Why NFT online gaming is the next big thing? An overview

Anything that has a chance to make money is always the “next big thing” type. The same is with the NFT. It is entering into every aspect of life, with all kinds of art, entertainment and gaming. The latest sector that has grabbed the interests of developers, startups, etc., is the online gaming industry. Every week, another big-name gaming studio or games storefront is integrating NFTs into its 2022 business strategy. What distinguishes NFT online gaming from regular games is that in-game assets have a real-world value that has not been clearly specified and transparent. Assets can be bought, sold, and traded for thousands of dollars and sometimes millions through established cryptocurrency networks like Ethereum.   

What is NFT online gaming?

Whether NFT is used in gaming or somewhere else, the abbreviation refers to a “Non-Fungible Token” for digital assets. Though the name makes its sound complex, the concept is quite simple. An NFT is a blockchain-based digital crypto token representing unique identification codes and metadata. They can be added to a video clip, digital images or memes, etc. 

NFT is the basis of “play-to-earn” games. In order to play the game and obtain in-game objects, players have to spend a certain sum of cryptocurrency. Despite its form, when you have an NFT for a specific virtual item, you have a validated token for it on a blockchain or a digital ledger. In simple terms, you acquire a particular link that confirms your connection with the digital object.   

How are NFTs in-game assets traded?

Like cryptocurrencies, users can buy and sell NFTs online gaming assets on specific portals. However, a sale does not always include the transfer of the item represented by the token, like a game can represent your unique assets or character as an NFT. In this, the buyer does not receive the item. What changes is the ownership certificate of the NFT, which is registered on the blockchain. The certificate should be stored in a virtual wallet, which can come in a variety of formats, metamask, a secure physical device, or a free internet browser extension. To buy an NFT, the wallet must have enough of the necessary cryptocurrency. For instance, if a user purchases a token on the Ethereum blockchain, the wallet must have enough ether (ETH). 

What makes NFTs perfect for gaming?

Non-fungible tokens exist on blockchain technology, and this brings many advantages to the world of gaming. Unlike conventional games, where the game development companies offer access to digital objects, NFTs transactions take place between players in the gaming world. Following are the reasons why NFT online gaming will transform the game industry:

1. Ownership of in-game assets

What do you get in exchange for a character with the highest game level? Nothing, right! The in-game purchases in conventional gaming formats are one-time, non-transferable purchases where you had pay-to-play, free-to-play, and play-to-win models. Nevertheless, this will change with NFT online gaming. NFTs in the virtual gaming world gives players control over their in-game assets rather than the game developers. The use of blockchain allows players to save their in-game purchases, sell them to other users, or transfer them to other supported games. Therefore, Non-fungible tokens turn the traditional model of pay-to-play and replace it with the play-to-earn model. 

2. Interoperability

Typical online games are based on centralized servers. As a result, the in-game assets are present within the propriety systems that do not communicate with one another. Decentralized games, on the contrary, are built on separate blockchains that serve as the backend framework for other interrelated games. Thus, game assets characterized by NFTs can be developed to be interpolable across a variety of environments. For example, two games created on the Ethereum network can share in-game assets like armour, vehicles, and even the characters.

3. Provable Scarcity

Scarcity is a special feature that makes it different from other cryptos. The distributed public ledger or blockchain verifies the originality and ownership history of each NFT. Collectors place a value on originality. The scarcity of in-game NFT purchases is demonstrated by the unchangeable records built in an NFT’s basic blockchain technology. The market’s most unusual NFT assets will have the maximum value. This implies that even if the game developers decide to discontinue the game from the server, players can still benefit from the in-game objects they have bought by selling them to other players on the same blockchain as the game.

4. Immutability

When a classic virtual game closes down, players lose all their in-game purchases. On the other hand, NFT exists outside any particular gaming portal stored on blockchain technology. It allows you to buy and sell in-game purchases irrespective of what happens to the game, and new games can be developed to work with an existing blockchain system. Also, as every NFT game establishes a permanent record upon the issue, blockchain-enabled game assets cannot be copied or hampered.  

Future of NFT in online gaming

While there are benefits to using NFT online gaming, there are also significant obstacles to overcome. In general, NFTs should be made more enticing and available to public users who are not technologically advanced. Furthermore, as NFT has intrinsic value, some may be regarded as speculative goods. This possibility might entice users to buy in-game objects in the hope of later selling them for a profit instead of using those within the gaming world. Despite these challenges, the possibility for profit in the gaming industry will drive more blockchain-based games-focused companies to test with NFTs. Furthermore, the NFT games future will probably lead to more NFT infrastructure enhancements and the development of new solutions that allow widespread usage.

Final Thoughts 

NFT online gaming is a new technology that can transform the gaming world. Perhaps the greatest and certainly foreseeable impact is that the users will have complete control over the assets they have in the world of gaming. In terms of new games being developed and the features being updated using blockchain technology, there has been a lot of groundbreaking progress. NFTs are projected to be a long-term trend, benefiting both players and game app developers. With Logic Simplified, you can know more about NFTs, blockchains, and crypto games. Check out our recent blogs for more intriguing and useful reads. If there is any suggestion or feedback about NFT online gaming, you can contact us or drop us an email at enquiry@logicsimplified.com