Are NFTs the Future of Gaming?
Are NFTs the Future of Gaming?
Are NFTs the Future of Gaming?
NFTs have been making the headlines recently for all sorts of reasons. From amateur creators making a great income from creating their own NFTs through to cautionary tales like that of the Spice DOA ill-fated attempt to purchase the rights to Dune, when in fact, they had paid more than 20 times over the estimate for a copy of a book which was freely available and wouldn’t give them any rights to the source material.
So what are NFTs? In simple terms, NFTs, or Non-Fungible Tokens, are unique digital artworks that can be bought and sold. Your ownership of the NFT is via certification on a blockchain or ledger.
But how does this relate to gaming? It’s no secret that the major gaming companies are keen to explore NFT as a source of revenue. Being able to create and sell products to gamers, which they can then sell on between themselves is financially huge.
Because of their digital uniqueness, they are now being used within gaming as tradeable assets and characters within the gaming environment.
Gamers have been using NFTs as a currency, being traded between players. Games such as the F1 Delta Game let players use NFTs and fungible tokens in their gaming environment.
Gameplay for Money
Crypto and NFTs have given rise to the earn-to-play formats. These games reward players within the gaming environment. They can then trade and sell these NFTs with others, or even third-party traders outside of the game. There are already multiple stories out there of people who make a living from creating and selling NFTs or gaming.
Potential Cons of NFTs In Gaming
The debate on NFTs in gaming and in general is still going on and is likely to for some time. The most often used arguments against NFTs and cryptocurrencies involve their potential to contribute to energy consumption and climate change. The energy needed to ‘mine’ currencies is so significant, that certain countries have banned it on a large scale.
The potential for fraud is also huge. The decentralized nature of NFTs means that they are not subject to the usual financial and criminal laws of a given state. This can be a huge risk. Money laundering is also a potential risk with any decentralized financial model. Each country is attempting to deal with this in a different way as it struggles to keep up with the technology.
Finally, there has been a lot of pushback on introducing NFTs from some developers, who see them as a money-making scheme that detracts from the narrative drive of games. Players who play solely to make money will become the norm in these environments.
Conclusion
NFTs are changing the digital financial landscape at a pace. While they may have their detractors, it is very interesting to observe how different industries are forging ahead with NFTs, creating their own unique collections. The gaming industry is at the forefront of this progress. If it is able to strike a balance between generating income and enriching gameplay.