The explosion of GameFi is a reflection of the innate advantages of blockchain in project innovation and concept innovation. Today, GameFi has become another hot word in the industry after DeFi, so how to understand the concept of GameFi and what does GameFi have? What about the advantage?
01 What is GameFi?
If DeFi is to reproduce the real financial system in a distributed structure in the blockchain, then GameFi is visual blockchain finance that expresses DeFi as a game.
GameFi integrates the concepts of DeFi and NFT and presents it as a game to run the blockchain financial system more intuitively. In specific chain game projects, GameFi’s game rules, props, and derivatives are built on DeFi The operation mode of NFT products is based on logic.
GameFi’s NFT attribute makes all assets, props, and characters in the game unique and collectible. Combined with the attribute settings of the chain game, players can fully own the ownership of these assets in a decentralized game.
In a sense, GameFi breaks the convention that game assets only belong to game development companies, allowing players to achieve financial freedom through games.
In addition, compared with boring DeFi transactions, GameFi enhances the entertainment and interactivity of blockchain finance and NFT, and allows participants to profit from it through games such as battle, copy, and social interaction.
02 The explosive growth of GameFi
GameFi is not a simple chain game. In 2017 or so, there have been collectible trading games in the industry, which combined the “transaction attributes” and “the only private characteristics of assets” of the blockchain with the gameplay. But the blockchain games at this time can only be called chain games, and do not have the characteristics of GameFi.
The emergence of GameFi benefits from the maturity of the concept of NFT and the development of the DeFi field, under the framework of the blockchain metaverse concept. Realizing the mapping of the real system in the blockchain world has become the only way to complete the concept of the metaverse today.
After the game form of the Metaverse combines the concepts of NFT and DeFi, the on-chain financial system has completed the gamification process. In 2020, the GameFi concept was proposed and widely recognized by the industry. Therefore, starting from the second half of 2020, a series of developments of GameFi have received the attention of the blockchain industry.
After more than a year of market testing, GameFi has demonstrated its unique ecology in terms of digital asset value and chain game value interaction.
Starting in March 2021, GameFi has entered explosive growth. In September 2021, GameFi has grown into an independent field of the blockchain industry and is expected to surpass the DeFi field in the short term.
03 Advantages: Distributed, Participated in Operation, Gained Profits
The basic concept of GameFi comes from the blockchain, so GameFi naturally has distributed advantages that traditional industries do not have.
Each player in the game can fully control their game characters, assets, and props, and can lead the development direction of the chain game through governance tokens. Players can upgrade and improve the chain game by voting.
The advantage of the decentralized structure of the chain game in terms of operation is that players can participate in the operation and maintenance of the chain game. The higher the game’s popularity, the better the player’s experience. And the more players, the greater the benefits for early players.
At present, GameFi widely uses the Play to earn economic model, and the real money generated while playing and earning is the guarantee of players’ enthusiasm and loyalty.
As of September 2021, DappRadar data shows that there have been 836 chain games online in the GameFi field, with an average daily user count of one million and a daily transaction volume of US$15.62 million.
According to relevant statistics, since July, the number of chain games has grown rapidly. The number of players has increased from 80,000 in early April to 928,000 in September, and the daily transaction volume has 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.
04 Summary
GameFi has become one of the most promising fields in the industry. With the popularization of the metaverse concept, GameFi will gain more attention and participation.
Although the daily trading volume in the GameFi field has now approached 100 million US dollars, the potential of GameFi has not yet fully exploded from the perspective of the breadth of the entire market and its advantages in asset interaction.
After all, it has only been more than a year since the concept of GameFi was put forward. As GameFi, which is still in the early stage of the field, its future development and prospects are undoubtedly worth looking forward to.
