Metaverse is the killer solution to GameFi’s problems
The metaverse is a very broad concept that many believe will be the focus of the human narrative for the next century. However, due to the immaturity of the current technology, although the Metaverse is favored by many capitals, it is still intangible and invisible. We can only glimpse part of it in literary works such as the movies “Ready Player One” and “Out of Control Player”appearance.
GameFi is one of the very specific landing directions of the encryption industry, and it is one of the four main trends in the development of NFT. The other three trends are: on-chain artwork and generative art, NFT avatar communities, and personal work uploaded by traditional artists and photographers.
However, although GameFi’s development momentum is rapid, there are still hidden dangers that may affect the development of the entire sector in the future. And the Metaverse will be the killer solution to GameFi’s problems.
The crypto market is never short of innovation, and GameFi is no different. There are a lot of new games emerging in the GameFi space. However, their development is still restricted by the following factors:
Crypto industry and DeFi operations are the first threshold. The on-chain operation of deposit and withdrawal channels and wallets requires a certain learning cost, which is fatal to the entry of players outside the industry. However, this can be solved with simple learning. Then, players need to spend real money to participate in the game — which is unacceptable for many players.
Similar to staking liquidity mining, we need to lock LP assets in smart contracts to obtain benefits, and the same is true for GameFi. But it is worth noting that the form of GameFi is slightly different from that of liquidity mining. GameFi requires us to first exchange assets for game props NFT to participate in game activities.
The difference between the two has caused changes in the player’s psychology. Players will start to worry that if the NFT cannot be sold, they will lose all their assets. Many players are reluctant to face such exposure.
Although mature GameFi such as Axie Infinity do not need to worry about this situation, their economic system has been successful, and more players who are willing to “play to earn” will continue to pour in, but a strange new game will be because of its economy The immature system has been questioned, and it is unable to obtain sufficient players and liquidity to support the development of the game.
Performance and form
The performance of the public chain also restricts the development of GameFi. This is an old problem with Ethereum, scalability and confirmation time limit the number of players. However, with the launch of high-performance public chains such as BSC, Solana, and Avalanche, performance and cost issues are gradually being resolved.
However, it is worth noting that due to the problems of the blockchain architecture, many game forms are not suitable for deployment on the traditional Layer 1 public chain, and due to the previous financial thinking, most of the current blockchain game forms are very simple and cannot be used for Players are presented with a deep and interesting game world.
For players, such games are very easy to cause aesthetic fatigue.
So, how will the Metaverse empower GameFi?
We can imagine a metaverse that can hold a lot of games, and that metaverse supports developers in creating games in it.
All games in this metaverse can achieve interoperability — all it takes is an efficient NFT marketplace. At the same time, thanks to the support of the metaverse, the linkage between games can also be completed — different characters can play other game worlds. Like the children’s movie Wreck-It Ralph. We can understand this as the metaverse supports interoperability between NFTs and games.
In the metaverse, when interoperability is achieved, we will look at liquidity from a holistic perspective. We don’t need to buy new characters and items before playing a new game. By using the original NFT assets, we can easily participate in brand new games.
As the metaverse develops, general-purpose NFTs will emerge. With a general NFT, we can enjoy most of the game services of the Metaverse. This means that when new games are launched, they get an initial liquidity. If the game is of sufficient quality, liquidity will present a positive feedback loop.
As a result, more quality games will emerge in the metaverse itself, and more liquidity will flow into the metaverse.
Abundance of game forms
Although GameFi’s focus is on Finance, “play to earn” is only a financial behavior in itself and cannot lead to the influx of a large number of game players. In the ranks of “play to earn”, most of them are speculators, or gold workers who come to make money because of the regional economy. Therefore, the “play to earn” model will prevail in Southeast Asia.
Web 3.0 is an open world. We cannot forget to rely on financial profits to attract everyone to join. Many people do not value the economic benefits that games can bring to them. The gaming experience will determine the number of players. The vastness of the metaverse can fully support game developers to build various games on it to provide players with a rich gaming experience.
However, the current technical support cannot support the operation of a huge metaverse. We hope that more and more metaverse infrastructures like UltronGlow will appear at the bottom in the future, and we will explore and work together to provide massive computing power and data support for the embodied interaction of the metaverse.