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GameFi’s Common Terms You Can’t Miss (Part 1)

24 August, 2022

🕹 As the emerging GameFi industry has been emerging impressively these recent years, the blockchain-based game sector is still relatively new to most gamers, especially traditional gamers. For this reason, various gaming terms in GameFi are still causing confusion for many players and newcomers.

👇 Below are some common terms that will help you get a better understanding of GameFi:

  • GameFi: GameFi is a combination of the terms gaming and decentralized finance (DeFi) and describes the integration of blockchain applications in the gaming sector for monetization purposes, among other things. Smaller publishers in particular use the possibility of monetizing their games by issuing tokens.
  • Token & Coin:
    • Token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains.
    • Coin is a cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
    • Coins and Tokens both represent a store of value, much like fiat currency, such as dollars, euros, yen, etc. But there’s a crucial difference: digital coins are a form of money, while digital tokens represent something that can be assigned a price
  • NFT: NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated. NFTs can represent real-world items like artwork and real estate. “Tokenizing” these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud.
  • F2P (Free To Play): Free-to-play, or F2P, video games are games that give players access to a significant portion of their content without paying or do not require paying to continue playing. Free-to-play is distinct from traditional commercial software, which requires a payment before using the game or service.
  • P2W (Pay To Win): P2W is used in gaming with the meaning “Pay to Win,” to refer to games that allow players to purchase items or abilities (e.g., more powerful weapons, additional health points) that give them an advantage in the game, either over other players or NPCs (Non-Player Characters).
  • P2E (Play To Earn): P2E games, or Play-to-earn games, are gaining popularity despite a pullback in the crypto marketplace, and for good reason: Gamers can still earn money while racking up points. The Crypto Coach shows you how to get started.

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