A Comprehensive Exploration of the Evolution of GameFi: How Far Are We from the Next Hit Game?

GameFi is the fusion of DeFi, NFT, and blockchain gaming, representing a new stage in the comprehensive application of blockchain technology and the development of games. As a product of the Web3 era, the development process of GameFi reflects the progressive application of blockchain technology in the gaming sector.

DeFi and NFT lay the foundation for GameFi

Since the launch of the Ethereum mainnet in 2015, the DeFi and NFT markets have flourished. The total market cap of DeFi has grown from $0.5 billion in 2015 to $100 billion in 2023, while the market cap of NFTs has risen from several million dollars in 2018 to $8 billion in 2023. The development of these two sectors has provided technical and financial support for GameFi.

The concept of GameFi was proposed and initially developed.

In 2019, MixMarvel's Chief Strategy Officer Mary Ma first proposed the concept of GameFi, combining gaming and finance. In 2020, Yearn.finance founder Andre Cronje further elaborated on the vision of GameFi, believing it would become the direction for the development of DeFi. These ideas laid the foundation for the rapid development of GameFi.

GameFi addresses the pain points of traditional gaming.

In traditional games, virtual items such as props and skins have great value, but players do not have true ownership of these assets. GameFi addresses this issue through blockchain technology, allowing players to truly own in-game assets and trade them freely. Additionally, the DAO governance model of GameFi also allows players to participate in the development decisions of the game.

GameFi 1.0: Ponzi Game Era

Early GameFi projects like CryptoKitties and Fomo3D, although they sparked a craze, are essentially Ponzi games that lack long-term sustainability. Projects from this stage are not engaging enough to compete with traditional games and do not have a complete financial system.

GameFi 2.0: The Rise of Play-to-Earn Model

Axie Infinity innovatively combines the "Play-to-Earn" model with complex financial mechanisms, becoming a representative work of GameFi 2.0. The Sandbox demonstrates the potential of combining traditional IP with blockchain technology. GameFi projects in this phase are beginning to build more complete game ecosystems and economic systems.

GameFi 3.0: Full-chain games and cross-border integration

Currently, GameFi is developing towards a fully blockchain-based gaming direction, with all game logic, data, and assets operating on the blockchain. At the same time, the integration of GameFi with emerging technologies such as AI and the Internet of Things has also become a new trend. Many traditional gaming companies are beginning to explore bringing well-known IPs to the blockchain, which could become the next breakthrough for GameFi.

Future Outlook

Although the current hot topic in the blockchain industry is focused on building underlying infrastructure, GameFi still has significant growth potential. The future hit GameFi projects are likely to come from:

1. Blockchainization of traditional well-known IPs
2. Highly playable full-chain games
3. Innovative projects deeply integrated with emerging technologies such as AI

When investors and developers pay attention to GameFi, they should focus on the project's IP influence, gameplay, and technological innovation. Only GameFi that truly attracts players has the potential for long-term development.