Blockchain-based gaming platforms are rapidly gaining popularity. The literal translation of GameFi is made up of two words: Game and Finance. The first games of this kind appeared back in 2013. But the growth in popularity came this year, and in August, GameFi experienced a real boom. The developers of one of the most popular games, Axie Infinity, for example, made more than $800 million in revenue last month.
How Does It Work?
Let's examine this phenomenon using the example of the already well-known online casino platform playamoaussie.com.au, whose resources can also partly be attributed to both games and finances. The thing is that the games that are on the site are not a direct source of income. You just play, you put money in, you win some, you lose some.
In blockchain games, on the other hand, characters are non-interchangeable tokens. Players can create new, unique characters, pump them up, sell them, or buy them. Payment is made in the cryptocurrency of the platform on which the game is based. In some games, you can bet on the outcome of battles. The internal tokens of popular games have already moved beyond their platforms and are traded on cryptocurrency exchanges.
And some, like the Smooth Love Potion (SLP) game tokens in the Philippines, are accepted in regular stores. However, the local authorities have already voiced their concerns and are going to regulate a special tax on transactions with SLP.
What Is the Secret of Such a Meteoric Rise in Popularity?
The GameFi industry is gaining momentum due to the dynamic development of the segment of decentralized platforms and gaming. It is possible to play using any device. Of course, the development of GameFi is mostly catalyzed by young people, but there are projects where the participants play cards and there the average age of users is much higher.
NFT is no less a driver of popularity. Now investors profit through the sale of unique characters, weapons, artifacts, etc. And in many GameFi projects, the value of characters and accordingly internal tokens is growing dynamically.
Experts predict the further development of the decentralized games market. However, the cost of tokens can be significantly adjusted under the influence of the bitcoin exchange rate. It is known that the entire market fluctuates behind the movement of the first cryptocurrency. So, if bitcoin collapses several times, GameFi projects will surely decline significantly as well.
How to Get There?
To register for a blockchain-based game, you need a crypto wallet. Because most GameFi — platforms adhere to the principle of Play-to-Earn.
But first, you should thoroughly study the project, on which you are going to register and transfer funds. There are a lot of scammers on the web who are stamping out platforms posing as blockchain games, which in fact operate according to the pyramid principle. Check if the game's internal tokens are traded on cryptocurrency exchanges. If they are trading, then you can be 99% sure that GameFi is not a fraudulent project.
What Game to Choose?
Choosing GameFi — the project should pay attention to the company's marketing strategy and technological component. If the game is actively promoted online, it means that the number of users will increase and with it the value of the internal tokens. As for the technological part, it is necessary to «play» the game to see if there are any serious glitches if it hangs.
You should also take into account the complexity of the game. On some GameFi — platforms, tokens may be taken as collateral or used, for example, to grow crops. These games require the player to have more knowledge of the cryptocurrency market.
Experts note that some GameFi platforms are still undervalued and lag behind the general development trend. For example, FaraLand and IG Gold, according to analysts, will soon see rapid development.
Where Is the GameFi Industry Headed?
Advanced players have long been making money from selling characters, weapons, etc. However, in the past, third-party platforms were used to do this. Now everything can be done without leaving the game.
Soon there will be resources where you can go with your leveraged NFT — the character and compete with heroes from other games. There will be whole virtual markets where you can sell or buy things you need.
Already some citizens, to the question: «What do you work?» answer: «gamer». The industrial era has sunk into oblivion. The digital era is coming and humanity is still at the beginning of its journey.