What Is GameFi? The Gaming World Meets DeFi

gaming x defi = gamefi

Video games have helped innovate the world of entertainment and developed a massive user base relatively quickly. The gaming industry has always been evolving with technology and its users by adopting a diverse range of concepts and ideas. One such integration with decentralized finance (DeFi) has resulted in the idea of GameFi. 

What Is GameFi? 

The concept of GameFi is essentially monetizing crypto-based games using blockchain technology. Unlike traditional in-game currencies, these tokens and coins have pecuniary benefits outside the gaming universe. The industry offers developers the opportunity to create game worlds and applications while providing users with a source of income in the real world. Investments in infrastructure and blockchain games in the GameFi segment have amassed a hefty $1 billion since it became wildly popular in the second half of 2021. 

How Does GameFi Work? 

The play-to-earn and the play-and-earn reward systems are the core components of several GameFi projects. Players can get their reward in the form of either cryptocurrency, NFTs or in-game assets. These assets can be traded on a DEX (Decentralized Cryptocurrency Exchanges) or third-party platforms to yield real-world rewards. 

Players can earn these rewards by completing in-game tasks, building and exchanging assets, and competing with other gamers. While some GameFi projects require initial monetary investments to start playing and eventually earning, players can generate income without actually playing the game as well i.e. by leasing out their virtual land for staking, yield farming, and liquidity mining. 

Getting Started as a Player in GameFi 

GameFi is quickly becoming a lucrative niche for both game developers and investors. New gaming platforms are emerging to help businesses create their own games with DeFi functionality.  

If you’re looking to start as a player, here are some things to know: 

  • The most important advantage of GameFi projects and platforms is that, generally, only a minimal payment is required, if at all. Most GameFi platforms do not require any costs for acquiring and playing their games. This gives you the opportunity to invest minimally and still earn a passive income. 
  • GameFi applications assure you complete control over acquired assets. Blockchain networks store all in-game asset data securely, so you will not lose your assets even if the application itself shuts down. You gain complete ownership and can spend your assets however you like. 


Job Opportunities in the GameFi Industry 

GameFi has developed an immense potential to become a self-sustaining industry that is viable across multiple sectors. The development of new ideas and functions in these games has created a demand for various professions. 

GameFi has created employment opportunities for designers, software engineers, and copywriters who may have previously not been involved in the GameFi industry. New jobs that are unique to the Metaverse such as digital fashion designer, Metaverse tour guide, and construct architect may potentially be introduced. Thus, GameFi has the potential to offer employment opportunities to those with the skills that can help build the GameFi universe to new heights.  

Popular GameFi Projects 

It can get overwhelming when navigating through the GameFi space as there are many interesting and new projects. But the most popular to date are: 

Axie Infinity 

Axie Infinity is primarily an NFT-focused video game that was developed by a Vietnamese studio, Sky Mavis. This game uses Ethereum-based currencies of AXS and SLP while allowing players to collect and trade creatures known as “Axies” (which are NFTs in essence), perform daily quests, and build their own assets. 

DeFi Kingdoms 

DeFi Kingdoms has created a unique game with features that allow players to level up their in-game NFTs or heroes by participating in daily quests. This subsequently magnifies the yields that players acquire over time. Users can also engage in liquidity mining of DeFi Kingdom’s in-game currency JEWEL to obtain monetary benefits.  

The Sandbox 

The Sandbox is a virtual Metaverse where players can build and monetize their virtual creations within the game’s universe. It was first launched as a mobile game in 2012 by Pixowl, but was acquired by Animoca Brands and relaunched as an NFT-based metaverse game. SAND is the token used all across the Sandbox ecosystem. It is the base of all in-game transactions. 

The Future of GameFi 

While GameFi has only recently started attracting mainstream attention, it has already developed a large fan base. The concept offers a way to profit within the crypto world in a massive industry of online gamers. Additionally, by incorporating other fast-growing sectors like NFTs, GameFi applications are in a position to benefit from the successes of these industries as well.

GameFi is set to develop substantially in the coming years, boosted by its ability to adapt to upcoming trends. 

Many GameFi projects are also partnering with other gaming guilds to extend their user base. This provides the applications with direct feedback from their users and also creates opportunities to invest in in-game NFT assets.

With the convergence of DeFi, Metaverse, the gaming industry, and cryptocurrencies, a radical new gaming universe is being created. The gaming model will also set the stage for more widespread acceptance and usage of cryptocurrencies. While the industry is still nascent, it shows endless prospects for growth and the evolutions that unfold will be interesting to watch. Till then, sit tight and play some games!