13th Jan 2022

NFTs: How these digital assets will change the gaming industry.

Blockchain

Written By, Gaurav Mehta

Overview

Many a time in the fast-changing world of technological improvement, you may observe some people or broadcasting media discussing Web 3.0, blockchain, crypto, NFT, Game-Fi, P2E Model, and many more. These might be elegant and enticing terms that regular folks are drawn to. However, understanding it might be difficult at times. So, Let’s look into it! And comprehend how the introduction of new web elements will assist us, as well as whether there will be long-term benefits.

Web 3.0 also known as the spatial web is an upgraded version of the web and a successor to web 2.0. Which has a basic notion of being distributed and decentralized in terms of authority and control of access. It will achieve these features by making open, trustless, and permissionless networks that operate on specific and pre-guided algorithms.

nft-game-overview-web3

© The Spatial Web: How Web 3.0 Will Connect Humans, Machines, and AI to Transform the World

What is Blockchain?

A Blockchain is a long non-ending list of records that are stored in specific sizes of data blocks. The way data is arranged in a standard database versus a blockchain differs dramatically. A blockchain accumulates information in chunks known as blocks, which store sets of data. When a block’s storage capacity is reached, it is closed and connected to the previous full block, producing a data chain using cryptographic techniques. All additional information contributed after that newly added block is combined into a freshly formed block, which is subsequently added to the chain when it is complete.

What is NFT?

Non-Fungible Token abbreviated “NFT” is a use case of Blockchain technology. So, it is a digital token that tells the ownership of one-of-a-kind assets in the digital world that can also be pegged with real-world assets.

NFT is a so-called economic term that can describe things like wooden doors, streets, and songs. These assets may be artwork, collectibles, and much more that you even can’t think of. Neither this provides fungibility nor can be duplicated.

These are advantages that provide benefits to many markets, industries and sectors. One such area of interest is the gaming industry which is growing at an exponential rate in recent decades with better digital penetration around the world.

How are games and NFT both gonna work together?

With increasing demand in gaming and the boom of the crypto world, both can merge these two fields at a higher par. Shortly, NFT will be useful for in-game purchases which then can be traded or the owners can lend it to someone and earn payments on pre-decided terms. In different game genres, there are many characters, weapons, powerups, streets, models, skins, avatars, etc that can be treated as NFT, and from there on they can play games accordingly.

Play-to-Earn NFT Game

Play-to-earn is pretty self-explanatory like you play a game to earn money, in this case, cryptocurrency. This adds a new layer to video games, shifting the emphasis away from pay-to-play or pay-to-win and toward play-to-earn. As a result, play-to-earn NFT games allow players to make money while maintaining complete control over their characters and in-game items. Because the game itself is often “free,” and you must be skilled at the game to earn and spend money, the P2E article outlines some of the current concerns with traditional gaming.

The better you go, the more crypto you earn to spend on character upgrades. Yes, there will always be whales, but you may now compete using the cryptocurrency you earned by playing the game. Because most P2E games are entirely decentralized, no one may terminate your account. Because it is utilized in every transaction, the in-game coin is extremely valuable.

Advantages of NFT in-game

  • Asset Ownership and Control
    The usage of NFTs in gaming allows the user to own all game collectibles and assets, as well as have complete control over them in a decentralized system.
  • Transfer of Ownership
    A player may trade his gaming treasures whenever he wants and obtain a fair price for them. This makes the buyer the existing owner through ownership transfer and recorded on the blockchain.
  • Security and Uniqueness
    Assets cannot be replicated since they are non-fungible, and they cannot be fraudulently possessed or lost when a game is shut down because they are kept in a wallet only.
  • Transparency and Provable Scarcity
    The existence and history of ownership are entirely unalterable and available to the general via blockchain. Additionally, blockchain explorers provide complete transparency and verified exclusivity to each object.
  • Investment Opportunity
    Because of the novelty of NFT in gaming, it provides a large investment potential on game collectibles, wherein, especially scarce objects that others desire and need, may rise in value significantly and provide the owner with a very strong Return on Investment (ROI).
  • Branding and Creativity
    NFTs can be used to boost brand recognition because they can be presented in multiple NFT markets. They may also be utilized to attract fresh attention and adoption by incorporating new creative features into designs.

Conclusion

Thus there is still a long way to go, but if these three trends continue, the gaming industry will be unrecognizable within the next few decades. Ultimately, these new technological applications like NFTs will not only change the gaming experience for consumers but also how developers interact with their games. And at last, what the user likes is the main focus area. Moreover, we will see very drastic changes in the gaming industry.

Written By,

Product Business Analyst at Yudiz Solutions Ltd