NFTs stand for Non-fungible tokens, which became a new craze in early 2021. Before diving into the details of NFTs in gaming industry, let’s know about the prospects of the gaming industry that is expanding every moment. In 2020, the industry’s worth was around $160bn. This is a huge achievement considering the depressing pandemic situation which has badly affected every business. Also, recent surveys forecast that the gaming industry will jump up to $268bn by 2025. Now, what is the role of NFTs in the dynamic gaming industry? Let us read that next!
Before we understand its role, we need to know everything about it. NFTs are non-replicable and specialized cryptographic tokens, considered as assets in the digital world. They can be bought, owned, and sold like any other physical property. Effective blockchain technology is involved to ensure that the ownership of the tokens remains unique and verified.
Although they are quite similar to cryptocurrencies such as Ethereum and Bitcoin, NFTs cannot be exchanged or traded. Lots of files can be stored as NFTs; for example tweets, art, music files, etc. They shall hold the same value as the original files and one can easily purchase them along with the proof of ownership.
NFTs will, in all likelihood, include a license to the virtual asset it factors too; however, this does not mechanically confer copyright ownership. The copyright proprietor may also reproduce paintings and the NFT proprietor profits no royalties.
Developers are keen on integrating Non-Fungible Token development into the playing experience of gamers. For example, Gold Fever has inculcated NFTs and boosted blockchain gaming to a superior level.
Now if you are thinking about Gold Fever, it is a free-to-play RPG that encourages community building in various games. In other words, it’s a thrilling multiplayer platform that allows gamers to make useful purchases through the use of NFTs. Assets such as digital land plots are vital for proceeding in these games.
NFTs in the gaming industry has an inherent value in games. In a non-blockchain game, you cannot sell the skins bought for your characters, since they won’t have any inherent value. Even if you sell your entire account, a fraction of your money would be returned. Aversion of this loss is possible due to the usage of NFTs.
NFTs in the gaming industry ensure that every property of the user remains accessible, irrespective of the situation. In an unfortunate state, if the gaming server crashes or stops permanently, every collected item will become unavailable. However, using NFTs makes sure that such mishaps don’t happen. Even if the game shuts down completely, NFT items shall be accessible to its users.
Game assets denoted by NFTs are interoperable in nature i.e they can be used and accessed across multiple environments. This advantage is unlike that of traditional games. They exist on centralized servers which prevent outside communication. This flexibility provided by NFTs proves to be immensely beneficial for gamers, who wish to use their collected assets no matter where they are.
Although the adoption of NFTs within the gaming world comes with benefits, it conjointly presents important obstacles to overcome. Possessing intrinsic value, NFTs may be considered as speculative assets. This feature may encourage the players to trade the assets for money, instead of using them in the game.
Despite the many hurdles, the probability of getting profits in the gaming industry will fuel multiple non-blockchain-centric brands to try their fortunes with NFT. This could materialize by creating partnerships with third-party blockchain projects with the expertise to turn their vision into reality. Simultaneously, the grand triumph of the game apps will play a pivotal role in further bringing about enhancements in NFT infrastructure. It can also fuel the evolution of innovative solutions which will unlock traditional adoption. In short, NFTs are here to stay!
All these interesting facts about NFTs may appear overwhelming or confusing, especially for a beginner. If you are excited to discover more about NFTs or have an exciting game idea consider Juego Studios to turn it into a reality. Juego Studio has sufficient expertise in the field of gaming and game-related innovative technologies and platforms. We have created numerous viral games, associated with multiple Fortune 500 companies, and continue to do so. Visit the portfolio to discover more about our game development services.