What was often the buzzword of the crypto market that slowly faded away, now makes a powerful resurgence – especially in Asia. GameFi seems to have revived itself, and this rebirth is mainly driven by innovative developments and an expanding Asian audience. This is a technology that seems to signify a seismic shift in the gaming industry, so let’s take a look at how it has developed in Asia and its impact on the global crypto market.

GameFi and Its Models

Put quite simply, GameFi is a blend of Game and Finance. It is a concept that allows users to earn crypto by playing video games. GameFi contains several models, which include:

• Play-To-Earn
• Click-To-Earn
• Move-To-Play
• Pay-To-Play
• Free-To-Play

Andre Cronje came up with the term GameFi. As a concept, it often uses NFTs as game characters or items, which are essential factors of gameplay. More often than not, NFTs are sold through peer-to-peer marketplaces. GameFi users can also get rewards for completing in-game activities – breeding new characters, purchasing in-game items, etc.

GameFi Evolution

GameFi’s concept is deeply rooted in the broader trends of crypto adoption. Therefore, when speaking of its development, we must go back in time to Bitcoin’s advent in 2009. In many ways, it laid the foundation for decentralised digital currencies.

Ethereum shortly followed by introducing smart contracts in 2015. GameFi emerged as a natural evolution by offering users the chance to enjoy the entertainment of the gaming world with the scope of financial possibilities introduced by blockchains.

Digital Native Southeast Asia

The fast spreading digital adoption in the region has allowed for GameFi to emerge as a game-changer to gamers and crypto-savvy users.

For starters, per official government data, only 30% of Philippine adults right now have bank accounts. Similar data applies to other Southeast Asian countries like Indonesia, Cambodia, and Vietnam.

Now, this is where the situation gets a bit interesting. According to data we came across, among the top 15 countries that use the MetaMask wallet, the Philippines ranked first with the most active users. Vietnam, India, Indonesia and Thailand were also in the top 10, which has sparked striking evidence that many Southeast Asian countries and residents simply bypass traditional banking routes and develop decentralised applications.

Other Driving Factors Across Asia

It is not just Southeast Asia that enjoys the perks of the decentralised finance world. There are several factors that have helped GameFi to expand at a fast rate among Asia’s tech-savvy population:

• Affinity for gaming: Countries like China, South Korea, and Japan, just to name a few, have emerged as leaders in the gaming industry. Asia has the largest number of gamers in the world, so we can safely say that the continent’s affinity for gaming creates a fertile ground for GameFi developments.
• Smartphone penetration: It is estimated that the smartphone penetration in Asia will continue to rise and reach more than 70% by 2030. This adoption has allowed users fast access to gaming and blockchain applications. Mobile-friendly GameFi platforms are now more available than ever.
• Blockchain adoption: As stated beforehand, Asia has embraced blockchain technology. Besides private entities exploring blockchain’s potential, governments in countries such as Singapore and Hong Kong have implemented a welcome stance for digital currencies.
• Investments: Tech giants in Asia continue investing in blockchain and gaming startup companies. All these investments accelerate innovation and development of GameFi.

GameFi Projects in Asia

To better understand the GameFi sector in Asia, you must know about a few projects and factors that help it shine:

• Play-to-earn games (P2E): At the heart of the GameFi ecosystem, we have P2E games. As stated beforehand, these games allow players to earn crypto or NFTs through in-game activities. Axie Infinity is arguably the most popular game running on this model.
• NFT marketplaces: GameFi platforms contain marketplaces where users can trade in-game assets. Of course, these marketplaces operate on blockchain networks, which adds security and transparency.
• Decentralised exchanges: These platforms are crucial in the GameFi world as they allow players to exchange in-game tokens for digital currencies. This allows for liquidity in the industry, which is crucial for its functioning.
• Staking and yield farming: Some GameFi projects have integrated staking and yield farming, through which players can earn more rewards by simply staking their tokens and providing liquidity.
• GameFi casinos: These sites integrate blockchain technology and often incorporate play-to-earn mechanics and NFTs. As such, they allow players to earn crypto and NFTs through their gameplay. And as crypto use becomes more mainstream, there is also a rise of platforms that bridge traditional gaming with blockchain innovation across the globe. For more information about such in Down Under, you can visit Slotozilla AU — a site that not only reviews crypto-friendly casinos among others, but also features the latest bonuses, games, and trends. It’s a useful resource for players who want to be in touch with all the nitty-gritty details within the gaming industry.

Fuelling Crypto Development

As seen above, GameFi projects heavily rely on digital currencies for all types of transactions. Naturally, as the GameFi sector grows, we can expect a surge in the adoption of digital currencies in Asia, which is already at a high level.

Even investors in Asia are particularly interested in GameFi, as it provides them with an untapped blockchain sector with immense potential. Many perceive investing in the GameFi sector as a winning future bet, with only a few industries having a chance to attract more users in the near future than GameFi.

If you want to keep up with how all of this is developing, Etherions.com is a great innovation source. It is focused on delivering the latest in cryptocurrency, NFTs, blockchain, and recent tech innovations and also contains opinion pieces featuring industry leaders in crypto, DeFi, NFTs, and broader tech.

Legal Considerations of GameFi in Asia

The rapid growth of GameFi is quite impressive, but it doesn’t come without its challenges. A robust legal framework is crucial if GameFi is to enjoy sustainable development. To wrap up, here are a few considerations:

• Uniformness and clarity: Some Asian countries have embraced crypto and blockchain, but others are yet to define their stance. Clarity is essential if GameFi is to thrive in Asia.
• User protection: Players simply need to be protected from fraud and have their assets completely secure. This is where a regulatory framework with security guidelines and checklists comes in handy.
• Taxation: This is a potentially complex issue, and once again, governments in Asia need to be able to develop fair tax policies for earnings generated through P2E games.
• International transactions: Uniformness in regulations will arguably lead to streamlined cross-border transactions across Asian countries.