GameFi, like any other blockchain trend, is shaking up the traditional online gaming industry. GameFi is changing online gaming by combining elements of DeFi, NFT and blockchain technology.
GameFi projects take many forms, but most popular crypto and NFT games have similar features that distinguish them from traditional online games.
Earnability gaming model
The money-making model characteristic of GameFi projects is revolutionary. Traditional online games make money through in-app purchases, affiliate programs and advertising. Players spend money to buy in-game items that give them an advantage over others. Of course, these costs go directly to game developers.
Besides, if you grew up on Minecraft, PlayerUnknown’s Battlegrounds or other online games, you know very well that in-game currency that has no value in the real world is useless. You get nothing in return for the time and effort you put into the game.
GameFi Innovation
Earnable cryptogames are completely changing the gaming industry by giving in-game purchases real value. All in-game items are stored in a distributed public registry or blockchain running on a crypto network. This system allows you to exchange in-game tokens and items for cryptocurrency, which can then be exchanged for real money.
To improve the game experience and get ahead, players buy coins, weapons, extra lives, characters, costumes, avatars, accessories and other items directly in-game. Traditional gameplay involves buying assets from developer-owned stores, which does not generate any income for the players themselves. This can limit what users, especially those who don’t have a lot of free money, can do. In crypto games, on the other hand, these purchases are made with cryptocurrencies and often involve trading of valuable assets between players.
Conventional online games allow digital possession, but items then do not have the value that cryptogames offer. Such items cannot be exchanged
with other players. This is in contrast to decentralized GameFi, in which players own distributed digital assets with real value and unlimited scope.
Virtually no upfront cost
Most GameFi games can be played for free, making them more affordable than traditional games. While there is no upfront cost, some games may require the purchase of in-game tokens, characters, and other items to get started.
Permanent ownership of game assets
GameFi gamers become permanent owners of their assets and NFTs. Traditional games, on the other hand, can be shut down at any time, causing gamers to lose all their game progress, and that’s a huge disadvantage. All assets belong to the game developer, users have no control over the life cycle of the game platform. If the game developer goes bankrupt, gamers can say goodbye to further game development.
In addition, traditional online games are not as secure as blockchain-based crypto-games, they are vulnerable to attacks, and players can lose all their assets in a hack.
Easy-to-learn mechanics
GameFi projects use simple game mechanics. This approach lowers the entry threshold, contributing to a significant increase in popularity. Players of all ages and backgrounds will feel comfortable with these projects.