What could NFTs mean for the gaming industry?
Written by Siddhartha Swarnakar
Since the beginning of 2021, non-fungible tokens (NFTs) have become the new focus of the scientific and industrial community in the cryptocurrency market. Unlike standard cryptocurrencies such as Bitcoin or Etherium, whose coins are all identical, indistinguishable, and “fungible”, NFTs are described as digitally pure assets that cannot be transferred like Likes; As a result, they are extraordinary and “non-fungible.”
When you purchase an NFT, you get a token (similar to a receipt) for that item, whether it’s art, an in-game aesthetic, or something else. Part of the debate is whether copyright is counted at all, because the nature of the Internet makes image sharing and downloads a Waste West, so you can own an NFT for a photo when millions download a single JPEG. Nevertheless, over the past 12-24 months, there has been an increase in image owners – especially those photos that have become ‘memes’ – selling large bitcoins for an NFT token of that image.
NFTs in the gaming industry
NFT is now the most popular example, thanks to Ubisoft, a French video-gaming company and their quartz initiative. It provides ‘Digit’, the only NFT branding that appears on PC as Ghost Recon: Breakpoint Cosmetics. These NFTs were not initially sold directly to players, but were issued on a first-come, first-served basis if you claim them or meet certain in-game conditions, such as a certain number of hours of play. The venture has partnered with Tezos, a platform with its own cryptocurrency (XTZ); Tezos trades with cryptocurrencies, so anyone who sells quartz digits will have to navigate their Tezos’Wallet ‘system and follow a multi-step process if they want to convert sales into currencies like the US dollar.
Ubisoft will not be the last company to include previous micro transactions in the limited edition NFT; Additional companies are expected to follow suit. However, it does provide people with the opportunity to sell or resell products if they need to. Therefore, NFTs will enable the creation of digital assets and currencies for General Z who will value NFT assets more than real life assets in the future.
NFT will shift the power of the gaming economy into the hands of gamers
NFT will completely change the way people buy / own virtual assets in the game. To give an example, suppose you are buying an interesting costume in a shooting game for your avatar. They are valuable for clothing. Interoperability within NFTs will play a huge role in bringing more utility and value to NFTs where an NFT purchased in one game will be valued in another game.
According to market research firm Interpret, 56 percent of the 1,500 console and PC gamers are interested in earning nonfunctional tokens (NFTs) through gaming. According to the report, NFT has a market capitalization of 11.72 billion. Axi Infinity, Guild of Guardian and more games of this genre are gaining popularity. It makes sense to say that the next gaming revolution is here.
The current challenge in NFTs
According to a study published in the Munich Private RePEc Archive, it offers a study of the performance and dynamics of this new crypto niche, characterized by continuous development driven by gamers, traders and business curiosity. On the one hand, the results show that the average long-term performance of play-to-earn and metaverse tokens is favorable. Thus, (i) gaming activity is paid for by tokens that players earn while playing and (ii) due to good returns, blockchain companies can discover an alternative market share in this sector to invest in. However, due to the volatility of the cryptocurrency market, vague results were shown when comparing the effectiveness of these tokens with the cryptocurrency market.
While NFTs are theoretically a good way to manage ownership across different gaming ecosystems, the technical barriers to product transfer across them actually make it a pipe dream. It’s like trying to fit a Honda CV to a cup holder from an Audi. The Honda Civic has no structural support, no basic form, the materials are all wrong, and the car type is inappropriate so it will probably look funny.
Same situation when transferring NFT from one gaming environment to another. It may not always be the right fit. However, with the advent of technological advancement, this could be a simple transition.
The author is the co-founder and chief product officer of Tamasha Live
Read more: Is marketing crippling the story of e-commerce growth?
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