Unlike many traditional online games, which operate on a ‘pay to win ’ model and allow players to purchase various upgrades to gain an advantage over others, GameFi is introducing a ‘ play to earn ’ model.
This concept is based on giving players a financial incentive to play and progress through the game, and in some cases, this concept has allowed players to generate enviable income as well.
How does it work
The main currency and all objects that can be purchased through the game are made as NFTs. For example, a plot of land, an avatar character, costumes, weapons, etc. are bought and sold or won in games in the form of NFTs, ie tokens which can of course be traded through the game but also traded with other digital markets where NFT can be sold in exchange for one of the cryptocurrencies.
Depending on which game is being played, users can increase their earning potential by upgrading their characters, or they can monetize buying space or land in certain games by renting or brokering with it like a real-world real estate broker.
In order to track what each player owns, all NFTs and cryptocurrency transaction data are stored in a public blockchain and the application of this technology in games has a number of advantages, such as easier proof of ownership of their in-game items and in-game items cannot be forged, removed or destroyed.
Some games also include DeFi elements, such as investing, where players can lock certain tokens to earn annual interest and other rewards.
What you need for these games
To be able to participate in any of these crypto-earning games, users will need to do the following:
- Create a wallet for cryptocurrencies and ‘fill’ it with a specific cryptocurrency: to store their virtual currency and NFTs and perform in-game transactions. Which wallet you will need will depend on which blockchain the game is built on. For example, the MetaMask crypto wallet service is based on Ethereum, so it will work with any GameFi game built on Ethereum.
- Buy starting items: You can download all GameFi games for free. However, many games require you to first buy characters, original crypto chips, decks of cards, or various upgrades to get started with the game.