Not long ago when several blockchains tried to challenge Ethereum’s dominance while the DeFi field was boiling, after the huge success of the game Axie Infinity, people began to pay attention to the gaming market again with the play-to-Earn trend(play for money). At the moment, after DeFi and CeFi, all eyes are on a new concept that is “GameFi”. So, what is GameFi? Let’s find out through today’s article.
What is GameFi in Details?
GameFi is a combination of Game and DeFi, a gamified financial sector where users can profit by playing games. Part of it is “gaming”, but at its core, “finance” is the most important thing for users.
The term was originally coined by Yearn’s founder, Andre Conje, around September of last year. At that time, Conje said: “When I can apply gambling to monetary policy, I am very excited. Your money is becoming the tool to use in this challenging game. Until now, we have cloned TradFi; we will move into GameFi later.”
How does GameFi work?
The GameFi craze has changed the casual gaming ecosystem. By providing users with the opportunity to earn lucrative rewards, gaming is no longer a waste of money for gamers; it’s actually about making money. The NFT summer of 2021 has turned into a GameFi summer, with some crypto-based games and token price hikes like a storm.
It is impossible not to mention the Axie Infinity craze with the increase in the price of the AXS token. Data from DappRadar shows that there are more than 271,000 active users on Axie Infinity in the last 30 days. This popular Ethereum-based crypto gaming platform also generated over $220 million in revenue in the past month, making it the top revenue generator among all DeFi and blockchain protocols, including Ethereum. , according to data from Token Terminal.
Source: Token Terminal
The GameFi environment offers endless opportunities for developers to craft a new universe and world with their hands, filled with creatures, events, objects, and even in-game economies to play with. Attract a lot of players and keep them glued to it. Players are offered endless possibilities in generating income from in-game activities and engaging them with many gaming benefits. Attractive elements include mesmerizing game graphics, an increase in the price of tokens, and hidden tools for real money.
Behind the simplicity and cuteness of the characters in the game, many GameFi applications have indirectly introduced players to the complicated but simplified financial mechanism when encapsulating everything in just one game.
That’s all there is to it regarding GameFi, removing the boredom and replacing the complicated mechanics of making money by playing games. Value is the fundamental concept of GameFi, where “playing” turns into “work” and “earning” seamlessly. Rewarding players with cryptocurrencies with real value is also a unique idea to attract more and more people to them.
As NFTs turn into coveted items that can be used to lubricate the gears of a DeFi mechanism, they gain intrinsic value and begin to attract more attention from collectors and collectors alike. Ardent fan. And as GameFi blurs the lines between games and finance, it seems that in-game economics is beginning to not only mimic, but even surpass, real-world economics. Over time, GameFi and DeFi could become one, as traders increasingly buy and sell decentralized financial assets in virtual stores.
To some, the combination of gaming and crypto might seem like the perfect marriage. But, given the fever, there are certainly mixed opinions.
“Crypto has been looking for a mass market use case,” said Andrew Tu, managing director at quantitative trading firm Efficient Frontier. Gaming is an area that people have been hoping for a long time. It’s the first area that someone without a deep understanding of cryptocurrencies or blockchain can enter.”
While Axie Infinity has also proven itself to be an effective use case for blockchain games, paving the way for new entrants into the space, not just any imitator can get the results. Therefore, with the success of Axie, it is likely that we will see major gaming corporations like Activision Blizzard or EA (Electronic Arts) enter the space in the coming years, bringing blockchain gaming to the masses. But there will also be those who take advantage of this craze to create fake games, and scam investors, and players. Therefore, be very careful when deciding to put your money into any project!