GameFi, better known as play-to-earn (P2E) games, is a rather new term in the field of both gaming and cryptocurrency industries. It references games that are designed with economic and finan
What Is GameFi?
In conventional games, the in-game assets that you purchase have no value outside the game’s universe. Players invest money to procure these assets, but they don’t have complete control over them. GameFi transforms this concept through blockchain technology, cryptocurrencies, and DeFi products.
Almost all of these blockchain-based games are accompanied by a corresponding in-game currency, a marketplace, and a token economy, usually managed and governed by the community. Players own their in-game items rather than developers with this model, thereby eliminating the need for any type of server infrastructure and preventing the possibility of game hacking or cheating.
By developing an economic model of making money while playing, the concept of GameFi has exposed the world to a new use case for cryptocurrencies. One of the significant reasons behind GameFi’s popularity is that no centralized authority controls the ecosystem, unlike traditional games. Additionally, the underlying blockchain technology allows for zero-fee transactions so that players can buy, sell, and trade digital assets without incurring fees.
Author:
Sean Rach is the co-founder of hi, a not-for-profit blockchain-based financial platform. Before joining hi, Sean was the founding CMO of Crypto.com, one of the world’s largest crypto exchanges. He has also handled leadership roles in some of the most prominent global brands, including Prudential Corporation Asia, Mobile Marketing Association, Eastern Innovation, and OgilvyOne Hong Kong.
A Doctor of Business Administration candidate from the Warwick Business School (University of Warwick), Sean has decades of experience in brand management, digital media, marketing, and operations management. He has also overseen the development of several innovative digital platforms like Safe Steps (with NatGeo and Red Cross) and Cha-Ching (financial literacy).