Gamification involves the incorporation of traditional gaming elements into non-gaming activities. Such features include achievements, skills, and competition to reward user behavior. We have seen this trend develop as humans go more digital, coupled with the increasing popularity of video games. An array of different products have leveraged this approach, including banking, self-help apps, and marketing campaigns – this is unsurprising since studies on gamification show a direct link between increased motivation and higher levels of engagement. However, the customer adoption/retention rate is potentially game-changing when you add blockchain technology into the mix – it allows the distribution of digital assets with financial value directly to users instead of things like vouchers or discounts.
Combining financial incentives and gamification techniques is a potent combination, giving rise to the umbrella term, GameFi. We have already seen the boom of the Play-to-Earn (P2E) economy borne out of actual games.