With the advent of new technology, gaming has grown to become one of the most lucrative entertainment industries in the world. If we were to track the history of gaming, the Pay 2 Win model of gaming has been largely considered the only player in the race. But, the advancements in technology have given birth to newer and more accessible forms of gaming.
The new era of gaming has proved how sometimes bringing two industries together can revolutionize the traditional ways of doing things. The most prominent example of this would be the combination of gaming and finance, usually referred to as GameFi.
What is GameFi?
GameFi can be defined as decentralized applications (dapps) with economic incentives. While playing a game, tokens are typically awarded as prizes for undertaking game-related activities such as fighting matches, or producing digital crops. It is also known as the “play-to-earn” approach.
How does GameFi Work?
The only parties that profited from the digital currency that was sold to players or users till now were the game developers because these assets had no actual significance. However, the power structure is changing owing to the popularity of crypto games. While traditional games have always been primarily about enjoyment, crypto games combine entertainment with the prospect of earning actual money.
When a player purchases an asset, they are adding to the game’s economic worth. Axie Infinity, CropBytes, and Gods Unchained are some renowned crypto games that allow players to earn money by performing in-game objectives.
How the Combination of Finance and Gaming will affect the Future
Adding to the earning aspect of GameFi, there are several other incentives to becoming a part of the GameFi community:
- Players can establish ownership of in-game assets.
- Its decentralized nature ensures that no single figure is in terms of setting reckless administrative decisions.
- Players cannot lose or discard any of the materials they earn during the game.
The idea of Finance and Gaming is revolutionary. If one can earn digitally by playing games, then we say that there is a scope for anything. If GameFi takes off, the future generation will reap its benefits the most. With more mainstream businesses embracing the metaverse and GameFi, this space has tremendous potential for growth.
The GameFi industry will continue to transform the existing financial sector, resulting in a new digital economy. In-game money brings endless possibilities for reaping incentives for simple tasks like finishing game stages and buying and selling avatars. The GameFi industry will continue to develop in the future, facilitating the creation of complete-game meta universes.