Play2Earn and GameFi, the blockchain reaches video games

Play2Earn and GameFi are two new concepts that are becoming increasingly relevant in the crypto world, attracting players and building a whole new industry around the crypto world.

Dhe concepts that are very fashionable today are Play2Earn (P2E) and GameFi, two concepts that unite the world of video games with blockchain technology and that seek to transform this enormous sector forever. But what do these trending words really mean? Are they really a revolution or just a fad?

What is Play2Earn?

When we talk about Play2Earn, we are talking about a gaming model that allows players to earn rewards for playing that can then be exchanged for money in the real world.

Basically, it is transforming games into a platform that not only offers entertainment, but also access to a new form of economy in which not only the creators of the game benefit, but also the players who access it no matter where in the world they are. world meet.

To achieve this, designers can draw on various systems or models to generate their own economies that connect the game to the real world. Initially, these systems were only centralized, but with the advent of the blockchain, these systems have become decentralized, making tokens the perfect tool to create economically dynamic, borderless worlds.

Play2Earn and blockchain, a powerful duo

In fact, it was the advent of blockchain technology that has given Play2Earn a huge boost. The reason? Cryptocurrencies, being digital currencies, can be easily integrated into a game. But, not only that, the game designer can create their own economic ecosystem, creating everything from fungible tokens (for in-game currency) to NFTs (for skins, avatars, and in-game items). The limit at this point is your imagination.

In addition, the blockchain allows in-game markets to be implemented more easily and the exchange of all operations are stored in the history of the blockchain used. This has allowed the Play2Earn model to evolve a lot, allowing the capabilities of virtual worlds to be expanded.

What is GameFi?

For its part, the concept of GameFi or Game Finance is a concept aimed at explaining the industry that has emerged by uniting the world of DeFi with Play2Earn. GameFi is the fusion of innovative concepts such as DeFi, NFTs, DAOs and Play2Earn tokens, to create a financial ecosystem that revolves around video games.

Thanks to GameFi, P2E players can take their game tokens and use them to participate in the huge DeFi ecosystem, giving them access to financial tools that they would never have access to through the traditional system. From the possibility of using your tokens as savings to making exchanges to pay for new content, services or cover your own needs.

GameFi Example

The greatest example of GameFi that currently exists can be seen reflected in the game Axie Infinity (AXS). Axie Infinity is one of the biggest Play2Earn games out there today. In fact, it is considered a phenomenon due to its global reach. The reason? This game and its AXS token have managed to reach a market value of 4 billion dollars, in just three years of existence, something that breaks all known records in the world of video games. A feat that the study Sky mavis has achieved, designing a simple game, with powerful gameplay and a Play2Earn and GameFi component that has spread throughout the world.

Thanks to Axie Infinity, people all over the world are able to earn enough income to help or cover all of their needs. And all of this starts from what seems like a simple game when, in reality, it is a complex economic system in which hundreds of thousands of people actively participate.

The success of Axie Infinity has been such that it has boosted this sector, where we can now see enormous interest from companies dedicated to the gamer world. An example of this is Enjin, which has dedicated itself to designing an entire ecosystem for the creation and exchange of NFTs focused on the world of video games, as well as tools to embed blockchain technology in games using its future high-speed blockchain network.

Thanks to that work Enjin It has a market capitalization of more than 2 billion dollars today. Of course, the GameFi ecosystem has also caught the attention of well-known big players in the gaming world. One of the most recent cases is that of Ubisoft with the launch of Ubisoft Quartz, an NFT platform for its games and which is deployed on the blockchain of Tezos (XTZ).

This powerful combination between P2E and DeFi is also joined by metaverses. projects like The Sandbox, Decentraland, Star Atlas or Blocktopia, they also begin to direct efforts to take advantage of the enormous potential that GameFi offers them. In Bloktopia for example, you can participate in their metaverse and get token rewards for it, tokens that you can then use within the DeFi ecosystem of the metaverse to get more rewards.

The future of Play2Earn and GameFi

The strengthening of games with the Play2Earn scheme, the arrival of new players and studios, the strengthening of blockchain technology and its scalability and, above all, the enormous interest that P2E implies for players only tells us one thing: Play2Earn and the GameFi will continue to grow in the future.

The world of video games has gone through several transformations, from the Pay2Play model (physical and online), Free2Play, Pay2Win, Pay2Fast, and now with Play2Earn. Each one of these models, with its pros and cons, has been adapted to the needs of the creators and the audience the game is aimed at. The same will happen with the Play2Earn and GameFi models, two options that are nothing more than the evolution and improvement of a phenomenon that has been in the gamer world for a long time.

Haven't you ever sold or traded items you found in WoW, LoL, or Lineage with another player? Have you ever traded or sold Counter Strike, Team Fortress or Fortnite skins or weapons? Surely you have done it or know someone who has done it, even in games where it is not entirely valid. The truth is that this is precisely what Play2Earn and GameFi allow, and best of all, control always remains on your side. And that is a reality that will drive the adoption of this type of ecosystem beyond what we can see.