The explosion of blockchain in the era of the digital revolution 4.0 brings a new definition of how the world works. Along with that are trends like DeFi, CeFi or most recently GameFi with the success of Axie Infinity when the value of this startup is valued at about $ 3 billion and a market capitalization of more than 9 hundred thousand billion VND. People started paying attention to the Gaming market with the P2E (Play to Earn) trend. GameFi appeared as a breath of fresh air that brought development opportunities and the emergence of unicorns in the technology field.
So what is GameFi? A perfect combination between Game and Finance. While the game industry is being valued at around $175 billion and is predicted to soon reach $200 billion by 2023. Meanwhile, the cryptocurrency industry is also constantly evolving and expanding. With such a huge market share and the flexibility of cryptocurrencies, it is inevitable that these two trends will come together and create GameFi.
The term was originally coined by Yearn founder Andre Conje about 9 years ago. At that time, Conje said: "If gambling can be applied to monetary policy, that makes me very excited. Your money will become a tool to use in this challenging game. "
Similar concepts like GameFi have also appeared with World of Warcraft, SIMS, FIFA,... all of which have incorporated in-game TOKEN purchases, and the CryptoKitties game also started using Blockchain technology in 2017.
To put it simply, it is a platform where users can earn money through gaming. GameFi covers a wide variety of games, rules, and structures so it's not limited to any particular technology or platform.
How will GameFi work? Most GameFi is structured to work on PC devices and allow players to earn money, although players must first own assets in their wallets in the form of the game's or partner's native cryptocurrency. After that, new players can start playing and profiting from the game through various activities.
GameFi applications are diverse, but most are built on a few common blocks:
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Play2Earn P2E allows players to earn assets through the game. However, the benefits received will be transferred to cryptocurrency
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Non-fungible token NFT NFT is a blockchain-based technology that makes the characters or items in the game unique, cannot be copied and faked to create the item's own value.
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Original Token To distribute rewards and maintain the value of GameFi projects, each game uses its own token
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Blockchain technology The original GameFi games were built on the Bitcoin blockchain. However, then GameFi gradually expanded and increased in complexity, so they gradually moved to blockchains based on DApps, such as Ethereum, Wax, Solana or Binance,...With the support of Blockchain, all transactions of buying, selling, exchanging items as well as borrowing are through any centralized organization, all of which are open, transparent and fair. While players fight for token rewards, blockchains compete for users.
The Future of GameFi
GameFi offers a new way to profit in the crypto space while also providing enjoyment for players. In addition, the excitement created by gaming, shown through studies on the release of the "happy hormone" Dopamine during gaming, is the key to getting closer to users' hearts. By effectively adopting areas of development such as DeFi and NFTs, GameFi has the advantage of taking advantage of pre-existing platforms. Especially NFTs, if a player can collect rare NFTs in the game, they will tend to invest more in the game as well as invite friends to join.
Another factor that could spur further growth is the decentralized future it is aiming for. Where individuals will really be able to contribute to the way the game is played, thus encouraging more participation. Imagine when you can be anywhere with the internet and can also earn extra income through very simple tasks from playing games, sounds exciting right?
Finally, with the idea of the metaverse - a digital universe where future professions can be deployed on GameFi. With the world recently going through an online working lifestyle due to Covid-19, things like seeing a doctor or consulting online in virtual reality have become more affordable. This may also appeal to people with anxiety, fear of memory loss, or those who simply want to stay home for a certain activity.
We will definitely see many new movements and improvements in GameFi. With its ability to diversify with trends and adopt new DeFi and DAO programs, it also possesses a wealth of growth potential.
Summary
GameFi has been and will become an inevitable trend of Blockchain. Currently GameFi is just budding but has quickly appeared many impressive numbers, the market share of this market is still very large to welcome new players to join. However, most of the GameFi currently on the market are released on the PC platform and most have to spend a relatively large amount of capital to start playing and making money, so it is relatively difficult to access for new members. participate in the market. The explosive development also brought many problems when participants invested but did not receive the desired service. Finally, I wish you all a productive and wise working day in your investment decisions.