simple , The various video games on the blockchain are diverse and exciting , Enough to get anyone involved , At the same time, get rich returns . The following steps will guide you to start your GameFi The journey ：

First step ： Create a new encrypted wallet

Even if you already have one , For you GameFi Account creating a wallet is also important , Because of your GameFi Experience should be seen as a new investment . But be careful , And continue to do research , Because different games may need different wallets to connect to the blockchain network , So make sure you select the wallet that your game supports .

The second step ： Connect your new wallet to the game you want to play

Visit the official website of the game , And then click “ Connect your wallet ” Or something like that . This will enable you to earn digital assets , These assets will be sent to your wallet , So you can trade or hold them at will

The third step ： Meet the startup requirements

stay GameFi in , Each game has different startup requirements , But one thing is consistent , That is, you need to buy their initial token —— Usually NFT.

These tokens will be your initial investment , That's why it's important to create a new wallet , And fund it only with the money you can afford to lose .

Last , Beware of fake websites ！ There are many false GameFi Website , This is why we always urge our readers to carefully check any links you receive , And only submit the project after you confirm its authenticity . Research is the top priority .