NFT is seemingly the only thing anyone can talk about for the past few months. Everyone from social media influencers to news channels are abuzz about this trending technology. The unprecedented growth of NFTs caught crypto experts and regular people by surprise. The NFT craze also has the attention of game developers looking for ways to integrate NFTs into games. Some people argue that NFTs in gaming is a fad, and it will vanish after a time. However, we know that NFT gaming is just starting and has incredible potential in the industry. Hence, there are opportunities for developers who are ready to dig deeper into the NFT games topic and the GameFi world.
If you want to build an NFT gaming platform or learn about NFT gaming projects, then you came to the right place. The most famous NFT gaming platforms are ecosystems with the backing of several investors and people who love to play. This combination leads to increased revenues for the developers and more companies entering this space.
The Problem With Most Live Service Games
The global gaming industry generates revenue across three sectors. They are console, PC, and mobile and together, the sector makes profits in the hundreds of billions. However, while the industry gains immense profits from this growth, players do not gain lasting value. Players invest in expansive consoles, PCs, or mobile-friendly peripherals and enter a gaming landscape that has a tiered-access user experience. Here, the money flows from the player to the developer. Players can only unlock additional features and access in-game content by spending extra money.
In contrast, an NFT gaming platform- many decentralized applications exist to generate value for players. This perspective flips the paradigm and enables players to gain greater value from playing the game. They can capture the utility and value of assets obtained through in-game purchases, regular gameplay, and promotional events.
In a regular game, the user buys an item and the item enhances the gameplay in the context of that game. However, in a gaming landscape that runs on blockchain technology, the player can tokenize that upgrade. This way, the player turns in-game purchases into assets the user can exchange or sell.
The underlying blockchain networks enable users to generate and deploy NFTs across several gaming landscapes. The unique nature of NFTs and the ability to retain value outside their original platform means that blockchain-built games can dramatically expand gaming economies. These games can establish additional gaming categories and increase the development of new games.
We must first understand NFTs before diving into how developers can use blockchain to create more NFT gaming projects.
Non-fungible Tokens, And You
Non-fungible tokens are not limited to the gaming industry. These tokens can represent physical assets like real estate, artworks, collectibles, and a person’s identity. NFTs have a broad use case potential that appeals to several industries. Compared to other digital tokens, NFTs have three notable highlights.
They are non-fungible
Each NFT is a cryptographic token existing to represent something non-fungible or unique. A non-fungible asset means that you cannot exchange one NFT for another. The metadata found inside each NFT exists as a permanent record on the blockchain that no one can alter. This record shows what the token is, the transaction record, and the token’s previous owners.
They are rare
The scarcity of each NFT plays a crucial role in making them many sought-after prizes. For example, in the game CryptoKittes, users can collect and breed digital cats. Here, each cat is embodied by an NFT. Some CryptoKitties are rare collectibles, and that increases their selling price among collectors. In 2018, there was a CryptoKitty that sold for 600 ETH or 170,000 USD at the time. The rarity of some NFTs makes them more desirable among collectors, thus increasing their prices.
They are indivisible
Cryptocurrencies and fiat currencies are divisible into smaller units. This feature is due to their fungibility and purpose as an exchange medium. NFTs, however, must be bought, sold, and held as a single unit. This trait makes them inseparable.
The three highlights are the defining characteristics of NFTs. Understanding this means we can now look at the benefits of deploying these tokens on an online gaming ecosystem.
Benefits Of An NFT Gaming Platform
The several benefits from a decentralized NFT gaming project include
Typical in-game purchases are one-time, non-transferrable assets that remain inside that gaming ecosystem. NFTs in a gaming environment give players ownership of their assets. The player can retain their assets purchased on the game, sell these assets to other players or move them to a platform that supports the game.
Any collector values scarcity and authenticity. Anyone can prove an in-game NFT asset through its immutable records. The distributed public ledger validates the number and the uniqueness of each NFT and its ownership history.
Most online games operate on a centralized server. Game assets exist on proprietary systems that do not interact with each other. However, decentralized games work on independent blockchains. These blockchains are like the backend foundation for other games using the same network. This networking results in in-game assets represented by NFTs that can work to operate across several environments. Games existing on the Ethereum network can in theory support the same assets.
When a regular online game shuts down its servers, the player loses all their in-game purchases. NFTs, however, exist independently of a specific gaming platform and live entirely on the blockchain. Hence, a player can purchase and sell NFTs regardless of what happens to the game. New games can be designed to operate on an existing blockchain protocol. Additionally, blockchain-enabled game assets are unique and cannot be tampered with thanks to their permanent records.
NFTs and the future of NFT gaming projects
The integration of NFTs into the gaming world comes with some benefits and also some drawbacks. The most significant obstacle for an NFT gaming platform is making NFTs appealing and intuitive to mainstream consumers. Many people remain unaware of NFTs and might not have an interest in playing an NFT game.
NFTs possess an intrinsic value, and there is a risk that some can turn into speculative assets. This mindset can coerce players into hoarding items and sell them later on for profit. This idea runs opposite to the purpose of the game itself.
Though there are several challenges present, there is also incredible potential for the industry. This potential can motivate players to focus or experiment on NFTs. These companies can work together with third-party blockchain projects that understand blockchain and bring their vision to life. Additionally, the success of decentralized gaming apps catalyzes NFT infrastructure improvements and drives development forward.