You may have wondered why there was such a stir about cartoon simians after reading about Bored Ape NFTs online. You may have seen some Twitter users suddenly flaunting strange hexagonal avatars. Perhaps you’ve heard that NFTs are going to play a significant role in the gaming environment in 2022, but what exactly are they? What gaming firms have gotten on the NFT bandwagon, too? So here it is—the whole NFT explanation, complete with market research and more.
A non-fungible token is referred to as an NFT. An NFT is simply an electronic token with a unique serial number that cannot be divided. Two NFTs are distinct as long as they have different serial numbers, even if they tokenize the same item (for example, the same gif).
Imagine that each NFT is a tiny data box containing a smart contract, and a bit of code. The box for Art NFTs includes a hyperlink leading to an image’s URL. The JPEG itself is not there in the box; only the link is. What then is the purpose of owning an NFT?
There is actual physical scarcity on the planet. The original Mona Lisa can only be owned by one individual; reproductions of the painting are available to everyone. However, there is no shortage on the internet. Any kind of media can be endlessly replicated, allowing everyone to share in the delight of the shared experience.
NFTs are a means to give digital commodities a false sense of scarcity and establish online exclusivity. Things that qualify as “unique” might also be in short supply. Additionally, there is no mechanism to prevent anyone from editing or deleting the content on the other side of a link, and if the URL saved in your NFT is no longer accessible, all you have left is a link to an outdated website. For instance, if Jack Dorsey sells an NFT of the very first tweet, the tweet will no longer link to your NFT if his account is suspended, Dorsey decides to remove it, or Twitter is shut down.
NFTs & Functionality
NFTs can contain more than just a URL link to an image or video. We might see basic games sold as NFTs since some NFTs use smart contracts to store revocable metadata, such as character stats, or to allow users to carry out certain tasks. Although some game developers have already tried this, NFT games have new issues. In an NFT, updating, patching, and bug fixes are quite expensive and cumbersome.
NFTs are also being used as access cards to demonstrate ownership of a specific VIP region in an MMO or, conceivably, a Discord server just for membership NFT holders.
Although each NFT is eternal, there are numerous methods that game designers could prevent players from using the tokens in actual play (Look at the Squid Game crypto scandal). Any token that is used to authorize entry into a game may also be used to prohibit it. Additionally, since all NFTs are visible on the blockchain, it’s feasible that the developers of one game might exclude you from it or secretly reduce your rewards if you have NFTs linked to another developer’s game.
Converting In-game Items into NFTs
Some crypto-enthusiasts think that converting in-game assets like weapons or character skins into NFTs will lead to actual ownership and the opportunity to resale undesirable in-game goods. Some people even assert that characters or NFT objects would be transferable from one game to another. You could use your NFT-based persona, rifle, or stuff in the sequel or perhaps the upcoming Far Cry, so it wouldn’t matter if Ubisoft shut down the Ghost Recon Breakpoint servers.
Even if you have an NFT that declares something is yours forever, the developers might decide to remove its value from the game. It’s unfortunate if you were counting on being able to resell it since just though your NFT gun is fantastic right now doesn’t guarantee that the game company won’t nerf it in the future.
Moving NFT characters from one game to another would be a logistical headache, even if a corporation was willing to try. Game programming, technology, and aesthetics all evolve with time. To function properly in a new game, animations, textures, hitboxes, and character models would all need to be changed. It would be challenging to even move a skin between games powered by the same game engine. Additionally, it depends on a game developer producing the same genre of game in the future. When you take into account the intellectual property rights for various games, transferable in-game item NFTs become even more involved and expensive.
NFT games have been created by smaller companies and are becoming more popular in the mobile gaming industry, despite the fact that Western AAA developers have yet to release any games centered around NFTs. When players use NFT games as a secondary source of income, Central and Southeast Asia have shown a particularly favorable response. The Sandbox, Gods Unchained, and DeFi Kingdoms are among the most well-known games. In the most well-known game, Axie Infinity, each creature (referred to as an Axie) has its own unique NFT with its own strengths and weaknesses. It is an Ethereum-based battler that falls in between Hearthstone and Pokémon-style fighting.
Blockchain Based-Gaming Platforms
There are more blockchain games than you probably think, and they are much more than a passing fad. And for good reason: Using distributed ledger technology can improve a gaming platform in a number of ways, such as stronger account security against hacks and player progress tracking to ensure fair play.
Technology is becoming more popular. Major companies like Consensys and Ubisoft are members of the Blockchain Game Alliance, which was established to promote blockchain in gaming.
These are just some of the blockchain gaming examples:
- Immutable: With its platform Immutable X, which scales NFT transactions while maintaining the security and integrity of the Ethereum blockchain, Immutable is elevating web3 gaming to a new level.
- Mythical Games: A blockchain-based game development company called Mythical Games uses ledger technology to expand digital economies based on digital assets, verifiable trading practices, and product scarcity.
- OpenSea: Users can apply a variety of digital materials, including digital art and trading cards, to the metaverse through OpenSea, an NFT marketplace. Following the creation of an Ethereum wallet and profile, the platform, which is based on the Ethereum blockchain, enables users to create their own NFT collections.
- Decentraland: The first blockchain-powered fully decentralized virtual environment where players can choose the game’s rules is called Decentraland. The Decentralized Autonomous Organization that users use to retain world control, created the framework for character interaction.
In Final Words
Numerous industries, including the video game industry, are altering due to NFTs. We had gradually grown accustomed to seeing in-game purchases. Games that monetize using micropayments include Star Wars Battlefront II, Fortnite, and Pokémon Unite, to name a few. However, being a part of this hype is harder than it sounds so many organizations hire companies that offer NFT development services and help them create better products that can compete with the existing ones on the market.