What Are the Advantages of Gamefi’s Soaring Popularity?

The GameFi explosion demonstrates the inherent benefits of blockchain in project innovation and concept innovation. How do you understand the concept of GameFi and what is in GameFi?

What is GameFi?

If DeFi reproduces the existing financial system in a blockchain-framed structure, then GameFi is visual blockchain finance that represents DeFi as a game.

The game combines the concepts of DeFi and NFT and presents it as a game to make the blockchain financial system run more intuitively. In specific Chain game projects, GameFi's game rules, props, and derivatives are built on DeFi, the operation mode of NFT products based on logic.

GameFi's NFT attribute lets you uniquely collect all the game's assets, props, and characters. Then, combined with the Chain Game feature settings, players can fully own these assets in a decentralized game.

In a sense, GameFi violates the convention that game assets only belong to game development companies, which allow players to gain financial freedom through games.

In addition, compared to tedious DeFi transactions, GameFi enhances the fun and interactivity of blockchain finance and NFT. It allows participants to take advantage of it through Battles, Trade, Famous IPs- trading cards, and Social Interactions.

The Explosive Growth of GameFi

GameFi is not a simple series game. There have been commercial games accumulated in the industry, combining gameplay with blockchain "transaction features" and "asset-only private features." But at the moment, blockchain games can only be called Chain Games and do not feature GameFi.

The emergence of GameFi benefits from the maturity of the NFT concept and the development of the DeFi field within the framework of the blockchain Metaverse concept. In the blockchain world, the realization of the system mapping of reality has become the only way to complete the idea of Metaverse today.

After merging the concepts of NFT and DeFi into the game form of Metaverse, the online financial system has completed the process of gamification. In 2020, the idea of GameFi was introduced and widely recognized by the industry.

Therefore, starting in the second half of 2020, a series of GameFi developments have attracted the attention of the blockchain industry.

After more than a year of market testing, GameFi has demonstrated its unique environment in terms of the interaction of digital asset value and Chain game value.

Starting in March 2021, GameFi has grown exponentially. In September 2021, GameFi had grown into an independent sector of the blockchain industry and was expected to outperform the DeFi field in the short term.

After splitting benefits, participating in operations, and integrating the concepts of NFT and DeFi into Metaverse's game form, the online financial system has completed the gamification process.

Distribute Benefits, Participate In Operations, and Reap Benefits

• The basic concept of GameFi comes from blockchain, so GameFi naturally distributes benefits that traditional industries do not have.

• Each game player can have complete control over their game's characters, assets, and props. And through governance tokens, Chain games can take the direction of game development. Players can upgrade and improve the Chain game by voting.

• The operational advantage of the decentralised structure of the Chain Games is that players can participate in the operation and maintenance of the Chain Games. Currently, GameFi uses Play extensively to earn an economic model, and the real money earned while playing and earning guarantees players' enthusiasm and loyalty.

• As of September 2021, research data shows that 836 Chinese games have been played online in the GameFi field, with an average of 1 million daily users and a daily transaction volume of US $15.62 million.

• According to the relevant statistics, the number of Chain Games has increased rapidly since July. The number of players increased from 80,000 in early April to 928,000 in September, and the volume of daily transactions increased from about $500,000 in early April to an average of $40 million. Around the USD level, the highest daily volume was over $93 million.

Conclusion

GameFi has become one of the most promising sectors in the Gaming industry. As the concept of Metaverse popularizes, GameFi will gain more attention and participation.

Although the daily trading volume in the GameFi field has now reached close to the US $100 million, the potential of GameFi has not yet been fully explored in terms of its market share and its advantages in asset interaction.

However, the concept of GameFi has only been around for over a year now. Therefore, GameFi is still in its infancy; its future development and prospects are undoubtedly awaited.

XANA is a layer-2 solution on Ethereum, custom-built for the metaverse. It is the next-gen metaverse where users can interact in virtual reality. They can create their avatars using NFTs and do business or participate in entertainment events in XANA