What are the NFT gaming benefits for owners and players

What Are NFTs?

Cryptocurrencies are considered fungible and unlike them, NFTs or non-fungible tokens are digital assets that can be traded or exchanged for something different. These unique digital items could be music, drawings, videos, and games too. The tokens are authentic digital certificates that are stored electronically in a decentralized distributed database that is publicly verified called the blockchain. Blockchain technology provides increased security to these NFTs. Their unique digital certificates or metadata have information that makes every NFT different from others. As they are expensive and unique, they cannot be copied.   

So, NFTs are digital items and they can be purchased and sold online using cryptocurrencies. Ethereum, which was launched in 2015 supports NFTs and this blockchain made it possible for people to create, store, and trade NFTs. Today, most NFTs are part of the Ethereum bitcoin. They are coded with the same fundamental software as other cryptos.     

NFTs are digital assets that could be any kind of music, videos, drawings, art, memes, and even games that cannot be copied and grants ownership. Here, in this blog, we will be talking about games using NFT to allow player-to-player interaction. The interaction is of a kind that lets players trade or swap each other's NFTs.  

In 2014, the concept of NFT came into being with the first-ever digital gif art piece called Quantum by Kevin McCoy and Anil Dash. And in recent years, NFTs have become popular and have been entering many industries, one of them being gaming. Especially during the pandemic, NFTs drew a lot of attention due to the increased interest of people in crypto-related investments.  

Nfts In Gaming   

According to a market research firm, a study of 1,500 console and PC gamers found that 56% of them are interested in earning non-fungible tokens (NFTs) through gaming.

Source: Interpret 

There is a paradigm shift and now in the gaming ecosystem, NFT adoption is boosting. NFTs have been seen as an asset that not just adds value to the gaming industry but brings revenue out of digital content. There is a lot to expect from NFTs now and in the future as they add value to the game by making the gameplay better. And, it gives players the power to buy and sell, and earn from resales. The NFT marketplace where the flow of money was always in one direction, now has given the players a chance to make money. Unlike traditional games, blockchain-built games are driven by NFTs and let players take value from the in-game purchases effectively.  

Most NFTs use the ERC-721 token standard with other networks available in the market such as TRON, EOSIO, NEO, etc. These blockchain networks make gameplay decentralized and ensure that the details of the NFT purchases like the number, its uniqueness, and ownership details are validated. In the video game industry, blockchain gaming is converting digital assets into real-life assets through NFTs. 

When we say owners, we talk about those who own NFTs and they could also be players while not all players own NFTS. Thus, the benefits of NFTs for both may vary. Considering that, let's individually go through the NFT gaming benefits for owners and players.

You may also read: Why NFT online gaming is the next big thing? An overview

Nft Gaming Benefits For Owners

NFTs are offering many benefits to game app developers and gamers.

1. It allows owners to attract financing from venture capital firms. There is a lot of potential for profit in blockchain game NFT solutions, i.e. from selling and purchasing products and services through gaming blockchain. 
2. It provides NFT game development solutions to bring new career opportunities for people in this field and it also attracts new participants to such NFT gaming benefits. NFT-based games can expand gaming economies, introduce new categories of games, and fuel game development at a great level. 
3. NFTs in gaming let players invest and own NFTs such as reward points, weapons, avatars, lands, etc. in a game and they can sell these elements to another player on mutual interest. This adds value to gameplay and gives more power to players. A player has the power in his hand to put his value in the game and take it back whenever they like.

Gamers buy NFTs through microtransactions and season passes and they earn a profit by selling these assets and even earn a share when these digital assets are resold in the future. It is common to notice players selling old games and using the money earned from them to buy new ones. The in-game purchases can also be moved from one game to another supported game.

1. The ownership of these NFTs or game collectibles can also be transferred once they are sold to another person. The ownership details also get updated in the blockchain when this happens.
2. The blockchain makes sure that these NFTs are secure and no fraud can happen. There is no chance of duplicacy as they are non-fungible and the owner cannot in any chance lose them even if the game shuts down. That is because these are stored in wallets and are transferable to a supported game.  
3. NFTs are also a great way to market products and services effectively. This attracts investors and players as NFTs offer them exciting options than just playing a game.  
4. NFTs could also be used to increase brand awareness. They can also attract new interest and adoption by adding new creative elements to designs.
5. NFTs are a great investment opportunity for gamers to invest in-game collectibles. The value of these collectibles increases and gives the owners a good return on investment.
6. When a game is downloaded on the play store and the download reaches a certain number, the game owners and developers earn a share of the download cost which increases the company’s revenue. Furthermore, in-game purchases of digital assets also bring in income for the game developers.
7. The NFT owners also earn a transaction fee for transacting an NFT gaming token. They receive this money either from the intermediary wallet or by selling or swapping it with someone else.

Nft Gaming Benefits For Players

When players acquire rewards while playing a game, they have an option of selling those as an NFT and earning money out of it. Non-custodial wallet providers make this possible for the players to make a profit through NFTs. NFTs have also opened other doors of income for players. Players now earn and acquire assets in games that they can use to earn cryptocurrencies and money.

1. Blockchain and NFT gaming benefits ensure that the players' digital assets are safe in a digital wallet at all times. It also allows secure transactions of buying and selling collectibles. Anyone can trust the data that the digital ledger provides. The digital ledger provides permissionless access to the details and proof of ownership for validity. 
2. One of the greatest benefits that come with blockchain technology and NFTs is transparency. It provides the NFT creators and collectors the details of the creator, the owner, when it was created, sold, transaction history, etc. 
3. Players are turning to NFTs not just out of interest but to seriously take it up as a profession. They have understood the importance of the integration of games in NFTs and blockchain market and how that can be leveraged to play and generate good income.

Popular Nfts In Gaming To Invest And Earn

Let’s talk about some of the best and popular NFT games that people have invested in and have made good money.

AXIE INFINITY

Axie Infinity is an NFT-based online video game developed on the Ethereum blockchain. You can play this game, win battles, and earn a cryptocurrency called smooth love potion (SLP) that can be exchanged for real cash. In fact, John Aaron Ramos, a 22 years old, was able to buy two houses within just a short time through his earnings from Axie Infinity. (Source: Businessnews)

THE SANDBOX

The Sandbox is a virtual style metaverse that is built on the Ethereum network and you can get involved in this game as a gamer, collector, or an artist. This mobile gaming platform has its own cryptocurrency called Sand that can be used to buy digital land, real estate or other NFT assets. The Sandbox also has an editor called the VoxEdit that lets its users create models, animations, avatars using a voxel editing tool that can be used in the same, and sold to others.

GODS UNCHAINED

Gods Unchained is a digital trading card game that lets the players play the game, collect cards, build decks, and sell cards that are NFTs and earn money. The game is free to play and offers complete ownership of in-game assets to its players. Like many, this game is also built on the Ethereum network. There are now over 13 million Gods Unchained NFTs out in the world, with over 65,000 unique asset holders. (Source: Godsunchained)

CRYPTOKITTIES

This is a blockchain game built around virtual cats and it happens to be the first game that was built on the Ethereum network. This game lets the players buy, collect, breed, and sell virtual cats called Cryptokitties to earn money. 

According to some estimates, the game had 1.5 million users who were responsible for $40 million worth of transactions on its platform. Individual cryptokitties have sold for more than $300,000 a piece, some say. As of this writing, the average sale price for a cryptokitty was $65.76. (Source: Investopedia)

Closing Thoughts

Blockchain technology has given rise to many innovations, one of them being NFTs. Likewise, the NFT ecosystem has been growing at a high pace and is becoming more and more accessible to people. It has become easy for anyone to create, buy or sell NFTs by following just a few simple steps. Having said that, the benefits of blockchain and NFTs in gaming, together have brought a massive change in how modern games are perceived in today’s times. They are a great opportunity to make money, especially for those who belong to the gaming industry. Share your thoughts and queries with us regarding NFTs in gaming by sending us an email at enquiry@logicsimplified.com