Use of DeFi for Blockchain Game Development
Recently, Decentralized Finance (DeFi) has grown in popularity by reshaping several sectors and the gaming sector is no exception. Fondly known as DeFi, it has tremendous potential to revolutionize the gaming industry. Reportedly, in the next five years, the DeFi Gaming Market is expected to reach over $300 billion with 2.6 Billion active gamers globally. The concept of DeFi Gaming which is popularly known as Play –to- Earn (P2E) Games has enabled players in several countries to earn their daily livelihood by playing Blockchain games.
Blockchain Games + DeFi = GameFi
In the booming game industry, players keep looking for new and exciting gaming experiences which are only possible with the invasion and incorporation of an advanced tech stack. The driven creators search for strategies for maintaining the currency trajectory which led to the introduction of GameFi. The idea of GameFi has attracted a large number of investors, developers, and gamers which the common objective of enjoying gaming projects while making money out of them. These forms of Blockchain games are known as P2E games where players are rewarded with some monetary incentives for participation. Thus, this idea integrates several concepts which are as follows –
- Play–to–Earn Model (P2E)
- Decentralized Finance (DeFi) Apps
- Blockchain Technology
- Ownership of Virtual Assets
How DeFi Contribute To Blockchain Game Development?
The Blockchain Games provides users with an opportunity to make money while having fun. This important aspect for DeFi Games provides immense support to multiple business models as well.
The various reports indicate that DeFi helps to integrate Non–Fungible Tokens (NFTs) and other blockchain units which are then owned by users on–chain. Furthermore, holds the capability of being transferred to other blockchain-based games too.
According to the survey report from Worldwide Asset eXchange (WAX) which is a decentralized marketplace, about 62% of gamers are more likely to invest in digital assets if they are transferrable between games, whereas 84% of developers create in–game items keeping in mind the associated reason. As a result, the DeFi facilitates decentralized governance of gaming protocols for the players who have more control over their overall gaming experience.
The importance of DeFi in blockchain gaming is tremendous, especially in monetizing content creators, gaming tournaments, and community engagement programs where the development of value–driven games is the priority.
The DeFi allows integration of Non-Fungible Tokens or other Tokens which are then used as the reward or the source of monetization for the players. As a result, it contributes immensely to the creation of tokenomics. The tokenomics refer to the economics revolving around several specific cryptocurrency tokens and brand value.
Advantages Of DeFi For Blockchain Games
Undoubtedly, the concept of DeFi has added more spark to the gaming industry making it more versatile and acceptable for users. There are several benefits that DeFi brings to the gaming ecosystem.
The inclusion of DeFi in Blockchain games allow players to own and have control over the virtual asset that they have earned while playing. Furthermore, in most cases, these virtual assets can be traded in the real–world ecosystem too making it the major source of revenue for players.
Using DeFi as a crucial part of blockchain technology makes the gaming environment completely creative and unstoppable. Unlike centralized servers which host the game and stop at any time, blockchain technology is decentralized and allows players to continue playing at a stretch irrespective of the movement of developers.
The games could trade in –games across multiple marketplaces using their Blockchain tokens which are linked to the underlying assets. As a result, motivates the players to be a part of blockchain games for a longer time period.
Provides Fair Experience
Blockchain technology indeed allows for building an open, decentralized, and transparent ecosystem whereas adds to it by making the overall gaming experience a fair one. The players no more have to find they are guilty of playing games for hours and feeling they are wasting time because P2E games open opportunities to earn as well.
DeFi has witnessed significant growth in the crypto sector. Reportedly, there are more than 2 Billion individuals playing P2E games and this number is expected to increase to $256 Billion by 2025. Thus, DeFi has reshaped the complete entertainment, gaming, and financial ecosystem with its introduction. So, if you are also looking forward to developing blockchain games, make sure to partner with the right development partners like www.esrotlabs.com who are proficient at adding all DeFi attributes to your gaming application.