The Emergence Of GameFi.
GameFi was first emphasized by Andre Cronje, the founder of Yearn.Finance in September 2020.
In the centralized gaming industry, only the publishers and developers share in the success of any game. Most gamers after investing immense time and capital on such games are left without the promise of any monetary incentives.
Participants are forced to interact with a system that they have no control over and have no way to own their investments. Such misaligned incentives have necessitated the creation of a decentralized gaming ecosystem. An inevitable evolution of the blockchain movement, games are being increasingly integrated into decentralized financial systems.
The merger of gaming and decentralized finance has led to GameFi, a system which, in opposition to the centralized gaming industry, allows anyone in the world to access and generate financial means by playing games or participating in gamified metaverses. This improved framework has unlocked unparalleled opportunities for player engagement.
The GameFi phenomenon has flipped conventional gaming on its head with users gaming to earn, not paying to play.