Since the term “GameFi” was coined in a tweet in 2020, its trajectory has seen ups and downs. GameFi, derived from two words, “gaming” and “finance,” is essentially video games designed using blockchain technology. GameFi, in other words, is also known as Play-to-Earn (P2E) games. Players can earn cryptocurrencies and other in-game collectibles in the form of non-fungible tokens (NFTs) while playing the game. In P2E games, players can generate revenue by selling or trading the collectibles and cryptocurrencies they have received from playing the game. Time players spend gives them a return that yields revenue. GameFi can also be described as the convergence of DeFi, gaming, NFTs, and the Metaverse.
Benefits of Play-to-Earn Games
P2E games offer several benefits ranging from personal to social and technological advantages.
1. It offers a chance to earn real money. This is a primary reason why individuals participate in GameFi. Extra incentives are given to gamers as they spend more time in the virtual gaming environment. They can also gather in-game items such as pets, land, building, and weapons while playing the game, which is already tokenized. This means they can be exchanged or traded at the available marketplaces to yield revenue
2. P2E games revolve around a community of players or gamers. Players form a community where they can interact, share tips and ideas, exchange and trade assets, and compete against one another. This way, P2E games help to promote teamwork, communication, and negotiation skills. It also provides a deep sense of community and belonging
3. Like in every game, P2E games help build and enhance the players’ strategic planning and critical thinking skills
4. It’s not only the players that benefit from Play-to-Earn games. The developers also increase revenue as the ecosystem and more players participate in the game. Hence, we can say that P2E games help to promote the mutual economic drive for both the developers and the gamers
5. P2E games can also be used to create awareness through a campaign on essential issues in society. For instance, Nyan Heroes aims to save 1 billion sheltered cats
6. Play-to-Earn games also offer the benefits of expanding blockchain technology solutions and driving mass cryptocurrency adoption
How do Play-to-Earn NFT games make money?
As mentioned earlier, P2E games use blockchain technology that enables the players to receive digital assets as they play the game. These assets could be coins, tokens, or in-game collectibles known as NFTs, which can be traded or exchanged for real fiat money or cryptocurrencies.
Most P2E games require that you purchase either their native token(s) or buy an NFT to participate. Almost everything in the games is for sale, including the characters, pets, weapons, etc. In addition, each time you complete a task or a mission, you are eligible to receive bonuses, usually cryptocurrencies or NFTs. These are known as collectibles.
These collectibles can be stored and traded on wallets and exchanges such as Blocto Wallet.
Games to get you started
If you’re wondering which game to start your GameFi journey with, there are actually many around with several others still in design. If you want something adventurous with an opportunity to stack up cash, Axie Infinity should be among the first set of P2E games you should consider.
Axie Infinity is a top-rated P2E game with well above 2.7 million active players monthly. The economy of the games has three digital assets. Smooth Love Potion (SLP) is used for breeding the Axies; there are the Axies which are NFTs that can be traded, and there is the Axie Infinity (AXS) token, the native token of the ecosystem.
How to invest in GameFi
There are basically two ways to invest in GameFi. The first is by playing GameFi games. This is also known as Play-to-Earn (P2E). The games are designed to allow players to receive token rewards, NFT in-game rewards, and staking rewards.
The second way to invest in GameFi is by investing in cryptocurrencies that are in the ecosystem. GameFi projects usually have their own native tokens used in their games. You can analyze the prospects and potentials of these tokens and take an investment position by putting your capital in them.
Get started with Blocto Wallet
All you need to get started with Blocto Wallet is a user account and your password. Within 30 seconds, you can set your wallet up to receive cryptocurrencies and other collectibles you might earn while playing the game. Enjoy high usability and simplicity, multi-chain support with no barriers (including Flow, Solana, Tron, Aptos, and Ethereum), and an intelligent contract-powered ecosystem. Bloctowap features also allow the wallet to find use across various ecosystems that form the architectural framework of several P2E games, serving as a cross-chain bridge.Trading NFTs usually comes at a high transaction fee on most NFT marketplaces, but with Blocto Points, Blocto’s all-in-one gas fee solution, users can navigate Web3 with less hassle. Blocto Wallet reduces your onboarding time and enhances your overall user experience, so download now to enjoy your Play-to-Earn games and easily make real-time profit from your collectibles!