GameFi - The combination of Game and DeFi creates new earning opportunities

Imagine a future where you can enjoy your favorite games while generating real income from your efforts — this is no longer just a dream. Thanks to the development of blockchain technology combined with decentralized finance (DeFi) principles, a completely new field has emerged, opening unprecedented opportunities in the online gaming world.

Basic Concept: When Gaming Meets DeFi

GameFi is a unique intersection of gaming (Game) and decentralized finance (Finance/DeFi). Simply put, these are blockchain games where players not only seek entertainment but can also earn real profits. Unlike traditional games like Call of Duty or Fortnite — where only developers benefit — DeFi games give players the chance to make money.

This ecosystem is built on three main components: blockchain technology (an immutable public ledger), cryptocurrency tokens, and non-fungible digital assets (NFTs). The unique aspect is that all rewards players earn — from virtual weapons, outfits, virtual land, to utility tokens — have real monetary value and can be traded on public cryptocurrency exchanges.

According to a 2023 report by DappRadar, GameFi remains dominant within the blockchain application (dApp) ecosystem, with Web3 and metaverse projects attracting $2.9 billion in investments. This figure demonstrates the strong appeal of this model.

How Money Is Made in Blockchain Gaming

Players can generate income from blockchain games in various ways. First, they earn rewards by completing missions, battling other players, or upgrading in-game assets. These rewards are often in the form of tokens or NFTs — digital assets with value.

A key difference from traditional games is that these assets are fully owned by the players. Thanks to blockchain’s nature — an immutable public ledger — ownership rights are clearly verified and indisputable. Players can freely trade, exchange, or sell these assets on open markets outside the game to convert them into real money.

To maximize profits, players can utilize DeFi tools. For example, they can stake their NFTs or tokens via smart contracts to earn annual interest. Gaming communities like Yield Guild Games even allow players to lend in-game assets, earning commissions from other players who cannot afford to buy them.

Evolution from Ethereum to Polygon and Solana

The journey of blockchain gaming began with early efforts on Bitcoin, where people tried to earn coins by playing certain online games. However, Bitcoin was unsuitable for these applications due to limited block space and high transaction fees.

Real progress came when technology shifted to Ethereum — a platform built on smart contracts that enables complex blockchain applications and DeFi. Everything was smooth until a game called Cryptokitties exploded in 2017. Millions of players flooded in, causing network congestion on Ethereum, with slow transactions and skyrocketing gas fees. This became a major issue for developers.

As a result, other blockchain platforms emerged, such as Solana, Harmony, Polkadot, Avalanche, BNB Chain, and Polygon — chains with higher processing capacity and lower costs. Today, these platforms have become leading competitors in the crypto gaming space.

In the first quarter of 2024, the Web3 market experienced a significant revival. Daily active wallets reached 7.7 million, up 77% from the previous quarter. Blockchain games, accounting for 30% of total active wallets, also increased by 59% to 2.1 million wallets. Polygon leads with a robust gaming ecosystem, while Ronin and Solana continue to show steady growth. New chains like SKALE have also appeared with notable partnerships.

Four Main Revenue Models in Game DeFi

The blockchain gaming market isn’t limited to a single earning model. Instead, various projects have developed unique ways for players to generate income.

The most popular is Play-to-Earn (P2E). Axie Infinity is a prime example, where players breed, care for, and battle virtual creatures called Axies. Winning battles yields SLP tokens (Smooth Love Potion) — assets with real value that can be traded or used within the game.

Move-to-Earn (M2E) is a different model. StepN exemplifies this — players walk, run, or cycle outdoors while wearing NFT shoes to earn GMT tokens. These tokens can then be sold on open markets, providing financial motivation for a healthy lifestyle.

Tap-to-Earn (T2E) is a newer model. Notcoin is a notable example, where players simply tap the screen to “mine” virtual coins. Its simplicity opens the door for anyone with a smartphone.

Additionally, games like Cryptoblades, Splinterlands, and Mirandus use similar mechanisms, each with their own rules but all allowing players to earn income through participation.

Asset Ownership and DeFi — Core Advantages

What fundamentally sets DeFi games apart from traditional games isn’t just the ability to earn money. It’s the combination of true ownership and integration of decentralized financial tools.

In traditional games, all assets belong to the game developer. Players can buy or unlock them but never truly own them. If the game shuts down or is attacked, everything is lost. In contrast, blockchain-based games, thanks to the transparent and immutable nature of blockchain, record every asset — whether weapons, outfits, virtual land, or avatars — in a public ledger. Ownership rights are indisputable.

Moreover, DeFi integration allows players not only to hold these assets but also to profit from them. Locking NFTs or tokens into smart contracts to earn interest, lending them to earn fees, or using them as collateral — these opportunities have become feasible thanks to DeFi.

Getting Started with Play-to-Earn Games

To begin playing a blockchain game, new players need to take a few basic steps. First, create a digital cryptocurrency wallet — a place to store NFTs and tokens. Depending on the blockchain the game runs on, different wallets can be used. For Ethereum-based games, MetaMask is a popular choice.

It’s recommended to create a separate wallet for each game to protect funds from scams or attacks that may target fake or malicious games.

Next, prepare some funds. While some games allow free participation, you might need to buy initial items like weapons, gear, or NFTs to start earning significant profits. The type of cryptocurrency required depends on the in-game economy.

Once prepared, the rest is to play, accumulate rewards, and then trade or lock them to generate additional income.

Why DeFi Games Are Increasingly Attractive

The rapid growth of blockchain gaming is driven by several deep reasons. First, they offer a way to earn money from something everyone loves — playing games. There’s nothing better than making money from your passion.

Second, digital asset ownership is a completely new concept. Players don’t just own virtual weapons or outfits they create; these assets also have real monetary value. Blockchain ensures that no one can deny or dispute this ownership.

Third, blockchain games are often governed by communities rather than being fully controlled by developers. Major decisions are voted on by the community, ensuring that players’ interests are prioritized.

Finally, the barrier to entry is very low. Many blockchain games are completely free or require only a small fee, unlike traditional games that often have high costs to unlock key features.

Future Outlook for Game DeFi in 2025-2026

Looking ahead, the potential of DeFi gaming seems limitless. Projections suggest this sector could grow from 3% of the current market to as much as 10% of the global gaming industry in the coming years.

This growth is supported by technological advances. Layer-2 solutions have significantly improved scalability and reduced transaction costs. Integration of artificial intelligence promises more engaging and complex games.

The number of active players is expected to rise from current levels to 50 million, thanks to accessibility across multiple devices and interoperability between different blockchains.

However, challenges remain. The industry needs to incorporate truly high-quality gameplay, not just rely on blockchain. Community-driven development and sophisticated tokenomics will play crucial roles in building a sustainable DeFi gaming environment.

As blockchain technology continues to evolve, cryptocurrencies become more widely adopted, and new gaming projects keep emerging, the expansion of blockchain gaming within the industry is inevitable.