GameFi, another jargon from the Web3 sector, seems to be catching the attention of members of the Web3 and gaming communities now. The GameFi concept combines two elements – gaming and finance. Games that fall into this category are based on blockchains and work on a decentralized approach. They offer rewards to players in the form of native tokens from the gaming ecosystem that help them generate some income while playing games. Crypto assets, non-fungible tokens (NFTs) are digital assets that can be earned, generated or traded within the GameFi ecosystem.
Games that are part of this category are also classified as ‘play-to-earn’. The genre of these games can be multiplayer missions, battles, racing and full story games. These games offer special weapons, powers, clothing and characters as tradeable digital assets for players.
Because GameFi supports the concept of decentralization, growth maps and changes in its ecosystem are often introduced by the insights of community members, rather than working on the decisions of a single authority.
Explaining the details of how GameFi works, a recent report by Chainalysis says, “In crypto games, blockchains are global, decentralized computers that play the role of centralized servers. Smart contracts are applications running on top of the blockchain that create and facilitate the movement of tokens—which are generally either NFTs or fungible tokens.”
In a report, Business Research Insights estimated that the global GameFi market size, which stood at $9 billion (approximately Rs. 74,980 crore) in 2021, is expected to reach $90.51 billion (approximately Rs. 7,53,970 crore) in 2031. showing a CAGR of 27.13 percent between 2021 and 2031.
Now that the crypto sector is seeing progress, several GameFi projects like Web3 gaming studio Immutable, Animoca Brands Japan, and Seraph Studio are reportedly refreshing their lineups and offerings.
