Here’s how GameFi combines gaming with blockchain:

1.Play-to-Earn (P2E): Instead of just playing for fun, players can earn tokens, NFTs, or other blockchain assets that have actual monetary value. For example, you might earn a rare sword NFT you can sell on a marketplace. 

2.Ownership of Assets: In traditional games, the game company owns your characters, skins, or items. In GameFi, you actually own your assets on the blockchain, meaning you can sell, trade, or even transfer them between games. 

3.Decentralization: Some GameFi projects give governance rights to players through DAOs (Decentralized Autonomous Organizations), allowing players to vote on game updates or new features. 

4.In-game Economies: GameFi creates full in-game economies powered by crypto. Players can stake tokens, provide liquidity, or invest in game projects like mini-venture capitalists. 

5.Interoperability: Thanks to blockchain standards (like Ethereum’s ERC-721 for NFTs), some GameFi assets can be used across multiple games or platforms.

Examples of GameFi projects:

Axie Infinity — one of the first major P2E games. 1.

Decentraland — a virtual world where you can buy land as NFTs. 2.

The Sandbox — a voxel-based world where players create, own, and monetize experiences. 3.