Cryptocurrency has caught the interest of millions of crypto enthusiasts, individuals and firms. Over the years, it has been proven that the crypto industry can be profitable, and the list of successful people in crypto is proof of that. As the crypto industry continues to progress, people are constantly looking for ways to earn from this field, such as the introduction of GameFi or gaming and decentralized finance. More and more people are getting hooked up with earning from crypto through gaming. Despite the massive market drop, the GameFi sector keeps expanding, leading to the question: Is GameFi the future? Read on to find out.
Understanding GameFi
Since the development of cryptocurrency, it has been gradually and widely accepted among businesses all over the world. However, the incorporation of gaming in the cryptocurrency industry has recently gained popularity among crypto enthusiasts. Aside from the entertainment it brings, people immediately engage in it because of the profit they can earn while playing.
In the past years, the gaming side of crypto has become very popular and even pulled non-crypto enthusiasts into engaging in the crypto world. While some traders have fun with GameFi, others prefer and focus on crypto trading to generate profits. They engage in well-known platforms such as Bitcoin Profit or Coinbase to increase their chances of gaining returns. Such trading platforms connect traders to reliable brokers who are equipped with state-of-the-art trading software to navigate the trading world efficiently.
GameFi uses blockchain technology, allowing users to be the only confirmed proprietors of the digital aspects of the game. In traditional video games, the prevailing model is “pay-to-win”, a mode where players are required to pay to have the upper hand, such as buying or upgrading a virtual object. However, with GameFi, the “play-to-earn” mode is introduced, allowing players to make money in exchange for their game skills, knowledge, and effort.
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GameFi Expands Its Reach
While early GameFi titles utilized the Bitcoin blockchain, the cost of transactions and slow speed led to the adoption of the smart contract-enabled blockchain network Ethereum. So, despite the performance issue brought by a limited block space, game developers frequently use Ethereum. Another reason is the exorbitant fees that in-game transactions require; a game that requires fees will have difficulty gaining a significant user base.
GameFi projects have multiple levels to progress through. Players can increase their earnings by dedicating time to improve their characters and monetize their land assets by developing structures that other players will have to pay to visit or battle. Several projects have brought new players to their platforms, gained financial interest, and expanded their businesses.
As Bitcoin was declining in early June, the blockchain game called Illuvium sold 20,000 land plots, which generated 4,018 Ether for its developers that were worth $72 million at the time it took place. With the prices of the cryptos market experiencing a massive drop, GameFi continues to expand and has still gained new followers and players from time to time. With this, people wonder if GameFi is the future.
GameFi Advantages
The significant increase of decentralized finance platforms over the years enabled the growth of GameFi. After its introduction to the public, it immediately gained the attention of crypto enthusiasts, especially those who are fans of gaming. Read on to know the advantages brought by GameFi, which led to its continued growth.
#1. Play to earn
The play-to-earn model characteristic of GameFi projects is what draws most of its users now. For players who grew up with online video games, it’s reasonable to be a custom to highly desirable in-game coins that have no value outside the game environment. Apart from the entertainment, you get nothing in return, compared to GameFi, where players have fun while earning at the same time.
#2. Minimal to no cost
Most of the GameFi games are free to download and play, which means all you need is a working device and an internet connection, and then you’re good to go. However, while there are no fees for downloading, some games may require you to buy in-game tokens, items, or avatars to get you started or improve your characters in the game.
#3. Easy to learn
GameFi projects utilize simple gameplay mechanisms, making them easy to understand and navigate. This simple approach lowers the barrier to entry and has influenced a considerable increase of potential players of all ages and experience levels who can comfortably participate.
Is GameFi the Future?
While GameFi’s development can be traced to the early growth of cryptocurrencies, it has recently gained popularity. Its growth can be seen from the massive success of Axie Infinity, which became the first game to surpass $1 billion in token sales and consists of over a million daily active players. The rapid development of the technology behind crypto gaming has attracted massive players and fan bases.
Experts believe that crypto gaming or GameFi could be the getaway for widespread adoption and use of blockchain technology. As GameFi projects have garnered popularity with traditional gamers, the understanding of crypto continues to flourish. This crypto gaming industry is increasingly taking up a large piece of the growing $175 billion gaming market and comprises elements while rewarding players financially.
Conclusion
GameFi has become popular over the years and has gained the interest of millions of gamers – both crypto enthusiasts and not – and it’s not hard to see why. Aside from the entertainment it brings, people have the chance to earn potential profits while having fun. Due to these, more and more people have continued to enjoy its services, despite the massive drop of cryptocurrencies in the market. Another factor why it’s such a hit among crypto enthusiasts is it preserves all player information, such as in-game purchases and non-fungible tokens on blockchain networks. Since players have total control of all the assets, you are not at risk of losing your assets and have full authority to use them wherever and however you prefer.
DISCLAIMER
This article is for informational purpose and may contain a link to an external website which we have no control over. Users are advised to make a proper research before making any financial decisions.
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