Benefits of NFTs in the gaming industry
Updated: Mar 28, 2022
Numerous ventures have profited from blockchain innovation, and modern organizations are prospering because of it. New use cases for blockchain innovation emerge each day as more blockchain advancement offices or developers join the area. The gaming business is no different, and NFTs for the gaming industry have been gaining special attention from the real world, as the flow of money to this sector keeps piling up. This has created great benefits for retail investors, and the organizations themselves. In this article, we will list some of the benefits that blockchain technology can offer in the NFT space.
What do the Users get? Ownership: By applying NFT to the game world, players can own their in-game assets. These NFT assets have gained value through blockchain-based transactions. NFT transfers are made through smart contracts that automatically send these NFTs to players when they reach a certain level or find rare in-game items. Since the data on the blockchain cannot be changed, it is not possible for game developers or other third parties to change smart contracts. As a result, NFTs are rare and unique items that can be turned into assets that many people will be willing to pay a substantial amount of money for.
Build a game economy: Players can exchange NFT assets between different games when game items and data are linked to the blockchain. Players can also sell these NFT items on the secondary market and other gaming platforms as they are hosted on identical blockchain networks or even other blockchain networks. Buyers or collectors can appreciate the rarity and authenticity of NFT items from the recorded transactions executed by the smart contracts that underpin blockchain networks.
Persistence: Once an NFT is created, it can live forever on the blockchain. It solves the problem of traditional online gaming, when it shuts down, players often lose all their gaming assets due to centralized servers. The NFT app allows for the purchase and sale of in-game items no matter what happens to the game, and new games can be developed to connect to the existing blockchain protocol. In addition, blockchain-backed game assets cannot be copied or altered due to the permanent record that each NFT creates upon release.
What does the NFT Game Owner get?
The ability to attract venture capital: smart investors recognize the enormous potential for profit in the blockchain and crypto sectors. Gaming is considered as a new way to efficiently sell services and products, and a blockchain game NFT solution might become the next Tencent. To entice venture capitalists, game developers, and owners would like to embark on the blockchain-based gaming bandwagon. According to a World Economic Forum analysis, venture capital funds investing in blockchain-based firms and solutions are expected to invest more than 52 billion dollars between 2021 and 2022.
Scaling up current Gaming Solutions: Embracing NFT game development solutions can help existing gaming solutions scale up. It will not only open up new commercial opportunities but will also attract new participants to the platform. Finally, a game's rating is determined by the number of players who have an active wallet, signed up or registered in, and are actively playing it. NFT game development can assist existing products in providing more appealing options to their users, allowing them to generate money.
Earnings from transaction fees: When an NFT gaming token is transacted through a gaming solution, the owner can either collect a transaction fee from the intermediary wallet or exchange or a fee from the owner himself if he wants to sell or swap it with others. The transaction value might sometimes reach millions of dollars, resulting in a hefty transaction cost.
NFTs in gaming are currently at a beginning stage. A great deal of progressive headway is being made as far as new games being presented and their capacities being redesigned utilizing blockchain innovation for NFTs.
Considering their advantages for users as well as developers, NFTs are expected to be around for the long run.
Besides, by making them openly accessible on different interoperable blockchain stages, NFTs become more helpful as far as adding worth and a constant stream of income to users.