What is Gamefi? Everything You Need to Know
The rise of blockchain technology has led to many innovations in many spaces that affect our lives. It has changed how we understand and value currency and digital assets through cryptocurrency. It has changed the way we work and keep digital records. It is also changing the way we play games and infusing them with our finances in a process known as GameFi.
GameFi was coined from the addition of finance to gaming. It is self-explanatory as it shows that the concept is the interlinking of finance and gaming in one central place. The implication is that gaming will become more personalized and rewarding for players, developers, and investors.
Many people assume that GameFi is simply a play-to-earn gaming model, but it is more. While the traditional gaming industry has been rewarding players in one way or another, the plates could lose that reward if the game developer shuts down or moves to a new gaming platform. Furthermore, with GameFi, one can derisk the assets due to the distributed ledger-based on the blockchain that powers the new gaming model; some people refer to this as Blockchain Gaming.
Many projects are happening in the GameFi space. Some of them are very popular while others are not. In this section, we examine some of them. One of the most popular GameFi projects is the GameFi aggregator, which seeks to bring all the GameFi solutions and games into one place so users can easily find what they want. It's crucial because GameFi is a relatively new technology, and information about it may not be readily available to the average person.
Another very important GameFi project is the actual games that power it. They are referred to as "Play to Earn" (P2E) games. One of the most popular of these games is the Axie Infinity. Axie Infinity is an action game that rewards players and allows them to mine small game creatures known as Axies, which are NFTs that can be exchanged or sold in the marketplace.
However, the ecosystem is far from just about games, as there is a lot of effort linking the Metaverse with NFTs and gaming. One such project is Decentraland, allowing players and investors to buy land or sell it. The fact that lands or buildings in the virtual land can be used along with NFTs acquired from gaming makes it important for gamers.