GameFi, commonly known as plat-to-earn (P2E) games is a new concept in the domain of gaming and cryptocurrency. The term GameFi is derived from the amalgam of two words, gaming and decentralized finance (DeFi).
The sole purpose behind GameFi is to incorporate the concept of gaming right into the blockchain. This includes introducing various DeFi products, such as NFTs, yield farming, the use of algorithmic stablecoins, and more.
For any conventional game, the face value of in-game assets is confined within the universe of the aforesaid game. On GameFi, all the in-game assets owned by players are governed by a community. This allows developing an economic model, facilitating players to make money while gaming.