GameFi (Game Finance) is a growing industry that combines gaming and finance. It leverages blockchain technology to bring new levels of ownership, trade, and scarcity to in-game assets. With its special characteristics, GameFi has the potential to revolutionize the way the traditional gaming industry operates.
As GameFi continues to grow, keeping up-to-date with the latest developments and terminologies is vital for staying ahead. This article presents a comprehensive list of the most common terms related to GameFi. Read it up now, and you will have a solid grasp of the GameFi terms and how they relate to each other later.
Glossary of Terms
A
Auction: A public sale where items or services are sold to the highest bidder. In GameFi, auctions are often used to sell rare or unique in-game items, with the highest bidder winning the item.
B
Battle Pass: A type of virtual subscription that grants players access to exclusive in-game content and rewards, often tied to a specific game mode or event. Players can progress through different tiers of the Battle Pass by completing specific challenges or objectives.
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D
Decentralization: The process of distributing control and decision-making power away from a central authority or entity, often through the use of blockchain technology. In GameFi, decentralization can enable players to have more control over their in-game assets, and reduce the influence of central authorities like game developers or publishers.
Deflationary: A type of economic model in which the total supply of a currency or asset decreases over time, often leading to an increase in its value. In GameFi, deflationary models can incentivize players to hold onto their in-game assets, as their value is likely to increase over time.
Digital Collectibles: Unique and indivisible digital assets that can be bought, sold, or traded by players. In GameFi, digital collectibles are often stored on the blockchain, which can provide additional security and verifiability.
Distribution: The process of making items available to the public. In GameFi, distribution can take many forms, such as through drops, auctions, or giveaways.
Drops: A type of in-game distribution where items or rewards are given to players at random intervals or as part of specific events. Drops can create excitement and engagement among players, as they may not know what they will receive or when.
E
Engagement: The level of involvement and participation by players in the game. High levels of engagement can indicate a healthy and thriving ecosystem, as players are actively participating in the game and its economy.
Event: A time-limited, in-game experience with unique objectives and rewards. Events can range from in-game challenges to real-world meetups and conventions.
F
Farming: The process of earning rewards or income in the GameFi ecosystem through specific activities or actions, such as completing quests or staking tokens.
F2P (Free-to-Play): A game model in which the base game can be played for free, but players can purchase additional content or features.
Fluctuation: The variation in price of an asset over time. Fluctuation can be influenced by a variety of factors, such as supply and demand, market trends, and changes to the game or ecosystem.
G
Gamification: The use of game elements, such as points, badges, and leaderboards, in non-game contexts.
Gameplay: The specific mechanics and interactions within the GameFi ecosystem that allow players to participate and progress.
Game Economy: The system of in-game assets, currencies, and transactions that allow players to engage with and interact.
Giveaway: A type of in-game distribution where items or rewards are given to players for free, often as part of a promotional campaign or event.
Guilds: Groups of players who band together in a game to achieve common goals and objectives. Guilds can offer players various benefits such as shared resources, access to better gear, and social connections.
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I
Incentive: A reward or motivation given to encourage players to complete certain actions or achieve certain goals within a game. Incentives can include in-game items, currency, or experience points.
In-game Ads: Advertisements shown within a game to promote products or services to players. In-game ads can be used to generate revenue for the game developer or to promote other products or services.
In-game Currency: Virtual currency used within a game to purchase in-game items and services. In-game currency can be earned through gameplay or purchased with real money.
In-game Market: A platform within a game where players can buy and sell in-game items and currency with each other. In-game markets are often player-driven and can be subject to fluctuations in supply and demand.
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L
Lending: A system in which players can lend or borrow in-game items or currency to other players. Lending can help players who need resources to achieve their goals, and can also generate revenue for lenders.
Leaderboard: A ranking system within a game that displays the performance of players based on various criteria, such as score or completion time. Leaderboards can provide players with a sense of accomplishment and motivation to improve their performance.
Level: A numeric representation of a player’s progress within a game. Levels can be based on various criteria, such as experience points or completed objectives.
Loot Box: A virtual container that contains a randomized selection of in-game items. Loot boxes can be purchased with in-game currency or real money, and their contents can range from common to rare items.
M
Market Secondary: A market where players can trade and sell in-game items and currency for real money. Secondary markets are often player-driven and can be subject to fluctuations in supply and demand.
Metaverse: A virtual world where players can interact with each other and participate in a variety of activities, often using virtual reality technology.
Minting: The process of creating new digital assets, such as NFTs or cryptocurrencies, by recording them on a blockchain.
N
NFT (Non-Fungible Tokens): Unique digital assets that cannot be replicated or exchanged for other tokens or assets. NFTs are often used to represent digital collectibles or unique in-game items.
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Q
Quest: A set of objectives that a player must complete within a game to progress or achieve rewards. Quests can be used to provide structure and motivation to gameplay.
R
Referral Program: A program in which players are rewarded for referring new players to a game or platform. Referral programs can help to increase the user base of a game or platform.
RNG (Random Number Generation): The generation of a sequence of numbers that are not predictable and lack a pattern.
Reward: An item or benefit given to a player as a result of completing a specific action or achieving a certain goal within a game.
S
Skin: A cosmetic item that changes the appearance of a player’s character or avatar within a game. Skins can be earned or purchased and can provide players with a sense of individuality and customization.
Staking: A process in which players lock up a certain amount of cryptocurrency or other digital assets to earn rewards or voting rights on a blockchain network.
T
Token: A digital representation of a real or virtual asset, such as currency, collectibles, or game items. Tokens are often used in blockchain-based games to represent ownership of in-game items or currency.
Tokenization: The process of creating digital tokens to represent real or virtual assets on a blockchain network.
Tradeable Item: A tradeable item in GameFi refers to any in-game asset or item that can be bought, sold, or traded on the in-game market or on external marketplaces. These items can range from weapons and armor to rare skins, mounts, and even in-game currency.
Trading: The act of buying, selling, or exchanging tradeable items with other players, either through in-game marketplaces or external platforms. Trading can be a way to acquire rare or desirable items, earn in-game currency, or simply dispose of unwanted items.
Transaction: The transfer of value from one party to another, typically involving the transfer of tradeable items, in-game currency, or other assets. Transactions can occur on the in-game market, on external marketplaces, or through direct trades between players.
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Last Words
Until now, the GameFi ecosystem is still a fascinating and exciting place, with a lot of room for growth and innovation. Continual exploration and learning can help you fully capitalize on its potential. Whether you are a gamer, a collector, or an investor, understanding the above-listed terms will help you make better decisions and maximize your opportunities. Be sure to subscribe to all of Octan Labs’ channels if you want to gain more valuable knowledge and insights.
