By | Footprint Analyst Simon

Edit|Colin Wu This article is the exclusive cooperation between Wu Shuo and Footprint

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What is GameFi

The popularity of the encryption world has gone from DeFi to NFT, and now it has reached GameFi. No matter which industry has mastered the heat, it has mastered the password of traffic. In the second half of the year, Axie Infinity ignited the popularity of GameFi again. The highest single-day income was 18.48 million US dollars, even surpassing the glory of the king. What is GameFi?

GameFi, or Game Finance, was first proposed by MixMarvel's Chief Strategy Officer Mary Ma in 2019 to integrate finance into games. And how? The props in the game will be transformed into NFT, and the DeFi liquidity mining game will be regularized to realize the realization of wealth through the game (Play to Earn, or P2E). Driven by liquidity mining, GameFi, a Game that combines NFT and DeFi, has been further developed.

Compared with traditional games, GameFi has the following advantages that cannot be ignored:

- Owning asset ownership In GameFi, through smart contracts on the chain, game assets belong to players rather than developers. Players truly own the ownership of game assets and can trade them at the same time.

- P2E achieves a win-win situation. By owning the ownership of assets, players can realize assets. Whether it is NFT in the game or game tokens, they can be traded to earn income. This brand new model enables developers, players, and publishers to achieve a win-win situation.

- Open and transparent data The essence of GameFi is the distributed management of the blockchain. The game code is open source and transparent, and developers cannot tamper with it at will. As a player, you can also vote to participate in the upgrade and transformation of the game through DAO, which further increases the participation of players.

Compared with DeFi, GameFi lowers the threshold for users to enter the blockchain world, simplifies finance through games, and enables the blockchain to quickly "get out of the circle".

public chainpublic chainIn the period of endless emergence, different public chains continue to introduce new ones in terms of differentiation. In terms of the stablecoin public chain track, there areTerra ChainAt the end of August, it rushed to the third place in the public chain TVL, and then there are those who focus on decentralized mobile paymentCelo chain。

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BSC Counterattack

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Reason 1: High transaction efficiency and low Gas fee

In terms of TVL and the total number of unique addresses, Ethereum is firmly ranked first, but in terms of the number of unique active addresses and daily transaction volume, BSC completely surpassed Ethereum in April and February of this year.

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Footprint Analytics: Daily transaction volume in 2021

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Reason 2: Incubation funds, hackathon competitions and other incentives

In order to stimulate the development of the entire NFT ecology, BSC officials also launched the Most Valuable Builder Program "MVB II". Selected projects can obtain incubation opportunities such as US$10,000 in seed funds and comprehensive audit fee support.

In July this year, BSC announced the list of winners, including currently popular chain game projects, such as CryptoBlades, MyDeFiPet, MOBOX, X World Games, etc. In the next MVB III plan, it will be directly positioned as GameFi. I believe that BSC can detonate the GameFi field again.

BSC regularly holds hackathons around the world, and also launches Learn & Earn activities. Currently, there are 9 projects in the 2 Learn & Earn sessions, 4 of which involve games or NFTs, including CryptoBlades, which skyrocketed in July. By rewarding unique NFTs and bonuses to encourage users to participate in excellent projects, BSC is a natural fertile ground for the growth of GameFi.

Currently, the top 5 games on BSC in the past 30 days are CryptoMines (ETERNAL), Mobox (MBOX), Bomb Crypto (BCOIN), BinaryX (BNX) and MetaverseMiner (META).

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Problems in rapid growth

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The player base is still small

Let alone the 3 billion players of traditional games, GameFi’s user base is still very small compared to DeFi users. In the era when mobile games occupy an important market, most chain games still focus on web games, which seems a bit "simple", which makes players who have long been accustomed to mobile games such as mobile games return to the web side even fewer groups.

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Congestion and high transaction fees

Due to the high performance requirements of the game, frequent transactions also have high requirements for the transaction speed TPS (Transactions Per Second) and Gas fee of the network. Therefore, many players leave Ethereum and seek better side chains or other public chains.

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Poor playability and insufficient stickiness

Even the currently most popular GameFi project is still very simple in gameplay compared with traditional 3A games. In order to catch up with the hot market, it has continuously incorporated many games of varying quality. It is more like a liquidity mining project with a good-looking appearance. Players who really love the game will not be attracted, but more "workers" with the purpose of making money will enter.

When the entertainment-based game turns the cart before the cart into a money-based job, the original fun is lost. After GameFi is not based on Game, but on Fi, is it play to earn or earn to play? This has led to both developers and players aiming at making money, and the games developed by developers are less interesting. Once the game cannot bring enough income to the player, the player will transfer to other higher-yielding projects, and the game has no effect on the player. Non-sticky.

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Footprint Analytics: GameFi daily user situation

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in conclusion

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In GameFi, players master the ownership of game assets through NFT and platform tokens, use NFT as a tool for liquidity mining, make assets liquid through DeFi, increase the fun and lower the threshold through game attributes, and complete the entire GameFi closed loop.

Although there are still many problems in GameFi that need to be optimized, it is undeniable that this is also a track full of future. Layer 2 and sharding technology will further solve infrastructure problems, and with the promotion of VR technology and high-quality games, player experience will be optimized. As an important entrance to the metaverse, the future of GameFi also has a lot of room for imagination.

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Readers are requested to strictly abide by the laws and regulations of the region and do not participate in Any illegal financial conduct. Wu said that without permission, it is forbidden to reprint or copy the content, and those who violate it will be investigated for legal responsibility.

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Readers are requested to strictly abide by the laws and regulations of the region and do not participate in Any illegal financial conduct. Wu said that without permission, it is forbidden to reprint or copy the content, and those who violate it will be investigated for legal responsibility.