WHAT THE HELL IS GAMEFI?
If you have been anywhere around the metaverse or gaming scene, you have probably heard the recently developed term GameFi.
So what exactly is GameFi?
The name is a play on the crypto-developed term, DeFi, or Decentralized Finance. So in essence, this blends the worlds of gaming and decentralization. Cutting out the middle-man once again and allowing developers direct access to the devices of their consumers. In some spaces you may hear it used as P2E (Pay-to-Earn). This category of gaming is a bit different, they allow their players the ability to generate income while they play said game and/or participate in within-game events.
The end goal will be to have players owning assets within their video games that translate to real life worth. Gone will be the days of purchasing currency within your game that conceivably devalues. With GameFi, developers can create games off of the backs of currently managed/governed tokens within the crypto space. This allows players the ability to trade, invest, sell, or rent in-game assets within an open marketplace. This is all thanks to the blockchain as it approaches its latest intersection with gaming.
Investors are betting big on the advancement of these industries, and we may see its direct development unfold right before our eyes. Ubisoft, creator of Assassin’s Creed, has invested in Axie and Animoca Brands – which makes blockchain based games. Take-Two Interactive recently acquired Zynga, a mobile game developer. Take-Two explores NFTs and their CEO, Strauss Zelnick, has stated that the now combined company will be able to more effectively tackle blockchain related projects. Square Enix, creator of the Final Fantasy series, stated that they are considering developing their own token to integrate into their community.
So let’s take a look at an example of how GameFi works with a company that I mentioned above, Axie. Axie Infinity has the most successful model to date that translates what I am alluding to in this article. The game is developed on three components; AXS (Axie Infinity Token), SLP (Smooth Love Potion) and NFTs (Non-Fungible Tokens). To start, a player would first purchase a digital, blob-like creature called Axies (valued at around $700). Players are then able to complete quests and participate in battles, earning them SLP along the way. Axies can be bred and the offspring sold.
Another great example is Genies, which provides users with integrated tools to create their own digital avatar to use across the web. As the web expands, so does your avatar’s reach. NFT-based wearables are also available for your avatar that you are able to buy, sell, collect, or trade.
So what is the point of all of this?
Well, let us revisit what the term means again, decentralized gaming finance. It is a modern approach in the way that we invest our money into virtual experiences. With the rapid development of what we know as the ‘metaverse’, gaming giants are adapting to a newer environment and an evolving consumer. Gamers want back the power. GameFi provides players with just that. With these games, players get to own a piece of their earned experience. Whether it’s the avatar you’ve created, the tokens you’ve earned, or the NFT items you’ve collected. They all have unique IDs registered to your personal wallet and you are then free to do what you want with them. A transfer of power back to where it belongs, you.
Leave a comment