What is the GameFi Element in the World of Blockchain Gaming?
The GameFi category features ‘play-to-earn’ games, allowing users to acquire digital assets that can be sold or traded and have real-world value.
GameFi, a term emerging from the Web3 sector, is gaining traction among Web3 and gaming community members. This concept merges gaming and finance, featuring blockchain-based games that operate on a decentralized model. These games reward players with native tokens from their ecosystems, allowing players to generate income while playing. Within the GameFi ecosystem, players can earn, create, or trade digital assets such as cryptocurrencies and non-fungible tokens (NFTs).
Games in this category are also known as ‘play-to-earn’. These games can span various genres, including multiplayer quests, battles, racing, and those with full-fledged storylines. They offer special weapons, powers, apparel, and characters as tradeable digital assets for gamers.
Since GameFi embraces the concept of decentralization, its growth and ecosystem changes are typically guided by insights from community members rather than decisions made by a single authority figure.
A recent report by Chainalysis explains how GameFi operates, stating, “In crypto games, blockchains function as global, decentralized computers that replace centralized servers. Smart contracts, which are applications that run on top of blockchains, are responsible for creating and facilitating the movement of tokens, which are typically either NFTs or fungible tokens.”
According to a report by Business Research Insights, the global GameFi market, valued at $9 billion (approximately Rs. 74,980 crore) in 2021, is projected to reach $90.51 billion (approximately Rs. 7,53,970 crore) by 2031, indicating a compound annual growth rate (CAGR) of 27.13 percent between 2021 and 2031.
With the crypto sector experiencing growth, various GameFi projects such as Web3 gaming studio Immutable, Animoca Brands Japan, and Seraph Studio are said to be updating their lineups and offerings.
