Definition ∞ Decentralized Gaming Finance, or GameFi, integrates blockchain technology and decentralized finance principles into video games. This model allows players to own in-game assets as non-fungible tokens and earn cryptocurrency rewards through gameplay, staking, or participation in governance. It establishes player-centric economic systems within virtual worlds, providing verifiable digital ownership.
Context ∞ GameFi represents a rapidly expanding sector within the digital asset economy, frequently featured in crypto news. Discussions often center on its economic models, the long-term viability of play-to-earn mechanisms, and its potential to alter traditional gaming industries by offering true digital asset ownership and new earning opportunities for players.