DeFi Gaming has seen a massive increase in popularity in recent years. As more and more new users enter this sphere, there is a real need to clarify the difference between DeFi and gambling games. This blog will guide you on what DeFi is and its essential difference from gambling.
What is DeFi?
Decentralized finance, or DeFi, is a system by which financial products become available on a public decentralized blockchain network. That makes them open to anyone to use, rather than going through intermediaries like banks or brokerages.
Refers to GameFi project, DeFi aims to enhance the profitability of investors and seek the maximum funds that participate in blockchain games by a large portion to facilitate the player sell and rent their game assets or stake their coins in the pool as a liquidity provider.
What is the essential difference between DeFi and Gambling Games?
DeFi Gaming is fundamentally different from gambling. Gambling is a game of pure chance; no strategy can give players advantages, the outcome is determined by randomness. Beyond that, there are other specific risks, such as payouts not being fair and open, and you need to know when to stop.
Essentially It does not produce wealth in gambling but merely transfers it from one person to another. That completely deviates from DeFi. One of the core technologies of DeFi is the pool of liquid funds, which enables functions such as decentralized trading, lending, profit generation, and more.
The core objective of a DeFi Game Platform is to reward players and investors on the Platform by adding liquidity and stability to token price as the Platform's user base grows.
The way to achieve this objective for the DeFi game platform is to provide a steady stream of high-quality games with multiple genres to facilitate players minting, fusing, burning, selling, or renting the game assets(NFT) of their own accord, which could be recognized as the process of creating wealth or adding the tokens into the liquidity pool as liquidity providers (LP) to maximize the capital efficiency of the DeFi Games.
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