How Can NFT Impact The Gaming Industry?
NFTs (non-fungible tokens) have been a hot topic over the past year and continue today. NFT enthusiasts predict that this blockchain-based token can have a massive impact on every aspect of our lives. One of the areas impacted by NFT is the gaming industry.
NFT makes headlines by opening up new opportunities in various use cases across different industrial sectors. The exciting thing is how NFT is changing the gaming industry, where the gaming market is one of the largest commercial markets in the world.
According to DappRadar, trading volume for NFT reached $10.67 billion in Q3 2021, up 704% from the previous quarter, and in-game items made up 22% of that total. But what is NFT? How will it affect the gaming industry?
Quick Overview of NFT
An NFT (non-fungible token) is a unique digital item or asset with a record of ownership and authenticity stored on the blockchain. The use of the word “token” in the name may be confusing at first because it makes you think that NFT is a type of cryptocurrency, but they are not the same. NFTs are digital items, while cryptocurrencies are digital currencies used to buy NFTs.
NFTs can be any digital item, such as artwork, memes, in-game items, virtual lands, etc. NFTs can also serve as digital records of physical assets such as real estate or paintings. Every NFT will be recorded on the blockchain, a digital ledger that makes NFTs unable to be duplicated. So that an NFT only there is one in this world. The benefits of blockchain technology make NFT so much talked about in various industries.
NFT and Game Relationship
The relationship between NFT and games started long before 2021. The beginning NFT went viral actually because of a game CryptoKitties in 2017. After the game’s success, it was only a matter of time before NFT began to spread in the gaming industry. NFT games are one of the biggest new NFT trends of 2022, and their existence will be difficult to ignore by developers and publishers.
The first thing that usually comes to mind when someone thinks of NFT in video games is in-game items. Although blockchain gaming has become a trend nowadays, most games are still a centralized activity with all the data, assets, and characters stored in the game from which it originates, where game companies and developers retain all ownership of the items.
NFT is expected to bring a new revolution in the gaming industry. The addition of blockchain and NFT technology makes the gaming environment decentralized so that control of the game is in the hands of the players. The most significant impact is the players will be able to exercise full ownership of their unique assets in the game world. It also opens up the opportunity to trade rare assets in the game world that can make money in the real world.
NFT Based Games
Starting from the CryptoKitties gaming craze, NFT games have grown and started offering a play-to-earn (P2E) model. As is well known, GameFi combines the world of finance and gaming, providing opportunities for players to earn while they play. NFT games combine conventional game design with irregular game mechanics to allow users to have more control over in-game assets such as skins, characters, weapons, virtual lands, etc.
In addition, the collection of NFT players can be used in many or even all games because it uses blockchain technology. Data and ownership can be tracked on top of the network, which can be transferred easily across games on the same blockchain share. When moving game NFT, make sure you transfer to a compatible wallet. Also, pay attention to the potential scam every time you send NFT to other users or the NFT marketplace. Don’t forget to read the rules of your NFT gameplay carefully to minimize possible loss.
What Makes NFT Important For Gaming?
Using the technology of NFT creates lasting value for in-game assets and revolutionizes the gaming world. Some of the things that make NFT important for the development of the game world are:
Information Be Transparent
Transparency is one of the most favored and preferred attributes of blockchain technology. When you tokenize your assets on the gaming platform to NFT, this will transparently access information about the asset without compromising player privacy.
Players Can Take Control
NFT will put more power in the player’s hands and allows them to sell items and even earn a percentage or profit from a future resale. This is a huge breakthrough for the digital gaming era for players who grew up selling old games to pay for new ones. Not only that, of course, NFT games can also embrace player-carrying ownership.
Players put money into the game, but the money can be lost if their account is stolen or locked and left behind if they move to play a different game so that the eternal characteristics of NFT can turn the game into a good investment ecosystem.
Any items that a player acquires, finds, or unlocks in a game only have their in-game value. NFT offers a more profitable way for gamers with method trade in-game items on the secondary market, lend them, share them, and more.
Opening the Metaverse Path
The existence of the metaverse is changing the way we socialize, work, play video games, and interact. It will have many facets and spaces, and we will even have different “personalities”. Metaverse can be defined as a simulated digital environment that uses augmented reality (AR), virtual reality (VR), and blockchain. Games NFTs like Splinterlands and Axie Infinity become the main option for those who want the benefits of blockchain and metaverses. Games will be a part of the metaverse, and NFT will be the glue that connects the two.