GameFi is a part of Web 3 that took off within a short time after it came into the industry; however, with its success in web 3, there is still a long path before it attains mainstream attention. As with any innovation, there are still troubles facing it that the general public has not been able to get past.
What Is GameFi?
GameFi is a word formed from the joining of the terms game and Finance, and it was created to reference play-to-earn games that offer incentives to players of blockchain-based games. The game players can earn in both crypto and NFTs by completing tasks, battling against other players, and progressing in levels of different games.
What makes GameFi unique from other traditional video games is blockchain-based games. Players take out their rewards from the virtual worlds, which enables them to trade their items on NFT marketplaces to earn and trade their crypto earnings on the exchange platform.
Since the rise of one of the most popular GameFi platforms, Axie Infinity has quickly taken over the traditional gaming system. One colossal advantage GameFi has over traditional gaming platforms is that it offers players a chance to have fun and create an exciting virtual world while also earning.
The Troubles That GameFi May Face As It Gains Mainstream Attention.
While GameFi is already doing a great job, there are still specific issues surrounding it that have not allowed it to achieve the worldwide consumption it is aiming for.
The Fear Factor Surrounding Crypto-Related Platforms.
While GameFi is on a path to greatness, people are still suspicious of anything crypto-based, especially with their lack of knowledge of it. The crypto industry could be scary for beginners, and they may be hesitant to dive in for fear of getting scammed.
GameFi is known to offer players a chance to earn, but some platforms require players to purchase their gaming items, which could open the door to the fear factor for individuals who are finding their way into GameFi,
Traditional Gaming Has A Larger Reach.
GameFi may have found its way to a global reach, but traditional financing still has a more extensive space, as it has been in the industry for a longer time and has gained more audience for itself and the trust of most gamers.
As GameFi is still finding its way in the gaming industry, many traditional gaming platforms have advanced functions available on their media that GameFi has not yet been able to touch.
It Could Be Affected By Crypto Market Trends
One significant disadvantage to GameFi is that it could be affected by the crypto market trends. In the case of the now bearish markets, crypto prices are currently at a low rate, with NFTs not being at the worry they started with. This would cause more rug cases and more cases of NFTs earned from gaming being worth way less; this would reduce the attention gamers give to the platforms as one of the major attractions for it is the chance for interests to be monetized.
The Fines Plaguing Developers
There has been more attention paid to the industry by legislators, and it may be attracting more fines for the developers of these games. However, if the penalties are significant, it could cause trouble for GameFi platforms just setting down their feet in the industry.
The Future Of GameFi
GameFi had a significant boost in 2021 with the projects created, and while the path to total mainstream success is not a smooth paved one, there is a high chance for the gaming industry of Web 3 to be the best.
With the advancement of blockchain technology, more innovations will be added to creating these GameFi platforms to make them even more unique and accessible for all gamers. The option of owning game assets is an attractive one for gamers.
Conclusion
GameFi is a growing trend with the expectation to expand faster than other aspects of Web 3. Not only will it draw a crowd to GameFi, but it’ll also help fill other aspects of the blockchain industry; as gamers gain interest in playing to earn, they may pick an interest in crypto trading or the NFT industry.
The Growth of GameFi would be to the advantage of the entirety of Web 3.
