Is GameFi "playing games and making money" more than DeFi?

With the advent of NFTs, GameFi started to gain attention. According to data from DappRadar, almost 50% of cryptocurrency transactions related to business applications were played in November. Many blockchain games have appeared this year, and GameFi has grown rapidly.

Before we talk about GameFi, we first need to know what DeFi is.

DeFi stands for Decentralized Finance, a broad term for public peer-to-peer financial services on the public blockchain (except Ethereum), used to describe a variety of financial applications using smart words to supplement the classification and elimination of intermediaries. .

DeFi is inspired by the blockchain. This allows many organizations to have copies of their business history. That is, it is not controlled by a single center. DeFi is unique in that it extends the use of blockchain from simple cost exchanges to more complex financial applications.

DeFi has become a buzzword in the crypto fashion industry, but GameFi seems to be getting more and more popular now.

What is Game Pie?

GameFi is one of the most popular terms in the cryptocurrency world, combining “games” and “finance”. Explain the role of financial games that generate income through cryptocurrency games.

The GameFi video game project runs on a blockchain distribution device, which allows players to prove ownership of virtual items in the game.

Compared to traditional games, the GameFi project gets the model of “playing games for money” instead of “playing games to level up”.

Examples of GameFi content include early online games such as Minecraft and Bombermine joining Bitcoin.

In November 2019, at the World Blockchain Conference in Wuzhen, China, the founder of Blockchain Game MixMarvel Studio spoke about the potential for transforming the video game industry using blockchain technology.

The term GameFi was first requested by Andre Cronje, founder of Year.finance (the Ethereum-based DeFi protocol), and used it to describe it in a September 2020 tweet.

Since then, the term has been widely used to refer to decentralized blockchain-based financial video games. These campaigns combine the popularity of video games with the unique characteristics of cryptocurrencies, making GameFi a very attractive new place.

How GameFi Works

The different GameFi plans generally have a few similarities. In-game items such as avatars, lands, clothing, weapons, gold, tokens, and animals can be featured in NFTs to prove ownership of these digital products.

Players can get these in-game products and trade them in the NFT Marketplace for income, or swap them for fiat currency into cryptocurrency.

GameFi players keep their treasures and NFT on the blockchain for life, and even in the end game, the player's assets are well kept on the chain.

This is unusual for a traditional game. Existing games can be paused at any time, so the player loses all game upgrades and all treasures are the game developer, so players have no control over the game's life. platform.

Additionally, existing online games are dangerous and vulnerable to attacks such as blockchain-based crypto games. Players will lose all of their assets during a hack event.

game cookies

According to data from DappRadar, almost 50% of cryptocurrency transactions related to business applications were played in November.

This year, Axie Infinity and GameFi are planning similar, “paid-for-play” games that continue to impact the gaming industry and receive widespread attention.

For example, the virtual world of Axie Infinity has created a huge game. Axie Infinity is a popular game on Ethereum. Gaming is a digital world. There are 140,000 Axies in the universe. Each Axiom has its own characteristics that determine Axiom's character in battle.

Axies and Land plots are NFTs, and players can use NFTs, game consoles, or native brands on Axie Market or Uniswap.

Simply put, players can make money by fighting, selling monsters, or borrowing money or digital assets.

The number of GameFi players is growing rapidly now, as many cryptocurrency enthusiasts still love gamers.

“We see around 80 to 100 million games exchanged every day,” said Pedro Herrera, data manager at DappRadar. “Blockchain gaming revenue this year is fantastic.”

According to research data from the DappRadar channel, more than 104,000 people have played Axie Infinity in the last 24 hours (according to our interviews).

At the same time, blockchain games such as Divided Lands, Alien Worlds, and Crypto Mines have gained hundreds of thousands of users today.

According to DappRadar, there are currently around 1,200 blockchain games, with around 70 new games added each month.

GameFi and DeFi cannot avoid the recent decline of cryptocurrency. According to data from CoinMarketCap.com, the tokens of various game companies have fallen 30% in the past 7 days. Many DeFi tokens are also lost.

By comparison, DeFi is still the most profitable area, but GameFi is gaining ground.

According to DappRadar, the top five DeFi game apps have invested over $ 14 billion, and the total investment of the top five DeFi apps in the past 30 days is $ 130 billion.

Players use this money to play and get prizes. Players will also benefit if the tokens received in the game increase their value. Axie's AXS token fell from 53 cents earlier in the year to $ 102.

In addition, DeFi related content such as Staking, Liquidity Mining and Yield Farming has gained a foothold in the GameFi project.

Here are all of the additional ways for players to earn in-game money. Players can gift in-game gear to receive annual rewards and other prizes, which can be used to unlock new levels or purchase. additional in-game items. At the same time, players can borrow money to use their toys to make commercial products.

Pedro Herrera recently:

Michael Bohnen of EOS USA said: "There are more ways in the game compared to the DeFi industry. There are fewer banks, but there are new games every week. I think it is the largest. . "

Additionally, unlike game development media, GameFi projects will require users to participate in decision making.

Some games offer voting rights to members of the GameFi Decentralized Autonomous Organization (DAO), allowing players to determine the direction of future game updates. DAO allows owners to comment and vote on the update, and GameFi allows real participants.

With the huge success of crypto games like Axie Infinit and CropBytes, the future of GameFi is bright. As new GameFi games are developed there will be updates in this area.

Some crypto gambling activities currently in development include:

the star of the atlas

amber sword

Guild Guardian

Sandbox

Doctor Who: Worlds apart (닥터 후: Worlds apart)

The GameFi concept is an improvement over traditional online games. Blockchain and NFT games have predicted future developments, and the gaming technology monetization system will ultimately become more of a hub for cryptocurrencies.

So it's no surprise that this crash shows no signs of slowing down. At this price, GameFi and NFT will become the pillars of DeFi.

With the growth of public interest and the influx of capital, the prospects for this new market are endless.