What exactly is GameFi?

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This concept, widely regarded as an unavoidable result of the development of Decentralised Finance (DeFi) and Non-Fungible Tokens (NFTs), incorporates elements of DeFi and NFTs into regular games to allow participating users to enjoy the thrill of the game while also acquiring and preserving real wealth through token rewards or NFT game equipment. This is undeniably a significant disruption in comparison to the traditional game player who visits the game studio to play the game or even makes additional in-game microtransactions to improve his experience.

Through gamification, GameFi also gives NFTs more practical value. NFT items, for example, are no longer just commodities to be sold on the NFT trading platform, but can also be traded directly on the in-game market. As long as all operations in the game process are completed on the chain, the assets of the game belong solely to the user via smart contract rules, and the platform has no right to intervene. As a result, the convenience and longevity of this process far outweigh the experience in traditional games, which leave users with nothing once the game servers are permanently shut down.

GameFi elements can be integrated throughout the game development process, from community fundraising via tokens or project NFTs to in-game grinding monetization via mined tokens and NFT game equipment. This greatly improves player immersion, interaction, and experience. Established projects such as Axie Infinity, Crabada, Crypto Raiders, DeFi Kingdoms, Upland, and many others are currently pushing the boundaries of GameFi.