What is GameFi in simple words?

[maykl]

In simple words, GameFi is a combination of gaming and decentralized finance (DeFi). It refers to a new trend in the blockchain and cryptocurrency space where gaming elements are integrated into decentralized financial systems.

In traditional gaming, players earn rewards and progress through the game by completing tasks, achieving goals, and gaining experience. In GameFi, players can earn cryptocurrencies or other digital assets as rewards for their in-game achievements. These virtual assets can then be used in decentralized finance protocols, allowing players to trade, invest, stake, or borrow against them, generating real-world value from their gaming efforts.

GameFi creates a bridge between gaming and finance, making games not just a form of entertainment but also a means for players to earn, own, and grow digital assets. This concept has gained popularity as it offers players more incentives to participate in games and explore the potential of decentralized finance within the gaming ecosystem.