GameFi: Can blockchain-based gaming redefine the industry?

May 2022 - Cointelegraph Research

Public Access
Keywords :
GameFi, NFT

When do adults stop playing and start becoming serious? Usually when they need to make a living. But what if there was a way to play for a living? A way not reserved for the top 0.1% of esports athletes? It turns out that this mythical land exists and started to come into full potential in 2021. It’s called GameFi.

GameFi extends games into the financial realm. Stronger property rights mean players can take their beloved characters outside their native world for fun and profit. Blockchain technology provides the economic building blocks that used to take game developers so long to create that it prevented them from even starting.

Economic activity on GameFi has recently exploded, and entire economies have stemmed from this activity. This report looks at the history of planned-economy games like World of Warcraft against their modern crypto counterparts that create maximum value for their players. We compare five top blockchain games on balance deposited, number of active users and volume of transactions, and give them a one-out-of-five score for their gameplay and tokenomics.

This report doesn’t require knowledge of the GameFi industry but has enough depth to offer nuggets of insight to the seasoned pro. We portray the development of an industry responsible for more than 55% of all crypto transactions in the last quarter of 2021.