GameFi: How to play and get a crypt for it

What if the time spent on video games was paid? This is not a hypothetical question, but a working concept in Gamefi. Let’s figure out how this idea brings the web3 era and how it all works in the meta -combat and blockchain. This is the second joint article Whitebit and Woo Network, and you can read the first here.

What is GameFi

The answer to this question is simple, like twice two. The well-known classic video games began their history in the 1950s. For half a century of evolution of the gaming industry, the graphics and plots switched to a completely new level. And then a blockchain appeared, which changed our idea of ​​the monetization of games thanks to decentralized finance (Defi). Defi is a financial system based on blockchain, which works without centralized control. So, blockchain is a very multifunctional tool, the use of which in the entertainment industry was a matter of time. So GameFi arose.

Gamefi combines two elements: video games and Defi. This can also be called the Web3 sphere and the main way to monetize the gameplay. That is, instead of the classical idea of ​​the video game “Pay to play” or Pay-to-Play (P2P), in Gamefi, we are faced with the “Play” or Play-to-Earn (P2E) system system.

Unlike ordinary games, in Gamefi you can own digital assets of the game. Weapons, costumes, various objects or even characters have a value outside the game. They can be traded on NFT markets. And also you can receive a reward in the form of tokens, which opens your way to crypto exchange and realizes the concept of P2E.

Features of GameFi

There are many types of blockchain games and mechanisms inside them. Although they all have a number of general features.

Blockchain technology

All GameFi projects work on blockchain technology, which gives gamers the opportunity to carry out transparent and safe transactions.

P2E business model

Unlike classic video games, Gamefi allows players to earn during the game to make a profit outside it.

Asset Management

Games of the old P2P concept in all ways encourage purchases in the game. However, such assets are valid only within the game process of a particular project. They cannot be withdrawn, transferred or monetized. P2E, on the contrary, allows you to exchange assets for crypt, NFT and even fiat.

Defi elements

The blockchain of the game uses Defi elements to expand the capabilities of gamers and make the network completely transparent. This allows you to buy, sell on exchanges and marketplaces, transfer, earn and reliably protect your digital assets.

From arcades to metavselnaya

Not so long ago there were only two types of games: P2P and free (free-to-Play). However, the economy of the gaming industry has changed. Plunge into a brief history of game development.

Pay-to-Play: Beginning

Although the first video games appeared back in the late 1950s, most met them only in the 1970s. It was then that arcade slot machines appeared, where it was necessary to buy every next round of the game. From that moment, the P2P industry has become one of the most profitable. Thanks to the rapid development of technology, it constantly grew and changed. With the advent of game consoles and PCs, new forms of payment appeared. From this moment on, gamers could buy a subscription, a whole game or unlock some items for a one -time payment.

Free-to-Play: Freemium time

Free-to-Play business model or “free for playing” is the next step in the development of the economy of video games. Here gamers get the basic game for free. Thus, this stimulates them to buy objects, additional lives, locations and the like. In other words, everything that will make the game more interesting.

The aforementioned models have one common line: a gamer cannot monetize his experience or time received in the game.

Play-to-Earn: On the threshold of the metavselnaya

The first blockchain game was created Sango Coin: CAR in 2017. In Cryptokitties from Ethereum, users could trade their virtual pets on NFT markets. There were other projects such as Ether Shrimp Farm, Pepe Farm, Ether Cartel. In 2020, due to pandemia, almost the whole world went online. As a result, P2E development has accelerated and many new games with various ecosystems have appeared. However, the general idea of ​​P2E remained unchanged: gamers receive a reward (NFT, tokens, cryptocurrency) for completed tasks or won battles and can exchange them.

Another important innovation in the P2E model was a change in property right. The developer of the game no longer controls game assets single -handed. Players also have ownership of digital assets and can even use tokens to make decisions in the gameplay.

As a result, a decentralized reality – metavselnaya – becomes closer every day. Thanks to GameFi, the interaction between users has intensified and acquired new opportunities. And although today the lion’s share of the use of the metavselnaya is the use of cryptocurrency, this idea can forever change our perception of the Internet.

The most popular P2E games 2022:

Move-to-earn (m2e): tokens for steps

Move-to-earn or “move to earn” is another way to use blockchain technology. M2E users walk, train and run for a reward. Performing various tasks, players receive tokens that have real value in themselves or can be exchanged for some products within the application. Each project chooses its own system. So, in one in order to start earning, you need to purchase NFT (for example, STEPN) or just pay for participation in some competitions (for example, Wirtual). There are other popular M2E applications, such as:

The future of GameFi

Gamefi changed the perception of video games. Thanks to all the capabilities of the blockchain and cryptocurrencies, gamers get more unique and exciting impressions. This encourages the industry to invest in blockchain technology and create your products in the metavsa.