What’s Wrong With the GameFi Industry?
The GameFi sector is growing at a tremendous pace. As of February 2022, its total market cap has climbed to $55.3 billion. In 2021, the number of GameFi projects more than doubled. The reasons for GameFi success are quite obvious. It combines both promising and potentially life-changing technologies – Web3, NTFs, Metaverse. The “Play-To-Win” model is being slowly but surely replaced by the “Play-To-Earn” concept.
Gamers of all levels have praised the combination of gameplay and earning potential. In simple terms, playing your favorite game and making money is now becoming a reality. The problem is that this opportunity is available for new games. Fans of the very top games, which have a huge audience, have to change their preferences or settle for just playing without making money.
Playing your favorite game while having a simple and clear way to earn is exactly what millions of gamers around the world are waiting for. Why not go into the business of creating your own game instead of improving the existing ones? The reason is that many modern Play-to-Earn projects have rather dim prospects for success. Kaby Arena, Step Hero, Live Monsters – these games had a good start, but in the end, they didn’t manage to attract enough gamers.
Some experts have even started to say that the GameFi industry has not lived up to expectations and is becoming obsolete. In fact, the problem is that these games can’t match the popularity of the top game projects. So the GameFi sector definitely needs a new push. And that’s exactly what Energy8 offers.
Energy8 Solution for the GameFi Sector
The main idea of Energy8 is to connect the world of blockchain technology and the gaming industry. The project team does not develop their own games. They take everyone’s favorite games that made it to the world’s top and turn them into a Play-to-Earn genre. In fact, it’s an improvement on existing games. Now all the efforts are focused on Minecraft and GTA5. This choice is quite obvious. For example, when it comes to Minecraft, every month 140 million people around the world enjoy running, digging, and building simple houses and the grandest castles.
From a legal point of view, there is no need to enter into a partnership agreement with a particular company in order to implement this on community servers. The reason is that a crypto token is not a security.
Energy8 is developing its own cryptocurrency to make sure the Play-To-Earn feature works smoothly across different games. While having your own token is an advantage, the token itself can become an object of speculation. There are always people who view any new token as a way to make a quick buck. This could possibly cast a shadow over a company or even the entire GameFi market.
As for now, Energy8 makes it possible for any Minecraft fan to start earning from scratch just by logging into a Minecraft server. No cryptocurrency wallet is needed. Withdrawing money takes a few seconds. To do this, just go to the project’s website and withdraw tokens to your Metamask. After that, you can sell them on the decentralized exchange.
Existing Solutions – Far From Perfect
Energy8 is not the first company to embrace blockchain technology in the GameFi sector. There are already solutions that are similar in functionality, but still, they are far from perfect. No wonder, users experience enormous inconvenience. And here is why.
Let’s consider ZEBEDEE. While Energy8 offers its own cryptocurrency, ZEBEDEE is based on the Bitcoin network. The problem is that using third-party solutions, like Bitcoin, entails huge disadvantages.
First, a gamer has to download and install a ZEBEDEE wallet. Only after that can they withdraw funds that have been earned. But this is only possible after confirmation by the manager. Not a big deal but it takes some time. The payment itself takes 20-30 minutes or even more to proceed. It is determined by Bitcoin confirmation time. To exchange bitcoins you need to use an exchange, which entails confirming your identity. Again, not the biggest problem, but the process of withdrawal turns into a number of routine operations that can be automated. On top of that, young gamers cannot confirm their identity. This is important because there is a huge number of both professional and beginning gamers who are under the age of majority.
Still, such technical difficulties are not the main disadvantage. The real problem is that ZEBEDEE partners with only a few Android and iOS mobile games, which can be counted on the fingers of one hand. Minecraft, GTA5 and other long-loved games are not on the list.
The Future of the GameFi Market
There is no doubt that the very idea of GameFi is actually a breakthrough. It seems that earning money from gaming is becoming a reality not only for those who devote their whole life to it and are top-level cyber-sportsmen but also for those who want to play their favorite game as a hobby. At this point, the only question is how to make it available not only for new games but for existing ones.
It is quite possible that the solutions mentioned above will actually make millions of gamers around the world successful. What is even more important, this will fundamentally change the way we view gaming. The gaming industry is growing year by year and is valued at more than $178 billion. With more than 2.65 billion mobile game users worldwide, it definitely needs a new push that Energy8 Labs can provide.
Also, it is important to add that working with cryptocurrency is always a big risk. So you have to be careful and not get your hopes up that in the near future every single gamer will be able to earn as much as they do in their main job in an easy and effortless way!
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Bengaluru Bytes journalist was involved in the writing and production of this article.