How NFTs will take over the Gaming Industry

The gaming industry is seeing one of the biggest revolutions that are changing how eSports and games are changing. From October 2020, the NBA realized the potential for revenue from selling these unique pieces of digital property to fans and players and offered limited-edition ownership of videos and art. These were sold within the game’s NBA Top Shot, and within just a few months, the worth of these NFTs was estimated at $280 million.

The interesting aspect about NFTs within the gaming environment is that it has a wide audience. Anyone from crypto investors to professional gamers can be interested in NFTs. So, what are NFTs, and why are they going to start taking over the gaming industry?

What Are NFTs?

Non Fungible Tokens, better known as NFTs, are digital assets based on blockchain technology that digitally represents proof of ownership. Interestingly, unlike fungible tokens that are indistinguishable from each other, NFTs are unique and distinct. NFTs can practically represent ownership over anything such as videos, memes, real-estate, digital fashion, and more. The sky’s the limit.

NFTs can be very affordable, available to all entry-level players/gamers, or very expensive. For example, in March 2021, F1 Delta Time had an ‘Australia Edition 2020’ Apex car that was an NFT and was sold for $288,000.

Other NFTs have sold on other platforms for more. For instance, art collector, Pablo Rodriguez-Fraile, has sold a 10-second video NFT on TikTok for $6.6 million. The NBA has sold videos from games that fans can own, and this industry is now estimated to be valued at approximately $280 million.

NFTs first appeared in about 2012 where colored coins were created. Colored coins were smaller denominations of the popular bitcoin and could be as small as a satoshi, the smallest unit of Bitcoin. The colored coins were used to represent numerous digital assets in the world. This included digital property, collectibles, coupons, access tokens, subscriptions, and more.

The problem with colored coins was that they were so tied to Bitcoin that their value was fixed. This meant that if people agreed that one colored coin was worth $1, then that was it. However, not everyone thinks that a property is worth the same. Therefore, there needed to be a small change in how NFTs worked.

Why Are NFTs Important Within The Gaming World?

NFTs have a huge importance in the gaming world. Players will be able to take more authority over what games and assets they own within the game. At the moment, games are very fragile. When a gamer ‘buys’ a game, they’re often doing so through a game streaming system like Steam. This allows players to have large libraries of games without the need to have disk drives.

This makes getting the games and switching between games much easier. In addition, communities have been built around games within the interface.

However, there are several problems with this system. The first is that while the players are buying the games, if Steam suddenly went bust or a developer decided to pull a game, then the player will lose access to the game. Therefore, it is typically said that the player hasn’t actually bought the game, but instead, they’re loaning the game. Developers still have control.

A good example of how this has worked is with the Stellaris game from Paradox. The development team behind the game has made several feature upgrades from the originally released game. Many of these updates have been seen positively by the gaming community. But it has become very difficult for players to retrieve older versions if they prefer them.

Another problem is that within some online multiplayer games, the reputation of a player can go a long way to the enjoyment of a game. YouTuber ZMDE enjoys playing Among Us and recording his sessions with fellow players. However, there have been a few individuals who copycat his style and try to steal their fame.

Part of the ease for copycats to do this is that there are limited identifying features that can separate one player from another.

However, by using NFTs within games, the gaming experience can be enhanced.

How NFTs Are Changing The Gaming Environment

One way players can protect their games and their identities within the gaming environment are with NFTs. For instance, Digitalax’s ESPA platform requires players on the Among Us game to have their own skin. These are the identifiers that can distinguish players apart. At the same time, ESPA allows players to earn rewards for playing.

NFTs are being accepted by the gaming community because they create a unique experience that players love. They can have a unique player look that can give them a reputation within a gaming environment.

In addition, when gamers are bored with their NFTs, such as they no longer want an NFT video or particular skin for their character, they can then sell this on various NFT marketplaces. If they’ve done really well within the skin or with the NFT, their fame within the gaming model can push up the price of the NFT and a player can make a lot of money from their old NFTs.

Are NFTs A Sustainable Future Of Gaming?

NFTs are becoming an important part of the gaming environment. It has only been a few months since some big brands have started to use NFTs within their models. However, these digital assets have significantly increased in value. The NBA went from 0 to $280 million in just a few months.

Until March 2021, NFTs had achieved sales of over $700 million within just three months. Some of this money is going to developers of games. However, there are also crypto artists who are using platforms like Digitalax to sell NFTs to players within games to earn revenue.

This has created a more sustainable economic model for everyone. Players are more willing to stick with games because NFTs change the game environment so that the world is unique for the player and can be changed instantly and to the player’s style.

Likewise, developers and crypto artists can build a better business model. They can specialize for longer within a specific environment. They can build a specific brand and become more well-known. Developers and artists can help build reputations on platforms like YouTube and TikTok.

Conclusion

The gaming world is changing, and NFTs are becoming a central part of it. NFTs create an environment that is unique for players that give them ownership that they can’t experience in traditional gaming models. Players can use these NFTs and make them part of their branding and keep them forever. Or they could build their reputation and then sell the NFTs to another player for more money.

Developers can also use NFTs to earn more money from players. They can sell unique skins or items that players can use within the game. This can make players stay with games for longer that can reduce the costs for developers as they don’t need to create more games to keep players happier, which is more costly than selling NFTs.