What is Game Fi? How does it work and what is the future of Game Fi?

Blockchain technology is gradually appearing in many aspects, bringing many utilities and profitable investment opportunities. Game Fi is a term that is mentioned a lot, related to Blockchain. Many players can make money from Game Fi. So what is Game Fi ? How does this type of game work? The article below will help readers understand Game Fi and important information about this type.

What is Game Fi?

Game Fi is a type of electronic game that includes financial elements. When participating in this type of game, players can both participate in the game and make money. In fact, Game Fi players who perform missions, fight, level up… will be rewarded with Tokens, which can then be sold for profit.

Unlike traditional types of games, Game Fi allows players to transfer items and trading rewards on the NFT market or exchanges.

Elements that make up the Game Fi project

Game Fi projects are quite diverse in terms of characteristics, components, and interfaces. However, basically, a Game Fi project will include the following elements:

• NFT (Non-fungible Token) : A type of Token that is unique and cannot be replaced with another Token. NFTs are often main and supporting characters in Game Fi designed with different ideas. For example, NFTs in Game Fi can be: Miners, parrots, monkeys, players… NFTs will be opened for sale like normal capital raising. Anyone participating in Game Fi can purchase NFTs, no strings attached.
• Token : In Game Fi there are 2 types of Token: Administration Token and Bonus Token. In particular, Administration Token is the main token of Game Fi, responsible for supporting project administration and has limits. Bonus tokens are rewards for users when participating in challenges and activities in the game, in unlimited quantities.

How does Game Fi work?

A Game Fi project works with many different mechanisms, to create balance for tokens and rewards in the game. Each Game Fi will adopt a distinct game model and economy. In particular, the Game Fi game economy is built by rewarding players, through: Interacting with each other, doing daily tasks, interacting with pot…

Besides, the mechanism of generating new NFT characters to consume tokens. Activities include: Breeding, token fee withdrawal. Players need a minimum of 3 NFTs to participate in the game. NFT balancing mechanism through burning activity in case Breeding activity creates too many NFTs.

In most Game Fi projects, NFTs are game assets, developed and run on the Blockchain platform. Players can trade on the NFT platform. However, in some cases, assets need to be converted to NFTs before they can be traded.

What is the value that players receive when participating in Game Fi?

Game Fi attracts many participants in the market today. So, what value do players get from Game Fi?

Financial value, passive money making

The ability to make money is the core value Game Fi projects bring to participants. Game Fi gives players control over their assets in the game and the opportunity to generate profits from the project.

Besides some free Game Fi projects, participants need to invest to buy NFTs to participate in the game. This will bring some risks to Game Fi players. If the investment required is large, you may lose this initial NFT purchase.

Some games allow participants to earn passive income without investing anything. Specifically: Axie Infinity. This game allows players to borrow NFTs, sharing profits with the owner of that NFT.

Entertainment value with Game Fi

The second value that Game Fi brings to participants is the ability to entertain with beautiful graphics. Fi Game types often require interaction during play, helping players interact and relieve stress.

Metaverse is a virtual reality platform on the internet, developed with VR, AR technology… to help players have the most realistic gaming experiences. Many players wonder: Is Game Fi a Metaverse or not?

In fact, Game Fi is not the Metaverse but it is a small part of the Metaverse. The Game Fi project has many elements needed to become a true Metaverse project. Differences of Game Fi and Metaverse:

• Many types of Game Fi are closed worlds, not allowing players to edit or be creative. Meanwhile, Metaverse is an open world where participants can be creative without limits.
• Metaverse serves entertainment with innovative, evolving features. Meanwhile, Game Fi emphasizes making money or financial goals more.

Some Game Fi projects develop towards the Metaverse, with a model that allows players to interact and create.

How to get started with Game Fi games

Game Fi projects are increasingly popular and attracting participants. However, the market has many Game Fi, fraudulent virtual currency projects, and fake websites. So, how to get started with Game Fi games safely?

Players need to take the following steps to get started with effective Game Fi games:

Create a virtual wallet

Virtual wallets help participants connect to compatible Blockchain networks. Each Game Fi project will support its own type of virtual wallet, players need to refer to it to open the appropriate wallet. Some commonly used virtual currency wallets: MetaMask, Trust Wallet… In addition, some Game Fi projects have designed their own wallets to reduce costs for players.

For example, the game Axie Infinity is built on Ethereum. However, the Axie Infinity development team uses the Ronin wallet to make trading and breeding Axie cheaper.

Connect virtual wallet to Game Fi game

Participants visit the official website of the Game Fi project to connect their virtual wallet. Note, players need to consider and make sure to choose the correct game website, avoid fraudulent and fake websites.

Game Fi is developed on the Blockchain platform. This is the difference of this type of game compared to traditional types of games. Therefore, when connecting a virtual wallet to a Game Fi account, players may need to sign a message on their wallet.

Check out the Game Fi project requirements

Each game has different requirements, but most projects will require you to purchase NFTs or cryptocurrency tokens. Normally, to play Game Fi, players need a minimum of 3 NFTs. You can buy NFTs on Marketplace. Players will have to invest an amount of money to buy NFTs. Before buying, you should consider the level of risk and calculate the time it takes to recover your capital.

Besides, players participating in Game Fi can also choose a scholarship program. This is a solution for players who don’t have money or don’t want to take big risks. Players can borrow NFTs and share profits with NFT owners.

What does the future look like for Game Fi?

Many players wonder about the potential development of Game Fi projects in the future. Currently, blockchain technology is continuing to develop, expanding the scope of applications that create the future of Game Fi. It can be seen that the trend of playing Game Fi continues to grow rapidly in many countries, especially in developing countries.

In fact, in the past 3-5 years, many types of Game Fi have been born, specifically: Axie Infinity, the game that started the Play to Earn trend, Thetan Arena is a Vietnamese game,… Up to now In March 2022, there will be up to 1,400 types of Blockchain game projects listed on DappRadar.

Along with the development of virtual currency in some countries, Game Fi will be an attractive opportunity to both entertain and make money, attracting many participants.

With the development of blockchain technology and the growing need to invest and make passive money, Game Fi will be the choice to attract players to participate. Players need to understand the characteristics of Game Fi, how to play as well as the earning opportunities and risks from the project. Hopefully, the above sharing will help readers understand clearly what Game Fi is ? From there, choose the right game for yourself.