For years, the focal point of video game makers has been to create an increasingly realistic and immersive version of gameplay. Simultaneously, the blockchain community has been growing, working to create a decentralized version of digital transactions. Together, a realistic gaming universe with the ability to monetize activities has been born, known as GameFi.
For those interested in joining this growing movement, the future of GameFi looks to become an increasingly seamless experience between digital and physical world realities. For merchants, a new future of eCommerce is being formed.
Quick Definition: Blockchain works as a distributed database. Information is stored across a digital system in blocks that are strung together in a chronological, irreversible manner. This technology is at the core of cryptocurrency technology. Through blockchain technology, digital wallets allow users to store cryptocurrency in a decentralized manner.
What is GameFi?
GameFi is also known as Play-to-Earn. At its core, GameFi provides players the ability to earn rewards for playing a game. Earning could be based on activities completed, such as growing a crop, or could be based on quests won, such as defeating a specific enemy. In some cases, players may earn rewards simply by connecting with others within the game’s universe or earning status.
In the past, if a user earned currency within a specific gaming platform, they inherently ran the risk of losing all of their assets should the platform ever be dismantled. This is where GameFi differs. Via GameFi games, users keep their assets stored on a distributed network. These distributed networks operate independently of any single organization, substantially derisking digital assets.
Depending on the GameFi game, a user might need to enter the game with a specific type of crypto wallet. For example, one highly adopted cryptocurrency network is the Ethereum network. This open-source blockchain network contains smart contract functionality and allows those engaging in GameFi universes to store assets in a secure and decentralized manner.
Beyond the derisk of digital assets, GameFi games are unique in their potential to allow players to earn a living in a digital universe. While traditionally, gameplay only ever earned players’ assets of value within that game, GameFi looks to blend the digital world with the physical world, creating a value that transcends the game.
For example, one such popular GameFi game called Axie Infinity can earn players cryptocurrency tokens referred to as AXS. While the game itself requires an investment of dollars upfront, players earn tokens throughout gameplay. As the currency increases in popularity, its value follows suit. In the case of Axie Infinity, in 2021, the price of AXS went from $0.54 to $94, earning players an incredible profit.
Over time, the number of blockchain-based games only looks to grow. And the more popular these games become, the more overlap there will be between the virtual and physical world.
- GameFi allows players to earn money for playing the game, taking on quests, defeating enemies, and building relationships.
- GameFi differs from video games of old in that the digital assets earned within a GameFi universe are stored on a distributed network.
- The world of blockchain-based games is rapidly growing, fueled by the increasing demand for a blend between the physical and digital world.
Creating a Seamless Experience Between Digital and Physical
As technology continues to evolve and cryptocurrencies become increasingly mainstream, the bridge between digital and physical realities will need to become more seamless. Games will need to evolve to take real-world situations and experiences into account. In-game purchases will need to be used outside of the game and between other games.
In the future, players will live in a world where they can play online, purchase a physical product from within a game’s universe, and have that product delivered in the real world. Therefore, playing, meeting, and interacting with others in a virtual space will build real-world relationships and experiences. And, playing in a virtual world will generate real-world earnings depending on the task, activity, and relationships formed.
The end result is that the lines between our physical and digital realities will continue to blend as secure blockchain technology allows for a decentralized approach to transactions and stored assets.
A New Future of Commerce for Merchants
For merchants, the new future of commerce will undoubtedly involve a virtual element. Virtual Commerce, or vCommerce, will replace what was traditionally held as eCommerce. As vCommerce develops, forward-thinking merchants will be capable of creating a competitive edge by implementing technology today that empowers the physical world of the future.
It is possible to see a world in which customers transition from gameplay to ordering goods virtually. In addition to interacting with a business in person and then stopping by for takeout on their way home, the consumer can make their takeout purchase with GameFi earnings.
The goal for merchants today is to begin implementing the technology that will soon become necessary for commerce. Connecting the physical offerings of a retail location or physical experience will need to become integrated with the virtual world of tomorrow.
Key Takeaways for Merchants:
- vCommerce refers to a blend of digital and physical commerce. Unlike eCommerce, vCommerce will build a more seamless blend of digital and physical realities.
- Merchants that wish to remain competitive in the future need to begin today with the implementation of blockchain technology.
Power Your Future with Ally
Ally is a Software-as-a-Service platform dedicated to solving common problems surrounding today’s business transactions. Examples include building an authorization system on the blockchain, which allows users to register and maintain their credentials in a decentralized environment thereby building partnerships with key cryptocurrency leaders. Ally is constantly pushing the envelope of what the future of transactions will hold.
At the core of their mission, the Ally team is focused on developing the technological solutions that merchants will demand to meet the needs of the consumer of the future. For businesses interested in tapping into the world of vCommerce, building upon the increasing popularity of GameFi, the Ally team can help. Ally can implement new technology to solve complex transaction issues and is poised to assist merchants as they transition to a vCommerce future.