Have you ever thought about what would happen if gaming and DeFi were to be combined together? Right. Me neither. Just goes to show you how mind-blowing of an idea it was, because it created GameFi. Get it? Game and DeFi. GameFi. Simply put, GameFi is the gamification of financial systems to create profit from playing play-to-earn crypto games.
Following last year’s DeFi rave and this year’s NFT boom, the world has now entered an era of the Metaverse and GameFi, and from the looks of it, we’re gonna be here for a while. So brace yourself and let’s press “play”. Written in this article is everything you need to know about GameFi/Play-to-earn games and its rise in the crypto and blockchain world. Read on!
Personally, I think the idea of gamifying decentralized finance makes making money an engrossing and fun experience. I mean who doesn’t love the idea of playing games AND making money at the same time? It’s basically a combination of human’s deepest desires. Play-to-earn fits the tastes of gamers by supporting their interests in various genres whilst offering them attractive activities and the value to match.
Great. Now that all that has been said, you wouldn’t really be surprised if I told you that GameFi is one of the top three hottest technologies in the crypto world at the moment, and investors are pumped up by the rapid adaptation and excitement around making money off games like Axie Infinity. It started gaining popularity in the blockchain space since the rise of Axie Infinity a couple months ago, which has spearheaded a new age of blockchain gaming like never before.
Now let’s talk about GameFi projects. GameFi projects all have a few things in common. In-game items such as avatars, land, costumes, weapons, gold, tokens and pets are represented as non-fungible tokens (NFTs) that prove ownership of the digital assets. Gamers can acquire these assets through playing the games and trade them on NFT marketplaces for profit or exchange them for cryptocurrencies which they can exchange for fiat money. It is almost unbelievable really, isn’t it? I mean being a gamer myself when I first knew about GameFi/P2E, I was totally blown away. Like damn man. This might just be the most genius idea created by humans; next only to tissue paper.
Initially, GameFi was directed only to the Bitcoin blockchain, but the cost of transactions and lack of speed prompted the adoption of the second best thing; Ethereum. It is a widely known fact that crypto games used Ethereum A LOT, and some still do. Thing is, it also had some issues with performance because of limited block space. It was then that the developers moved to large capacity networks like Solana, Polygon, Polkadot, Wax and BSC. Well at least a majority of them. Like I said, some still use Ethereum blockchain.
GameFi is growing rapidly as the collective market capitalization of leading blockchain games is over $14 billion right now. Leading games such as Axie Infinity, CropBytes, Alien Worlds, and Splinterlands. I gotta say, the future of GameFi is looking quite bright. I read that many more games are under development at the moment, and personally, I am so looking forward to them. Aren’t you?
GameFi is clearly a game changer. It’s going to pave the way for an even wider adoption of cryptocurrency. It doesn’t come as a shocker to me that it is gaining such attention and interest from people. It’s trending, and I don’t think it’ll be slowing down any time soon, or ever, really. GameFi and NFTs are definitely going to become a rallying point for decentralized finance.