What is the GameFi Element in the Blockchain Gaming World?

GameFi category offers games that are ‘play-to-earn' and lets users get hands on sellable and tradeable digital assets with real world value.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 21 May 2024 19:40 IST

What is the GameFi Element in the Blockchain Gaming World?

Photo Credit: Pixabay

Global GameFi market size expected to reach $90.51 billion by 2031

Highlights

GameFi offers games like quests, battles, racing games
Gamers are rewarded with in-game crypto tokens or NFTs
Bitcoin’s ongoing bull run is pushing GameFi up the growth ladder

GameFi, another jargon from the Web3 sector, now seems to be grabbing the attention of members of the Web3 and gaming communities. The concept of GameFi brings together two elements – gaming and finance. Games that fall under this category are based on blockchains and work on a decentralised approach. They offer players rewards in the form of native tokens from the game ecosystems that helps them generate some income while playing games. Crypto assets, non-fungible tokens (NFTs) are among digital assets that can be earned, generated, or traded within the GameFi ecosystem.

The games that are part of this category are also classified as ‘play-to-earn'. The genre of these games can be multi-player quests, battles, racing, and games with full-fledged storylines. Special weapons, powers, apparels, and characters are offered by these games as tradeable digital assets for gamers.

As GameFi supports the concept of decentralisation, the growth maps and changes to its ecosystem are often ushered in with insights from the community members, rather than working on the decisions of one authority figure.

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Explaining the details on how GameFi works, a recent report by Chainalysis said, “In crypto games, blockchains are global, decentralised computers that play the role of centralised servers. Smart contracts are applications that run on top of blockchains that create and facilitate the movement of tokens—which are generally either NFTs or fungible tokens.”

In a report, Business Research Insights has estimated that the global GameFi market size, that stood at $9 billion (roughly Rs. 74,980 crore) in 2021, is expected to reach $90.51 billion (roughly Rs. 7,53,970 crore) in 2031, showing a CAGR of 27.13 percent between 2021 and 2031.

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Now that the crypto sector is seeing gains, several GameFi projects like Web3 gaming studio Immutable, Animoca Brands Japan, and Seraph Studio are reportedly refreshing their lineups and offerings.

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Further reading: Cryptocurrency, GameFi, Blockchain Gaming, Web3

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More