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Produced | Vernacular Blockchain (ID: hellobtc)
The explosion of GameFi is a reflection of the inherent advantages of the blockchain in terms of project innovation and concept innovation. Today, GameFi has become another big industry buzzword after DeFi, so how should we understand the concept of GameFi and what does GameFi have? What about the advantage?
01 What is GameFi?
If DeFi reproduces the real financial system in a distributed structure in the blockchain, then GameFi is a visual blockchain finance that expresses DeFi as a game.
GameFi combines the concepts of DeFi and NFT and presents it in the form of a game to run the blockchain financial system in a more intuitive way. In specific chain game projects, GameFi's game rules, props, and derivatives are built on the basis of DeFi The operation mode of NFT products based on logic.
GameFi's NFT attribute makes all assets, props, and characters in the game unique and collectible. Combined with the attribute setting of chain games, players can fully own the ownership of these assets in decentralized games.
In a sense, GameFi breaks the convention that game assets belong only to game development companies, allowing players to realize the freedom of wealth through games.
In addition, compared to boring DeFi transactions, GameFi enhances the entertainment and interactivity of blockchain finance and NFT, and allows participants to benefit from games such as battles, copies, and social interactions.
02 Explosive Growth of GameFi
GameFi is not a pure chain game. Around 2017, there have been collection and trading games in the industry, which combine the "transaction attribute" and "unique private property of assets" of the blockchain with the gameplay. But at this time, blockchain games can only be called chain games, and do not have the characteristics of GameFi.
The emergence of GameFi benefits from the maturity of the concept of NFT and the development of the DeFi field, under the framework of the blockchain metaverse concept. Realizing the mapping of the real system in the blockchain world has become the only way to complete the concept of metaverse today.
After combining the NFT and DeFi concepts in the game form of the Metaverse, the on-chain financial system has completed the gamification process. In 2020, the GameFi concept was proposed and widely recognized by the industry. Therefore, starting from the second half of 2020, a series of developments of GameFi have received the attention of the blockchain industry.
After more than a year of market testing, GameFi has demonstrated its unique ecology in terms of digital asset value and chain game value interaction. Beginning in March 2021, GameFi will enter explosive growth. The outbreak of Axie Infinity has made the decentralized world crazy again, and "Play to Earn" has driven Southeast Asian users' enthusiasm for blockchain games.
At the beginning of 2022, StepN will push this model to the peak of the last round of bull market.
Subsequently, the GameFi industry experienced the first bear market cycle, and the market has also entered the era of GameFi 2.0, which is still in the exploratory period.
03 Advantages: Distributed, participate in operations, and gain benefits
The basic concept of GameFi comes from the blockchain, so GameFi naturally has distributed advantages that traditional industries do not have.
Every player in the game can fully control their own game characters, assets, and props, and can lead the development direction of the chain game through the governance Token. Players can upgrade and improve the chain game by voting.
The operational advantage of the decentralized structure of chain games is that players can participate in the operation and maintenance of chain games. The more popular the game is, the better the player experience will be. And the more players there are, the greater the benefits for early players.
At present, GameFi widely uses the Play to earn economic model. The real money generated while playing and earning is the guarantee of player enthusiasm and loyalty.
However, its Ponzi logic still needs to be broken through: how can the prosperity of the ecology get rid of the dependence on the incremental funds provided by subsequent users?
According to the 2022 GameFi Industry Report by CoinMarketCap and Footprint Analytics, a large number of investment institutions have poured into the two tracks of GameFi and Metaverse. From the data point of view, investors are very optimistic about the GameFi track, but at present, there is still no one that is completely built for GameFi and becomes the first choice for GameFi project developers.
04 Summary
GameFi has become one of the most potential fields in the industry. With the popularization of the metaverse concept, GameFi will gain more people's attention and participation.
Although the GameFi field has encountered a decline in the bear market, judging from the breadth of the entire market and its advantages in asset interaction, the potential of GameFi has not yet fully exploded.
After all, in just a few years since the concept of GameFi was put forward, the future development and prospects of GameFi, which is still in the early stages of the field, are undoubtedly worth looking forward to.
