What do NFTs mean for gamers? How are NFT games changing the way we play?

What are NFTs?

NFT is an acronym for "non-fungible token," where non-fungible refers to something that is distinct and cannot be substituted. Unlike physical money or cryptocurrencies, which are fungible and can be interchanged, each NFT possesses a digital signature that grants it uniqueness. NFTs represent digital assets that can take the form of photos, videos, audio files, or various other digital formats. Some examples of NFTs encompass artwork, comic books, sports collectibles, trading cards, games, and a multitude of other possibilities.

NFT Gaming

<a href="https://gamingarcade.substack.com/p/get-to-know-why-nfts-are-the-future">NFT gaming is experiencing rapid growth</a>, and what's even more significant is that NFT gamers are finding a sense of purpose in their hobby. The sales of non-fungible tokens (NFTs) have skyrocketed from less than $100 million in 2020 to $25 billion in 2021, as reported by DappRadar. This trend is not just a passing fad; it is here to stay, with NFT games, such as The Sandbox, gaining popularity.

If you're unfamiliar with non-fungible tokens, we have a comprehensive guide that explains what they are and is essential reading. NFTs can be used for almost anything, but we also discuss how developers are adapting to the rise of NFT gaming and provide a list of the best NFT games to play right now. Notably, Square Enix recently announced its first NFT game, named Symbiogenesis.

Martha Reyes, the head of research at Bequant, a digital asset exchange and prime brokerage platform, predicted that 2022 and beyond will witness another surge in interest for NFTs. She cites Emergen Research's estimation of a 10.7% compound annual growth rate for the global NFT marketplace in the coming years. The shift towards a new virtual economy, which was accelerated by the pandemic, will lead to NFTs becoming increasingly common in our daily lives.

Despite the impressive figures, there are still uncertainties surrounding the practicality and long-term prospects of NFTs. Martha Reyes raises a valid point, questioning the rationale behind spending substantial amounts, often reaching thousands or even millions, on a digital image of a monkey or a pixelated character that can be effortlessly duplicated online.

The key lies in recognizing that NFTs serve as permanent digital representations of asset ownership, whether virtual or physical. Their non-fungible nature means they are unique, verifiable, and their ownership can be traced and transparently recorded on the blockchain.

Furthermore, the future of NFTs hinges on their practical utility. Advocates of NFTs often emphasize their "utility" factor. This is because certain types of NFTs can foster communities by granting access, rights, and benefits such as reward programs, exclusive early releases, live events, and more to their owners. This is why NFT games are an ideal match. Let's delve deeper into this topic and look at some valuable insights on how NFT gaming finds purpose.

NFT gamers feel a sense of purpose through enjoyment and engagement.

Acquire your own character

An increasing number of games offer players the opportunity to build and customize their in-game characters. However, NFT gamers take it a step further by actually owning their characters. You have the ability to create the hero you desire within the game and potentially even transfer this design to other games within the ecosystem or sell it on an NFT marketplace.

NFT purchases allow players to acquire their own character, which can either be exclusive to them or available to the wider gaming community. This grants players the freedom to play as whoever they desire, rather than being limited by the choices predetermined by developers, thereby providing them with greater autonomy in virtual gaming worlds.

While superficially we can achieve this already, with one player's hero in Elden Ring differing from another's, in an NFT game, a gamer's character would be registered on a blockchain and owned by the player, not the game's publisher. It is even conceivable that a character could be developed in such unique and rare ways that it becomes highly valuable.

Upgrade and improve instead of purchasing

In response to the idea of owning a character and developing a rare hero, a concern arises that unique or powerful characters in games can be prohibitively expensive. This can result in new or younger players perceiving NFT games as unattainable or inaccessible.

In games like Blockchain Cuties, players have the opportunity to train and upgrade their existing characters, thereby increasing their power within the game and enhancing their value on the marketplace.

This means that the process of training can actually augment the value of the player's NFT, resulting in higher profits when they decide to sell it. Moreover, this ensures that wealthier players cannot simply purchase their way to success, allowing less experienced players to progress and climb the ranks through their own efforts.

Personalize your character

Character customization plays a significant role in gaming, as modern games revolve around the concept that players enjoy immersing themselves in their character's identity. Examples like Grand Theft Auto Online, Fortnite, or the boot store in FIFA showcase this trend.

So, how can NFTs capitalize on this aspect? By purchasing a playable NFT piece of clothing. Acquiring and owning rare and unique items like coats, shorts, or hats allows the player's character to reflect their personal fashion choices. NFT games such as Forest Knight offer genuinely rare items, where only a limited quantity of, let's say, 10 items exist.

While this may already be familiar in some games, in an <a href="https://gamingarcade.io/">NFT game</a>, owning an item goes beyond its in-game use. The item can be resold, traded on an NFT marketplace, or possess broader utility. For instance, a Nike sneaker NFT could grant access to a real-world event. NFT game developers have the opportunity to cultivate a community around their titles by introducing NFT drops, creating excitement and anticipation among players.

Personalize with Accessories

Expanding on the concept of customization, accessories hold significant importance as well. Games like Call of Duty allow players to personalize their guns and armor, while Ubisoft has introduced its own NFT called Ubisoft Quartz, which enables players in Ghost Recon: Breakpoint to own their accessories. However, what if gamers desire even more?

The question arises "If players possess jewelry or accessories with sentimental value, why shouldn't their playable characters be able to wear them too?" This consideration adds a deeper layer of significance for the player, as they become financially and emotionally invested in the game, thereby enhancing its prestige. This level of personalization fosters a stronger connection between the player and the game, amplifying their engagement and enjoyment.

The Significance of Smart Contracts

Smart contracts play a crucial role in defining the terms and conditions of an NFT. They enable predetermined conditions to be established, ensuring that specific requirements are met for a transaction to take place. For instance, they can grant artists perpetual rights to royalties whenever their artwork is resold.

This means that creators of playable NFTs can continue to earn income from their creations even after they are resold. Such an arrangement creates an entirely new secondary market for NFTs, driving designers to participate and increasing the viability of more unique and enjoyable playable NFTs for a broader range of gamers.

Games like The Sandbox already provide in-app creation tools for NFT gamers to build their own worlds and games. Similarly, other titles offer marketplaces where creator-owned items can be bought and sold. An upcoming game called Apeiron plans to introduce an NFT token and smart contract specifically designed to encourage and reward community engagement and social gaming.

Entry into the Metaverse

The concept of the metaverse is gaining significant attention, and throughout 2022 and 2023, more companies and creators are seeking their place within it. But what exactly is the metaverse? It can be described as an interconnected network of websites, content, creator-owned spaces, virtual worlds, and much more.

The type of gaming discussed here holds the potential to enable NFT gamers to explore and engage with the metaverse, introducing it to a whole new community of dedicated players. For some, the metaverse will become the platform through which we educate ourselves, conduct banking activities, and even live in the future. While this notion may seem far-fetched to those who have yet to experience the metaverse, we have witnessed similar transformations with the rise and impact of social media. Gaming could serve as the gateway to this next evolution in our way of life.

Play-to-Earn Opportunities

The concept of earning a living as a professional gamer may seem foreign to many, but for a generation of young adults and teenagers, it has become a viable possibility with the rise of streaming and e-sports as a massive industry. However, for casual gamers, this idea remains more of a distant aspiration.

Metaverse gaming, fueled by tradable and purchasable NFTs, introduces a new dynamic to gaming and disrupts the established market. In games like Axie Infinity, NFT gamers can develop, battle, and trade their Axies, similar to the concept of Pokémon. The unique aspect here is that these in-game assets hold real-world value that can fluctuate based on their uniqueness and rarity.

Introducing real market forces to games can bring both advantages and disadvantages. As players earn and leave games, the economy can become inflated, as seen with the leading NFT game Axie Infinity. However, a potential solution lies in offering free-to-play mechanics combined with play-to-earn opportunities. This approach allows players to participate and earn rewards, creating a more sustainable and inclusive gaming ecosystem.

Who Can Create NFTs in Video Games?

The accessibility of freedom of expression has reached new heights, enabling gamers to become creators within the games and metaverses they enjoy. This decentralization between players and creators grants gamers greater control over the direction of Web3 games, fostering a genuine sense of inclusion within gaming communities. Knowing that you and your fellow players have some influence in their development adds to the immersive experience.

In the current landscape, Web3 developers empower anyone to create NFTs that can be utilized, bought, sold, or traded within games and metaverses. Typically, user-friendly software is available to facilitate the design and minting of NFTs, ensuring compatibility with the games from the moment they are completed. Players are free to create their own items, portraits, avatars, and more, which can then be showcased on NFT marketplaces for other players to purchase and own.

Can NFTs Generate Income in Video Games?

As mentioned earlier, this concept is part of the "play-to-earn" ecosystem prevalent in Web3 games, complete with their own marketplaces where players can earn real-life currency, often in the form of cryptocurrency, through in-game NFT trading. The ability to create and discover NFTs within video games that can be sold for actual money offers a significant advantage over traditional games, as the functionality remains similar overall.

There are other avenues through which gamers can earn cryptocurrency or fiat currency while playing Web3 games, aside from NFT trading, including:

In-Game Currency: Most NFT-supported games offer in-game currencies that players can earn through gameplay (excluding NFT trading). These currencies can be exchanged for various cryptocurrencies or fiat currencies. Renting/Lending: In addition to buying and selling NFTs, owners have the option to lease their NFTs to groups of players who can utilize them within the game. These player groups, known as "guilds," play together and share the rewards earned. NFT owners, referred to as guild managers or guild leaders, profit from renting out their NFTs to guilds over time. Breeding: Many NFT-based games feature creatures similar to those found in Pokemon, which can be traded or used in battles. Each of these unique creatures is considered an NFT, and they can be paired to breed new NFTs that inherit attributes from their "parent" NFTs. Breeding refers to the process of minting a brand new token to be introduced to a Web3 game's marketplace.

As previously mentioned, Web3 games offer all the features of traditional games, but with the added benefit of an optional play-to-earn ecosystem.

Looking to the Future

NFT games have solidified their presence and permanence. Game developers have embraced this trend and have diligently worked to create meaningful games that integrate NFTs in a positive manner. While there were initial concerns during the early stages of implementation, such as the potential environmental impact of NFT transactions and various fraudulent schemes, developers have taken steps to address these issues. Measures like the use of green NFTs and increased transparency within their respective communities have been implemented to rectify past shortcomings.

Wrapping Up

Finally, NFT gaming marks a fundamental shift in the gaming business, introducing new income sources and opportunities for both gamers and producers. The advent of NFTs has transformed the way players interact with virtual assets, providing in-game things and characters with ownership, value, and tradability. This paradigm change has the ability to transform the gaming environment and build a more inclusive and financially sustainable ecosystem.

One of the primary advantages of NFT gaming is that it empowers participants as developers. Gamers may unleash their creativity and contribute to the content and economics of their favorite games by designing and minting their own NFTs. As gamers become active participants in defining the gaming experience, they develop a stronger feeling of involvement and community engagement. Developers incentivize and reward their community by allowing gamers to commercialize their works through NFT markets, further stimulating innovation and artistic expression.

The play-to-earn approach inherent in NFT gaming has disrupted the traditional gaming sector by offering gamers with measurable economic benefit. Gamers may gain real-world revenue and establish themselves as professional players by owning and trading NFTs. This has the potential to turn gaming from a casual hobby to a realistic professional path for many fans.The decentralized structure of NFTs further democratizes earning possibilities, as players may profit from their abilities and contributions without relying only on game publishers' or centralized platforms' decisions.

Furthermore, NFT gaming has broadened the scope of digital valuables. Collectors have traditionally concentrated on physical objects such as sports cards or memorabilia. NFTs, on the other hand, provide a unique offering by combining the notion of ownership with playing components. NFTs with sentimental value and other gaming benefits can be owned by players. This fusion of collectibles and gaming creates a new market in which fans may follow their interests in both digital assets and gaming, resulting in a symbiotic relationship between the two sectors.

The metaverse, a linked virtual environment comprised of numerous sites, material, and virtual experiences, offers enormous potential for NFT gaming. As the metaverse grows in popularity, NFTs act as a link between platforms, allowing players to access and exchange assets across many chains and metaverses. Interoperability not only increases the value and utility of NFTs, but it also broadens the reach and user base of gaming experiences. The metaverse has the potential to open up new avenues for education, trade, and social interaction, with gaming serving as a gateway into this immersive digital universe.

However, the adoption of NFT gaming is not without its difficulties. Environmental issues, such as the carbon footprint of blockchain transactions, have been mentioned. Developers and communities are proactively tackling these challenges by investigating greener options and supporting sustainability in the manufacture and trade of NFTs. To provide a secure and transparent NFT gaming environment, regulatory frameworks and consumer protection measures must also be implemented.

Finally, NFT gaming has emerged as a game-changing force in the gaming business, redefining ownership, innovation, and money production. It allows players to become creators, allows for <a href="https://gamingarcade.livejournal.com/1634.html">play-to-earn crypto games</a> chances, adds a new depth to collectibles, and allows access to the metaverse. As the industry evolves, stakeholders must adopt ethical practices, emphasize sustainability, and stimulate innovation in order to realize the full potential of NFT gaming. NFT gaming is set to change the gaming scene, providing a more inclusive, immersive, and economically robust future for players and developers alike, thanks to its huge potential and rising popularity.