GameFi which is a fusion of the words “gaming” and “Finance” is a growing trend in the crypto ecosystem. This newer concept allows people who enjoy gaming the opportunity to earn money as they play games.
GameFi is rapidly emerging, already from last year to Q1 of 2022 we have seen a growth of 2000%. As GameFi developers, Chainwave is excited to see this ecosystem grow and to take part in more projects related to GameFi.
What is GameFi?
GameFi is a decentralized finance (DeFi) protocol that allows players to earn rewards in the form of cryptocurrency by playing video games. GameFi developers utilize a blockchain-based platform that uses smart contracts to facilitate the distribution of rewards to players.
The goal of a GameFi project is to provide a new way for players to monetize their skills and for GameFi developers to monetize their games. It is also designed to be a way for players to earn cryptocurrency without having to buy it outright, by participating in the activities of the platform.
Let’s first talk about traditional gaming that we are familiar with. The two most common components of games include in-game currency and players receiving in-game items such as weapons, clothing, etc. With traditional gaming these items have no value outside of the game. However, this is different with GameFi; which works by using a P2E (play-to-earn) style. Generally, games give rewards by: completing tasks, competing against other players, or leveling up.
This means that players can actually earn real currency while gaming. To get started in this style of gaming you will need to have a digital wallet such as Metamask (which is an Ethereum wallet). Most games are free to download but may require players to purchase something in order to actually start playing.
For example, there is a game called Axie Infinity which is similar to Pokémon. The cheapest Axies start around $20 and 3 Axies are required to play the game. So a starting price of $60, which is comparable to a Triple A title.
However, players have been known to spend much more and can even spend upwards of $1000 when starting. GameFi can have a higher cost up front depending on the game, but players don’t seem to mind as they can make money back in return. While each game generates money differently, Axie revolves around selling Axies, breading Axies (to sell), or selling other in game items.
There are even GameFi guilds built around these GameFi protocols. There are gamefi launchpad services to help launch new projects.
How do Players Make Money in GameFi
In GameFi, players can earn money by playing video games and participating in various activities on the platform. These activities may include playing games, completing challenges, and referring friends to the platform. The exact activities that are available to players will depend on the specific games and challenges that are offered by the platform.
Players earn rewards in the form of cryptocurrency, which is paid out to them through smart contracts on the GameFi platform. The amount of cryptocurrency that players can earn will depend on their performance in the games, as well as the specific terms of the rewards program.
Players can also earn cryptocurrency by staking their tokens, which is a way of holding onto a certain amount of tokens and earning additional tokens through interest. Staking is a way for players to increase their holdings of cryptocurrency and potentially earn more rewards through the platform.
What do GameFi Developers do?
GameFi developers create games and other types of content for the platform, which players can access and play in order to earn rewards. They may also create challenges and other types of activities for players to participate in.
In addition to creating content for the platform, GameFi developers may also be responsible for promoting their games and engaging with players. This may involve marketing the games to potential players, answering player questions, and working to improve the overall player experience.
Developers may also work with the GameFi team to help shape the direction of the platform and to ensure that it meets the needs of both players and developers. They may also contribute to the development of new features and improvements to the platform.
Overall, the role of GameFi developers is to create engaging content for players and to help grow the platform by attracting and retaining a large player base.
Main Components for GameFi Developers
Blockchain / Web3
The foundation of GameFi is blockchain technology as this allows players to have ownership of the in-game items they earn. The blockchain also ensures that all transactions are transparent and fair.
In GameFi, transparency is what allows us to see components such as how much a player invests in a game and how much a player withdrawals.
NFTs
NFTs are another big aspect as this is what ensures that all in-game items are unique and that they cannot be duplicated or faked in any way. (So long cheaters!)
GameFi NFTs are what people get to keep, giving the game real world value. Players then get to decide if they want to sell, trade, or keep their rewarded NFTs from in-game. For example in Axie Infinity each axie is minted into an NFT and this is what makes in-game items have their value outside of the game.
Play-to-Earn
P2E is important as this is the component that pays players, setting itself apart from traditional gaming.
DeFi:
Decentralized Finance is used in GameFi in a few different ways. One way is by allowing players to generate income through staking tokens. While other games will let you earn in-game rewards by locking up in-game assets and cryptocurrency in smart contracts as part of a yield farming feature.
Smart Contracts for GameFi Developers
For GameFi developers, smart contracts are used to facilitate the distribution of rewards to players. When a player completes a game or other activity on the platform, a smart contract is triggered to release the appropriate amount of cryptocurrency to the player.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist on the blockchain network.
Smart contracts that GameFi developers create can be used to automate the process of reward distribution, ensuring that players are paid out accurately and promptly. They can also be used to enforce the rules of the platform and ensure that all parties involved follow through on their commitments.
Overall, smart contracts play a key role in the functioning of the GameFi platform, enabling it to automate many of the processes involved in rewarding players and facilitating interactions between players and developers.
DeFi Kingdoms Arena
DeFi kingdom (DFK) is a crypto P2E game that is centered around NFTs. The game is free to start playing, but charges gas fees when interacting with the blockchain.
The game is built on the Harmony blockchain which uses one token. The game is a pixel RPG, where players explore the town and talk with the NPCs. Chainwave’s team of GameFi developers built the backend services, smart contracts, and implement the front end elements to make this app work.
The fictional town was destroyed by over farming and now those who are true to the town use their mystical powers by summoning hero’s and defending their JEWEL gardens. DFK has been around since Q3 of 2021, and we helped them by creating a beta called “DFK arena”.
The version our GameFi developers made incorporates all of the possible characters from the original game and players are able to have duels against other players with their NFT characters.
How the Game Works
To play DFK arena you are going to need gold and JEWEL which are two currencies used inside of DFK, as well as a DFK character and a Metamask wallet. You will get these token types by playing DFK which can then be moved over to DFK arena.
To join a duel on the beta version we made you will need these tokens, as this is what allows you to join a duel. There are 4 gamei tiers you can join: $1, $10, $100, and $1000. This is the amount you will be awarded if you win the battle.
This image shows the 4 gamefi tiers in DFK Arena. This is how it converts with in-game gold to play each tier
The game is set up so if a player wins a duel their winning hero has to go into a two hour cool down period. These characters are not available to jump right into another battle, meaning champions can not keep winning repeatedly.
For those players who lost the battle, they are able to join another battle without a cooldown period. This system results in a fairer game environment, so champion hero’s don’t dominate duels, making wins impossible for other players without high level heros. This is all managed by systems created by Chainwave’s smart contract developers
As the game is on the blockchain everything is made transparent to the users. Our GameFi developers built the system so that we are able to click on any user and see their statistics, and how much has been deposited and withdrawn. You can even watch other players’ battles for extra insight! These unique features are helpful for those who are wanting to learn more about each DFK hero.
Currently the game is in beta. Future releases are to include a cool new way to put your heroes into battle via DFK. As the game develops further, a new combat system will allow for Player vs Player encounters in 3 vs 3 duels. With DFK becoming more intricate and more detailed, we are excited to see this game come together.
Hiring a Blockchain Agency as Your GameFi Developers
There are several potential benefits to hiring a gamefi developers agency to build the blockchain components of your GameFi project:
- Expertise: A blockchain development agency will have experienced professionals who are skilled in developing blockchain-based applications. This can be especially useful if you are not familiar with blockchain technology or do not have in-house blockchain expertise.
- Time and resources: Building a blockchain application can be a complex and time-consuming process. Hiring an agency can allow you to tap into their existing resources and expertise, freeing up time and resources for you to focus on other aspects of your project.
- Cost-effective: Depending on the scope of your project, it may be more cost-effective to hire an agency of gamefi developers rather than building an in-house team or outsourcing individual tasks to freelancers. Agencies may also have access to discounted rates on tools and resources, which can help to reduce costs.
- Scalability: If you expect your project to grow and evolve over time, hiring an agency can provide the flexibility and scalability to accommodate these changes.
- Risk management: Working with an agency can help to mitigate risks associated with developing a blockchain application, as the agency is likely to have processes in place to manage project timelines, budgets, and other issues that may arise.
Future for GameFi Developers
GameFi is not just a trend, this newer concept is here to stay and is just getting started. Gamers spent on average 8.6 hours per week gaming. So it’s no brainer that this trend is growing so rapidly as players want to incentivize their time.
According to crypto.com blockchain gaming is estimated to grow to $50 billion by 2025. This is a growth rate over 10 times that of traditional gaming.
This hasn’t gone unnoticed either as big name game developers such as GameLoft, EA, and Tencent are taking note of GameFi developers and Solidity programmers.
It’s fascinating to be involved in this early and be on the developing side of such a big trend. We can’t wait to see where this goes and are here to discuss your big ideas for developing the next GameFi game.