Huobi Research has identified a rising interest in blockchain gaming as a direct impact from GameFi initiatives. GameFi implies the use of decentralized finance (DeFi) and blockchain gaming that incentivizes users based on a play-to-earn model. The data compiled shows that GameFi initiatives have seen a steep increase since June 2021 thanks to a sizeable reduction in transaction costs and improved user experiences.
“DApp rankings show that five of the top nine apps are GameFi apps,” according to the report. “As of early December , GameFi’s weekly active users have reached 9.21 million, a record high. This not only is a comparative advantage that traditional game developers never had but also reflects the intrinsic value of blockchain technology in the gaming industry.”
Based on the above findings, Huobi Research concluded that transaction costs are essential in new institutional economics. While the gaming industry had already implemented play-to-earn features, “the society tends to choose the system with the lowest transaction costs to operate.”
The research also highlights three fundamental aspects of how GameFi differs from other existing gaming models: free trading of game materials, free trading and pricing of game currencies, and protection of property rights. Moreover, GameFi developers have the advantage to deploy private property rights via NFTs at a lower cost.
(All information was provided by Cointelegraph)
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