What is GameFi?
GameFi stands for game finance, a new gaming model allowing video game players to earn income from playing a specific game on-chain and hence the name play to earn (P2E). The model is a dream come true for players who previously spent and wasted countless hours without being monetarily rewarded, benefiting only the game developers. Players now can generate earnings from playing their favorite game, thanks to cryptocurrencies powered by blockchain and peer-to-peer technologies.
Play-to-Earn games: how does it work?
GamFi is essentially a fee to play and play to earn model. However, many games on-chain require an initial investment to start playing. The financial model is based on a fungible token native to the game and non-fungible tokens (NFTs) collected during gameplay. Rewards and costs differ from one game to another.
Generally, players pay for in-game characters and earn income through winning battles and selling in-game NFTs collectibles on the marketplace. The native token is also used to purchase game items, including NFTs, and pay transaction fees.
In almost all popular off-chain or standard online games, the players own almost nothing. It doesn’t matter how much gold a gamer has accumulated and how rare items he collects. In play-to-earn games, however, the situation is the opposite. The ownership of valuable in-game items and accumulated funds belong to the player.
Additionally, unlike World of Warcraft or other popular MMOs, where banning accounts is a practice, P2E is censorship-resistant.
Examples of P2E Games
P2E Games are thriving with hundreds of projects competing to become the next big game on-chain. With endless examples of such games, we have picked the following:
CryptoKitties is one of the pioneers in the NFT gaming space, becoming one of the most popular games on the chain. After all, it is not difficult to find people who love kitties and like making money.
The essence of the gameplay is to breed different cats species. The result is a kitty with unique characteristics. According to the project:
“CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed…the future is meow”
Cryprokitties does not have its cryptocurrency or utility token. Cats can be purchased and traded using other cryptocurrencies such as ETH. Each kitty is minted using the ERC 721 non-fungible token. A nonfungible token or NFT represents proof of ownership of a unique digital asset, and in this case, it is the kitty the player owns.
Initially launched on Ethereum, CryptoKitties ran into scalability and transaction latency issues and moved to the Flow blockchain. The Flow blockchain architecture made it possible to achieve significant performance improvements, making it possible to introduce animation and 3D graphics into CryptoKitties.
Sorare was released on Ethereum blockchain in 2018 by two developers. The popularity of football simulations and the opportunities to earn money have attracted an impressive audience to the game.
In Sorare, gamers play not only for fun but also for the sake of making money. By defeating other players with the help of a virtual team, you will win valuable prizes. Digital player cards are classified into different categories: unique, rare, very rare, etc. Accordingly, the more difficult it is to get a particular card, the higher its cost on the trading floors. Players own the cards 100% and can do what they wish with them.
Gods Unchained is a collectible card game but in a more traditional format. A fantasy project with classic 1v1 fights, created by a developer involved in the famous Magic: The Gathering Arena, so it was easy to arouse interest in the audience.
Gods Unchained raised almost $17.5 million from investors in two runs, and the game, which launched in 2019, managed to recapture $4 million a few months after the release.
The basic gameplay is straightforward to those familiar with collectible card games, but careful planning is required to defeat your opponent. The game involves using the flux resource to craft new cards of a high rarity. Players can continue playing and selling their valuable items for cryptocurrency in the marketplace.
In the blockchain game Axie Infinity, players must collect quirky and cute Axie creatures, each having properties based on a unique genetic code. With over 500 customizable features to choose from, it is unlikely to find two Axies that are the same.
Virtual creatures can refer to the animal kingdom, birds, reptiles, and even insects. By owning or breeding them, players will end up fighting other Axies. The game resources are divided by rarity into several categories, including rare and legendary, traded through the marketplace.
The game constantly improves its features, introducing new modes, such as Axie Battle and Axie Land. The presence of tokens in the player’s possession allows him to participate in governance through voting, deciding the game’s future course.
The Sandbox is an NFT game where players create and monetize their own gameplay. Players can buy the $SAND utility token to purchase land and exchange digital assets. Advanced customization and various tools allow players and developers to create and use a wide range of advanced modes that offer more freedom and better graphics than other projects.
If you like Roblox or Minecraft, then this project will appeal to you. not only SandBox is a fun-to-play game it is also a metaverse allowing you to own valuable NFTs for exploring the endless possibilities.
Cryptocurrencies and blockchain technologies are gradually spreading to many influential industries creating new opportunities and models for stakeholders. The gaming industry is no exception, where players are now being rewarded for the time and effort they put into a game. Players also enjoy a secure, anonymous, decentralized, and censorship-resistant environment powered by innovation. The play-to-earn model is here to stay and will further unlock new features and possibilities and bring more exciting games on-chain in the near future.