How NFT’s could Change the Future of Gaming
We’ve all heard of NFT’s in the art world, but what can they do for the gaming industry?
What are NFT’s?
NFTs are essentially a type of crypto-token that is created on an Ethereum blockchain. They can represent all sorts of unique or rare assets, from in-game items to sports memorabilia, and they’re much more fluid than traditional cryptocurrencies or tokens.
Where does gaming come into it?
NFTs are essentially a type of crypto-token that’s created on an Ethereum blockchain. They can represent all sorts of unique or rare assets, from in-game items to sports memorabilia, and they’re much more fluid than traditional cryptocurrencies or tokens.
Two of the biggest gaming companies to impact the industry are Riot Games and Epic Games. By offering free battle-arena and shooting games, they have become the most popular genre of games within society today. These offer visual augmentations to your avatar, weapons, and ‘skins’ that can all be purchased in-game, and the more expensive your assets are, the higher you are valued in the game. According to businessofapps.com, in 2020 the annual revenue spent on Fortnite was $5.1 billion. To emphasise the point, ‘skins’ don’t improve the quality of the game or gameplay itself, it’s only a statement of how you’ve dressed your character.
Although that may seem like a pointless way to spend money, it sure is a win for digital artists! With ‘skins’ becoming a digital art form for online games, NFT’s could allow animators and 3D artists to take ownership and authenticate their designs if they wish to sell them.
The concept of digital collectables in the world of gaming isn’t a new idea. Any game that offers rare, unique, or one-off items instantly increases the value of these in-game assets, which can then be sold on in the real world. During the Pokémon Go craze back in 2016, people would dedicate their time to get to the highest level, collecting the rarest Pokémon to then sell online. Since then, some Pokémon Go accounts have been auctioned off at over $10,000.
Benefits for the gaming industry
The problem with this for online gamers and buyers is the risk of hacks, errors, and scams when it comes to valuable digital assets. NFT’s can help safely secure the assets as they reduce the risk of all of these threats. NFT ownership is blockchain-based, meaning that the risks to digital ownership are significantly reduced. NFT’s are renowned for their transferability with blockchain being tamper-proof meaning they can also be traded safely on secondary platforms like CryptoKitties.
There are a huge number of positives when it comes down to the concept of digital currency and not just in gaming. Whilst it’s a concept that may be daunting to most as it’s still pretty foreign, it’s something that is ready to disrupt industries whether we like it or not, so I say it’s time we embraced the idea of NFT’s and crack on with it!