The Next Big Thing in GameFi
Gaming is an absolute huge industry — in 2021, it was worth ~$178 billion, representing a 14.4% increase from 2020. This number is projected to reach $268 billion by 2025, demonstrating tremendous promise. However, the current system greatly favours game creators and is less focused on the gamers themselves when it comes to revenue distribution.
Beforehand, gamers had to pay to play video games and wouldn’t receive any rewards in the process for participating. Through GameFi, it’s now possible for gamers to earn consistent and healthy income streams through gaming.
GameFi was one of the hottest crypto sectors that came out of 2021, as it combines the properties of DeFi, NFTs, and blockchain-based online games. Usually, traditional gaming works using a “play-2-win” model. However, GameFi flips this model on its head and utilises a “play-to-earn” (P2E) model where the idea is quite self-explanatory — play and get financial incentives for game progression. In GameFi, users can own in-game assets as NFTs (non-fungible tokens). Simply put, NFTs are non-replicable units of data stored on the blockchain. Within the GameFi realm, the types of data that can be stored as NFTs are different game elements such as weapons, skins, avatars, currency, and more — they’re all represented through various forms of artwork.
Along with the earning aspect, there are several additional benefits to the P2E model:
• Players can prove ownership of their in-game items with ease
• Its decentralized nature assures that there is no central entity making irresponsible governance decisions
• All items players collect during gameplay can’t be lost or destroyed
• Some of these games even have various DeFi (decentralized finance) elements where players can stake their in-game tokens to earn yield
One of the main attractions of the GameFi initiative is that it operates on the play-to-earn scheme. This allows players and game enthusiasts to be paid in financial incentives such as cryptocurrency, in-game tokens, and NFTs. Although the play-to-earn scheme isn’t new, what makes the GameFi platform’s usage of the PTE scheme special is the presence of smart contracts, Blockchains, and in-game tokens. Players of these games based on the GameFi initiative can then convert their wins to crypto coins such as Bitcoin, Ethereum, and then converted to fiat currencies.
Will GameFi Be The Next Big Thing?
One of the biggest challenges for both game developers and gamers is gaining each other’s trust. Traditional games are managed by the central servers, which also manages the entire ecosystem. Most games have an internal economy that is managed by the game developers. It creates an untrusted environment. Different from traditional online games,
operating in the model where players buy upgrades to gain an advantage over other games. GameFi introduces the Play-to-Earn model. This has allowed gamers to earn a full-time income by contributing time and effort.
According to Footprint Analytics, GameFi has attracted significant traction, accounting for 13% of all blockchain investments. The total market capitalisation of top games has surpassed one billion dollars. However, given the sheer size of this market, it provides even more room for expansion.
Surprisingly, GameFi is only getting started. The success of one of the top titles, like Axie Infinity, demonstrates the emergence. With the increasing impact of digital assets, financial specialists and NFT technology developers have sought to gain market share before their competitors make any move. As a result, the pattern and interest have grown in popularity among both users and developers.
According to crypto data tracker DappRadar, the number of transactions linked to games has reached 80-100 million. Despite its enormous potential, GameFi, in general, continues to face issues that threaten its ability to grow in the future.
The majority of GameFi’s titles lack charm and appeal. In other words, the graphics and gameplay of P2E projects are unappealing and fail to entice players. Improving the game genre, as well as the graphics and gameplay, will be necessary for the near future for blockchain-based P2E projects to gain traction.
Handling interactions in the game will be very different from dealing with regular transactions. It necessitates high speed and stability, which is why most current trendy P2E projects are not built on Ethereum due to cost and speed issues. As a better alternative, game developers chose Binance Smart Chain.
As more funding enters the space, expect blockchains specializing in GameFi to lead the way in terms of crypto market price action. GameFi will better help people new to crypto understand the vision of the space for enterprise solutions to take over. With just DeFi and NFTs exploding right now, it is easy to forget the larger vision and be ignorant of the true potential of blockchain. When these enterprise solutions that come in the form of gaming, banking services, ride-sharing, vacation rentals, among many more, emerge, it is more than likely that mass adoption of blockchain technology occurs. Blockchains change the world as we know it, and new technological advances are now creating a more equitable society for third-world countries, which is great to see.
Embracing a hot industry opportunity
• According to TechJury, there are 2.5 billion gamers around the world. The gaming market is expected to reach $200 billion in 2023.
• EarthWeb reports that the metaverse market is expected to be worth $280 billion by 2025, while it was worth just $46 billion in 2020.
• According to data by Nft-Stats.com, 34,902 NFTs were sold just in the last 24 hours.
The same source reports that an NFT trading volume has reached $117.18M in the last 24 hours.
A Hidden Gem in GameFi
As the popularity of P2E grows, so will the number of users, putting strain on the infrastructure. As a result, for blockchain gaming to thrive, truly breakthrough blockchain platforms in terms of speed, cost, and stability are required. Clearly, although the process of playing the game allows players to earn money and return the capital after a period of time, not all players are willing to spend a large sum of money to learn a game.
GameFi is clearly the next generation of games, bringing novel and diverse experiences. However, certain changes in the way it operates are required in order to reduce barriers to entry for new players. Star Verse brings that needed change in GameFi.
Star Verse truly brings the benefits of DeFi to the gaming industry, as there is no need to invest heavily into the game in order to start earning. As a matter of fact, you do not even need to play the game to benefit from it financially. The game comes with it’s own dApp in which you can stake your the Star Coins token and start earning passive income. While staking the token on the platform, you directly benefit from players making in-game purchases.
Star Verse also solved the a huge issue in the DeFi and GameFi industry. A huge issue in Defi and more specifically in the re-base models like Olympus DAO or Wonderland, is the inflation of the token. Due to heave inflation the token price keeps dropping and investors are using value of investment. A likewise problems has occurred in GameFi, where token prices risen too much and in-game purchases became too expensive for players. Which ended in many GameFi projects bleeding to death.
The solution to the problem is using a stable coin token. Investors will not see a drop in value and players will be able to make purchases against a reasonable cost. Star Verse introduces the Dynamic Decentralized Autonomous Supply Control Algorithm (DDASCA) for the Star Coins token. The DDASCA keeps the Star Coins token at a stable price, while the algorithm ensures high rewards for stakers of the token on the platform. Rewards which can be as high as 7% ROI daily!
Star Verse is something to keep an close eye on this year as it shows huge potential. The team shows it has learned from many mistakes which have been made by other developers in both the DeFi and GameFi space over the years and have came with great solutions to solve them. Another huge advantage is that Star Verse has been created by public company, something which we barely see in the DeFi space.
Star Verse might be something you want to look into and benefit from now that you are still early. The projects is about to launch any time soon now, so this might be a great opportunity to be part of the project.
Some links to Star Verse for your convenience! And I would highly advice you to join their Discord server for more information and white list allocation.
Website: https://finance.starverseonline.com
Twitter: Star Verse (@StarVerseOnline) | Twitter
Discord: Invite: Star Verse
