The blockchain industry is reaching a point of maturity, where institutions and traditional money are digging their way in. It’s a great thing, but one of the inevitable phenomena is that a certain group of investors will turn eager for new areas of growth in a less saturated market.
Positioned perfectly to take advantage of this when this happens, is GameFi.
GameFi is essentially the combination of the words “game” and “finance”. It’s about monetising the gaming experience. Of course, making money playing games online is an age-old concept at this point, but the introduction of GameFi came with certain unique opportunities as it blurs the line between blockchain technology and decentralised finance (DeFi).
It’s an industry to keep an eye out for. And here are the current trends of GameFi.
DeFi + NFTs + Play-to-Earn Gaming
Though the mentioning of the word “NFT” today generally incites the picture of a monkey in a jpeg file, it’s nowhere near the boundaries of the capabilities of this technology.
NFTs are said to have the ability to absorb capabilities from different fields, ranging from digital art to real estate to merchandising. Now, add DeFi and P2E abilities on top and there is a giant market for any projects that can realise the vision.
No participant in this industry can deny that the next step for blockchain is mass adoption. Speculators foresee the digitalisation of many real-world assets and having it recorded on distributed ledgers. This will, in return, offer easy access to investors who are eyeing any digitised assets.
Given enough time, it’s almost inevitable that we’ll see the introduction of fractional ownership. And given a little more time, it will open the doors to an even larger pool of retail investors as opposed to the “whales” with premium items.
It’s the gateway for an inward flow of retail capital.
This should come as the least surprising as it’s the most widely covered GameFi model today. Profit-sharing GameFi models harness the interests of gamers in NFT tokens and fuel the price appreciation of non-fungible tokens.
To ensure the inflow of funds and maintain a healthy number of users/gamers, these projects offer opportunities to both investors and gamers.
Through what is known as a scholarship, investors can come into the game without having to play the game. Instead, they can choose to invest their money in the players, and in return, be rewarded with a portion of the revenue generated. With this, players can enjoy their game and enjoy their rewards, while the investors earn a percentage from it. Win-win.
An example of this is Yield Guild Games (YGG) — a play-to-earn gaming guild that allows players to earn through a blockchain-based economy. YGG has gotten so popular over the past few years that it’s behind some of the most common names in the market such as The Sandbox, Axie Infinity, Star Atlas, and Guild of Guardians, among others.
How many people do you know, who are making a living with blockchain games? Versus, how many people do you know, who are trying to learn about this mysterious technology called blockchain?
No one can deny it, blockchain isn’t a concept that newcomers can easily grasp. Even for many professionals in the space, it’s still an enigma when the potential of blockchain becomes the subject.
The community-based educational support is an upcoming trend in the gaming and NFT industry where educators come together and focus on education, rather than playing the games themselves.
We’re seeing many platforms delving into the idea of a P2E economy, where gamers can transform their gaming hobby into a steady stream of revenue. These platforms also use one-on-one coaching sessions and educational content to help gamers perform better in games.
GameFi on Hedera
GameFi technology dates back to as far as 2013 when crypto was not as much of a dinner table topic as it is today. But, even then, a small group of game developers have already started implementing it in their projects. The first attempts were in Minecraft, where servers were integrated with the blockchain, and Bombermine, a multi-player game.
However, this niche caught on rather slowly in comparison with cryptocurrencies as they took time to develop. Until recently, projects started integrating DeFi and NFTs into the world of GameFi.
What started on the Bitcoin and Ethereum blockchains quickly migrated to other chains because of the high fees and poor transaction speeds. Today, many projects are being built on Harmony, Solana, Polkadot, and the Binance Smart Chain. And, very soon, GameFi is set to be launched onto Hedera hashgraph via HederaStarter.
This new generation of GameFi deployed by our team here at HederaStarter is ready to bring trust, speed, and fairness into gaming events for all players. And over the long term, it is on the path to democratising gaming by decentralising control over ownership of in-game assets.
We’ve been focused from day 1 on building relationships with the Hedera NFT community and recognize the immense amount of creativity and importance every Hedera artist plays in keeping Hedera alive in the current market and laying the foundation for its success in the long run.
Many artists we’ve worked with have expressed their desire to evolve their amazing NFT collections into many different types of games and at HederaStarter we want to provide the platform and the support necessary for them to be successful. These artists have worked hard to help keep Hedera on many people’s radars, let’s work together to ensure that these artists are able to take their creativity to the next level!
Follow HederaStarter’s social media channels to stay up to date with the latest news:
- Website: https://www.HederaStarter.fi
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This is a paid sponsored article brought to you by HederaStarter.fi, all views, opinions and context are strictly those of the author.