The GameFi industry has taken the crypto realm by storm, as more games than ever before are being developed, played, and the way through which players earn while playing has been revolutionized forever.
Games were originally played just for entertainment; however, today, blockchain-based games implement monetization models such as Play-to-Earn (P2E), giving players a lot more ownership and value for their time spent playing.
Author: Milko TV
Today, we will be going over how companies can leverage this and introduce crypto payments that will push their games to the next level.
- GameFi has enabled players to earn cryptocurrencies and NFTs while they spend time in-game throughout a variety of different blockchain-based games.
- Gamers are, as a result of this, making more transactions on top of a blockchain than ever before and are holding far more diversified cryptocurrencies.
- Players can convert their cryptocurrencies to FIAT currencies and sell their NFTs for another crypto on NFT marketplaces.
- Businesses can leverage this opportunity and begin accepting cryptocurrencies, tremendously enhancing their potential customer base through the usage of the NOWPayments payment gateway for cryptocurrency.
What is GameFi?
GameFi crypto is essentially a reference to the Play-to-Earn (P2E) monetization model that is implemented across games built on top of blockchain technology. In other words, GameFi, as a term, directly describes any game that offers economic incentives to the players.
In most cases, players are able to earn cryptocurrencies as well as rewards in the form of non-fungible tokens (NFTs) through a procedure where they are essentially collecting loot, finishing quests, battling other players, winning the top spots at leaderboards, or progressing through a game’s story, levels, or quest system.
The main way through which GameFi projects differentiate themselves from traditional gaming is in the way through which they let players transfer the gaming items out of the virtual world to any supported cryptocurrency wallet. The players can then do as they will with the NFT, such as list it on an NFT marketplace and cash out their crypto as an earning from the time committed to the game. So if you were curious about what GameFi crypto is, now you know.
How GameFi and crypto payments are related
Now that we have gone over what GameFi is in crypto, let’s go over how they are related. Whenever a player enters a GameFi project, their main goal is to enjoy a solid, well-crafted experience that can entertain them for hours. However, they are incentivized to go through various in-game activities with the promise of earning cryptocurrencies or NFTs.
What this means is that a player consistently pushes through quests, events, and battles and aims to build a solid team just so they can earn as much as possible throughout their gameplay sessions and make their time spent in the game a lot more worthwhile, than just from the enjoyment of playing.
As such, there are numerous payments that occur throughout the gameplay sessions, from putting crypto in the game to taking crypto and NFTs outside of the game using a cryptocurrency wallet. This is where a crypto payment provider can help.
How GameFi will change crypto payments
GameFi has the ability to completely change the way crypto payments are made.
When we go over how GameFi projects deal with payments, players essentially earn an in-game cryptocurrency.
A game will typically feature two main tokens. One will be the in-game token, used for crafting, buying in-game items, or other use cases that are locked to the game directly. The other token will be the utility token, which can be taken outside of the game, typically can be staked or used for governance, and can be used to buy NFTs directly on secondary marketplaces in some cases. A cryptocurrency payment provider will typically support numerous cryptocurrencies.
What this means is that there are consistent transactions between the player and the game.
Additionally, every time an NFT is bought, sold or traded, transactions occur. This indicates that players will typically conduct a lot more transactions than those just investing in tokens. The result of this is a far more cohesive and consistent transaction flow and attachment rate, where players are consistently pushing themselves further to earn more, play more, get more NFTs, either become stronger or sell them for crypto and then trade that crypto for FIAT currencies.
This way, some players might even make enough money to turn their GameFi venture into a full-time job in some cases. As such, it is essential for any company or service to be able to accept cryptocurrency payments, as, through GameFi, a much higher user base will gain access to cryptocurrencies, which might have otherwise not.
How can the gaming industry accept crypto payments?
There are numerous ways through which the gaming industry can begin leveraging the power of crypto payments.
For games and game-related companies that aim to introduce crypto, they can gain access to instant payments from any player located anywhere in the world, which means that borderless payments are a possibility. There is also no obligatory verification, no fees on any payouts, no chargebacks, and all that’s actually paid is a 0.5% service fee. There’s also free integration/
NOWPayments is a crypto payment gateway that offers a Custody API flow, where users can pay in over 150 cryptocurrencies, and the funds can be stored on NOWPayments through a custody solution per requirement. Then, anyone can send payouts through a Mass Payouts API.
If a gaming company aims to implement crypto payments, this is a step-by-step guide on how they can integrate the Mass Payouts API with ease:
- All business owners need to do first is visit the official NOWPayments cryptocurrency payment gateway website and create an account.
- Next, they can navigate to settings and Generate an API Key.
- Now, businesses or gaming studios aiming to implement crypto payments can turn on the Custody feature to send mass payouts. In order to do that, they need to whitelist their IP address, followed by clicking on “I Intend to Include the Aforementioned IP Address(es) to Whitelist and Take All the Risks Related to It” and clicking “Continue.”
- Now the owner of the gaming studio or the studio as a whole can deposit cryptocurrencies into the account.
- Next, the user needs to visit the Balances tab, after which they can click on “Create Mass Payout.”
- Then they can upload the .csv file, which is filled with the wallet addresses, as well as the amount of money that they want them to receive.
- All that’s left for users to do is to click on “Proceed” and let NOWPayments do the rest of the work for them.
We have gone over everything you need to know when it comes to how GameFi will revolutionize the way crypto payments are conducted.
As gamers are rising in terms of numbers quicker than ever before, and as blockchain technology introduces new monetization models, Play-to-Earn (P2E) will pave the way for future blockchain payments, and NOWPayments enables any company to accept over 150 different cryptocurrencies and will handle the crypto payment processing.