GameFi | The Next Big Thing in the Crypto Space

If we look at the gaming and financial industry combined or in other words, GameFI, it is immense and larger than the combined music and movie industries. These industries' expectations are very high and assumed that by 2025 they will generate more than $260 billion in revenue.

What is GameFi?

The fusion of the words "game" and "finance" stands for GameFi, which is the suitcase of decentralized finance and gaming. It represents the mixture of cryptocurrency, non-fungible tokens (NFTs), and the play-to-earn(P2E) gaming mechanics to create a virtual environment. The manifests of Gaming and Defi meeting in two ways:

• Decentralized games have elements of Defi

• Defi-platforms having a game-style mechanism

How does GameFi function?

The mechanics of every different GameFi project will vary, and the basis of characterization is on its play-to-earn model. It allows monetary incentives to players and is introduced mainly to blockchain-based games. By playing these games and advancing via their level the player gains financial rewards in cryptocurrency, in-game tokens, and NFTs. The conversion of the in-game tokens is into other more popular cryptos like Ethereum and Bitcoin and further exchanged for fiat currency.

Benefits of GameFi

There are two most important benefits of GameFi

Earn by playing

In many conditions, there is a lot of difference in the play-to-earn mechanism from traditional play-to-play and play-to-win models, which is integral to the GameFi business model. For upgrades and assets, players pay actual money in some traditional games. Also, from legacy games, there is a deviation in GameFi that they permit to earn money by playing their favorite games. Thus it gives a base for financial inclusion in the gaming industry.

Secure ownership

Allowing real asset ownership to players and enhancing their monetization potential, there is an integration of NFT into decentralized games. It is due to purchasing in-game items and moving on a distributed blockchain ledger. There are no game developers who own them and no counterfeited or altered in-game items.

Conclusion

The buzz of GameFi is on the top, and it includes a play-to-earn mechanism. Axie Infinity and running GameFi titles on the different blockchain protocols is the success of GameFi. In recent times it is more difficult to assume which is next to be that can define GameFi’s future. It is because there is regular evolution in blockchain technology.

Working on Blockchain, Nft, Metaverse, and new technologies.