The gaming industry is almost $200 billion in market size surpassing both movie and music categories. With such a large industry it is certain that businesses are going to adopt this same concept in a fast growing space like the NFTs.
NFT games are built on the blockchain network which allows it to use its Web 3.0 functionality by turning the assets into digital collectibles and connecting them in various supporting platforms.
With such utility this creates new possible features for gaming NFTs which will be discussed here.
Player Owned Game Assets
Main difference between regular games and NFT games is that on a regular game what you own belongs to the game and is only usable in that game. In the NFT space, what you own you own which means you can trade, sell, and rent them in some cases too.
When it comes to regular video games, if the developer decided to shut down you will lose all items you collected. But with NFTs your items will be on the blockchain network (multiple computers around the world) which means they will stay with you for the long term.
Most Games are Decentralised
Most of the time NFT games are decentralised which means they are owned by whoever holds the cryptocurrency associated with it.
With such business model, some games may implement voting system to allow holders to take decision of the future of the game. while others may just keep holding their larger token share and treat it as if it was a public company.
NFTs can be Used on Different Games
Because the games are built on the blockchain, it allows developers to make a platform that allows the use of NFTs created by other users.
For example, a well-known game called The Sandbox (which is similar to Roblox/Minecraft) allows anyone to download their editor and create Voxel based avatars that can be rigged and animated. With this tool avatar creators can use the Voxel avatar and use it on multiple games if they like, or sell it as NFTs for their community.
This can be done through utilising the web three features which basically is when you go to our website you can just connect your wallet and it will have your Collectibles and assets in it so this means that when you’re on the website you can just use the answers that are compatible with the platform and in that case it’s the sandbox
In the above, you will notice I do not have inventory of items usable in this platform (waiting for my voxel avatar from a project I have called bears deluxe!). but in general, in the inventory part you will be able to see the NFTs that are allowed to be used in the Sandbox.
So in the future we could imagine that a shoe company like Nike makes a digital shoe that can be used through Web 3.0 technology on multiple games like your Fifa character and as a skin on your Fortnite account (this is just imaginary example but the possibilities are endless).
Games can Generate NFTs for Players
With this technology users can also generate their NFT in the game itself whether it is through drawing online and then be able to mint it into an NFT or through breeding your characters.
Cryptokitties is an example of a game where you can breed your cats, there are multiple rarities and strategies to produce expensive ones.
Games can Introduce Play-to-Earn Mechanics
One of the key uses of the NFT is the monetisation aspect that allow users to hold in game assets as NFT. This means that players will have the incentive to keep these items and collect them which will later can be a source of income when they want to sell.
So for example, a PVE game called guild of guardians allows you to play with other players to kill monsters and gather resources. Within the game, you will be able to own your loots as NFTs,
Given that users can own any assets in the game (based on how it is developed) this means that the user can also rent or even open a store in a game. Again, the possibilities are endless.
Another mechanic for play-to-earn is when players are owning the cryptocurrency associated to the game. Having the currency will reduce the circulating supply in the game, give the holders voting rights for the game future, and incentivise the holders through staking mechanics.
Not all are fun…. YET
I am yet to find a game that is compared to the quality of the triple A game from regular game publisher. I know, it is because we are on the early stages. However, I wanted to bring up this point because I want you to be careful when deciding to invest your money in a game because it is just “play-to-earn”.
Once the hate for NFTs and play-to-earn mechanics cools down, the large publishers will surely be entering and disrupting the field. here is an article that may interest you if you want to go deeper in this topic.
In the NFT space where 98% of the projects are most likely to fail. Majority of them are likely to fail due to possible market disruptions from major gaming companies so always make sure you do not invest the money that you cannot afford to lose. Also, maybe play games that you really enjoy and earning the money is extra.
- Why are NFTs Expensive? 7 Reasons that Makes NFTs Valuable
- What NFTs Should I buy? a Comprehensive Guide
- 12 NFT Marketplaces you Should use
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