Blockchain technology in 2021 was hot. However, the second half of the year was overrun by large announcements and figures relating to gaming. On August 6th, Axie Infinity generated $17 million, surpassing even Honor of Kings. What makes games so appealing, and what will happen once this initial burst of momentum ends?
Mary Ma coined GameFi or Game Finance during the Wuzhen World Blockchain Conference hosted by 8BTC. Game developers often create financial ecosystems using NFTs and Liquidity Mining. Gameplay is referred to as ‘Play to Earn’ or ‘P2E’. The asset ownership method is different from traditional gaming in GameFi. Through on-chain smart contracts, the asset ownership is determined by the player rather than the GameFi provides that the asset of the game belongs to the player rather than the developer.
For trading in the crypto markets, the players are either NFTs or tokens, who trade in the crypto markets on the open. Players have ownership of these assets and can trade NFT or tokens in open Crypto markets with other players. All game codes are open source, and transparent developers cannot simply change these codes. A player can participate in-game upgrades and changes via a DAO, thereby increasing their level of participation. GameFi still has some serious problems. As an investor, you should evaluate the projects based on their likelihood of overcoming these challenges. GameFi can find roughly 3 billion traditional gamers. That is 33 million. Games primarily based on the Internet are made by on-chain games in the era of mobile gaming. A major reason gamers are not abundantly flocking to GameFi is that of cryptocurrency wallets, key phrases, and gas fees. There is a lot of traffic and high gas fees. The popularity of CryptoKitties in 2017 caused major congestion on the Ethereum network.
Ad hoc infrastructure is built to support popular games, such as Ethereum. Migrating Axie Infinity to a poor sidechain playability. Although the majority of popular GameFi projects still look like traditional 3A games. In many cases, room for improvement is found in playability, making the games purely money-making methods for many players rather than a fun activity. The question is, does the money motive in games necessarily make them less fun? If a game earns enough money to generate revenue, the player will leave. A cycle where developers are rewarded for focusing on the finance rather than the gaming aspect of a project is created by this. CryptoBlades saw a massive exodus of players in July after its launch. The risk of players losing their initial investment is more serious. The same thing happened with Axie Infinity. A token in the game provides a significant source of revenue. The token, Smooth Love Potion, is in the game. When SLP fell, it caused a decrease in Axie Infinity’s revenue. People in countries like the Philippines, who make a living, are once helped by Axie Infinity. Still, now the daily income from it. According to a report from Dappradar, four of the top ten games have been occupied by GameFi. The amount of transfers in seconds, which is six times the Ethereum amount, continues to increase. The low transaction speed and the high gas fees have become obstacles for ordinary users to enter the blockchain world, despite most of the overall TVL.
In comparison, BSC may have a better blockchain for GameFi for the following reasons. Ethereum has firmed in terms of daily transaction volume and the number of unique active addresses. Regarding the active addresses, 400,000 and 600,000 per day are fluctuated by Ethereum. The BSC from 1Five to two million per day is approximately three to five times more than Ethereum. The difference between these two daily transaction volumes achieves 13 times. BSC provides higher transaction efficiency and lower gas fees, making it compatible with the Ethereum Virtual Machine. More friendly is achieved by developing game projects throughout the entire ecosystem of BSC. Second, selected most GameFi Projects through BSC incentive programs. These projects received $10,000 grants, and a full security audit from CeriBSC announced the list of winners in July of this year. In the next MVB III program directly positioned as GameFi, we believe BSCThere can detonate the GameFi field are four of the nine projects in the two Learn & Earn events involving games or NFTs, including CryptoBlades. BSC is a fertile ground for GameFi by rewarding users with unique NFT’s and bonuses to encourage participation in excellent projects. For the past thirty days, the top 5 games on BSC are CryptoMines, ETERNAL, Mobox, and Bomb Crypto. As the number of users and transactions continues to rise, the price of the game’s tokens is also climbing. It is a 16 times higher price than a month ago and was $572 as of October 24th.
Players who participate in P2E games will indeed gain significant rewards. The benefit could increase the enjoyment and adoption of blockchain technologies. However, many issues remain to be resolved in GameFi. GameFi needs to have a favorable ecosystem, and Ethereum needs to be optimized. With the innovation of stable coin and Celo, Terra focused on decentralized mobile payment to improve differentiation. Aside from supporting its environment, GameFi brings traffic to some unpopular blockchains. Popularity is due to the success of Axie. The most popular blockchains have won both WAX and Flow. The last blockchain explosion was in DeFi. Projects feel all the making of leading the next wave of blockchain development if infrastructure, playability and have compiled a list of the most important daily stories in the world of crypto, DeFi, NFTs, and many other topics. The email address is optional.