GameFi, another Web3 industry jargon, seems to be catching the attention of members of the Web3 and gaming communities right now. The concept of GameFi brings together two elements: games and finance. Games that fall into this category are based on blockchains and operate in a decentralized approach. They offer players rewards in the form of tokens native to the game's ecosystems that help them generate some income while playing. Crypto assets, non-fungible tokens (NFTs) are among the digital assets that can be obtained, generated or traded within the GameFi ecosystem.
Games that are part of this category are also classified as 'play-to-earn'. The genre of these games can be multiplayer missions, battles, races and full blown story games. These games offer weapons, power-ups, clothing and special characters as tradable digital assets for players.
Because GameFi supports the concept of decentralization, growth maps and changes to its ecosystem are often presented with insights from community members, rather than working on the decisions of an authority figure.
Explaining the details of how GameFi works, a recent report from Chainalysis said: “In crypto-gaming, blockchains are global, decentralized computers that act as centralized servers. Smart contracts are applications that run on top of blockchains that create and facilitate the movement of tokens, which are generally NFTs or fungible tokens.”
In a report, Business Research Insights has estimated that the global GameFi market size, which stood at $9 billion (roughly Rs. 74.98 billion) by 2021, is expected to reach $90.51 billion (roughly 7.53 .970 crore rupees) by 2031, showing a CAGR of 27.13 percent between 2021 and 2031.
Now that the crypto sector is seeing gains, several GameFi projects such as game studio Web3 Immutable, Animoca Brands Japan, and Seraph Studio are updating their lineups and offerings.
