You’ve probably heard of NFT. Some believe it’s a fad. Others believe that it’s here to stay. But either way, it is a much-talked-about topic, more so within the gaming industry.
What is an NFT?
Non-Fungible Token, or NFT, is a unique unit of data that is stored on a blockchain or digital ledger. While it can be sold or traded, just like Cryptocurrency, it cannot be replicated. Each NFT contains a unique digital signature that makes each unit one-of-a-kind.
NFTs in Gaming and ‘Play to Earn’
Thanks to the nature of blockchain technology, NFTs have become an interesting prospect for the gaming industry.
Imagine the idea of limiting the amount of an in-game item makes that item much more valuable, increasing interest in updates and item releases. By making these items much more valuable and tradeable, it opens up the prospect of players being able to make money from in-game items, bringing players closer to the idea of ‘play to earn’.
Now, the “play to earn” concept is relatively new, but it adds a brand new dynamic to the gaming experience. It revolves around the idea of allowing players to make money by trading, buying, and/or selling in-game items in a virtual marketplace. An example of a ’play to earn’ game would be Sky Mavis’ Axie Infinity.
In Axie Infinity, players complete in-game challenges to earn items that can then be traded at the marketplace. Some players have even earned a good amount of money from playing. Thanks to this business model, Sky Mavis’ average monthly users grew from 612k players in December 2020 to 2.5million players in December 2021.
What to Expect
Whatever your opinions are on NFTs, it seems to be that for the time being, they are here to stay. So in the future, we can expect more games to turn to NFTs to introduce the ‘play to earn’ aspect. Ubisoft has become one of the first major companies to use NFTs in their games, specifically Tom Clancy’s Ghost Recon Breakpoint, in December of 2021. With other big studios like Square Enix and EA also making major investments into blockchain technology, we can expect more companies to try their hand at the NFT market.
While there has been some backlash from players who do not want NFTs in video games, there are also some who are excited at the prospect of owning a video game NFT, and of course, making some money. NFTs will continue to be a hot topic as we continue forward, especially in the gaming industry. So whether you are for or against, you can be certain that more projects and ideas that involve NFTs will pop up this year.
