GameFi: The Story Behind the Emerging Crypto-Gaming Category and How to Play

9 Mar 2023

When we take a trip down memory lane and stop at the beginning of video games, we can see that it was always about creating an escape from reality – a compelling duplicate of the real world, only with a new set of rules and a different setting. Fast forward to today, technology has helped bridge this gap between gaming universes and the real world thanks to advanced graphics and computation, but real-life fundamental incentives are still missing. Does GameFi change that? 42 Studio will help you find out.

Believe it or not, around 3.2 billion people in the world are gamers. However, a portion of these gamers are professionals – video games are their full-time profession. They earn a living by playing video games in tournaments, championships, and gaming competitions. But what if we told you there’s an easier way to monetize your gameplay for a larger number of people worldwide?

The Definition of GameFi

GameFi is an emerging, fast-expanding crypto-gaming category also known as play-to-earn. A fusion of gaming and blockchain technology. It allows players to access an infrastructure that helps them earn digital assets through game quests, trading, and other methods. With GameFi, gameplay and in-game actions are always rewarded.

Although traditional games have had these digital asset trading options for decades, players’ investments could be lost at any time if the publisher decided to shut down the game. In the unfortunate event that this occurs, the gamer loses everything. With GameFi, the gamer is the sole owner of their gameplay, thanks to distributed ledger technology. All assets are stored on the blockchain, which means no company, organization, or institution owns it or can disturb it in any way.

Sounds compelling, doesn’t it? This technology eliminates the risk of holding digital assets and losing them due to third-party influence or actions. GameFi has attracted over, with more than 30 blockchains taking part in the gaming sector. So now that players have a new way to own and monetize their gameplay, the question is, where do they begin?

How To Play Instructions

Although starter requirements may differ for each GameFi title, most games follow a simple step-by-step protocol which includes owning a funded crypto wallet and buying a few beginner items in order to take part in the game. 42 Studio explains why you need these things.

Obtain a Crypto Wallet

Your crypto wallet serves as a foundation for your future gameplay success – it houses your crypto and NFTs, allowing you to get down to your digital business. Each new player should note that not every wallet works with every crypto ecosystem. Before getting started, new players should check wallet compatibility before setting one up. 

Here’s an example: One of the most popular GameFi games, Axie Infinity, was built on the Ethereum blockchain, which means it’s compatible with an Ethereum wallet, like MetaMask.

Fund Your Crypto Wallet

If a new player wants to play games that don’t allow them to earn their first few units of digital currency by playing, funding the wallet is necessary to begin the GameFi journey. Which cryptocurrency should you get to fuel up your wallet? It depends on each game, and it might take some extra steps to obtain the token in some cases, but once your wallet is funded, you can begin to discover play-to-earn. 

Buy Beginner Items

It’s important to know; downloading GameFi games is usually free. However, beginners won’t get to play most titles until they make a purchase, thus investing in the online world, which often includes a character, upgrade, or certain in-game item. After investing in these digital items, players can finally start earning with their gameplay.

Final Thoughts

Blockchain, NFTs, and cryptocurrencies are slowly but surely taking over the gaming industry. The ever-expanding crypto-gaming sector will likely reach new heights in the near future as more players adapt to the blockchain-powered infrastructure that benefits them largely as users.
42 Studio will keep watching and updating about this up-and-coming industry, and if you want more articles like this one, be sure to check out our blog.

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