It is predicted that the gaming industry will reach $200 billion by 2024. This is a staggering achievement. GameFi’s trend is Play-to-Earn, which serves as a catalyst for crypto adoption. Triple-A estimates that blockchain gaming’s total revenue has grown from $321 million to $1.5 billion by 2021.
In Q1 2022, blockchain-based games attracted 1.22 Million unique active wallets. 22,000. These were mainly due to popular titles such as Decentraland and Axie Infinity. Gaming enthusiasts are drawn to P2E because of the promises of decentralized ownership, inclusion decision-making, and financial incentives.
GameFi’s success has been a massive push for crypto and blockchain’s acceptance and legitimacy, propelling adoption.
GameFi — Gaming That Pays for Real
GameFi, which is the acronym for Game Finance, combines finance and gaming. The financialization of gaming using blockchain-based technologies to allow users to monetize their experiences. This model has a key feature: Play-to-Earn. Traditional games have centralized business models where producers retain the maximum profit share, whereas in-game assets aren’t interoperable.
Gamers are therefore unable to earn a living from their in-game grinds or achievements. Moreover, gaming studios have the final say over the game’s development trajectory, the supply of in-game assets, and their use cases. P2E gaming, however, follows the principle decentralization. Gamers can receive cryptocurrency-based rewards for reaching their goals. Gamers also retain their in-game items—like avatars, modifications, weapons, pets, and land—in non-fungible tokens (NFTs). GameFi allows for the true ownership of your in-game assets and also makes them interoperable in secondary markets.
Crypto Community’s Response to GameFi Projects
GameFi is increasingly recognized as a way to increase engagement in entertainment sectors by integrating financial and gaming processes. Epic Games and Ubisoft have diversified their businesses and are developing blockchain games that support cryptocurrency and other blockchain-based assets.
Fights of the Ages is a game that aims to offer more immersive, blockchain-based gaming experiences. FOTA, an AAA multiplayer online combat game that allows you to battle against other races in a virtual fantasy world.
This game makes use of NFTs, which allow users to digitally own property. They can also collect valuable assets from the game. You can compete in races or tournaments to make money in the in-game economy.
FOTA’s metaverse integrates Microsoft Mesh, the world’s first platform supporting Mixed Reality (MR). It creates a fully immersive environment that blurs the lines between real and virtual.
Last Thoughts
GameFi provides a platform where players can earn crypto by using their gaming skills. It provides a motivator for gamers as well as educating them about the advantages of cryptocurrency. Crypto transactions are faster and more secure for gamers. Gamers don’t need to worry about long waits when they receive their crypto payments. This makes gaming more fun.
Although blockchain games are in their early stages of development they have the potential to be competitive with pay-to-play or free-toss games and disrupt the gaming market. They will drive adoption of digital assets, including blockchain and cryptocurrency, due to the economic benefits they offer.