How to Earn a Livelihood from GameFi: All You Need to Know.
Gamefi is the most trendiest niche in the cryptocurrency industry at the moment, no less than a gold rush. Blockchain gaming has caused a frenzy in the video game industry and it is set to challenge the traditional $175 billion global video game industry.
How come this new phenomenon is so much popular? What is GameFi all about? Can you really earn real money out of playing games? And what are the ways to make money out of GameFi? We have got you covered.
To put it simply, GameFi is a combination of video games and finance where cryptocurrency, blockchain technology, and NFT’s are incorporated into a video game. This video game then provides various ways for gamers to earn money playing the game.
The GameFi concept operates on the Play to Earn model of video games where players are rewarded with financial incentives. Some games require an upfront investment to start the game activity while others are free to access.
The reward works in several manners where players can receive bonuses while completing in-game tasks, or battling it out with other players. Everything a player receives in the game becomes a digital asset with a value behind it.
GameFi Mechanics and Ways to Earn
Different GameFi projects have different mechanics, however, there are some commonalities. The in-game items are treated as NFT’s that come in different shapes and sizes like avatars, land, weapons, costumes, tokens, and pets.
NFT’s can be won by achieving and reaching to higher levels in a game.
One such example is Bet Naija where you bet on the results of gaming competitions and win money.
Another exciting way to earn money though GameFi is renting out your NFT. In-game items like land can be rented out to others and its prime example is evident in Decentraland where people rent out their digital space to others for real money.
The value behind these digital lands are exorbitant; Decentraland sold Fashion Street Estate for a whopping $2.42 million. Similarly in The Sandbox, Metaflower, a virtual yacht, got purchased for $650,000.