Nowadays, most of you may know about the metaverse, but have you heard of GameFi?
GameFi is a kind of financialised form of gaming, that has been existed since the release of CryptoKitties in 2017, long before the metaverse. After incorporating blockchain technology into GameFi, the Metaverse has aroused wide attention from game lovers and has become a hot topic in the recent years. According to video game research firm Newzoo, there’s a massive audience of up to three billion global gamers to support multiple blockchain-driven metaverses. GameFi, as a decentralized model for gaming and earning money based on digital assets and demonstrates different visions and possibilities for the metaverse.
What is GameFi and its Differences from Traditional Video Game?
GameFi is a combination of Game, NFT and Decentralised Finance (DeFi). As the word suggests, it refers to a kind of financialised gaming, which brings together TWO disruptive differences between it and all traditional video games. See below.
Difference 1: GameFi offers economic incentives to players based on decentralised finance and NFT
Before GameFi, digital assets and tokens in games could not be used in reality and had no real value. After the arrival of GameFi, however, these digital assets e.g., crypto currencies, NFTs, virtual land, and in-game items can be sold and cashed out in reality. This means that in-game purchases now have real value and have applications outside of the gaming environment. That is why GameFi has also been called “Play-To-Earn" game and this has become the most attractive elements of GameFi to encourage new players.
Difference 2: GameFi provides flexibility for players to co-create a perfect gaming experience
Unlike GameFi, every background setting and world view in traditional video games is most likely decided by publishers. For example, once a video game publisher decides to change or even cancel a character, players have no ability to object. However, in GameFi characters and other aspects are co-created with the players, and can be easily influenced. In a more ideal state, players would even have the right to vote on future development in the virtual world.
Why 5G is important to GameFi?
With the constantly advancing state of virtual reality (VR) and augmented reality (AR) technologies, we can expect more and more market potential for GameFi. To get there, one bottleneck that needs to be overcome, is the stability of network connections. Most professional players and E-sport businesses have already shifted to 5G connectivity for their gaming.
Compared to 4G, 5G technology provides a reliable network connection for GameFi and can offer close to 20 Gbps peak data rates and average speeds of over 100 Mbps, with a latency of 1 ms. But 4G can only provide speeds of up to 200 Mbps and a latency of around 200 ms. This means that only 5G can enable gamers to unlock GameFi games with immersed technologies and most importantly, to ensure a smooth and fantastic gaming experience.
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