In Topp Jirayut on GameFi Crypto, part of the CI Talks Cryptocurrency Revolution web series, the founder and CEO of Bitkub gives us an overview of what GameFi is and how it has the potential to cause a transformational shift not just in the video game industry but way beyond.

What is GameFi?

GameFi is literally what happens when online video gaming meets decentralized finance (DeFi) on blockchain technology. It is a fusion of the words “Game” and “Finance”.

This fusion makes it possible for players to be the sole and verified owners of the virtual elements of the game, a sword for example, or a reward for their knowledge or time invested.

Online Gaming

According to Accenture the global gaming market in Q1, 2021 was valued at USD 300 billion. The gaming industry has evolved with the “pay-to-win” model; players have been required to spend money or pay for privileges (less waiting time, buying virtual objects, etc).

By fusing Blockchain with gaming, GameFi introduces “Play-to-Earn” which turns “pay-to-win” on its head by giving players the opportunity to earn. Participants can be rewarded with financial incentives to play and advance through a game. Some gamers are already reaping the benefits and earning a full time income through GameFi.

Next Generation Gaming

By definition, GameFi is based on blockchain technology and a combination of both cryptocurrency and NFTs (Non Fungible Tokens).

This means that these games are operating on a distributed ledger which, in turn, means that objects obtained by players become their full property and that the owner can then trade any item, or token, that they explicitly own (much like cryptocurrency itself).

With GameFi, players can both earn and be asked to invest. In both cases, the ability to earn or invest could be with fungible or non fungible tokens (NFTs).

Real and Digital Economy Interaction

The really exciting thing about GameFi is the model’s potential to drive interaction between real and digital economies. As per Topp’s GameFi example, for a player to advance to the next level of a game, they could be asked to spend “x” amount at a store, restaurant or hotel before they can advance to the next level.

The upshot of this is huge and will transform industries well beyond gaming. The entertainment, music, fitness and even education sectors are all on the radar. Cryptocurrency, blockchain and NFTs, the same core ingredients used in GameFi, are beginning to cause a transformational shift globally, says the Founder and CEO of Bitkub.

Blockchain technology is a catalyst for change but is bringing with it many new opportunities for the informed among us to fast track their way up the ladder of success.