NFT Use Cases in GameFi
Blockchain technology is growing very fast and since it is intertwined with so many different industries, the advancements in the other sectors will push DeFi & Blockchain as well. Gaming industry is one of the sectors which is paving the path for the crypto enthusiasts to grow their digital asset’s use cases.
Playing online games is no longer just a leisure activity. With the rise of GameFi, NFTs and DeFi, some gamers are making ends meet using their digital income; and some are even earning more than a normal 9 to 5 employee. The gaming sector revenue in Germany in 2020 was 8.5 billion Euros. The international sales are predicted to be more than $200 billion by 2025.
Play-to-earn games are becoming a big deal in the gaming industry, and they have the potential to shift many cultural paradigms. With the rise of GameFi; adults who left the gaming world in their late teens, might get back in the field and give up their normal jobs for it!
What is GameFi?
GameFi refers to Blockchain games in which the player can earn economic incentives. This concept comes from the abbreviation of Gaming and Finance. The process of earning the prizes will be just like a normal game. The player will get compensated by doing some tasks and accelerating levels in the game. The Tokens gained by Players are mostly based on ERC-20 standard of the Ethereum Blockchain.
What is NFT?
A Non-Fungible-Token is a special type of cryptographic token that represents something unique. Unlike cryptocurrencies like Bitcoin or other utility tokens, NFTs are not mutually interchangeable and thus are not fungible.
It all started with CryptopPunks, as the first digital art marketplace in the world. No one in the traditional finance sector could imagine that NFTs will become a serious deal in just a few years.
NFT Use cases in GameFi
The rewards won by the game players can be cryptocurrencies, virtual lands in Metaverse, virtual outfits, avatars, etc. the assets will be traded in the virtual marketplace as NFTs.
NFTs make it possible for the Players to monetize their virtual activities in many different ways. It increases the security, authenticity, and the control over the assets. Copyright, exploitation rights and the ownership of the assets will be collected or transferred across Metaverses and games. all of these functions are happening through usage of NFTs.
This feature is very attractive in developing countries, since there is high inflation and lack of employment. GameFi can save lives by providing monetization and asset validation.
NFTs and Permit obligations in GameFi
When it comes to the crypto world, the regulations are still a bit vague. Rules and obligations vary across countries and due to the rapid acceleration of the blockchain technology, the legal terms change every day.
NFTs might be considered as crypto assets and represent a type of investment. When an asset is classified as a financial instrument, legal permission will be needed from BaFin which is the responsible regulatory authority in Germany. Moreover, for issuance of NFTs as investments, an approved prospectus will be needed.
These legal complications in the gaming industry, emphasize the necessity for the presence of DeFi platforms which simplify the DeFi access and the NFT representation of assets.
Traditional games like “Call of Duty” require gamers to buy licenses or activate subscriptions before they can start the game. But the new generation of gaming is so much cooler and it functions the other way around! Instead of investing to play, you’ll get paid after playing.
P2E is the abbreviation of Play to earn which refers to getting incentivized by playing virtual games. An example of a P2E game is Axie infinity.
The Future of NFTs in GameFi:
At the Moment 1400 Blockchain games are listed on DappRadar. as the blockchain industry grows, we probably will see more P2E games on multiple chains. The combination of the new financial systems and gaming is an interesting concept and it will attract more users in the future.
As you all already know, Paycer is going to launch its own utility NFT collection. It will be a complex 3D model with the ability to bridge the gap between TradFi, DeFi, GameFi and Metaverse. we are working on integrating gamification into financial processes. It is planned to open Paycer bank branches in the Metaverse in the future, where our customers can conduct their banking transactions or open a new bank account using their Paycer NFT.
The launch of our own NFT offers even more opportunities for new partnerships between Paycer and projects from the NFT space. We are already actively establishing new partnerships. In addition, completely new possibilities arise in the interaction between our PCR token, the NFT and the partners. We can step into new areas and network even further in the blockchain ecosystem and collaborate with projects from the Metaverse and GameFi.
Paycer’s goal is to aggregate DeFi investments multi-chain and make them available to users without the need for their own wallet nor the expertise. This should allow anyone to generate a passive income in a world where banks no longer pay interest. Hence the Paycer team is developing a bridge protocol for DeFi and TradFi to combine the best of both worlds and make it available for retail clients #CeDeFi. Apart from the technical matters and the creation of a super easy to use final product. The goal is also to create a regulatory framework that allows the legal operation of a DeFi platform within the EU first and subsequently in other regions.
Currently, a DeFi platform is already available on paycer.finance on which Paycer tokens PCR can be claimed and staked. More features will go live soon. At the moment on Polygon but other blockchains will be integrated in the near future. Paycer is also working on a banking partnership to be able to combine DeFi with a traditional bank account. In addition to the development of the DeFi platform, the development of the final consumer product is also in progress.
Be sure to follow Paycer on social media for all the latest updates on product development. We have further exciting announcements to share very soon.
What Is GameFi and How Does It Work? | Binance Academy
GameFi refers to play-to-earn blockchain games that offer economic incentives to players. Typically, players can earn…