What is Gamefi? Everything You Need to Know

The rise of blockchain technology has led to many innovations in many spaces that affect our lives. It has changed how we understand and value currency and digital assets through cryptocurrency. It has changed the way we work and keep digital records. It is also changing the way we play games and infusing them with our finances in a process known as GameFi. 

GameFi was coined from the addition of finance to gaming. It is self-explanatory as it shows that the concept is the interlinking of finance and gaming in one central place. The implication is that gaming will become more personalized and rewarding for players, developers, and investors. 

Many people assume that GameFi is simply a play-to-earn gaming model, but it is more. While the traditional gaming industry has been rewarding players in one way or another, the plates could lose that reward if the game developer shuts down or moves to a new gaming platform. Furthermore, with GameFi, one can derisk the assets due to the distributed ledger-based on the blockchain that powers the new gaming model; some people refer to this as Blockchain Gaming. 

Gamefi Projects

Many projects are happening in the GameFi space. Some of them are very popular while others are not. In this section, we examine some of them. One of the most popular GameFi projects is the GameFi aggregator, which seeks to bring all the GameFi solutions and games into one place so users can easily find what they want. It's crucial because GameFi is a relatively new technology, and information about it may not be readily available to the average person.

Another very important GameFi project is the actual games that power it. They are referred to as "Play to Earn" (P2E) games. One of the most popular of these games is the Axie Infinity. Axie Infinity is an action game that rewards players and allows them to mine small game creatures known as Axies, which are NFTs that can be exchanged or sold in the marketplace. 

However, the ecosystem is far from just about games, as there is a lot of effort linking the Metaverse with NFTs and gaming. One such project is Decentraland, allowing players and investors to buy land or sell it. The fact that lands or buildings in the virtual land can be used along with NFTs acquired from gaming makes it important for gamers.

Where to Acquire, Buy, or Sell Gamefi Crypto

Since GameFi allows people to earn tokens or NFTs that can be sold or exchanged for real money, the question for many first-timers coming into the field is how they can start earning from crypto gaming. 

A good place to start is identifying a Play to Earn gaming platform; some are free to join, making it simple to participate. Some require you to join a whitelist, whereas others require you to stake some cryptocurrency or NFTs to participate. One of the most effective ways to locate these games is to conduct a Google search or to use the  GameFi aggregator,  which compiles a list of the most notable GameFi projects.

Once a person has determined which GameFi project they wish to participate in, the next step is to begin participating after meeting the requirements. Of course, there is no single criterion, but once you have successfully joined the game and linked your wallet to it, you will be ready to play in the vast majority of cases.

Most games allow players to mine some NFTs, which they can then purchase additional items. In addition, tokens are used by some organizations to reward their players. NFTs and tokens can be transferred to exchanges or marketplaces such as Binance by participants.

The players can then exchange them for stable coins or fiat currencies at a later date. Most people's participation in the Play to Earn program comes to an end at this point; however, there are other ways to be rewarded in the GameFi world.

GameFi IGO and Whitelist

One of the important ways people get paid in GameFi is through participation in Initial Game Offering (IGO). Closely related to it is the whitelist, which shows that you are a tested member of the gaming community.

There are different ways to participate in Initial Game Offering and whitelisting, but most of the new ones involve you having to invest time or resources into the game. Investors are expected to put money into the game, hoping they will recoup it once it launches or becomes popular.

Some platforms are used as launchpads for the launching of Initial Game Offering. Some of these platforms are GameFi, Enjinestarter, and Game starter. In some ways, these launchpads are different, but they help game developers offer Initial Game Offerings and help investors find coins to invest in. 

However, before joining any Initial Coin Offering or any whitelisting, one should consider the following:

• The utility of the native coins or tokens
• Is the launchpad offering an assured allocation, or is it a lottery system in which the allocation is not assured?
• Check the ROI of the games and that the launchpad powering the IGO also has other games
• Check out the community behind the game and the community that uses the launchpad.

Conclusion

The GameFi space is an exciting space for many reasons. One of them is that technology seeks to reward people for entertaining themselves. In addition, there is a high chance of getting rewarded in more than one way for an average gamer, as gamers can turn these rewards into fiat currency or digital currency assets. 

The rise of GameFi provides game developers with the opportunity to create games in a new environment that benefits both the players and the developers. In addition, a game developer in the blockchain space has enormous potential to make lots of money because the system rewards players, investors, and developers. 

Ultimately, one can do many things in the GameFi ecosystem; you should find a space there and start. The time is now.