GameFi is a term that refers to the use of cryptocurrency and blockchain technology in the gaming industry. It encompasses a wide range of applications, including the use of cryptocurrency as a payment method for in-game purchases, the use of blockchain technology to facilitate secure and transparent transactions, and the creation of decentralized, blockchain-based platforms for hosting and playing games.
Examples of GameFi Applications
One common application of GameFi is the use of blockchain technology to facilitate secure and transparent transactions within games. This can include the use of smart contracts to enforce rules and regulations, as well as the use of decentralized platforms to host and play games. These platforms can be used to create a decentralized marketplace for in-game items, which can be traded and sold by players directly, without the need for intermediaries.
In addition to these applications, there are also a number of other ways in which GameFi is being used to revolutionize the gaming industry. For example, some developers are using blockchain technology to create new types of games, such as collectible card games or virtual worlds, that are built entirely on the blockchain. Others are using cryptocurrency and blockchain technology to enable new business models, such as the creation of decentralized, player-driven economies within games.
What is the best Blockchain for GameFi?
The best blockchain for GameFi and other play to earn models at the moment is Avalanche. They are an EVM Compatible chain, which means it is incredibly easy to transfer funds from an Ethereum wallet to an Avalanche C-chain wallet and they are incredibly cheap.
Some of the most popular games on Avalanche at the moment include Crabada (CRA), Dragon Crypto Aurum (DCAU) and Domi Online.
How can I Play to Earn in Crypto?
The best thing about GameFi or play to earn is the fact that you can get started from any country within minutes in a permissionless nature. The guide below provides a high-level overview on how to start playing games from the Ethereum network as an example.
- Download a Crypto Wallet: Download a popular Ethereum Virtual Machine (EVM) wallet like Metamask.
- Put ETH in your Wallet: Buy Ethereum (ETH) from whatever cryptocurrency exchange is most convenient for you.
- Select your game: Do some research (can read our guide below) to pick a suitable game to get started in GameFi.
- Buy items: Buy the beginner items you need to get started. For example, with Axie Infinity you need to buy 3 Axie’s to start battling & breeding.
What are the Best GameFi Games?
If you are interested in learning more about GameFi and getting hands on with some of the most popular applications, here is a list of our favourite 3 to get started:
1. Axie Infinity (AXS)
Axie Infinity is without doubt the largest and most successfully GameFi project on any blockchain in cryptocurrencies. In the game, users are required to collect, train and breed little monster NFTs that are called Axie’s. When you battle your Axie’s in their 3v3 PVP game mode, you can earn Smooth Love Position (SLP) tokens, which you can then sell for revenue.
Another way to earn money on Axie Infinity is by breeding two Axie’s to create another Axie, which you can then sell on an NFT Marketplace. This is referred to as NFT farming.
2. Crabada (CRA)
Crabada has very similar game dynamics to Axie Infinity, as the game ultimately revolves around PVP battling of crabs. Similar to Axie, users will be required to collect, breed and quest their Crabs to earn Crabada tokens and Treasure Under the Sea.
One key difference of Crabada is that it operates on the Avalanche blockchain, which is cheaper and ultimately a smoother user experience.
3. Decentraland (MANA)
Decentraland is the largest open-world Metaverse that currently runs on both the Ethereum and Polygon networks. Decentraland is reminiscent of the early SIMS games, however when you buy, sell or trade items in game - you are doing it with a real currency called MANA.
Decentraland is hands down the fastest growing Metaverse project and is worthy of checking out.
While GameFi and Play to Earn are both incredibly exciting categories, it is pertinent to note that we are very early in the growth cycle of these sub-sectors. If you are looking to invest in early stage projects, it is important to track on-chain metrics to ensure that the product is gaining real traction and it is not just smoke and mirrors.
It is important to play the best games available on the market like Axie Infinity or Defi Kingdoms (DFK) so you know what a “winning” play-to-earn model feels like, enabling you to avoid dud games by dud developers.
I fell into crypto during the 2017 mania and have been around ever-since. I now write, research and publish my own reports on the digital asset ecosystem.