DeFi Gaming (GameFi) – All You Need to Know

2/18/2023, 3:07:51 AM - Henry Chikwem
DeFi Gaming (GameFi) – All You Need to Know

If you happen to be a lover of video games and you follow the trend in the gaming space, it’s not new that pay-to-play games are taking over the internet.

These days, thanks to the existence of GameFi, gamers can essentially play games to earn rewards, a concept which is now popularly known as “play-to-earn.”

This play-to-earn system is made possible because of the existence of blockchain and decentralized applications with which gamers earn as they play the game.

Key Takeaways

 • With DeFi gaming, gamers can earn rewards for their efforts, unlike what was obtainable in the past.

 • Gaming has evolved such that gamers can own in-game items and even participate in other activities such as staking that would yield returns.

 • Most DeFi games these days usually require gamers to have a crypto wallet that is provided within the game or an external wallet recommended by the game.

 • DeFi games also offer a lot of flexibility to gamers, one of which includes the ability to recommend possible improvements to the creators of the game when necessary.

This article explores the concept of DeFi gaming, its offer, and the benefits available to gamers who engage in it.

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What is DeFi Gaming (GameFi)?

DeFi Gaming (GameFi) - All You Need to Know

DeFi Gaming (GameFi) refers to games built on the blockchain that enable gamers to receive economic incentives or rewards for their efforts.

Economic incentives here simply imply that gamers can earn cryptocurrencies, NFTs, and even in-game tokens whenever they achieve something noteworthy within a blockchain game.

Mind you, that these economic incentives exist does not in any way imply that they are easy to earn. If gamers are to have any chance of earning rewards in the game, they must be highly skilled.

Once these rewards are won, gamers can then transfer these rewards outside the game to popular NFT marketplaces such as OpenSea if the rewards are NFTs, or to crypto exchanges such as Binance if the rewards are cryptocurrencies in exchange for fiat currency.

How Does DeFi Gaming work?

DeFi gaming works similar to traditional games, just with the additional incentives that come with it. Now, in DeFi games, rewards come in different forms, ranging from crypto to NFTs, and even virtual properties.

When these are won, they are usually traded in the game’s marketplace, if there is one, or taken outside of the game to be traded.

One other thing to note about DeFi gaming is that not all economic incentives can be converted into fiat currency.

Sometimes, these economic incentives come as in-game customized items or rare collections that simply add aesthetics to the game and cannot be exchanged for fiat.

To earn these rewards, gamers are tasked with reaching a particular level or completing a milestone within the game.

They might also be asked to battle tough opponents, build virtual cities, and own virtual properties to win these rewards.

Additionally, there is also the option of staking, where games such as the Illuvium game allow gamers to stake their in-game tokens, or lend their tokens to other gamers to earn interest in the process.

The staking method is best used when gamers do not wish to play the game but are more interested in earning some money for themselves.

The Play-to-Earn concept (P2E)

DeFi Gaming (GameFi) - All You Need to Know

The play-to-earn concept is what makes DeFi gaming different from traditional gaming.

The traditional games operate on a pay-to-play system, and one example is PUBG, where gamers are asked to purchase the game and even buy in-game items to successfully achieve some success within the game.

These traditional games do not offer any sort of monetary reward to gamers and are not even flexible as most of the items within the game are owned and controlled by the creators.

In DeFi games, however, this is not the case. Gamers earn within the game, and in some cases, become part owners of the game, where they get to be involved in the decision-making process of the game.

An example of a game partly owned by gamers is the Axie Infinity game, where gamers raise, breed, battle, and trade token-based creatures called Axies to earn AXS tokens.

How to Delve into the World of DeFi gaming

To become a player in DeFi gaming, you would need to have the following:

Create a Crypto Wallet

The first thing you will need to do is to create a wallet. The best wallets out there for DeFi gaming happen to be the MetaMask wallet or Trust Wallet. Hence, having any one of these would be advisable.

Also, check the game in question, as some games do specify the type of wallet to make use of before you can play.

Connect Your Wallet to the Game

To play a blockchain game, you will need to connect your wallet. Make sure you are connecting to their official website and not a fake copy. Head over to the game’s website and look for the option to connect your crypto wallet.

Unlike traditional online games that require you to set up a username and password, most blockchain games use your crypto wallet as a gaming account, so you will likely be asked to sign a message in your wallet before you can connect to the game.

Check the Gaming Requirements

Most GameFi projects will require you to purchase their cryptocurrency tokens or in-game NFTs to get started. The requirements vary from game to game, but you should always consider the earning potential and overall risks.

Also, make sure to estimate how long it might take to get your initial investment back and start making profits.

Frequently Asked Questions (FAQs)

Can I earn crypto by playing DeFi games?

Yes, you can earn crypto and other in-game rewards when you play DeFi games. Some games, however, may offer other rewards apart from crypto, so you must check for that too.

Are there any free crypto games?

There are quite a good number of free crypto games in the gaming space. Gods Unchained is a good example of a free crypto game.

Final Thoughts

DeFi gaming has revolutionized the gaming space. Now, gamers can earn while they play, using it as a good means to earn passive income.

It is hopeful that in the future, we will get to see more features and benefits for gamers as more developments unfold.

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