What is GameFi? How does GameFi work and what economic value does it bring to players?
Not long ago when several blockchains tried to challenge Ethereum’s dominance while the DeFi sector was boiling, after the huge success of the game Axie Infinity, people started to pay attention to the gaming market again with the Play trend. -to-Earn (play for money). At the present time, 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?
GameFi is a combination of Game and DeFi, which is a gamified financial sector where users can make profits 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. Then, Conje “When I can apply this form of gambling to monetary policy, I am very excited. Your money is becoming the tool to use in this challenging game. Up until now we have cloned TradFi, we will move into GameFi later on.”
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 about spending money for gamers, but actually making money. The NFT summer of 2021 has turned into a GameFi summer, with several crypto-based games and token price hikes taking it by storm.
In which, 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. The 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 own hands, filled with creatures, events, objects, and even in-game economies to build upon. attract a lot of players and keep them glued to it. Players are offered endless possibilities of generating income from in-game activities and engaging them with numerous gaming benefits. Attractive elements include mesmerizing game graphics, an increase in the price of tokens, and hidden tools for real money.
Hidden 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 when it comes to GameFi, removing the boredom and replacing the complicated mechanics of making money by playing games. Value is the underlying 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 may 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 hyping for a long time. It’s the first area that someone without a deep understanding of cryptocurrencies or blockchain can get into.”
While Axie Infinity has also proven itself to be a fruitful use case for blockchain games, paving the way for new entrants into the space, not just any imitator can make it. perfection. 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. they. But there will also be people who take advantage of this craze to create fake games, scam investors and players. Therefore, be very careful when deciding to put your money in any project!
According to AZCoin News
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