NFTs in Gaming Industry
Non-Fungible Token (NFT) is a catalyst in the video game industry, as they contribute easy access for game players to acquire unique virtual goods in digital worlds. The hobby of collecting has always been a grand passion for people in the real world. Therefore, digital collectibles have a huge potential to grow in a broader market.
What is NFT?
NFT stands for non-fungible token. It is an economic term to describe things like your furniture, a song file, a digital photo etc. Because of its fungibility, these things are not interchangeable and non-replaceable for other items because they have unique properties.
The benefits of NFTs in the gaming Industry.
Ownership: By applying NFTs in the gaming world, game players can own their in-game assets. These NFTs assets acquired value due to blockchain-based transactions. The transfer of NFTs is implemented via smart contracts which automatically send these NFTs to the players when they achieve a certain level or find rare items in-game. Since the data in a blockchain cannot be changed, there is no chance for game developers or other third parties to change the smart contract. Therefore, NFTs represent rare and unique items that may evolve into an asset for which many people would be willing to pay considerable sums of money.
Create gaming economies: Players can trade NFT assets between different games as in-game items and data are linked to the blockchain. Players also can sell these NFT items in the secondary market and other gaming platforms as they are stored on an identical blockchain network or even other blockchain networks. The buyers or collectors can value the rarity and authenticity of NFT items by recorded transactions conducted by smart contracts underlying blockchain networks.
Permanence: Once an NFT is created, it can exist on the blockchain forever. It solves the problem of traditional online games when it shuts down, game players normally lose all their in-game assets due to centralized servers. Applying NFTs allows in-game items that can be bought and sold regardless of what happens to the game, and new games can be designed to plug into an existing blockchain protocol. Furthermore, blockchain-enabled game assets cannot be duplicated or tampered with because of the permanent record each NFT generates upon issuance.
The pandemic will boost NFTs’ popularity in the gaming industry
According to Felipe from Cointelegraph, COVID-19 has changed the way people communicate, travel, work and do business in recent years, but it is creating a huge demand for the gaming industry as people continue to practice social distancing, this trend will continue to grow. In upcoming years, we expect to see a large number of well-known game brands applying NFTs and blockchain technology. This will play an important role in bringing NFTs to mainstream adoption.