GameFi vs. Blockchain Gaming| How is it different? Can I Earn From GameFi Games?

All these confusing terms that make you overthink are decoded in layman’s terms to keep you updated with the latest trend of gaming & crypto-verse. Here’s what GameFi defines…

A lot of slangs are already showered on the newbie gamers who just enter the realm of gaming. But the boom of blockchain games has filled the gaming verse with way too many jargons. Just like Blockchain games or GameFi or DeFi or Web3 games & so on!

What do they all mean? Is Blockchain gaming different from GameFi or is it all same? All these confusing jargons of Blockchain gaming verse will be decoded today. So come along!

GameFi vs. Blockchain Gaming

Many people nowadays use GameFi, DeFi or Blockchain Gaming interchangeably. But, guess what these are not same! For starters, Why would it be named different at the first place? 

So, GameFi depicts financial protocols with gaming mechanisms while Blockchain gaming represents game-first project with earning mechanisms. 

Now what on earth are these mechanisms at all! Wait…deep breaths we are going to explain all of it!

Though if you can also have a brief Crypto Ninja Guide of Jagran Play. 

Source:www.medium.com

Gamified Finance, or GameFi, is usually used in the crypto spaces to describe Web3 gaming since the industry boomed in 2021. Web3 gaming involves a decentralized form of games that incorporates blockchain-based games too. GameFi in a way evolved from DeFi or Decentralized Finance which describes financial protocols built on the blockchain, for example- exchanges, staking, and lending protocols.

However, the protocols started to turn out financial incentives due to the PlaytoEarn or P2E games. Then, people started stating this phase as GameFi. Though, many claimed to evolve this PlayToEarn model into a more advanced version of PlayAndOwn model questioning the economic sustenance of the prior set up. Machine Zone's CEO Gabriel Leydon was also amongst the questioning kind. He even said- 

“Our focus is on what I believe is going to replace ‘free to play with something I call ‘free to own’ games,”

Also Read- Free-to-Own Blockchain Games Can “Wipe Out” F2P and P2E Games said Gabriel Leydon

Source:www.medium.com

On the other hand, some say GameFi doesn’t entirely capture the true meaning of upcoming web3 kind of games. Aleksander Larsen, Axie Infinity’s Co-Founder is amongst these believers.

On Oct. 2 he shared a video explaining the difference between the two concepts shortly while taking it further to introduce Token 2049.

He said- “A lot of these smart people they’re talking about GameFi and I don’t think it means what they think it means,” Larsen said in the video. “GameFi, as a definition, means gamified finance. Blockchain gaming means something totally different.”

GameFi according to Larsen is something that “levels up” users' transactions every time they play on a particular protocol. This can be easily said about financial products in the traditional and decentralized space.

Blockchain gaming, on the other hand, is a product of game-first protocol having a player-owned economy with a community backup.

Easy Examples to Understand GameFi & Blockchain Gaming

The perfect examples of the GameFi in banking apps can be explained over the add progress bars that are given to the user’s saving goals or a portfolio tracker that represents the user’s “level” based on the transactions they’ve done through their account.

The best example of GameFi in the Web3 space is the Defi Land protocol. Now this does hold many in-game options, like a  fictional game wrapper. For Staking users craft different innovative items or water crops, while to yield profit their marketplaces serve as a Decentralized Exchange (DEX) protocol for users to earn money.

Source: www.whalejournal.com

One of the famous examples of PlayAndEarn blockchain game is Axie Infinity. It involves players breeding, collecting, and playing with digital pets called Axies and they make money through those interactions. It is constructed over an Ethereum-based side-chain entitled Ronin, developed by Vietnamese-based gaming studio Sky Mavis. 

Hopefully, some of your confusing threads between GameFi, DeFi and blockchain games might have been detangled. But if they are still making you overthink about how Can I earn cash from these games & what are the best games to win cash from P2E crypto games? Then worry not you’ll get it all right here on Jagran Play Blogs. Infact you can engage yourself with free online games at Jagran Play. Share it with your game buddies or family. We’re sure they’ll enjoy it too.