Blockchain-based gaming platforms have emerged as a major player in the world of crypto, gaining significant attention alongside the rise of NFTs (non-fungible tokens). These seemingly disparate fields are now converging to create a new concept known as GameFi.
At its core, GameFi combines gaming and finance, allowing players to earn cryptocurrency and other rewards like NFTs for participating in games and other activities. However, the fragmentation of the blockchain ecosystem has made it difficult for users to participate in multiple blockchain-based games and earn rewards, as they often need to use the specific crypto or NFT accepted by that particular gaming platform. Even with in-game rewards, they may need to exchange or swap them with their preferred digital asset or fiat currency.
This is where RocketX comes in.
By enabling cross-chain swaps across different gaming platforms and other innovative features, RocketX helps GameFi projects to drive user retention and foster a vibrant gaming ecosystem. In this article, we will explore the concept of GameFi in more detail and delve into how RocketX can help shape the future of this exciting new field.
What is GameFi?
GameFi is a new concept that combines elements of blockchain technology, decentralized finance (DeFi), and traditional gaming to create a new type of gaming experience that is more immersive, engaging, and financially rewarding.
The term “GameFi” stands for “Game Finance”, and it represents play-to-earn (P2E) games that offer economic incentives to players. GameFi projects often use non-fungible tokens (NFTs) to represent in-game items and assets, which can be earned by completing in-game tasks, battling other players, and through different activities. Some platforms also offer crypto as an incentive for participating in the game. Unlike traditional video games, these blockchain-based games let players transfer their gaming items out of the game’s virtual world, allowing players to trade their items on NFT marketplaces and their crypto earnings on crypto exchanges
GameFi projects can also incorporate DeFi concepts, such as yield farming and liquidity mining, allowing players to earn passive income by staking their assets. Breaking the boundaries of traditional finance, some platforms even offer users to participate in the key decision-making like proposing or voting for future updates. This is essentially done by locking the governance token of the GameFi project.
Top 3 GameFi Projects in 2023 and How They Work
StepN is a decentralized app (dApp) on Solana that allows users to earn cryptocurrency through exercise. To get started, users must download the app from the app store, sign up with their email, and connect their crypto wallet. They can then purchase virtual sneakers, which are actually NFTs, by depositing SOL into the app’s wallet. These NFT sneakers have various attributes that affect their energy cap, which in turn determines the amount of time users can exercise for and earn GST (token that powers StepN) utility token rewards.
To prevent cheating, the app tracks movement through the user’s smartphone GPS and will not reward stationary walking. Additionally, the app’s Background Mode can pull step counts directly from a user’s Health Data even when the app is turned off.
Users can select from four types of sneakers (walker, jogger, trainer, and runner), each with a different speed requirement and earning potential. Sneakers also have rarity levels and can be customized through breeding or minting. As users level up their sneakers, their earning potential increases, and they earn attribute points to distribute between their sneaker attributes.
2. DeFi Kingdom
DeFi Kingdoms is a popular play-to-earn role-playing (RPG) game with a medieval theme, powered by the Harmony One blockchain. The game features pixelated characters exploring taverns, banks, and gardens, while summoning utility-based NFT Heroes that earn resources and combat enemies.
Players can earn cryptocurrency by playing the game, which uses the UniswapV2 protocol for liquidity providers and traders. To start playing, users can visit the DeFi Kingdom website and create their Hero character, which is minted into an NFT. Heroes come with two sets of genes for appearance and game attributes, and gene mutations can result in rarer abilities and classes. Heroes can be summoned by combining genes of existing Heroes and feeding a Summoning Crystal with “Gaia’s Tears” and jewels.
DeFi Kingdoms is also a cross-chain game with multiple realms, with each realm providing unique opportunities for players. The original realm, Serendale 1, closed in October 2022 and was converted into an Outpost, allowing players to onboard bridge tokens from any chain into a realm of their choice. The first expansion, Crystalvale, lives on the DFK Chain, an Avalanche subnet, and introduces new classes of Heroes and an overall new digital environment to explore.
3. Lingose GameFi
Lingose GameFi is a blockchain game that tracks what you do in the game and gives you rewards for your accomplishments. It creates a special ID for you in the game that keeps track of your progress and achievements. You can collect and battle with unique characters in the game, and these characters can be bought and sold on the game’s marketplace. There is also a special token called LING that you can earn and use to get more benefits in the game. Lingose GameFi is a fun and rewarding game that lets you show off your skills and earn cool stuff.
Challenges Faced by GameFi Projects and Their Users
Despite its many benefits, GameFi also presents a number of challenges for both projects and users alike. Here are two of the key issues that the industry faces:
- Fragmentation of the blockchain ecosystem: Since each GameFi project is built on a different blockchain network, and each blockchain has its own native token, it can be difficult for projects to retain users over time. Players may find it frustrating to have to switch between different networks and wallets in order to participate in different games or earn rewards.
- Complexity of crypto transactions: While earning cryptocurrency and NFTs can be exciting for players, converting those rewards into fiat currency or into a preferred digital asset can be a complicated process. Users may need to shuffle between multiple exchanges, wallets, and trading pairs in order to convert their rewards into a form that is useful to them.
RocketX: The Solution to Fragmentation and Complexity
RocketX is a crypto aggregator platform that solves the challenges of fragmentation and complexity in the GameFi ecosystem by providing a seamless and user-friendly experience for players on a single interface.
To solve the issue of fragmentation, RocketX allows users to access multiple blockchains and protocols within a single interface, eliminating the need to switch between multiple platforms. Users can swap tokens and assets across different networks with ease, providing a seamless experience for players.
Furthermore, RocketX simplifies the process of converting rewards into a preferred digital asset or fiat currency. With its aggregated liquidity, users can easily convert their rewards into a usable form without the need to shuffle between multiple wallets and exchanges. The platform offers low fees, fast transaction times, and secure custody of assets, providing a hassle-free experience for players.