{"id":2772,"date":"2022-07-04T16:20:57","date_gmt":"2022-07-04T16:20:57","guid":{"rendered":"https:\/\/www.finahukuk.com\/en\/?p=2772"},"modified":"2022-07-04T16:22:31","modified_gmt":"2022-07-04T16:22:31","slug":"gamefi","status":"publish","type":"post","link":"https:\/\/www.finahukuk.com\/en\/2022\/07\/04\/gamefi\/","title":{"rendered":"The legal aspects for GameFi and blockchain gaming"},"content":{"rendered":"\r\n<p><span style=\"color: #000000;\">GameFi is a trendy concept in the gaming and blockchain industry. It is a technology that tries to catch people who do not like to pay to play online games. Since it is possible to get the reward of time and effort in GameFi games.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">Money flow in classic online games is one-way. The player deposits the money, buys the item, and continues on his way. GameFi ensures that this direction is double-sided. Because players own digital assets, this situation requires legal practices to protect digital assets.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>What is GameFi, and how does it work?<\/strong><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"color: #000000;\">GameFi is a specific term derived from DeFi, which means <a style=\"color: #000000;\" href=\"https:\/\/www.finahukuk.com\/en\/2020\/04\/10\/decentralized-finance-what-it-is-and-how-it-works\/\">decentralized finance<\/a>. The structure of GameFi-style games is slightly different from standard games. It is accompanied by blockchain technology that allows players to prove their ownership of the virtual items they receive.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">The options offered to players in classic online games are more or less clear. An approach often called pay-to-win prevails. Players who buy particular items with money gain an edge over others. Over time, there is a difference between paying and non-paying players.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">GameFi offers a play-to-earn approach. Players can earn money thanks to the skill of playing and the time spent. Strategy is necessary to make money, and luck is secondary. However, two different structures enable GameFi projects to work:<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<ul>\r\n<li><span style=\"color: #000000;\"><strong>DeFi:<\/strong> DeFi is a decentralized form of finance that proceeds using blockchain technology. For this reason, gambling and betting options are open in most GameFi projects. In addition, players have a chance to earn income by locking digital assets in their hands.<\/span><\/li>\r\n<li><span style=\"color: #000000;\"><strong>NFT:<\/strong> It is a digital asset created using blockchain technology. These digital assets have an owner. Digital assets can be avatars, houses, animals, or something like these. If the owner of the digital asset wishes, he can sell it for crypto money and earn income.<\/span><\/li>\r\n<\/ul>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">To be able to play GameFi games, the player needs a cryptocurrency wallet and a certain balance in the wallet. The player must purchase digital assets at the initial stage. Then he can join the game, develop various strategies with his digital assets, and earn money.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>What are GameFi examples?<\/strong><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"color: #000000;\">It is possible to see different GameFi projects as the world of cryptocurrencies gradually expands. However, very few of them managed to survive. Axie Infinity is the most popular of these types of games. It is followed by games such as Decentraland and The Sandbox.<\/span><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li><strong><a href=\"https:\/\/axieinfinity.com\/\">Axie Infinity<\/a>:<\/strong> <span style=\"color: #000000;\">Axie Infinity is an NFT-based online game. In the game, users use Ethereum-based AX and SLP cryptocurrencies. Players collect, nurture, trade, and forge certain digital assets.<\/span><\/li>\r\n<li><strong><a href=\"https:\/\/decentraland.org\/\">Decentraland:<\/a><\/strong> <span style=\"color: #000000;\">Decentraland is a digital world powered by its users. Everything in the digital world is in the form of an NFT. Since the average number of users is relatively high, it has a slightly different economy than the others.<\/span><\/li>\r\n<li><strong><a href=\"https:\/\/www.sandbox.game\/en\/\">The Sandbox<\/a>:<\/strong> T<span style=\"color: #000000;\">he Sandbox is also known as a metaverse. Players try to do something based on their digital experience. A cryptocurrency called SAND is used. The economy of the game is entirely based on the users&#8217; interactions.<\/span><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>GameFi projects are followed closely by both players and investors. The fact that the metaverse concept is becoming known day by day makes the work of such projects easier. It has also made specific cryptocurrencies much more popular than others.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>GameFi and publishers&#8217; licensing problems<\/strong><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"color: #000000;\">One of the legal problems in GameFi projects is related to publishers&#8217; licenses. Publishers must regulate the licensing of any items included in the game. The more diverse the elements in the game, the larger the legal regulations to be made.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<ul>\r\n<li><span style=\"color: #000000;\">GameFi projects use a variety of tokens as currency. If they are accepted as a means of payment by law in a country, they have various legal bindings.<\/span><\/li>\r\n<li><span style=\"color: #000000;\">However, this scope cannot include crypto-assets called pure utility tokens. Because they cannot be used for investment or trading purposes.<\/span><\/li>\r\n<li><span style=\"color: #000000;\">The game publisher will determine the difference between the tokens. However, this is not evident in every game, creating a legal regulation challenge.<\/span><\/li>\r\n<li><span style=\"color: #000000;\">From the perspective of NFTs, the laws applied by countries may differ. In certain countries, NFTs are presentations of assets that any bank does not guarantee.<\/span><\/li>\r\n<li><span style=\"color: #000000;\">NFT is not seen as a legal investment tool in many countries, but it is an investment tool. It can be seen as a financial instrument as it is an increasingly powerful digital asset.<\/span><\/li>\r\n<\/ul>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">The point of blockchain games is quite clear. A world where everything in the game has value can be a lot more fun when built. However, this requires legal regulations where players can protect their assets in the game.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><strong>GameFi and possible legal aspects<\/strong><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"color: #000000;\">Regarding intellectual property rights, people who use digital assets used in GameFi games may not be fully aware of what they own. It can be said that a patent or an item in the blockchain does not give full ownership to the person.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">A central system does not control the items in GameFi. This is the situation at the core of the projects. Although a critical idea, it poses a complex jurisdictional problem because it is easy to find specific contradictions across various laws.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">On the other hand, the digital assets in GameFi can only be used correctly by experts. In games based on NFT, legal problems may arise if players try to store it and sell it for a higher value later on.<\/span><\/p>\r\n<p><span style=\"color: #000000;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"color: #000000;\">It is not easy to predict the future situation, even if, for the moment, they are far from pay-to-win in nature. There should be a balance between the purchasable items and the game economy. If the balance is not achieved, GameFi projects can turn into pay-to-win.<\/span><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>GameFi is a trendy concept in the gaming and blockchain industry. It is a technology that tries to catch people&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,17,191,190,192],"tags":[10,193,195,178,194],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The legal aspects for GameFi and blockchain gaming - Finahukuk<\/title>\n<meta name=\"description\" content=\"What is the legal situation regarding the property rights and commercial use of digital assets in GameFi projects? 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