GameFi = Game + Defi, the core feature is ‘ Play to Earn‘. It comes out through tech and decentralization, GameFi game assets are transformed into NFTs and tokens on the chain, with verifiability and liquidity; the relationship between developers and players has changed from "enterprise consumers" to "community of interests", and the value growth in the ecosystem is jointly owned by all participants.
Definition and five elements GameFi = Game (game) + Defi (decentralized finance), which is the application of blockchain technology in games. Through technical empowerment, game assets are transformed into NFTs (non-fungible tokens) and tokens (homogenous tokens), which are verifiable and circulated, and players can use this to achieve "Play to earn" (after referred "Play to Earn‘ as P2E). GameFi's P2E has quickly attracted a large number of gamers and blockchain enthusiasts, and rapidly become one of the hottest field in 2021.
According to BGA's 2021 Blockchain Game Report, the number of game-related independent active wallets by the end of 2021 surpassed Defi applications and became the most commonly used category in the industry, UAW occupied 49% over the whole industrial, and gaming NFTs account for 20% of the $23 billion in total NFT transactions in 2021.
At present, most of GameFi projects include five key elements: blockchain network, gameplay, game tokens, serial gameplay and sustainable economic models of token systems, and exchanges.
The first stage of the industrial development stage (before 2017): In the early exploration stage, the attempt to launch the "game token" on the chain.
The second stage (2017-2019): The first chain game was launched, and CryptoKitties led to a high increase in Ethereum chain.
The third stage (chain game 1.0 era, 2020-present): external catalysis + technical iteration, the phenomenon-level game Axie Infinity catalyzes GameFi comes out.
Roblox defines the 8 elements of the metaverse as "independent identity, social network, immersion, low latency, diversity, anytime, anywhere, economic system, civilization", and GameFi as an economy with P2E attributes, or one of the forms that comes closest to the primary content of the Metaverse.
Based on the above, in the current GameFi 1.0 stage, players have the same value with the community, jointly hold tokens, and then earn corresponding income through their own labor (spending time to play games, UGC creation, etc.).
In the future, GameFi may enhance gameplay and cross-platform liquidity, from a single economy to ecological aggregation, and simple game mechanics to multiple, complex changes, and further visualize real economic entertainment activities in a virtual platform.
Furthermore, in GameFi development process, some of industrial also activate GameFi development step by step, like Discord, which is the primary social networking and publicity platform for the GameFi, and the Chain Game Association is the catalyst for industry development and community creation.