What is the GameFi Element in the Blockchain Gaming World?

GameFi, another jargon from the Web3 sector, now seems to be grabbing the attention of members of the Web3 and gaming communities. The concept of GameFi brings together two elements – gaming and finance. Games that fall under this category are based on blockchains and work on a decentralised approach. They offer players rewards in the form of native tokens from the game ecosystems that helps them generate some income while playing games. Crypto assets, non-fungible tokens (NFTs) are among digital assets that can be earned, generated, or traded within the GameFi ecosystem.

The games that are part of this category are also classified as ‘play-to-earn'. The genre of these games can be multi-player quests, battles, racing, and games with full-fledged storylines. Special weapons, powers, apparels, and characters are offered by these games as tradeable digital assets for gamers.

As GameFi supports the concept of decentralisation, the growth maps and changes to its ecosystem are often ushered in with insights from the community members, rather than working on the decisions of one authority figure.

Explaining the details on how GameFi works, a recent report by Chainalysis said, “In crypto games, blockchains are global, decentralised computers that play the role of centralised servers. Smart contracts are applications that run on top of blockchains that create and facilitate the movement of tokens—which are generally either NFTs or fungible tokens.”

In a report, Business Research Insights has estimated that the global GameFi market size, that stood at $9 billion (roughly Rs. 74,980 crore) in 2021, is expected to reach $90.51 billion (roughly 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 gains, several GameFi projects like Web3 gaming studio Immutable, Animoca Brands Japan, and Seraph Studio are reportedly refreshing their lineups and offerings.