What is GameFi? How it works?

What Is GameFi?

GameFi refers to Play-To-Earn blockchain games that provide economic incentives to players. Typically, players can earn cryptocurrency and Nft rewards by completing tasks. GameFi has been popular since the rise of Axie Infinity. It attracts gamers, enabling them to make money while having fun.

Types Of GameFi Projects

1. Axie Infinity

Axie Infinity is a blockchain-based game in which users buy NFTs of attractive creatures and fight them in with others in the battle. Axie Infinity is the most popular gameFi model that triggers the innovation for many NFT games. Through Axe infinity, users earn SLP tokens in terms of rewards which they can revert as money in exchanges.

2. Decentraland (Mana)

Decentraland is an Ethereum-based metaverse project that aims to encourage a worldwide network of users to govern a shared virtual environment. It also consists NFT games inside the metaverse through users can enter and play the games they wish. It differs from Axie infinity here. It is categorized as metaverse cum NFT game. 

3. The Sand Box

The Sandbox is the play-to-earn game that combines Defi, NFT, Blockchian, Metaverse all in one. The platform let the users to create their own games and digital assets in the virtual medium. The users can create own avatars, buy digital assets using the cryptocurrency SAND designed specifically for this 3D metaverse. 

4. Cryptoblades

Cryptoblades is an Nft creation game operating on Binance smart chain. It is Web-based and users need to play the game on cryptoblades official website. Users employ powerful weapons to defeat opponents and collect skill tokens which can be used for upgrades and to level up characters. The Most popular exchanges to buy cryptoblades right now are Gate.Io, Xt.Com, Lbank, Bkex and Wbf Exchange.

5. Star Atlas

Star Atlas is a futuristic space exploration game where players try to create civilizations and intergalactic economies. The Game operates on the Solana Network. The platform features two native tokens called Atlas and Polis. This play-to earn game uses advanced breakthrough called Unreal engine 5s nanite to create visually stunning graphics in 3d metaverse.

How do you develop GameFi project

1. DIY Tools you can use

Unity, photon, moralis are the web3 development platforms used to create projects like GameFi. These platforms has the DIY model to create a project on your own(with strong knowledge in code compiling concept). When you don't have the patience to study the tutorials and do it on your own, you can get GameFi solutions from Hivelance without much play.

2. Defining Nft Economic Model

The second foremost step is the creation of the Nft economic model. How will the royalties be charged? What fees will be? Who will pay these fees? How to create new Tokens?  Getting the NFT experts guidance can take you to complete the business concepts in detail. 

3. Pre-written code

When you decideed the platform to develop your GameFi, the next step is to get a code for running your GameFi front end. This can be pre-written code available on third party companies or open source exists. But be careful in determinning the NFT economic model that resonates with the front end user interface. 

4. Gamefi Marketplace Development

After the development of NFT game, you need to provide a space for your users to buy- sell the NFT tokens(i.e. NFT marketplace development) User design, convenience, system comprehensibility, data protection and transaction protection are the key components you should look when developing a NFT marketplace like opensea. 

What Is Gamefi Protocol?

Gamefi protocol is the first gameFi mining pool protocol, aiming to build the first global GameFi aggregation platform and its Governance token is Gfi. The holders of this token spot form a decentralized autonomous organization (DAO).One of the hottest things in the cryptocurrency world right now is GameFi. GameFi players can trade, lend or rent out their winnings or even borrow against them.

Gamefi Vs Play-to-Earn

GameFi and play-to-earn are not different but not the same. GameFi just employs the Play-to-earn model with decentralized nature. Already traditional play-to-earn models exist without blockchain technology. But the safety is not guaranteed there when gameFi is promising.

GameFi's main attraction is that it operates on a "play-to-earn" business model. This means players are financially rewarded for playing a game and progressing through its levels. In this case, cryptocurrency and NFTs serve as financial incentives. The "play-to-earn" model is not a new concept. However, what is new is the innovative technology that powers GameFi games today. Blockchain, smart contracts, and in-tokens are present in many elements of a game. Users can convert tokens earned from a game into other well-known cryptocurrencies such as Ethereum, Bitcoin, or stablecoins, then swapped to fiat currency.

Business Model Of GameFi Projects

1. Free To Play(Donate)

This model is similar to the old shareware model that was popular amongst video game developers. The game itself is free in this model, but players can donate to support its continued development. For examples,

• Apex Legends.
• Doki Doki Literature Club.
• Dota 2.

2. Game Subscription

Subscription-based games can be useful for developers because they can set up a model that makes recurring income. It can also be a great way for making mass number of players enter your game because you’re not asking them to make a larger purchase upfront. Instead, they pay a smaller amount but pay it monthly for as long as they want to continue playing.

Examples

• Amazon Luna. 
• Apple Arcade.  
• Google Stadia.
• Microsoft Xbox Game Pass.
• Nintendo Switch Online.

3. Freemium

The freemium model is free in which the core game itself is free, but players can spend money to unlock additional content or gain in-game power-ups such as extra energy or reduced cool-downs. Many game developers are also offering up skins and other digital assets that people can pay to purchase.

Examples  

• Hearthstone.
• League Of Legends.
• Maplestory.

Hope that you can have a basic understanding of gameFi in intermediate level. In coming days, we need to wait and see how gameFi is going to revolutionize the gaming industry.