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Decentralized Finance (DeFi) has been reshaping several sectors for quite some time now, and the gaming sector is no exception. Decentralized Finance, often known as DeFi, is currently having a tremendous impact on the gaming sector. In addition, decentralized Finance is well-recognized for revolutionizing the financial environment.
The gaming industry has been expanding at an extraordinary rate over the past several years, and in the next five years, it is expected to reach over $300 billion. An estimated 2.6 billion active gamers currently make roughly $173 billion in income. Experts believe that the adoption of DeFi might increase these figures.
Let’s see how DeFi will be revolutionizing Blockchain gaming.
What are Blockchain games?
For game developers, the virtual economy has created a vast array of options thanks to Cryptos like Bitcoin and Ethereum, which Blockchain powers.
In most games, there are marketplaces where players can exchange goods like weapons, avatars, and loot boxes. But even if they make payment in cash for it, they could not be the owners. This is due to the fact that over a sizable amount of gaming history, developers chose a centralized paradigm that provided them complete control over the gaming dynamics.
This may involve narrative or player-gathered game components. Player accounts and other assets are worthless as they are under the authority of a single company. This paradigm also needs more transparency and the inability to change game mechanics.
Decentralized and transparent virtual markets are now accessible for the first time because of Blockchain. On this platform, gaming firms no longer have complete control over the whole gaming experience. Blockchain technology is used in games in ways that go far beyond the virtual economy.
Advantages of Blockchain games
- True Ownership
In Blockchain-based games, players may own and control their virtual assets in real life. NFTs, or non-fungible tokens, frequently imply assets.
If a centralized server hosts the game, it can be stopped at any time. Using Blockchain technology, players can continue playing and stretch a game even if the original developers are no longer involved.
Gamers could trade in-game assets across various Blockchain-based game marketplaces using Blockchain tokens that link those assets.
- Fair Experience
Building open, decentralized, and transparent ecosystems using Blockchain makes for a fair experience. What occurs in the game is up to the players, and they may vote to improve it. Furthermore, cheaters won’t be able to damage the experience for others.
Blockchain games and monetization
You can create money by playing games on the Blockchain using NFTs and the integration of Cryptos.
Players in games made up of NFTs possess special in-game items they can exchange with other gamers within the same game or on any NFT marketplace.
Market participation is another option to generate money using Blockchain. For instance, gamers frequently buy or sell gaming souvenirs and occasionally yearn for a reward.
Blockchain Games + DeFi = GameFi
Great expectations come along with a booming industry that has driven creators to search for strategies to maintain the current trajectory, leading to the creation of GameFi. GameFi has drawn a large number of investors, developers, and gamers who all have the same objective in mind: to enjoy their preferred gaming projects while making the most money possible.
The Play-to-Earn (P2E) Blockchain games known as GameFi reward players with incentives for their participation. The idea integrates games, NFTs, and Blockchain technology.
GameFi comprises the following:
- Plat-to-Earn model (P2E)
- Ownership of VIRTUAL assets
- Decentralized Finance (DeFi) apps
- Blockchain technology
How can DeFi help in monetizing Blockchain games?
Decentralized Finance (DeFi) has had significant growth in the Crypto sector. According to estimations, more than 2 billion individuals play games worldwide. Additionally, it is anticipated that by 2025, this spending will increase to $256 billion.
As many people are turning towards entertainment, gamers and game developers are looking for ways to monetize the gaming industry effectively. Blockchain games, like online video games without a centralized server, might enable this revenue generation. Players “mine” tokens by accomplishing game goals.
You should use Defi protocols to send the tokens you win from playing the games. Additionally, owners of Crypto games will probably anticipate a favorable return on their favorable investment (Return On Investment).
Blockchain games have made it possible for players to earn from traditional games. The two methods are NFTs and Cryptos. As the DeFi protocol is used to transmit tokens obtained during the game, DeFi is eager to make money from all these Blockchain games. Blockchain games have a bright future because of the enormous potential for financial gains for their players. They only need to adhere to a safe and open process fully.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.