What Is GameFi and How Does It Work?
GameFi refers to blockchain games that let users earn money by playing. Players may often earn bitcoin and NFT prizes by performing chores, fighting other players, and advancing through the various game levels.
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Unlike traditional video games, most blockchain games allow players to move game objects outside of the virtual world. This allows gamers to swap their NFT goods and crypto winnings on cryptocurrency markets.
How does GameFi function?
The reward in GameFi can take several forms, including cryptocurrency and in-game assets such as virtual land, avatars, weapons, and outfits. Each GameFi project will have its own game economy and model. The in-game assets are usually NFTs that operate on the blockchain and may be exchanged on NFT marketplaces. In other circumstances, though, in-game assets must be transformed into NFTs before they may be traded or sold.
In most cases, in-game assets will give players with particular advantages, allowing them to earn additional prizes. However, some games have avatars and cosmetics that are merely decorative and have no bearing on gameplay or revenue.
Players can earn prizes by completing activities, fighting fellow players, or building commercialised constructions on their piece of land, depending on the game. Some games allow users to earn money without actually playing the game by staking or renting their gaming assets to other players. Let’s take a look at some of GameFi’s most prevalent features.
There are hundreds of blockchain games available, each with its own set of rules. Scam projects and bogus websites should be avoided. It’s risky to connect your wallets or download games from strange websites. Create a fresh crypto wallet exclusively for this reason, and only utilise funds that you can afford to give up. Follow these steps to get started if you’re convinced the game you found is safe.
- Make a cryptocurrency wallet.
A suitable cryptocurrency wallet, such as Trust Wallet or MetaMask, is required to enter the GameFi environment. You may need to utilise multiple wallets or connect to separate blockchain networks depending on the game you’re playing.
To play blockchain games on the BNB Smart Chain (formerly Binance Smart Chain), for example, you must first link your MetaMask to the BSC network. Trust Wallet or any other approved crypto wallet can also be used. To find out who they support, go to the game’s official website.
You may also connect your cryptocurrency wallet to the Ethereum blockchain and play most Ethereum-based games. Some games, such as Axie Infinity and Gods Unchained, will still create their own wallet in order to save money and enhance speed.
Axie Infinity is based on Ethereum, however the Ronin network was created as a sidechain by their team. To interface with the Axie Infinity network, you must utilise the official Ronin Wallet. The Ronin network is a sidechain that makes trading and breeding Axies significantly cheaper, lowering the cost of playing.
- Join the game with your wallet.
You must link your wallet in order to play a blockchain game. Make sure you’re connected to their actual website rather than a spoof. Look for the opportunity to connect your cryptocurrency wallet on the game’s website. Several blockchain games use your crypto wallet as an online casino account, therefore you’ll probably be required to verify a message on your wallet before you can join the game.
- Check the game’s prerequisites.
To get started, most GameFi initiatives will ask you to buy their cryptocurrency token or in-game NFTs. The prerequisites differ for each game, but you really should constantly examine the earning possibilities as well as the total hazards. Make careful to calculate how long it will take to recoup your original investment and begin profiting.
You’ll need three Axies in your game wallet to play Axie Infinity. The Axie Marketplace is where you can get them. You’ll need wrapped ETH (WETH) in your Ronin Wallet to buy Axies. You can buy ETH on crypto exchanges like Binance and transfer it to your Ronin Wallet via the Ronin bridge.
Folks are trying their fortune with basic browser games in the hopes of making Bitcoin gains since the beginning of Bitcoin. While Bitcoin games are still available, the development of Ethereum and smart contracts has transformed the blockchain gaming landscape, allowing for far more complex and engaging experiences.
GameFi draws players by mixing entertainment and cash incentives. With the increasing influence of blockchain games, the metaverse will almost certainly witness an influx of large corporations.
To better understand this topic, also understand the Play to Earn Business Model and how does it work. Read here the full article.
