What is GameFi?
Along with DeFi, metaverse technology, and NFTs, GameFi has become a prominent part of contemporary blockchain.
It uses a variety of aforementioned concepts to gamify Web3 technology. This could be in games themselves or within a wider technological scope such as online business, community incentive programs, or performing professional and vocational duties.
GameFi, or Game Finance, springs from many of the same principles brought about by blockchain and the evolving Web3 revolution. Through it, users gain GameFi coins from continued usage of the platform associated with it. Just as in video games you are rewarded for using the platform.
The Evolution of GameFi
From the early days of video games in the 80s and 90s, gamification has started to spread beyond simple methods of recreation and diversion. Using distributed ledger technology, users get access to the blockchain infrastructure, NFTs and tokenized activities while using the platform.
In 2018, CryptoKitties signaled the entry of NFTs as a viable form of digital ownership. This development and the future evolution of it would form an important basis for GameFi. Along with cryptocurrency as a method of monetizing on-chain activity (one of the fundamental pillars of blockchain) means that users could earn while using the platform. The Play-to-Earn (P2E) model, as it is known, is becoming very popular today.
Nowadays, metaverse technology brings gamification, NFTs, cryptocurrency, DeFi, and DAOs to create an immersive world where P2E gives users an incentive to collaborate, create and work in the virtual world.
GameFi Projects - Examples
- CryptoZoon: This GameFi project takes inspiration from Pokemon games in which users play with creatures to complete daily quests. This introduces NFT, as well as staking technology to new users in an interactive setting.
- DeFi Kingdoms: This platform mixes Decentralized Finance with GameFi systems. The project does not rely on gaming features, but rather combines gamification with DeFi.
- CryptoBlades: Built on the Binance Smart Chain, this project engages gamers in a MMORPG style world in which your character completes quests, fights enemies, and collects in-game items.
The Future of GameFi
With metaverse technology on the rise, P2E and GameFi technology is going to become far more prominent. NFT technology is already getting a huge boost through increased investment and greater focus with development teams. This will likely have a massive impact on the development of GameFi too.
Gaming has grown in scope and ambition since its original conception as a technology and is now a multi-billion dollar industry. This industry includes competitive gaming, such as E-sports, and online gameplay that is highly profitable for both users and game studios. With blockchain integrated into the sector, gaming can benefit greatly from the increased security, and enhanced features.