Play-to-earn games disrupted a traditional gaming industry with its model that allows players to own digital items. The future of the gaming and GameFi industry might lie down even further. The trend shows the play-to-earn (P2E) model moving to skilled-to-earn games (S2E).
GameFi connects the game industry with decentralized finance (DeFi). The concept relies on blockchain technology, gaming, and fintech. The term GameFi used Andre Conche for the first time in his tweet on September 10th, 2020.
GameFi established itself in 2021 as one of the fastest-growing sectors in the blockchain and crypto industry. It has more than 1 million active players.
Future of gaming – GameFi
- The second generation of GameFi projects will be more immersive.
- From Play 2 Earn to Skilled 2 Earn
- Massive adoption of GameFi might make the crypto market bullish.
- New users (players) will foster crypto adoption and might boost the crypto market.
Skilled to Earn Games
The future of crypto and NFT games comes with the second generation of blockchain gaming. Games will become harder and not everyone will be able to earn profits. You will be required to prove your skills to get rewarded.
GameFi emerges thanks to NFT technology.
First-generation P2E games such as Axie Infinity, are not so fun to play. The reason is that blockchain technology cannot support heavy games. P2E games are simple, graphic-light and user-experience is shallow. Lots of crypto games are about mining, skins, static combats, and card playing.
The second generation of games will be high-quality blockchain games. Many game studios over the world, mostly in Asia though, focus on real user experience. With that development, we should expect a shift from the play-to-earn model to the skilled-to-earn model.
For sure, there will be games that offer a P2E model and every player will earn some rewards. But as the GameFi sectors evolve it will reward more those players that are skilled. NFTs will be playing the most crucial part therefore they can’t be distributed to each player. Scarcity is the key. Passive income from NFT will be only for early investors or skilled players.
In the real world, you are rewarded based on your skill as well. There won’t be any difference in the metaverse, virtual reality games, play-to-earn games, or skilled-to-earn games. Gaming, traditional or crypto-based, has the same mechanism.