Cointime

Cointime

Download App
iOS & Android

GameFi’s Use of Smart Contracts in Gaming

Smart contracts are an integral part of any blockchain project, and GameFi is not an exception. In this article, we will get into details of smart contracts, and their use in gaming in particular. We will also discuss the synergy of gaming and smart contracts, as well as its future.

Before we contextualise smart contracts in GameFi, let us begin with a general description. According to IBM, ‘Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified’. It is a very precise and tight definition of the term, and we couldn’t have said it better. When the conditions set by counterparties are met and actions - executed, a smart contract closes and is stored on the blockchain, meaning that it cannot be deleted or changed in any way.

Actions that can be tied to smart contracts can be incredibly varied, and in combination with simple design, it becomes a very useful tool that projects are built upon. Although smart contracts can be written from scratch, there are many services that provide tools to structure contracts without much coding. Smart contracts create a decentralized and automated environment, and they are widely adopted by blockchain projects, including GameFi.

GameFi benefits greatly from smart contracts. Blockchain gaming combines classic gaming experience with an extensive economic layer. GameFi economy is made out of many chainlinks between developers, gamers, guilds, partners, blockchain providers and more. Between them, there is a constant flow of NFTs, tokens, money and other assets, and automatization increases the speed and security of these transactions. Smart Contracts enable the creation of complex and diverse GameFi mechanics: NFTs and tokens can be easily implemented as gameplay rewards or used in-game with many different implications. Smart contracts protect copyrighted works, which is prevalent in Metaverse, they are used to manage property and asset ownership, they are transparent and stored on blockchain, allowing them to act as proof, and they can be written in such a way to give gamers many opportunities concerning NFT creation or transfer, as well many other great features.

In other words, smart contracts allow GameFi to create much more complex and intertwined gameplay/economic mechanics and systems than in traditional centralized gaming. Even though GameFi is at its origin, we can already see big projects that make the best AAA games look simple. As the industry gets more experience, talent and funding, we will see the full potential of smart contracts realized, which will make GameFi more attractive to crypto opportunists and mass gaming audience. With smart contracts, other GameFi advantages like Play&Earn model, asset ownership and community development will also be spread to the whole gaming industry. We at Clarnium will be happy to guide you on this journey!

GameFi Metaverse Cryptocurrency
Comments

All Comments

Recommended for you

  • Spot Gold Falls Below $4,050/Ounce for the First Time Since August 4

    Spot gold has fallen below $4,050 per ounce for the first time since August 4, with a daily decline of 2.19%.

  • Nasdaq Opens Down 1.55%, Meta Falls Over 4%

    U.S. stock indices opened lower, with the Dow Jones down 0.44%, the S&P 500 down 0.91%, and the Nasdaq Composite down 1.55%. Chip equipment manufacturer Lam Research provided a disappointing earnings outlook, causing its stock to open down over 9%. Following a reduction in spending plans, Tesla's stock fell by 2.8%. Meta dropped over 4%, with the company's future spending commitments totaling $825 billion. IBM also fell over 4%, reporting third-quarter revenue of $17.1 billion, a 4.7% year-over-year increase.

  • DeepSeek Raises Financing Target from 50 Billion to 100 Billion Yuan, Potentially Paving the Way for Sci-Tech Board IPO

    On October 22, market sources reported that domestic large model company DeepSeek plans to raise approximately 100 billion yuan (about 15 billion USD) in its latest financing round. Tencent and CATL are the largest investors in this round, with the transaction expected to be officially completed in the coming days. As of now, neither DeepSeek nor the related investors, including Tencent, have publicly responded. Journalists have cross-verified the information with multiple sources close to the company and investors, confirming its accuracy. Sources revealed that the initial fundraising target was set at 50 billion yuan, which has since been raised multiple times to approximately 100 billion yuan, although it has not been officially announced and the final amount is still not fully determined. The funds will continue to be used for model training, computing power construction, and talent recruitment to support DeepSeek's participation in global competition. Some sources also speculate that this round of financing will pave the way for the company's upcoming IPO on the Sci-Tech Board. (Shanghai Securities Journal)

  • Ethereum Researchers Propose Reducing Final Transaction Confirmation Time from 16 Minutes to Approximately 4 Minutes

    On October 22, Ethereum researchers proposed a draft for a rapid finality mechanism aimed at reducing the final transaction confirmation time from the current approximately 16 minutes to about 4 minutes, targeting an enhancement of around 4 times. The draft was submitted on Wednesday by Ben Edgington, the coordinator of the rapid finality research, and is still in the early stages, with no activation timeline determined yet. The proposal plans to split the validator voting for determining new blocks and finalizing historical blocks into two separate mechanisms, allowing for a faster pace of finality.

  • Visa Negotiates Acquisition of Fireblocks Valued at Approximately $2.5 Billion

    On October 22, Bloomberg reported that Visa is in talks to acquire the cryptocurrency custody infrastructure company Fireblocks, with a transaction valuation of approximately $2.5 billion. If the deal is finalized, it will further expand Visa's presence in the digital asset custody and blockchain payment infrastructure sectors. This information is yet to be confirmed, and specific terms and progress of the acquisition negotiations have not been disclosed.

  • US Spot Ethereum ETF Sees Net Inflow of $14.98 Million Yesterday

    On October 22, according to monitoring by Trader T, the US spot Ethereum ETF recorded a net inflow of $14.98 million yesterday.

  • Sonic to Transfer 13 Million S Tokens via Strategic OTC Agreement in Next 24 to 48 Hours

    On October 22, Sonic announced on the X platform that approximately 13 million S tokens will be transferred in the next 24 to 48 hours under a strategic over-the-counter (OTC) agreement. The counterparty is a long-term partner of Sonic, and both parties will collaborate to expand Sonic's reach and enhance user engagement through the partner's network.

  • Bank of Korea Maintains Interest Rate as Expected

    On October 22, the Bank of Korea kept the policy interest rate unchanged at 3%, in line with market expectations. Previously, South Korea raised interest rates in consecutive meetings in July and August.

  • U.S. Treasury Secretary Becerra: GENIUS Act Establishes Federal Regulatory Framework for Stablecoin Payments

    U.S. Treasury Secretary Scott Becerra stated that the GENIUS Act is a milestone in the American financial sector, further solidifying the U.S. position as a global cryptocurrency hub. He compared the bill to the National Currency Act signed by President Lincoln in 1863, asserting that it establishes a federal regulatory framework for stablecoin payments in the digital age. Becerra also mentioned that the final rules issued by the Office of the Comptroller of the Currency (OCC) will facilitate the implementation of the bill, providing a clear and pragmatic institutional foundation for private sector innovation, market competition, and maintaining U.S. leadership in the digital asset space.

  • Kalshi to Support Crypto Asset-Backed Loans for Perpetual Futures Margin

    Prediction market platform Kalshi has reached a new arrangement with crypto asset custodian BitGo, allowing certain clients to use their custodial crypto assets as collateral for loans, which will be used for margin in leveraged perpetual futures trading on the Kalshi exchange. This arrangement is aimed at clients of Kalshi Prime, a futures commission merchant registered in the U.S. It employs a tri-party collateral management structure. Loans will be provided by its affiliated lending company, Kalshi Katalyst, with collateral assets held at BitGo Bank & Trust. Eligible collateral assets include Bitcoin, Ethereum, and stablecoins deemed compliant with the GENIUS Act, with plans to integrate additional custodians in the future.

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company