The Covid-19 lockdown that happened in 2020 brought about many innovative ideas and made people see new possibilities. The blockchain space also saw the launching and adoption of many great things. Online presence of people all over the world increased and more contents were consumed than ever, most engaged in online games for entertainment and also to while away time.
The pandemic brought about decline to many business sectors, but the video gaming sector experienced a boom which was unexpected in the year 2020. The video gaming market is worth billions of dollars and it keeps increasing, there is a possibility of it reaching 314.40 billion by 2026 according to experts. The boom was as a result of people resorting to find entertainment and engagement to keep them from boredom, most turned to video games.
The gaming community has been taking interest in blockchain and cryptocurrency, the opportunity to play and earn is very much enticing not to talk of the fact that the game developers can not rig the system once it is on the blockchain. Crypto games are like upgrades to traditional games, players now have the opportunity to get rewarded for efforts and time spent playing the game.
Gamers that spend time playing with games built on the blockchain can get to exchange their virtual assets for cryptocurrency assets that can be traded every where. They have found out that is a secure way of making money or getting their efforts and time rewarded in the blockchain.
This is a type of blockchain gaming that combines the application of gaming NFTs and Decentralized Finance (DeFi). Imagine a game where players get to earn or buy NFTs and these assets can be collateralized to borrow asset(s) in-game to yield more assets,then you have an idea of what GameFi is all about.
The NFT gaming sector on the blockchain has improved greatly as more gamers are interacting with decentralized games, especially when blockchain games are referred to as "play-to-earn" and NFT games as "pay-to-earn". It is referred to as pay-to-earn because you stand a better chance of earning more when you buy valuable asset(s). GameFi combines the two.
Objects like plots of land, avatars, costumes, weapons and gold bars can be in the form of NFTs depending on what the developers have in mind. Gamers can gather these NFTs and decide to earn more with them or push them to a marketplace where they can be exchanged for cryptocurrency assets. Tracks of games, all NFT owned and initiated transactions are recorded on the blockchain where the information cannot be tampered with.
Staking is also involved in the DeFi part where players can lock away certain tokens in order to earn annual interest and other rewards they can save to purchase other in-game items or unlock new content. Gamefi is really the future of gaming.
”GameFi is going to be the next big thing that makes the DeFi, NFT and the larger crypto space easy to understand and be involved in.” - Justin Sun
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