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What is the GameFi ecosystem

According to Cointelegraph, in a decentralised GameFi system, gamers are able to engage with creators having the ability to develop immersive games and engagement mechanisms

Worldwide gaming industry is trying to explore Web3.0 and is trying to augment gaming and finance under the term GameFi, according to Cointelegraph. GameFi is a system for gamers and creators to collect value in cryptocurrencies and non-fungible tokens (NFTs) through gameplay, and is hosted within metaverses.

According to Cointelegraph, in a decentralised GameFi system, gamers are able to engage with creators having the ability to develop immersive games and engagement mechanisms. Gaming tokens associated with the platform can convert into Bitcoin, Ethereum, fiat currency or stablecoins. Non-fungible tokens (NFTs) can be sold on NFT marketplaces for a higher price. GameFi projects scales the gamers’ base through play-to-earn (P2E) model which builds on the supply side of tokens. While P2E was the first Web3.0 economic model which gained attention within GameFi, the model has been too focused on the supply side of GameFi. 

Based on Cointelegraph’s data, GameFi platforms such as Sandbox and Axie Infinity have an  in-house capability. Metaverses enable participants to come together, play games, attend events, do shopping, and immerse themselves in that experience. GameFi platforms are part of metaverse to ensure they get user retention. Gaming guilds are platforms that act as the distribution network for GameFi platforms, and guilds buy NFTs from the GameFi platforms and rent them out to the gamers. Guilds accumulate NFTs and rent them out to scholars. However, this renting process can be automated, and provided as a software-as-a-service (SaaS) for games that, in turn, can offer to rent to their NFT holders.Gaming marketplaces scan the landscape, pick the best games after testing them, and feature them on their platform. 

On the basis of information provided by Cointelegraph, several stakeholders have their roles in the GameFi ecosystem. With GameFi users starting to explore different use cases, some platforms have the capability to offer the right place for a NFT mint. Apart from these players, there are investors, influencers, exchanges, and market makers.

(With insights from Cointelegraph)

Also read: How businesses can benefit from Web3.0 and blockchain

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