GameFi investment is surging: Blockchain becomes a staple in every title

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Web3 games have been approached with a lot of skepticism over the last few years. However, the industry has undergone significant changes in the developer’s approach to game mechanics, reward models, and inclusivity factors. Conclusion? We see GameFi emerging stronger than ever.

This is not just a theoretical observation, it is a statistical observation. In the second quarter of 2024, blockchain gaming projects received a significant investment of $1.1 billion, an increase of 314% compared to the previous quarter. The positive investment sentiment is largely attributed to the growing adoption of web3 games; as these currently account for 28% of all dApp activity.

Therefore, it would not be wrong to say that GameFi is evolving. So what will come next? How does the industry maintain this momentum and where are blockchain games heading globally?

From Web3 niche to industry standard

One thing is clear: Web3 games are no longer a passing trend. Blockchain technology has now proven itself as an indispensable tool for the gaming industry, and the reasons for this are quite compelling. The most important advantage that blockchain brings to the table is ownership. Players can now own in-game assets such as skins, characters or items, creating real value that goes beyond a single playthrough. Web2 games traditionally allowed players to make in-game purchases, but these assets remained tied to the game’s ecosystem without the option of actual ownership. Blockchain eliminates this barrier by providing true asset ownership and secure transactions, allowing players to trade or sell items across multiple platforms.

Investors took notice. The massive capital injection we see in the second quarter of 2024 is just the beginning, and its strategic implications go beyond the numbers. Investors are now looking for games that offer long-term value, where blockchain mechanics complement the game rather than overshadow it. This marks a new phase for GameFi, where the focus shifts from short-term speculative gains to creating sustainable ecosystems for both players and developers.

Therefore, developers who ignore this change risk being left behind. Those who embrace blockchain and web3 technology as part of their long-term strategies are more likely to survive in a market that is rapidly becoming blockchain-centric.

Eliminating challenges in Web3 adoption

For blockchain games to achieve mainstream appeal, they need to shed the complexity associated with web3 mechanics. A common criticism from gamers unfamiliar with web3 is that it introduces unnecessary complications. The integration of wallets, NFTs, and tokens can alienate players who just want a fun experience. Games should be games first, whether they use blockchain or not. What sets blockchain games apart from others is that they add layers of opportunity, not confusion, as long as developers focus on ease of use.

The solution lies in seamless integration. In successful blockchain games, the underlying technology becomes invisible to the player. They don’t need to understand the intricacies of NFTs or smart contracts. What they see is a game where they can trade, own and invest in digital assets without any technical friction. Developers are increasingly focusing on making blockchain elements that enhance the player experience ‘backend’ technology, rather than becoming the experience itself. Once this balance is achieved, web3 gaming will be widely adopted by players who once considered it overly complex.

The future of GameFi: Long-term vision and strategic investment

As the market matures, the focus is shifting from play-to-win business models to competitive and efficient gaming environments. Many early P2E GameFi projects have already collapsed due to unrealistic tokenomics and superficial game mechanics.

The lesson learned here is very important: Games should not be created solely for profit. Fun and engaging play must remain a priority; blockchain provides reward and ownership opportunities as a secondary benefit.

We have also learned to accept and adapt to this change in Farcana, which was originally released as a P2E game but has now been rebranded as “Bitcoin Shooter”. We shifted our focus primarily to the competitive nature of the game. Players earn Bitcoin (BTC) not just for logging in or participating, but as a reward for mastering the game. This model encourages genuine player investment and skill development, moving away from the short-term profit-seeking behavior that characterized previous GameFi projects.

Games that value experience and competitiveness will also attract the attention of investors. Investors examine the technology behind the games and the teams that develop them. An important component of securing investment is demonstrating that your game will stand the test of time. Building trust through transparent tokenomics and strong community engagement is crucial.

Interoperability and cross-platform potential

Another promising direction for the GameFi business is interoperability, where assets are easily transferred from one game, platform, or even from one blockchain to another. This cross-platform compatibility could fundamentally change the game. Esports leaders can also see a future where a sword obtained in one game could be used in another, or a player could trade in-game currency in another game, creating an extra layer in the economy. This is where blockchain technology has been established to advance the concept, and we are already witnessing the first attempts.

This will be a major trend that will drive GameFi adoption worldwide. It is no longer possible to deliver games as standalone applications that run separately from other games. People’s money needs to be protected and have the possibility of gaining value in other experiences, and the technology for this already exists. When web developers focus on ways to make games interoperable, they will be able to capture the attention of both players and investors and uncover entirely new ways to make money.

Security and players’ trust

As GameFi continues to grow, security remains a critical concern. One of the biggest reasons why most web3 game projects failed after 2021 was due to underlying vulnerabilities. The decentralized nature of blockchain offers solutions to many of the traditional security issues that plague online gaming, such as fraud, hacking, and item theft. Blockchain’s immutable ledger ensures that assets are tied to players, not individual games, and protects player investments no matter what happens to the game.

The ability to secure assets creates a trust-based ecosystem; This is a feature that will be crucial for mainstream adoption. Even if a game goes offline or a developer disbands, players need to be confident that their in-game investments are safe. Blockchain’s security protocols offer this peace of mind when implemented correctly.

The road ahead

It is now clear that as an industry we are moving towards a future where web3 technology is a standard feature of most games. Mass adoption is inevitable but will require strategic investment, seamless integration, and a commitment to fun, accessible gameplay.

New projects must understand that it is not just about making a quick profit; that it’s about creating immersive, engaging worlds where blockchain technology doesn’t complicate the player experience. The key to unlocking this growth will be the industry’s ability to balance entertainment and accessibility while seamlessly integrating blockchain elements; This balance, once achieved, will usher in the next generation of gaming.

Ilman Shazhaev

Ilman Shazhaev is the founder and CEO of Bitcoin shooter Farcana. Ilman is an entrepreneur with a strong scientific background in artificial intelligence, gaming and web3. It has developed healthcare technology and gaming technology solutions used by businesses and governments around the world. A United Nations-recognized expert, Ilman is the author of 46 scientific articles and holds 10 invention patents. His journey in Web3 began with the founding of Oneboost in 2017, and his passion for gaming led to the creation of Farcana, a game with a Bitcoin-backed prize pool. His work reshapes the gaming landscape by integrating web3 elements into mainstream games.