By Tri Pham – CEO of Whydah, Co-Founder of KardiaChain
Long before DeFi became popular, the gaming industry was already doing exceptionally well. Today, DeFi TVL stands at $ 222 billion, while the global gaming industry is expected to reach $ 218.7 billion by 2024. DeFi has always had the potential to transform video games, ushering in a radically new experience for gamers. So, it’s no surprise that DeFi and gaming have teamed up to form GameFi or gaming finance.
As a result, video games have ceased to be just another way to have fun and entertainment. GameFi ensures that your time and effort for the gaming ecosystem is rewarded. These rewards will not be limited within the confines of the gaming environment. DeFi has helped inject cash into these gaming platforms so that in-game assets can have real value.
The first financial incentive model that made GameFi such a phenomenal success is called play-to-earn.
The Play to Win model
As the name suggests, players can participate in winning games to earn rewards while playing a video game, in the form of crypto tokens or in-game assets. Players can tokenize and strike these assets by as an NFT for secondary market trading. So virtual weapons and race cars are no longer just random tools in the game, but something of value in the real world.
Although the game to win has been around for some time, it was not until after the COVID-19 pandemic that it became popular. As people were stuck at home and some lost their jobs, they increasingly turned to these games to kill time and try to earn rewards. At one point, 350,000 users were playing the game to win, Axie Infinity, every day. Some even said they won nearly $ 1,000 per month.
Despite a hugely profitable gaming model, there is more room to make gaming platforms truly decentralized. After all, even with the new blockchain-based games up for grabs, it’s the game companies that design and develop the game’s assets.
One solution to this is to allow end users to build in-game assets and create a whole new source of monetization for themselves while making games more decentralized. Dubbed create to win, this new model has the potential to transform the blockchain gaming industry for the better.
The Build to Win model
Game companies rely heavily on software engineers, artists, and other creative professionals to design their games. This introduces a culture of access control where creators of in-game assets have limited authority over their designs due to centralized control.
The creative to win model is a step forward in decentralizing these games. Creators can take full control of the game studios and directly participate in the development of the game.
Build to Win offers end users the ability to build in-game assets from scratch, turn them into NFTs, and sell them in secondary markets. This mechanic introduces a new value for the in-game NFT. Instead of hitting NFTs through randomization or pure luck, players will provide their input to create these NFTs, granting them unique merits.
This paves the way for a creator economy where users actively create and own the game designs while also monetizing their own in-game assets. This makes the gaming ecosystem more community driven, with content creators being incentivized to improve the overall gaming experience.
This new model provides a level playing field so that anyone with basic coding skills can become an essential part of a game. It transfers the power of the behemoths of the game to the very players of the game. More creator-focused, designers can easily develop seamless gaming experiences for all gamers. Additionally, it can provide the right ecosystem for true ownership of game assets and new ways to monetize those virtual properties.
Additionally, since these game projects will be truly decentralized and community-governed, designs can be put to a vote, and the artwork with the highest number of community votes can ultimately be accepted for the final design. . And every time someone creates an NFT, the artists who worked on the asset get royalties from it for every transaction.
Will creating to win transform DeFi?
GameFi serves two purposes at the same time. On the one hand, players can collect in-game assets that have real value with the game model to win. On the other hand, GameFi plays a crucial role in the adoption of mainstream crypto by paving the way for easy entry into crypto.
Despite this win-win situation, there is still significant untapped potential in GameFi. Ultimately, it’s the blockchain game companies that own the game’s collectibles. Of course, players can create their own NFTs and increase their value while playing, but the ultimate design and authority lies with the company. of development.
The model of creating to win changes the status quo. In this new game model, players will not just play the game but contribute to its creation from scratch. This will open up unexplored grounds for monetizing knowledge and creative skills.
The fact that you are no longer just another player but an active “creator” is indeed something new. And given all of its benefits, we can say with confidence that Create to Win has all the ingredients needed to radically transform the blockchain gaming landscape forever.
About the Author: Tri strongly believes that the blockchain will be a pillar of the future human society. He has launched several initiatives contributing to the massive adoption of blockchain, from the infrastructure layer like KardiaChain to the application layer like My DeFi Pet. KardiaChain is the national blockchain in Vietnam, while My DeFi Pet was the most played game on Binance Smart Chain during the GameFi 2021 peak.