GameFi: The Evolution from Ponzi Games to Full-Chain Games and Future Outlook

A Review of the Development of GameFi and Future Prospects

DeFi and NFT lay the foundation for GameFi

Since the launch of the Ethereum mainnet in 2015, the DeFi and NFT markets have flourished, providing fertile ground for GameFi. The total market value of DeFi has grown from $50 million in 2015 to $100 billion in 2023, while the market value of NFTs has risen from several million dollars in 2018 to $8 billion in 2023. DeFi has brought a continuous flow of funds to the crypto market, while NFTs have shifted the blockchain's focus towards entertainment and gaming, together creating conditions for the development of blockchain games.

The concept of GameFi was proposed

In the second half of 2019, Mary Ma, the Chief Strategy Officer of MixMarvel, first proposed the concept of GameFi, aiming to introduce new business models and economic systems to the gaming industry through blockchain technology. In September 2020, Andre Cronje, the founder of Yearn.finance, elaborated on his understanding and outlook of GameFi, and the concept began to enter the public eye.

GameFi 1.0 Era: Ponzi Games

Early GameFi projects like CryptoKitties and Fomo3D were essentially Ponzi schemes, lacking a complete financial system and gameplay. Most projects during this period were simply shifting funds around, making them vulnerable to market fluctuations and prone to collapse.

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

Axie Infinity pioneeringly combines the "play-to-earn" model with complex financial mechanisms, creating an engaging NFT creature world. The Sandbox, on the other hand, showcases the potential of high-quality GameFi through its strong IP effects, innovative game concepts, and a free and open financial system. During this period, GameFi projects began to truly attract players and build a complete gaming ecosystem.

GameFi 3.0 Era: Full-Chain Games and Cross-Industry Integration

The current GameFi market is still a blue ocean, with increasingly diverse game formats. Full-chain games have become the development direction, running and storing all game logic, data, and assets on the blockchain. At the same time, GameFi has begun to integrate with emerging technologies such as AI and the Internet of Things, attracting capital attention. The migration of traditional game IP to the blockchain has also become a major trend.

Future Development Direction of GameFi

1. Build a fully on-chain game, achieving complete decentralization and transparency.

2. Integration with emerging technologies such as AI and the Internet of Things

3. Introduce high-quality traditional game IPs to enhance playability and user stickiness

4. Build a complete financial system, balancing gameplay and economic models.

5. Focus on technological breakthroughs to enhance user experience

6. Strengthen regulatory compliance to prevent financial risks.

With the continuous improvement of blockchain infrastructure, GameFi is expected to usher in a new round of development opportunities. Whether it can create games that are highly playable and contain a complete financial system in the future will be the key to GameFi's breakthrough.