P2E games</strong></a>, is a convergence of the gaming world and the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-defi/">DeFi world. The term was used for the first time in September 2020 in a tweet from <strong>Andre Conje</strong>, the creator of DeFi.&nbsp;</p>\n<p>GameFi is based on the combination of blockchain technology, gaming, and a variety of decentralized financial products such as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">non-fungible tokens (NFTs)</strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-yield-farming/">yield farming</strong></a>, borrowing and lending, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-algorithmic-stablecoin/">algorithmic stablecoins</strong></a>, and so on.&nbsp;</p>\n<p>GameFi transformed traditional gaming because the players were given the possibility to <strong>earn money while playing</strong>. 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Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","featured_image_id":6526,"status":"published","chapter_id":7,"language":"en","order":11,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-crypto-taxes","featured_image":{"id":6526,"uuid":"1e44162c-ef1d-4010-81b4-9e8d1809aedf","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","path":"crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","original_path":"crypto/storage/media/how-to-avoid-crypto-taxes.jpg","name":"how-to-avoid-crypto-taxes.o.jpg","original_name":"how-to-avoid-crypto-taxes.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"99.10KB"},"youtube_video":null}]},{"id":8,"title":"Crypto 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Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":364,"original_id":null,"author_id":42,"translator_id":null,"title":"Who is Gavin Wood?","slug":"who-is-gavin-wood","section":"G","keyword":"Gavin Wood","status":"published","definition":"one of the founders of Ethereum, Parity Technologies, and the Web3 Foundation.","content":"<p>In the past, Gavin Wood worked with <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/who-is-vitalik-buterin/">Vitalik Buterin</strong></a> and was one of the co-founders and the chief of technology (CTO) of<strong> Ethereum</strong>. As of writing this, Gavin Wood is the president and founder of the <strong>Web3 Foundation</strong> which focuses on the decentralization of the internet. In addition, Gavin is a co-founder of a blockchain company that aims to build a new framework for decentralized apps (DApps) called <strong>Parity Technologies</strong>.</p>\n<p>In the past, Gavin contributed a lot to the growth of Ethereum. He was involved in the development of the first functional Ethereum application. In addition, he proposed and wrote the code for the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-solidity/">Solidity programming language which is used with smart contracts up to this day. Besides that, he also released the yellow paper of the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-ethereum-virtual-machine-evm/">Ethereum Virtual Machine (EVM)</strong></a>. However, in 2016 Gavin stopped working with Ethereum.</p>\n<p>After that, he focused on a new project called <a href=https://www.bitdegree.org/"https://en.wikipedia.org/wiki/&lt;strong&gt;Polkadot&lt;/strong&gt;_(cryptocurrency)/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Polkadot</strong></a>, which was launched in May 2020. <strong>Polkadot is a multi-chain blockchain ecosystem</strong> that focuses on helping developers create new backward-compatible dApps. Polkadot, unlike Ethereum, allows developers to determine how much to charge in transaction fees and how quickly blocks can be approved.</p>\n<p>Gavin's goal is to bridge the gap between private and public blockchains, making it easier for projects to transact with one another without friction, regardless of various network differences.</p>","level":"easy","meta_title":"Who is Gavin Wood? Definition & Meaning | Crypto Wiki","meta_description":"Gavin Wood meaning: Gavin Wood - one of the founders of Ethereum, Parity Technologies, and the Web3 Foundation.","meta_keywords":null,"language":"en","created_at":"2022-03-15T15:57:40.000000Z","updated_at":"2022-10-05T10:17:10.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/who-is-gavin-wood"},"prevSection":{"id":358,"original_id":null,"author_id":43,"translator_id":null,"title":"What are Game Channels?","slug":"what-are-game-channels","section":"G","keyword":"Game Channels","status":"published","definition":"allow blockchain games to run in near real-time by minimizing block confirmation time.","content":"<p>Before we start explaining what exactly game channels are, let&rsquo;s outline the basic working principles of blockchain games. Blockchain games guarantee fair play due to being accessible only through fully decentralized and trustless environments.&nbsp;</p>\n<p>It&rsquo;s still important to note that <strong>blockchain games</strong> are not without faults and still experience some technical difficulties. Some of them arise as a consequence of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-scaling-problem/">scalability issues</strong></a>.</p>\n<p>Let&rsquo;s take a look at multiplayer games with a massive player base as an example. These types of games require a lot of file and data storage for the number of players it accumulates. This data is stored within the underlying <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain network.</p>\n<p>Moreover, blockchain games have to create a transaction for each move. This is a time-consuming process that greatly depends on network congestion. It makes these types of games struggle with speed. In the case of blockchain multiplayer and player-vs-player (PvP) games, quick actions are key to winning so the delay should be as minimal as possible.</p>\n<p>This is where Game channels come into play. Game channels allow building scalability within any blockchain network without slowing down the transaction speeds. For instance, this way blockchains can integrate lots of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-are-decentralized-applications-dapps/">dApps and support a wide range of blockchain games.&nbsp;</p>\n<p>By using game channels, blockchain games enable secure <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-off-chain-transaction/">off-chain transactions</strong></a> between the players. Therefore, game channels enable the option to build off-chain private channels that run near real-time and parallel to the main chain.&nbsp;</p>\n<p>In the case of game channels, disputes can be resolved without a third-party or central authority. In some sense, game channels are payment channels for every single game.</p>\n<p>We&rsquo;ve established that the game channels' general purpose is to speed up real-time PvP gameplay.</p>\n<p>How do Game Channels Work?</p>\n<p>The majority of blockchain game players experience delays between moves. These delays happen because blockchain games usually add transactions per each move, then mine them into blocks, and activate them. However, there is a way to minimize the waiting time using game channels.</p>\n<p>This is done by <strong>moving the gameplay itself to a secure off-chain network where the players are able to play in close to real-time</strong>.&nbsp;</p>\n<p>For example, let's say two players want to compete for coins. Together, they establish the game rules, chip in for the prize money, open the game channel, and start playing. Cheating without getting caught is virtually impossible since each player is connected to the public blockchain network, and any actions done against the rules are easily provable due to the trustless element. When there is a clear winner between the players, the prize money is released to the winning player&rsquo;s account through the smart contract. Then, the game channel is closed.</p>","level":"medium","meta_title":"What are Game Channels? Definition & Meaning | Crypto Wiki","meta_description":"Game Channels meaning: Game Channels - allow blockchain games to run in near real-time by minimizing block confirmation time.","meta_keywords":null,"language":"en","created_at":"2022-03-15T15:35:01.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-are-game-channels"},"currentChapter":"G","currentSection":"what-is-gamefi","chapterTitle":"G","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-gamefi","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter G

What is GameFi?

GameFi MEANING:
GameFi - a convergence of the gaming world and the decentralized finance world (DeFi).
Easy
1 minute

Let's find out GameFi meaning, definition in crypto, what is GameFi, and all other detailed facts.

GameFi, also known as P2E games, is a convergence of the gaming world and the DeFi world. The term was used for the first time in September 2020 in a tweet from Andre Conje, the creator of DeFi. 

GameFi is based on the combination of blockchain technology, gaming, and a variety of decentralized financial products such as non-fungible tokens (NFTs), yield farming, borrowing and lending, algorithmic stablecoins, and so on. 

GameFi transformed traditional gaming because the players were given the possibility to earn money while playing. In traditional games, in-game items have no value in the real world. However, GameFi transforms this by bringing blockchain technology, cryptocurrencies, and DeFi products into the world of gaming.

Basically, GameFi redefined the concept of in-game item ownership by introducing additional levels to a token-based economy and the ability to earn decent profits through a variety of DeFi products.

Most of these blockchain-based games come with an in-game currency, a token economy, and a marketplace. All of these are typically controlled by the community. With this system, players are the owners of their in-game items which prevents the need for any form of server infrastructure and lowers the possibility of cheating or game hacking.

GameFi’s in-game currency can be exchanged with other cryptocurrencies or fiat money. In addition, players can buy in-game NFTs and sell, rent, or trade them in open marketplaces.

The notion of GameFi has introduced the world to a new use of cryptocurrencies. Unlike with traditional games, no centralized authority regulates the game environment, which is one of the major reasons for GameFi's success. Besides, the blockchain technology behind the platform enables zero-fee transactions that allow gamers to purchase, sell, and exchange digital assets without incurring costs.