GameFi Explained: How To Earn Money Through Blockchain Gaming
GameFi is grown into one of the hottest trends in the cryptocurrency industry right now. Blockchain gaming is set to disrupt the $175 billion global video games market.
This exciting industry GameFi", what is it all about? How does it work and what are ways you can make money from blockchain gaming?
What is GameFi?
GameFi is simply a fusion of the words “game” and “finance.”
It combines cryptocurrency, blockchain, NFTs, and game mechanics to create a virtual environment where players participate and earn money in the process.
GameFi operates on a “play-to-earn” model. This concept involves rewarding players with financial incentives to play and grow the levels in games. Some blockchain games allow gamers to earn a full-time income as they engage in the games.
Such online games can be integrated with decentralized finance (DeFi) tools such as landing pages, loans, farming, tools for issuing new tokens, algorithmic stablecoins, etc.
Gaming projects like this are launched on the blockchain distributed ledger. This means that all objects that players receive become their full property.
In the GameFi ecosystem, everything is simpler: you just need to play and receive bonuses. Some gaming projects require you to invest some of your cryptos to start a gaming activity.
For example, some blockchain games reward players for completing in-game tasks while others may enable revenue generation from the various assets a player owns.
Axie Infinity project is a great example. Developers of this blockchain game managed to earn $800 million in one month, according to the DappRadar portal.
How Do GameFi Projects Work?
Different GameFi projects vary in their mechanics. Generally, in-game items are built as NFTs—non-fungible digital tokens and come in the form of avatars, land, costumes, weapons, gold, tokens, and pets. So, you have proof of full ownership of any of the in-game items you acquire.
Game players claim these items as they play the games and can trade them on NFT marketplaces for profit or exchange them for popular cryptocurrencies. In fact, we launched our own Binance NFT Marketplace to give our users an opportunity to purchase and invest in digital arts and earn more money.
In addition to growing your level in the game and claiming items, here are many other ways to earn money in GameFi:
1. Just like “Bet Naija”, some gaming projects allow you to make money on predictions, as you bet on the results of some gaming competitions.
2. In-game items you acquired, like Land and other items can be rented out. For example, Decentraland sold the Fashion Street Estate for $ 2.42 million; and the virtual yacht Metaflower from The Sandbox was purchased for $ 650,000.
3. Players can increase their gaming revenue by engaging in tournaments.
GameFi ecosystem is safe because all information about achievements and ownership of various items is stored in the public blockchain. This mechanism allows users to fully own the game assets, not developers.
So, if you developed or bought a player, then no one can take away your ownership rights, neither will it disappear even if the game’s servers go offline. “Shikina!”
As a result, the GameFi sphere became a place for earning crypto assets for users from all over the world. Now, the GameFi industry is set to go head-to-head with the traditional gaming market.
The History of Gamefi
GameFi originated from factors that challenged the emergence of the NFT phenomenon CryptoKitties that was built on the Ethereum network.
The NFTs economy proved a viral success, with CryptoKitties hitting over 14,914 users a day at its peak. Unfortunately, the success of these NFTs clogged the Ethereum network, resulting in massive spikes in transaction fees and slower transaction confirmation times.
Since then, developers moved to upgraded blockchains that promise faster transaction speeds, greater scalability, and cheaper fees. These include the likes of BSC, Solana, Polkadot, Polygon, Wax, and Cardano.
The growth of Decentralised Finance (DeFi) platforms boosted the adoption of GameFi, as new blockchain-native financial platforms emerged that run entirely using smart contracts. This provided the infrastructure to enable users to launch, trade as well as lend or stake their in-game tokens.
The world of decentralized finance and asset tokenization is rapidly gaining popularity, as the GameFi industry incorporates all these functionalities. For example, the BSC-based game MOBOX blends yield farming with NFT collectibles and other DeFi services.
Also, blockchain games are easily scalable as they do not require serious hardware/investments to participate in the project. You can easily participate using your mobile phones, tablets, or PCs. Thus, GameFi provides more use cases for cryptocurrency and NFT gaming space, making it very profitable and affordable.
The use of NFT in-game items contributed to the growth in popularity of GameFi. It’s no surprise that the top blockchain games have surpassed a market capitalization of over $14 billion.
Earn Crypto Through Blockchain Gaming: Introducing Initial Game Offering
If you are interested in participating in these play-to-earn games, you’ll embrace the concept of Initial Game Offerings(IGO).
Initial Game Offering, are NFT collections from top-tier gaming projects available exclusively on Binance NFT. These collections can launch either via auction, fixed price, or mystery boxes.
Generally, IGOs have landing pages where users can access gaming project information, such as a brief introduction to the game, development roadmaps, in-game previews, available NFTs for sale, and more. We like to see these projects’ landing pages as their mini gaming metaverse on Binance.
How to Get Started With Binance IGO
Sign in on binance.com.
Top up your wallet to buy NFTs on Binance.
If you’re interested in launching an IGO collection on Binance NFT, please complete the application form. The Binance NFT team will review and contact you if your submission is successful and approved. Binance NFT IGO is multi-chain and open to high-quality gaming projects across all blockchain networks.
However, in collaboration with Binance Smart Chain’s $1B growth fund, Most Valuable Builder (MVB) winners will have a higher chance of getting selected.
GameFi projects incorporate the “play-to-earn” mechanism that rewards gamers financially as they progress in the game and increases crypto adoption.
Interested in playing games? Binance supports some of the most popular crypto and NFT tokens, including SLP tokens for Axie Infinity and MBOX for MOBOX. To get started, download the Binance app and sign up.