GameFi will spark the mass adoption the world has been waiting for
GameFi brings together thousands of participants who use such platforms to make their first crypto purchases, says Simon Yi from Clam Island.
If you can’t make friends with charts and data to manage your finances, you’re not alone. The same applies if you have already thought about using cryptos to achieve double-digit returns. However, you are deterred by the complexity of using decentralized financial platforms (DeFi).
GameFi Can Simplify Crypto
Fortunately, all this will now change thanks to the rapid growth of GameFi. GameFi can help people simplify crypto finance through the intuitive and visual world of games. GameFi may be the bridge leading to greater adoption of crypto in the coming years. And this is while people all over the world are being given a first step on the financial career ladder.
The unique selling point of GameFi is simple – it’s fun. This is much more than can be said about the seriousness of traditional finance and the complexity of DeFi. It also offers a great incentive to the younger generation who grew up with video games.
By setting game tasks – be it winning battles, mining valuable resources or caring for digital plants and living things – GameFi ecosystems bind the participants. GameFi can also provide information on lending and borrowing strategies that can be used to achieve high returns.
DeFi without the pain
GameFi is basically DeFi only without the pain. DeFi contains a lot of jargon and complicated transaction methods that are frightening and difficult to understand even for investors with financial knowledge. GameFi frees users from this stress. It allows you to benefit from potentially profitable strategies such as yield farming. You can do all this while competing against other players online or trying to unlock new milestones.
GameFi also has lower entry costs compared to DeFi. Fees can quickly eat up the actual investment through several transactions with high gas fees on blockchains such as Ethereum. For $100 or less, you can enter the GameFi ecosystem on a blockchain like Binance (which is known for its low transaction fees) and start playing to invest.
Gamification of the financial world
GameFi platforms have often used classic role-playing game models to gamify finances in Web3. However, recent Tokenomic innovations have much more in common with the classic board game Monopoly.
The players practically act like real estate developers. They buy assets and then use various strategies that generate income and increase value. Unlike monopoly, however, this is not about the winner getting everything. Each player is on his own journey to build his fortune with a mixture of skill, dedication and intelligence.
Of course, GameFi is not a risk-free venture, like any other investment. Players’ assets are subject to the same volatility that also affects the crypto market. They are also vulnerable to the trends of users who prefer certain games or blockchains. Participants should be prepared to lose part of their investment before they can improve their skills and knowledge. And of course, the sector is also not protected from rug-Pull’s unscrupulous founders. This risk became clear at the end of last year, when the Squid Game Coin collapsed due to a scam.
However, the risk can be avoided by informing yourself about the GameFi protocols before investing money.
The safe way
Ecosystems that are managed by a DAO and have founders with relevant experience to meet the roadmap of a project can help mitigate the risks. GameFi projects with a governance coin and a common treasury can be an effective means of creating equal incentives and preventing the community from being left behind when building the common good.
GameFi and a more comprehensive adoption
The DeFi revolution mainly attracted the already existing crypto enthusiasts. GameFi, however, has the potential to bring the comprehensive adoption that the industry has been waiting for. GameFi is already bringing together hundreds or even thousands of interested people. Many of them will use such platforms to make their first crypto purchases.
Blockchain gaming activities increased by 2,000% in the first quarter of this year compared to the previous year. According to a recent report by DappRadar, they account for 52% of blockchain activity.
If we take a step back and look at the world beyond North America and Europe, the transformative potential of GameFi is even more dramatic. In less developed countries, where millions of people do not have a bank account, the playful experience offers participants a way to keep and develop their first financial assets.
In Southeast Asian countries, such as the Philippines, the enormous popularity of GameFi is changing the old way of looking at video gamers. They are no longer seen as idlers, but as productive young entrepreneurs who are able to support their families through their online activities.
The potential is one of the reasons why we are still at the very beginning of the GameFi story.
About the author
Simon Yi is Chief Growth Officer at Clam Island, an immersive, playful way to achieve rednits in decentralized finance.
All information contained on our website is researched to the best of our knowledge and belief. The journalistic articles are for general information purposes only. Any action taken by the reader on the basis of the information found on our website is done exclusively at his own risk.