While the popularity of virtual worlds is gaining momentum, company developments are not standing still, raising ambitions in the metaverse.
At the same time, with the rise of GameFi, the DeFi industry is also expanding its boundaries. The hype is driven by the simple reason that DeFi is able to lead, not just copy money products that were previously created in the traditional financial market.
GameFi takes finance to the next level, where gaming and creativity in virtual worlds is a viable way to invest, earn and contribute to popular culture.
What is GameFi
GameFi combines DeFi with a game that includes collectible NFTs. Instead of interacting with difficult to use or boring financial interfaces, you can immerse yourself in the virtual world and earn money by playing. In turn, investing in an ecosystem will help it grow.
Haven’t we seen decentralized applications using NFT before, like CryptoKitties? Sure, we’ve seen it, but GameFi offers a slightly different approach. Rather than just collecting, buying and trading items, a new generation of more sophisticated games empowers users to:
Interact with all DeFi options, be it growing crops, lending, borrowing or minting tokens;
influence the direction of the game by creating a part of the virtual world with which other users can interact, or by acquiring control rights through the accumulation of tokens;
participate in staking in order to receive passive income.
While it might seem from the outside that collectible animals and fantasy worlds are incompatible with complex financial transactions, this is where GameFi’s strength lies.
As you might expect, some of the best GameFi games are built on the Ethereum and Binance Smart Chain. The BTCU blockchain also has functions for running GameFi: Smart contracts that allow you to implement any scenario with high scalability and network security.
How does GameFi work?
Buying in-game items for use in virtual worlds is nothing new, just like how World of Warcraft, The Sims, and FIFA have used this feature for many years. The Steam platform also has a large in-game marketplace where players can directly sell items from Dota2, CS: GO and other games. The difference lies in the greater autonomy of the participants in terms of creating, owning, and selling their goods.
GameFi applications initially involve the connection of cryptocurrency wallets. After that, players are actively encouraged to create, earn and make a profit through the game project. As an ecosystem grows, everyone benefits whether it be creators or users.
GameFi value for players
The GameFi world offers the right mix of fun and creativity, and allows to make profitable financial decisions.
In addition to making profit, people continue to interact with this metaverse, because it is fun, gives a sense of community and freedom of choice. Through governance tokens and content creation initiatives, players feel that they are involved in the development of the protocol and can actively influence its direction.
What’s in store for GameFi?
As GameFi gains more attention, it will help create more engaging and challenging games, and further lead to more sponsors and investors in the DeFi space.
If you want to develop a DeFi project, create an NFT marketplace or launch smart contracts for the platform, then you can choose the BTCU blockchain and implement a successful project quickly, flexibly and ingeniously.