Will GameFi be a new battlefield for blockchains? |

The gaming industry is evolving and becoming a battleground for blockchain. GameFi will be an ecosystem of games secured by the Ethereum blockchain and developers can leverage smart contracts to create new titles with realistic value, while gamers enjoy increased security measures that protect player data. The game development process has been disrupted like never before as decentralized teams are able to innovate without gatekeepers or publishers, creating more immersive experiences than ever imagined possible.

The “new battlefield game 2021” is a new blockchain project that will be released in 2021. The project aims to provide more transparency and security for gamers, as well as create an ecosystem of different games.

Will GameFi be a new battlefield for blockchains? |

While all blockchain industries were scorching hot in 2021, gaming earned the top rank, accounting for approximately 13% of total investments.

Will GameFi be a new battlefield for blockchains? |Number of Investments by Category (Footprint Analytics)

The second part of the year was overrun by massive gaming announcements and numbers, with the seasons apparently going from DeFi to NFT and now to GameFi. Axie Infinity, for example, produced $17 million in sales on August 6th, exceeding even Honor of Kings.

What is it about GameFi that makes it so intriguing, and what will happen after the initial buzz has died down?

Mary Ma invented the word GameFi, short for Game Finance, during the 2019 Wuzhen World Blockchain Conference, which was organized by 8BTC, MixMarvel’s CSO, and refers to the combination of finance and gaming.

NFTs and liquidity mining are the most common ways for games to create their own financial ecosystems. Games become “Play to Earn,” or P2E for short, in this fashion.

GameFi varies from conventional gaming in the following ways:

  • Asset ownership: In GameFi, the game’s assets belong to the user, not the creator, thanks to on-chain smart contracts.
  • Assets that can be traded in crypto markets: Players that hold assets, such as NFT or tokens, may exchange them in open crypto markets with other players.
  • Data that is visible: All GameFi game codes are open source and transparent, and developers are unable to modify them. A player may also use a DAO to engage in in-game improvements and modifications, giving them a higher level of control.

GameFi’s Current Situation

Despite its potential, the GameFi sector currently has a number of key issues that most ventures confront. As an investor, you should evaluate initiatives based on how likely they are to overcome these obstacles.

a small number of players

There are over 3 billion conventional gamers, although GameFi’s user base is still a small fraction of DeFi’s 1.33 million. On-chain games are mostly reliant on the web in the age of mobile gaming, therefore they are unlikely to become widespread unless substantial advancements in mobile on-chain gaming are made.

Another reason why conventional gamers aren’t flocking to GameFi in droves is that it demands users to grasp concepts like bitcoin wallets, key words, and gas costs at this early stage.

Congestion and exorbitant petrol prices

Great games need a large volume of transactions, putting a strain on the network’s TPS (Transactions Per Second) and gas prices. For example, the popularity of CryptoKitties in 2017 produced severe congestion on the Ethereum network. One solution has been to create ad hoc infrastructure to accommodate popular games, like as Ethereum’s migration of Axie Infinity to a sidechain.

Playability issues

Even the most well-known GameFi projects retain the appearance of classic 3A games. In many situations, playability might be improved, turning the games into completely money-making machines for many players rather than a pleasurable pastime that may make some revenue.

This raises the issue of whether incorporating the profit motivation into games makes them less enjoyable. If a game in the GameFi space does not earn enough revenue, the player will move on to another. As a result, developers are rewarded for concentrating on the financial aspects of a project rather than the gameplay component.

CryptoBlades, for example, had a major exodus of players in July when the game lowered its SKILL (the native token) prizes, causing token values to fall. As a result, participants take longer than anticipated to repay their original investment, resulting in a growing issue of players losing.

Will GameFi be a new battlefield for blockchains? |Footprint Analytics: User Status on a Daily Basis

Axie Infinity had the same experience. Smooth Love Potion (SLP), a gaming token, is a key source of cash for gamers. When the price of SLP dropped, Axie Infinity’s income dropped as well. Axie Infinity used to assist individuals in developing nations like the Philippines earn a livelihood, but today the game’s daily payout is less than the local minimum wage.

Will GameFi be a new battlefield for blockchains? |Price of SLP tokens according to Footprint Analytics

The success of GameFi on BSC

BSC has four slots in the top ten games, according to Dappradar. With almost 6 times the TPS (Transactions Per Second) of Ethereum, BSC continues to make strides in the GameFi space, with 195 gaming projects currently deployed.

Despite the fact that Ethereum holds the majority of the total TVL, sluggish transaction speeds and hefty gas prices have made it difficult for regular consumers to access the blockchain ecosystem. For the following reasons, BSC seems to be a superior blockchain for GameFi to thrive on.

The first reason is BSC’s favorable environment for GameFi’s growth.

Ethereum has maintained its lead in terms of TVL and total number of unique addresses, but BSC entirely eclipsed Ethereum in terms of daily transaction volume and unique active addresses between February and April of this year.

In terms of active addresses, Ethereum ranges between 400,000 and 600,000 every day, while BSC fluctuates between 1.5 million and 2 million per day, roughly 3-5 times greater. The disparity in daily transaction volumes between these two is considerably more than 13 times.

Will GameFi be a new battlefield for blockchains? |Total Unique Active Addresses (FOOTPRINT ANALYSIS)

BSC features a greater transaction efficiency, cheaper gas prices, and is compatible with the Ethereum Virtual Machine (EVM), allowing Ethereum developers to transfer to BSC at a reasonable cost and attracting more tiny distributed users to the blockchain world. From resources to infrastructure, the whole BSC environment is more conducive to the creation of gaming initiatives.

Reason 2: The majority of GameFi projects were funded via BSC incentive schemes.

BSC also announced the Most Valuable Builder (MVB) II program, in which chosen projects may get a $10,000 award, a thorough security analysis from Certik, and an exclusive incubation session with industry experts in order to accelerate the growth of the whole NFT ecosystem.

BSC revealed the winners in July of this year, and they included well-known gaming projects like CryptoBlades, MyDeFiPet, MOBOX, X World Games, and others. We think BSC can explode the GameFi field in the forthcoming MVB III program that is directly positioned as GameFi.

BSC sponsors hackathons all around the globe and also hosts Learn & Earn events, with four of the nine projects in the two Learn & Earn events thus far incorporating games or NFTs, including CryptoBlades, which launched in July. BSC is virtually a natural fertile ground for GameFi’s development since it rewards users with unique NFTs and perks to promote involvement in good projects.

CryptoMines (ETERNAL), Mobox (MBOX), Bomb Crypto (BCOIN), BinaryX (BNX), and MetaverseMiner are the top five games on BSC in the previous 30 days (META).

The price of the game’s tokens is rising in tandem with the number of players and transactions, with CryptoMines’ ETERNAL surpassing the price of Axie Infinity’s AXS by a wide margin. ETERNAL’s price was $572 on October 24, up 16 times from a month earlier. There will be huge rewards for people that play for P2E reasons.

Will GameFi be a new battlefield for blockchains? |Footprint Analytics: Top 5 GameFi Token Prices in BSC

Conclusion

Players may use GameFi to:

  • By using NFTs and tokens, you may gain ownership of game assets.
  • NFTs may be used to mine liquidity.
  • DeFi can help you liquidate your assets.

While these advantages may make GameFi more enjoyable and encourage blockchain adoption, GameFi still has a long way to go. A friendly ecology is critical for GameFi, and there is still plenty of space for improvement in Ethereum’s ecosystem.

Different blockchains are continually developing in terms of distinctiveness, such as Terra with a stablecoin innovation and Celo focused on decentralized mobile payment, in this time when multiple blockchains are emerging.

GameFi may potentially sustain its own ecosystem and provide visitors to certain lesser-known blockchains. Because to the success of Axie, Ronin, an Ethrereum-built sidechain for Axie Infinity, has gained popularity; also, WAX and Flow have become two of the most popular blockchains due to their primary emphasis on GameFi and NFT.

GameFi has all the makings of leading the next wave of blockchain development if projects can balance infrastructure, playability, and profits, as was the case with the previous blockchain boom in DeFi.

Will GameFi be a new battlefield for blockchains? |

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Frequently Asked Questions

What will blockchain replace?

A: Blockchain may replace a lot of things, but the most common use for blockchain technology is to create open-source software.

Is there a future in blockchain?

A: The answer is yes, but it will take many years to develop.

What is the new Blockchain technology?

A: Blockchain is a decentralized public ledger that records transactions and does not allow for counterfeiting. This ledger can be shared between multiple parties without compromising security or privacy, as it keeps no record of personal information – such as names, addresses or bank accounts.

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