HomeGuidesThe Ultimate GameFi Cheat Sheet – Words For Beginners

The Ultimate GameFi Cheat Sheet – Words For Beginners

Introductory terms:

GameFi – Derived from the words ‘gaming’ and ‘decentralized finance’ or ‘DeFi’, GameFi is the use of DeFi models in gaming to allow players to earn while playing crypto games.

Metaverse – Metaverse is an online 3-dimensional environment for which people can access using VR headsets or on traditional computers.

VR – VR stands for virtual reality. It is a generated environment of rendered scenes and objects that appear real and for users to feel immersed in. You can perceive this environment through a VR headset.

Crypto games – Crypto games are decentralized games built on a blockchain blending traditional gaming models with the utility of cryptocurrency.

Gamification – Gamification is a method used to enhance experiential activity by employing elements of game playing.

Gameplay – Gameplay involves how the game is and will be played for e.g. the plot, how an avatar will be exploring its environment, the graphics and sound effects, the controls, as well as the elements for how one can win.

Roadmap – A roadmap is a way for developers or creators to inform players in their community about planned content that’s down the road.

Play-to-earn (P2E) – Derived from the term play-to-win, play-to-earn is a new model for blockchain-based games that allow players to make a profit through playing the game.

Interoperability – Interoperability is the maximizing of an item’s/ NFT’s utility between applications, games, or blockchains.

In-game terms:

Avatars – Avatars are used in games to represent the person playing the game.

Skins – Skins are an aesthetic application used in games to change or enhance the appearance of a player’s avatar.

Gear – In a game, gear is the digital items used to add utility to a player’s avatar such as different powers, actions, or abilities. 

Loot – Similar to gear, loot are items that players pick up in-game that can increase their power or enhance their avatar. Loot typically appears in a loot box and contains things like currency, spells, equipment, and weapons.

PvP – PvP stands for Player vs Player, where players in-game either battle each other or are subject to attack from other players while roaming in the game.

PvE – PvE stands for Player vs Environment. It is a mode for players to play alone, follow a storyline or narrative throughout the game, or with AI companions.

DeFi concepts used in-game:

Asset ownership – This refers to digital assets in a game that a player may or may not own.

Staking – Staking in games means putting up an asset or an amount of money to be held as an investment in return for interests or rewards. 

Yield farming – Yield farming is a concept that’s been adapted from DeFi to games. It is an activity to optimize your earnings and rewards by putting them in a pool to generate returns collectively.

Liquidity pools – This is a way to share rewards with those who participate, by locking away a certain amount of tokens in a pool. The participants then receive extra tokens or rewards by providing liquidity to the game.

DAO – A DAO, also known as decentralized autonomous organizations, is sometimes used as governance in games. A DAO is a smart contract that can execute commands automatically using external information.

Buying/trading terms in-game:

Marketplace – This is a digital marketplace usually tied with a game that’s made for players to buy, sell, and trade digital assets and items.

In-game tokens – These are the different kinds of currency that players can use in-game to buy or trade items and attain assets or rewards.

Utility tokens – Utility tokens are the in-game currency that can be bought and traded like a real asset on the game market. It can also be used to facilitate interaction and more in-game activities. 

Governance tokens – Governance tokens are tokens created by developers to decentralize games and allow token holders to help shape the future of a certain protocol through voting and more.

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