One of the hottest topics in the cryptocurrency industry during the second half of 2021 so far is GameFi. If you are a newbie and are about to enter this hot and potential market. Do not ignore the common terms in the article below to get more interesting knowledge!
1. What is GameFi?
Before going through the terms commonly used in GameFi. We need to understand what is the essence of GameFi?
GameFi = Game + Fi. More specifically, this is a combination of Game (short for Video Game) and Finance (Finance). Users can earn income by playing games. Therefore, GameFi must balance the “Fi” factor, the financial factor in the game to be able to sustain and attract players.
Learn more about GameFi via: What is GameFi and things to know for newbies
2. Common terms in the GameFi world
In any field, there are specific terms for “industry insiders”. And so is GameFi, let’s take a look at the following terms to be ready to step into this exciting game world!
2.1. Coin and Token
Those in the crypto world are no stranger to coins. This is a type of cryptocurrency, or can also be called a virtual currency, built and developed on a separate blockchain platform with open source code, operating independently of each other.
Token is also a cryptocurrency but depends and develops on a blockchain platform of another coin. For the most part, there are two types of tokens in GameFi:
- Governance tokens: is the main token of the game, with a limited amount.
- Bonus token: is a token used as a currency in the game, to reward players for participating in activities, the amount is usually unlimited.
Example: In the game DeFi Warrior, the governance token is FIWA and the bonus token is CWIG. Players will get CWIG when participating in in-game activities such as PVP, Mining, Staking, Championship, etc.,…
2.2. NFT (Non-Fungible Token)
This is a non-fungible token, or non-fungible asset encoded on the blockchain’s system. In GameFi, NFT is used to represent unique in-game items (those are warriors and body parts attached to skills).
2.3. Play to Earn (P2E)
This is one of the most popular terms in GameFi. Players will get income after playing the game for a while. Depending on the game project, the cost spent by the player will receive different benefits and profits in different time periods.
2.4. Pay to Play/Pay to Win (P2P/P2W)
This is a model where players have to pay to play. Through investing money to buy items, upgrade, … to increase the ability to fight to be able to win the game.
2.5. Free to Play (F2P)
This is a form that is loved by many people when you can completely experience the game without paying. Because it’s free, the rewards for players will be quite small and difficult to earn a good income.
Publishers still get revenue from advertising or selling special in-game items,…
This is a digital world developed from the Internet combined with augmented reality tools such as VR, AR, MR to help users have the most realistic experiences.
Several GameFi at this stage are developing the Metaverse to enhance the in-game user experience.
2.7. Backer/ Investor/ Partner
These are terms that refer to the people behind the funds invested in the project.
2.8. DEV Team (Development Team)
Game development team, including game operator, manager and programmer. A reputable DEV team will have transparent information publicly available so that users can find and trust the project more.
One of the criteria for customers and investors to evaluate a GameFi project is Roadmap – The project’s development roadmap. Every project has its own plan and roadmap to follow that route and achieve its goals.
Users often view the project’s roadmap through the project’s website. For example: We can see the development roadmap of Game DeFi Warrior at https://defiwarrior.io/
AMA (Ask me anything) is an online event where game publishers will answer questions posed by the community. Usually, AMAs are held on popular social networking platforms such as Facebook, Youtube, Telegram, Discord,…
An event that gives away free in-game tokens to players through certain forms. Such as doing on-demand tasks: follow social networking sites, join Telegram groups, share articles, etc… These tasks are quite simple and often attract many users to participate in order to receive tokens.
2.12. Public Sale
As a public token sale round, players can buy game tokens in this round.
2.13. Private Sale
Unlike the public sale, the private sale is a secret token sale, only for backers or those who directly support the project.
2.14. Quests/ Missions
These are the tasks that the player must complete in the game in order to receive the reward. The reward is usually items or tokens.
Above are common terms in GameFi. Hope can help you gain knowledge about this game world. Together “pocket” these terms so that they are no longer strange or confusing when joining the GameFi community.