What is GameFi?
Let's find out GameFi meaning, definition in crypto, what is GameFi, and all other detailed facts.
GameFi, also known as P2E games, is a convergence of the gaming world and the DeFi world. The term was used for the first time in September 2020 in a tweet from Andre Conje, the creator of DeFi.
GameFi is based on the combination of blockchain technology, gaming, and a variety of decentralized financial products such as non-fungible tokens (NFTs), yield farming, borrowing and lending, algorithmic stablecoins, and so on.
GameFi transformed traditional gaming because the players were given the possibility to earn money while playing. In traditional games, in-game items have no value in the real world. However, GameFi transforms this by bringing blockchain technology, cryptocurrencies, and DeFi products into the world of gaming.
Basically, GameFi redefined the concept of in-game item ownership by introducing additional levels to a token-based economy and the ability to earn decent profits through a variety of DeFi products.
Most of these blockchain-based games come with an in-game currency, a token economy, and a marketplace. All of these are typically controlled by the community. With this system, players are the owners of their in-game items which prevents the need for any form of server infrastructure and lowers the possibility of cheating or game hacking.
GameFi’s in-game currency can be exchanged with other cryptocurrencies or fiat money. In addition, players can buy in-game NFTs and sell, rent, or trade them in open marketplaces.
The notion of GameFi has introduced the world to a new use of cryptocurrencies. Unlike with traditional games, no centralized authority regulates the game environment, which is one of the major reasons for GameFi's success. Besides, the blockchain technology behind the platform enables zero-fee transactions that allow gamers to purchase, sell, and exchange digital assets without incurring costs.