The future of gaming with blockchain

The life circle of a traditional gamer is limited to a game café or play station. He/she just has to pay for playing the game and progressing to the next level. Everything seems happening during the game and it ends after that. Have you ever thought if your gaming life is linked to real-life experience? In other words, gaming is going to be a money spinner soon where you can earn and own in-game possessions; clothes, weapons, tokens, and rewards outside the game and you can claim their value. GameFi platform is the buzzword among 3.24 billion players worldwide which is ready to reshape the digital experience of the online gaming industry to the next level.

GameFi term was coined by combining the two words “game” with “finance” in 2020 and this goes hand in hand with blockchain technology, the crypto community, and other decentralized banking and financial products, such as algorithmic stablecoins, yield farming, non-fungible tokens (NFTs), borrowing, and lending. GameFi is also known as play-to-earn (P2E) games. Being one of the trendiest industries of Web3, the rise of the GameFi universe is in full swing. This article will educate all gaming enthusiasts around on the top five key terms related to GameFi.

Blockchain

Blockchain refers to a system in which a record of transactions, especially those made in a?cryptocurrency, is maintained across computers that are linked in a?peer-to-peer?network. This is the base or underlying technology of GameFi. Blockchain technology allows players to purchase, sell, and trade digital assets without paying any fees. Apart from that, all transactions are open, transparent, and fair in the blockchain sphere.

Non-fungible Tokens (NFTs):

NFTs are one of the main forms of currency used in GameFi. NFTs are used in P2E games to represent assets and facilitate market transactions. NFTs are unique, cannot be copied or faked in any way, and can be traded for other NFTs, cryptocurrencies, or fiat money in-game.?In the Game-Fi gaming world, NFTs are offered in the form of land, clothes, gear .etc. The primary aim of having NFTs is to motivate players to progress through levels by earning virtual currency and even developing their virtual personalities (or avatars).

Play-to-earn model:

This term introduces gaming as a business entity to earn money while playing. Traditionally, gaming was a source of entertainment and joy. Going forward, this goes beyond entertainment and the more you play, the more you will gather money and NFTs. Digital valuables have value and they can be bought, sold, and traded on the market. Most importantly, this economic model is being regulated by the community. This will further thrive the gaming industry making gaming a professional career.

?Decentralized finance (De-Fi)?

The initiative of De-Fi mainly consists of areas such as control, ownership, rewards, and support of the Game-Fi platform. These components strengthen and ensure the smooth running of the operations.

Crypto wallet

Your crypto wallet is the passport for you to enter the Game-Fi. To function, your crypto wallet needs to be pre-loaded with bitcoin. When you progress, to play several games, you are required to acquire starter characters.

Apart from the above key terms, the direct influence of metaverse in GameFi is significant. Metaverse will attract more investments, and development support, and expand the digital economies. It will further flourish when there are more options for utilizing your digital assets.

GameFi universe is relatively young and we are yet to experience the upcoming advancements of this spark. However, the future remains bright as investors already invested more than US$3.6 billion in cryptocurrency gaming firms. Let us embrace the revolution of GameFi.