NFT Gaming: Introduction
Web3, which has offered innovative methods to play using blockchains, cryptocurrencies, and non-fungible tokens (also known as NFT games), is transforming the NFT gaming business. Web3 games attracted 1.22 million distinct active wallets in the first half of 2022, or 52% of all blockchain activity.
The potential of blockchains and NFTs to allow actual ownership and interoperability in games opens up various opportunities for Web3 metaverse participants. Web 3.0, also called Web3, will significantly change how we utilize the internet. One such industry that creates the majority of Web3’s features and applications is gaming.
Hence, this blog will discuss how NFT gaming is revolutionizing the gaming industry. We will also discuss the possible challenges one might encounter if one decides to build a similar application.
NFT Gaming: What Do The Statistics Say?
When researchers contextualize the results, the statistics are startling. Gaming accounted for 49% of all blockchain usage in 2021. The most popular category was blockchain-based games, with more than 1.4 million active wallets linked yearly.
Similarly, Web3 games attracted 1.22 million unique active wallets in the first half of 2022, accounting for 52% of all blockchain activity. It’s also crucial to remember that the player base of blockchain-based games is consistently growing.
According to research from Q1 2022 by Blockchain Game Alliance and the DappRadar, the market for blockchain-based games increased by 2000% over the previous year. Surprisingly, $2.5 Bn in investments were made in the blockchain gaming sector in the first quarter of 2022. In 2021, a massive total of $4 Bn was raised for this sector.
Benefits Of NFT Gaming
Many people think NFT gaming is the future of gaming for several reasons. NFT games provide advantages not present in conventional games. These are:
1. Provides A Means Of Income
With weak economies, many developing and impoverished nations have very high unemployment rates. NFT games give residents in those regions a chance to make money doing what they enjoy most—gaming.
2. In-Game Asset Ownership
In conventional games, players can’t exchange assets between themselves once they purchase assets. The narrative in NFT games is distinct. Players can sell their NFTs to other players or trade them across supported sites.
Since NFTs are based on blockchain, each is distinct and impossible to duplicate. This guarantees that gamers arduously acquired NFTs cannot be copied or stolen. It is impossible to lose an NFT unless fraud is involved or a participant gives a malevolent smart contract access to their wallet.
4. Demonstrated Scarcity
The rarity of an NFT typically determines its value. NFT games’ future of our industry is based on blockchain technology, which helps to maintain transparency. This makes it simple to confirm the NFT’s owner and scarcity.
5. Commission For Transaction Fee
The advantages of what are NFT games extend beyond players to creators. The game publisher may demand a portion of the overall transaction cost when an NFT changes hands. In this manner, the publisher benefits financially from each sale of an NFT.
6. Capital Raising Capability
Good investors are constantly seeking potential ventures to invest in, especially those with a solid understanding of cryptocurrencies and NFTs. Game publishers can also use this benefit to raise funds for their projects.
5 Ways NFT Gaming Reshaping The Gaming Industry
1. Independent NFT Games
Decentralized games are created on separate blockchains, allowing NFT-based games to function in various ecosystems. The customer won’t risk losing their purchases when a game is closed because NFTs are represented separately from a particular game.
In the NFT in the gaming sector, NFTs allow users to create a distinctive identity that will be linked to their accounts for the duration of their ownership. Due to the usage of blockchain technology by NFTs, users can safely store their valuables. As already indicated, individuals can sell their digital assets on NFT marketplaces for cryptocurrency or fiat.
2. Make Cryptocurrency Rewards
Most play-to-earn games also provide in-game cryptocurrency prizes that can be used to generate passive income, ensuring that active players are compensated financially for their participation. The Play to Earn concept, often known as NFT gaming, introduces a user-driven economy created for gamers to bridge the gap between virtual and physical worlds.
Rewards for in-game earning activities are straightforward and include tools and weapons. Financial benefits like bitcoin and assets can be tokenized and sold as non-fungible tokens (NFTs).
3. Gaming Virtual Assets You Can Own
Players may control their assets and contribute value by producing, unlocking upgrades, buying things, and other specialized in-game activities. They create value for the community and the developers by contributing to the game economy. Players can acquire complete ownership of these game NFT assets through NFT Games’ future industry.
4. Purchasing & Selling NFTs In-Game
The play-to-earn model’s fundamental tenet is creating, acquiring, and selling in-game NFT assets. The most well-known examples are NFT-based games that let players purchase and trade. They sell manufactured weaponry, power-ups, as well as other items from their NFT collections on online gaming marketplaces.
5. A Fresh Open Gaming Industry
By offering an open economy, NFT games encourage players to take part and reward them either in-game or with real money in cryptocurrency. The value of the main NFT in-game characters and assets will rise together with the popularity of NFT-based games, which motivates players to actively participate in the game in return for more alluring rewards.
NFT Gaming: Possible Challenges
The game development industry continues encountering several difficulties, and game studios continually work to find answers.
1. Misaligned Interests In NFTs & GameFi
The core team’s interests and priorities differ from those of players and investors. Even while many projects include vesting team tokens, the team generally has little to no motivation to pay attention to token values because, in most cases, it does not (or only slightly contribute to) their primary source of income.
According to how traditional corporations operate, market prices (coin prices) should increase in line with how the company grows and its value to its stakeholders.
2. Zero-Sum Game
A central authority is absent under decentralization and Web3, providing each person power over their ability to buy and sell assets anytime they like. Since each token seller needs a willing buyer to sell their tokens, NFT gaming is a zero-sum game.
3. Imbalance Between Value Extractors & Creators
The imbalance between value creators and value extractors is another urgent problem that NFT gamers face. However, as no one will want to invest in a project knowing they will lose money, these “value creators” who enter the game will eventually morph into “value extractors.”
NFT Gaming: Bonus Tips
- To begin playing an NFT game, you must first decide on the game you want. You must understand how the game plans to use your funds, maintain its economy, and provide you with worthwhile incentives.
- In an NFT game, there are various ways to earn money. As a result, the amount of money you can make from an NFT Game will vary depending on the game and your playing style.
- While incentives offer the least profit but are the most reliable and long-term method of earning from NFT games, renting NFTs is the finest passive income creation approach for NFT gaming.
Is NFT Gaming The Future?
The globe has been waiting for a new gaming platform to compete with Fortnite, PUBG, as well as Dota 2’s enormous market. That is now technically achievable and just as amazing as it sounds.
NFTs have already appeared in games like NFT Duel, where users may use cryptocurrency tokens to buy NFT trade cards. But what if you could purchase an entire gaming character or even an entire suit of armor? NFT gaming makes it possible to do just that.
NFTs are secure and transparent since they are based on the blockchain. Because blockchain technology connects them, they enable more complicated transactions than conventional currencies like dollars or euros.
Markovate’s Take On NFT Gaming
Markovate develops NFT games, markets, tokens, and other services for Solana. The Solana blockchain is an excellent alternative for an NFT market because of its high capacity and minimal end-user commission. Due to its team’s innovation and expertise in blockchain development, Markovate can develop any NFT solution.
NFT Gaming: FAQs
1. Why is NFT important in gaming?
In gaming, NFTs represent valuable game assets like in-game items and collectibles. Both large and small gaming businesses are jumping on the bandwagon due to the apparent success of several early NFTs and Metaverse’s aggressive promotion of the idea.
2. Is there any impact of NFTs on the growth of Web3 games?
The gaming industry is changing because NFTs introduce innovative play methods incorporating blockchain technology and cryptocurrencies. With NFT, you can control your identity and data and the digital asset ownership you may see in games. The objective of Web 3.0 is to create a decentralized, open, as well as straightforward internet.
I’m Rajeev Sharma, Co-Founder and CEO of Markovate, an innovative digital product development firm with a focus on AI and Machine Learning. With over a decade in the field, I’ve led key projects for major players like AT&T and IBM, specializing in mobile app development, UX design, and end-to-end product creation. Armed with a Bachelor’s Degree in Computer Science and Scrum Alliance certifications, I continue to drive technological excellence in today’s fast-paced digital landscape.