GameFi is the hottest new trend that has emerged from the Cryptocurrency industry. Combining Decentralized Finance (Defi) and Non-Fungible Tokens (NFTs), the gaming industry set new trends in the use of Cryptocurrencies.
The concept behind GameFi is that it was more focused on Play-To-Earn, unlike the traditional gaming industry that operated on Pay-To-Win.
This concept involved players being given incentives for playing games and process through the games. In some cases, professional gamers have made a career out of it playing games.
In this article, we will discuss Play-To-Win games and how you can earn from them.
What Are Play-To-Earn Games?
The Play-To-Earn concept lets the players own in-game assets and allow them to increase the value of the asset by taking part in the in-game activities. These activities can be breeding creatures, unlocking new levels, buying items, upgrading the items, and other gaming activities.
By participating in the in-game activity, the layers help them increase the value of the gaming community and the developers behind the games.
In the play-to-earn activity, the reward system is pretty straightforward. The rewards can range from in-game gaming tools and weapons to financial rewards in the form of Cryptocurrencies and tokenizations.
How Does Play-To-Earn Work?
The concept of play-to-earn is that all the assets of games are your property. Just think of ten things like in the real world. The only difference is that they all exist in the virtual gaming world.
While these items might not have any real value in the real world, they are worth thousands of dollars in the gaming world. You can take part in playing games and other in-game activities to raise the value of the items.
Depending on which games you are playing, users can increase their earning potential. Now that there are thousands of players taking part in the game. In order to track which players own which item, blockchain technology is used.
Blockchain technology is a digitally distributed ledger that is spread through all the computer networks globally and keeps track of everything happening in the games and the items changing hands.
Leveraging Blockchain technology allows the players with a number of benefits –
- Players can easily prove the ownership of the in-game item.
- Players will never lose track of their items.
- Items accrued during the gameplay cannot be counterfeited.
- Game native Cryptocurrencies can be used as real currency inside the game to buy and sell in-game items.
Some games also include the element of staking, where players can easily lock away certain game items and can earn annual interest on their price.
Click here if you are interested to know more about Blockchain technology and its potential in the gaming industry.
How To Use Play-To-Earn Games To Get Crypto?
Play-To-Earn in the decentralized world uses two methods to generate liquidity of your in-game items and other assets. They are –
- Buying & Selling in-game NFTs.
- Playing to earn in-game Cryptocurrencies.
Buying & Selling In-Game NFTs
The core concept behind the play-to-earn model is creating, buying, and selling in-game assets. The most popular example would be NFTs. NFTs-based games allow the players to play and earn rewards in the form of NFTs. These NFTs can then be sold and make a profit out of it.
Playing To Earn In-Game Cryptocurrencies
This method follows the same model; the only difference you will find is in its reward system. Instead of rewarding the players with NFTs that can be exchanged for Cryptocurrencies, it directly rewards the players with Cryptocurrencies when they play the game. Once you can have Cryptocurrencies, you can use them for trading and making more money out of them.
GameFi has already gained a lot of traction in the gaming industry. With its collective market capitalization of more than $14 billion, it is showing the world its potential.
Although we are getting many new things out of the GameFi industry, experts in the field claim that this industry has a lot to offer.
In addition, experts believe that with GameFi in action, the adoption of Cryptocurrency will increase.