What is GameFi? The combination of Defi, NFT and blockchain.

[Ian Partridge]

 

GameFi, which is quite a broad term, is one of the hottest topics in the crypto industry as of late. 
With such a potential and thriving gaming market, blockchain gaming is poised for a breakthrough. Names like Axie Infinity and their total in-game asset sales of over a billion dollars have caught the interest of the traditional gaming industry. We are now seeing giants like Ubisoft enter the GameFi arena.

So let's find out with BTA about the special concepts surrounding GameFi.

What is GameFi?

GameFi is a combination of decentralized finance (Defi), non-fungible token (NFT), and blockchain-based online gaming.

Unlike traditional online games, it operates on the model where players purchase upgrades to gain an advantage over other games. GameFi introduces the "Play to Win" model. This has allowed players to earn a full-time income by contributing their time and effort.

The beginning and development of GameFi

The term was probably first used by Yearn founder Andre Cronje in a tweet on September 9. Since then, “GameFi” has been used more and more frequently to describe games with financial elements enabled by blockchain technology.

Early GameFi titles used the Bitcoin blockchain, but low transaction fees and speeds spurred adoption of the blockchain that powers smart contracts. That is Ethereum.

Game developers used Ethereum extensively and it is still popular today. But there are performance issues due to limited block space. This vulnerability was evident when the popularity of CryptoKitties clogged the Ethereum network in 2017, causing Ethereum fees to skyrocket.

CryptoKitties took advantage of the recently defined ERC-721 standard to represent in-game assets in the form of a non-fungible token (NFT). Since then, interest in NFTs has grown and performance-optimized blockchains have been launched, creating an exponential growth in innovation in the GameFi field.

How does the GameFi project work?

The different GameFi projects usually have a few things in common:

In-game items such as avatars, lands, costumes, weapons, gold, tokens, and pets are represented as NFTs, demonstrating ownership of these digital items.
Players earn these items through gaming and can trade them on the NFT market for profit, or trade them for cryptocurrencies and then exchange them for fiat money.

GameFi sets itself apart in many different ways. Therefore, the mechanism by which players can generate income through their game will be different. The most popular blockchain games today use a combination of the following features:
●Play to win
●Asset Ownership
●Defi-features
●blockchain technology
●Zero or low initial costs

The best popular Gamefi project in 2022 

GXG will be introduced their new ecosystem as GXG Meta-verse Gaming Platform (GMGP) which is building on metaverse concept and blockchain technology, providing a virtual entertainment world where people can play and socialize.Its most innovative part is that players are allowed to independently develop games on the blockchain, create GameFi (Gaming Finance) related NFT characters and host competitions. 
The games on the platform are essentially different from the games provided by traditional betting game providers. The results of the game will no longer be controlled by humans or computers but rather based on the attributes of the NFT character participating in the game. The winning probability is determined by the smart contract algorithm and the result is randomly generated from these probabilities. The results can also be verified by a hash algorithm for its fairness and uniqueness. 
There will be more interesting things about GXG Meta-verse Gaming Platform. Read more White Paper 3.0 at https://www.yeyu123321.co/

The future of GameFi

With the growing importance of digital assets, financial professionals and NFT technology developers have sought to gain market share before any of their competitors. For this reason, the pattern has become very popular among people and developers. It leads to the transfer of capital to projects based on blockchain and NFT-based games.

With the success of Axie Infinity ,and blockchain games currently being developed on different blockchain protocols, it is clear that GameFi has a bright future ahead of it.