What Exactly Is GameFi & How Does It Work?
We are living in a world of new terms like Non-Fungible Token (NFT), crypto, yield farming, DeFi, and the latest…GameFi! While it may seem confusing at first, anyone can learn about these models and begin taking part in a new and revolutionizing financial environment. So, What exactly is GameFi?
GameFi = Gaming + Decentralized Finance
To be exact, GameFi is the combination of three important parts of the blockchain space: decentralized finance (DeFi), non-fungible tokens, and blockchain-based games.
In the centralized gaming industry, only the publishers and developers share in the success. Most gamers who invested immense time and money in such games are left with almost no returns.
Gamers interact with a system that they have no control over and have no way to return their investments. It lead to the creation of a decentralized gaming ecosystem.
GameFi, which is the combination of gaming and decentralized finance, is a system in opposition to the centralized gaming industry. GameFi allows anyone to access and generate finance by playing games or participating in the GameFi ecosystems. GameFi has unlocked an opportunity for players, in which they play to earn, not pay to play.
In other words, GameFi is the gamification of financial systems, mostly in the form of play-to-earn crypto games.
Also, it isn’t limited to one type of blockchain game or financial structure, but rather is an all-encompassing term that can be applied to titles with completely different financial elements. While some games might reward players for completing in-game tasks, others provide the chance to generate revenue from digital assets. And some do both!
How Does It Work?
GameFi consists of many different mechanisms that enable players to earn rewards through gameplay. The best blockchain games combine these different mechanisms to create a far more favorable environment for the player compared to traditional gaming structures.
The first of these important mechanisms is the play-to-earn (P2E) model, where players are rewarded for completing objectives within the game. This means players are financially rewarded for playing a game and progressing through its levels. In this case, cryptocurrency, in-game tokens, and NFTs serve as financial incentives. But the rewards typically come from native tokens that are held within a smart contract.
The other major mechanism that powers GameFi is asset ownership, which is unlike anything offered by previous gaming models. These digital assets come in the form of NFTs, which can encompass nearly any imaginable item. These NFTs allow players to generate rewards both passively and actively, depending on the path they chose. They can be collected, held, traded, or sold on secondary markets.
The “play-to-earn” model is not a new concept. However, what is new is the innovative technology that powers GameFi games today. Blockchain, smart contracts, and in-tokens are present in many elements of a game. Users can convert tokens earned from a game into other well-known cryptocurrencies such as Ethereum, Bitcoin, or stablecoins, then swapped to fiat currency.
Many GameFi projects include NFTs. Every land, weapon, outfit, and skin in a game is one-of-a-kind. Not only can they be bought and sold on in-game marketplaces, but they can also be used to perform a variety of functions on DeFi, such as collaterals and yield farming. As more game studios join the GameFi hype, there are companies such as Yield Guild Games that now offer users the option to stake in-game tokens to earn passive income.
In GameFi, every game’s mechanisms are different. However, one common requirement is that a player must own a cryptocurrency wallet to store the game’s tokens or NFTs. The wallet should also be pre-loaded with cryptocurrency. Before you begin, many GameFi games also require that you purchase starter characters.
GameFi also pulls many concepts from DeFi, such as yield farming and staking.
Yield farming refers to the process of generating rewards with crypto holdings, and it is often paralleled with staking, which is the act of locking crypto to support the security and operations of a blockchain network while generating rewards.
Introducing Salo Players — The Digital Guardian
Salo Players — The Digital Guardian is the first Shooting Play-to-Earn Game on Binance Smart Chain Ecosystem.
Disney’s Wreck-it Ralph has greatly inspired Salo Players —The Digital Guardian through its success in a Metaverse where Shooting and Role-playing games cross each other. The game offers players a unique Play-to-earn Metaverse where they can freely collect, buy and sell their NFT.
By initiating the project with our team base strength in Shooting games and Blockchain technology, Salo Players Development Team wishes to demonstrate our vision for “GameFi”: the combination of entertainment (Game) and an effective, sustainable in-game economy (Fi). By that, all participants of the Salo Players —The Digital Guardian ecosystem included investors, players, and developers are worthy rewarded for their contribution to the game and its ecosystems.
We also believe that Salo Players — The Digital Guardian can solve some of today’s GameFi problems. Salo Players — The Digital Guardian offers players fast-paced gameplay, low entry barriers, easy access, simple UI, and valuable NFTs. Our team is focused on both money-making strategies and the actual thrilling gameplay.
We can proudly say that Salo Player — Digital Guardian is:
- One of the best Shooting GameFi was ever made. With a third-person top-down view, including RPG mechanics such as stats/level up.
- Expanding storyline throughout the development of the game with the theme of CyberPunk and Sci-fi.
- Captivating gameplay: PVE, PVP, Guild Rank, Metaverse, Co-op battles other online players.
- Innovative Play-to-earn model with applications of NFT and cryptocurrency, aiming for a high-speed action game flow.
- BEP2-based token to easily approach the vast crypto community; Private chain Dapps ensuring stable game operation and optimizing players’ returns with near-zero gas fee.
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