This post is to help beginners equip themselves the basic knowledge of gamefi and thus help them do better investment decisions on Splinterlands.
- What is DeFi ?
The full name of DeFi is Decentralized Finance, also known as "open finance". At present, majority of DeFi projects are carried out on the blockchain of Ethereum. DeFi is a series of financial applications developed based on an open decentralized platform.
Compared with traditional finance, DeFi is more open :
- first, DeFi does not need to rely on any centralized entity to provide credit intermediaries ;
- second, there are no access restrictions, that is, any person with an internet access can enter;
- third, no third party can block any transaction, nor can it reverse any transaction.
To sum it up in one sentence is to let financial transactions out of the supervision of ZF. But just like all kinds of coins, the concept is very good, but the popularity goes down, and there is no revolutionary progress.
- What is NFT?
The full name of NFT is Non-Fungible Token, which are indivisible, irreplaceable, and unique.
Homogeneous tokens, namely FT (Fungible Token), are mutually replaceable tokens .
For example, there is essentially no difference between a bitcoin in your hand and a bitcoin in my hand. This is homogenization, which is a homogenized currency.
Non-homogeneous tokens, namely NFTs, are unique and indivisible tokens, such as encrypted cats, tokenized digital tickets, etc. It is equivalent to USD with a number. There will not be two USD with the same number in this world, nor will there be two NFTs with the same number. At the same time, due to its non-homogeneous and inseparable characteristics, NFT can be bound to some commodities in the real world. In a word, it is actually a digital asset issued on the blockchain. This asset can be game props, digital artwork, tickets, etc., and is unique and non-reproducible. Since NFTs have natural collectible properties and are easy to trade, crypto artists can use NFTs to create unique digital artworks.
- What is P2E
P2E|GameFi P2E (Play to Earn) is a popular business model currently staying in the blockchain game world. It corresponds to the F2P (Free to Pay) model that is common in the real-world game industry. It means that players can play for free, while P2E can earn money while playing.
What is GameFi? In one sentence, it is game + DeFi, adding financial elements to the game.
If 2020 is the first year of the DeFi outbreak, then 2021 will undoubtedly be the year of the GameFi blockchain game outbreak.
According to DappRadar, on April 18, 2021, the number of transactions in the blockchain game sector once reached 480.7 billion US dollars.
As of July 31, the number of users of the blockchain game sector exceeded 780,000, an increase of more than 170 times compared with the beginning of the year, and the number of GameFi daily active wallets increased by 700% from March to July.
As of July 30, 2021, the chain game market attracted nearly $1 billion in investment, compared to $72 million for the full year of 2020.
- What are DEC, SPS, HIVE and NFT cards ?
finally comes to the point. I believe that the people here on Hive must be more optimistic about Splinterlands.
There are currently four investment products related to Splinterlands.
DEC: The game currency in Splinterlands will be used for the rewards won by playing the game and purchasing cards. As Splinterlands released several big news in July, it has increased by 7 or 8 times. In my opinion, the future price should be relatively stable and belong to the base currency in the Splinterlands game.
The value of investing in DEC currently lies in receiving SPS airdrops. The risks are average, and the returns are average.
HIVE: Splinterlands is a product on the HIVE chain. If HIVE goes up, Splinterlands will probably go up. It can be simply understood that HIVE is Tencent, and Splinterlands is the glory of the king. HIVE coin is Tencent's stock, investing in HIVE has lower risk and lower returns.
SPS: A governance token issued by Splinterlands in July.
It is still in the long-term airdrop distribution. It is issued according to the proportion of the game currency and card value held to the whole. The specific entry is as follows: Investing in SPS is generally risky and has potential higher returns.
NFT Cards: Items used for all games in Splinterlands.
It can be obtained by purchasing card packs (similar to blind boxes) and player trading. The liquidity is very good and the price fluctuates a lot. Because each card is a limited number of NFTs, the entire circulating market can be controlled with less funds. Investing in cards has high risks and high returns.
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Thanks for sharing! - @mango-juice