How NFTs are innovating Gaming?

What do NFTs mean for gaming? An Analysis of their Innovation

The gaming world has constantly been evolving. The first video games were developed for standalone PCs, then came the time of home gaming consoles. With the advent of the internet, countless varieties of games went online and could be enjoyed by many people simultaneously. Games that were exclusively available on consoles or in-house can now be played on supported devices with an internet connection.

The latest phase in game evolution is related to crypto. Incorporating non-fungible tokens (NFTs) into games is changing gaming as we know it. For the first time, gamers can convert their in-game rewards into cash. But what do NFTs mean for gaming and how do they work? 

What is NFT Gaming?

NFT games, also known as play-to-earn (P2E) games, reward players with tokens or NFTs for time spent playing. Tokens are usually the main rewards, while NFTs are gained by chance. Players can also buy NFTs from other players and hold them until their value increases before reselling.

NFTs are not an entirely new concept in gaming, having been around for quite some time now. The first NFT game, Cryptokitties, was released back in 2017. Axie Infinity, another very popular game, was released the following year and became popular much later. It has recently surpassed two million daily active users.

The play-to-earn NFT game Axie Infinity provides an excellent example. The game rewards players with Smooth Love Potion (SLP) tokens and NFTs known as Axies. The SLP token is listed on major exchanges and can be traded by players for real money.

There are more than 800 blockchain-based games that allow players to earn rewards in the form of cryptocurrency or NFTs. The hype around these games began during the pandemic in 2020 and has continued to grow ever since.

Benefits of NFT Games: What do NFTs mean for Gaming in the Years to Come? 

NFT games are considered the future of gaming for many reasons. The main appeal being that NFT games offer benefits that can’t be found in traditional games. Some of these benefits include, but are not limited to:

Ownership of In-game Assets

When players purchase items in traditional games, they’re available only in those games, and assets can’t be traded between players. With NFT games, players can trade their NFTs across multiple supported platforms.

Security

NFTs are built on blockchain, hence every NFT is unique and cannot be replicated. This means players can be assured that their NFTs can’t be duplicated or stolen. 

Provable Scarcity

The worth of an NFT depends on various factors, one of which is how rare it is. The blockchain technology on which NFTs are built enables transparency, which allows for NFT owner verification and scarcity confirmation.

Offers a Source of Income

NFT games offer users an opportunity to earn money while playing games. In many countries with poor economies and very high unemployment rates P2E games offer a new potential source of income. 

What do NFTs mean for gaming in the developing world? In the Asia-Pacific Region, for example, Axie Infinity’s enormous popularity allows players to earn hundreds of dollars per month. Players can also make money from P2E by owning NFTs and renting them to guilds. This is a relatively newer trend in the NFT space.

Transaction Fee Commission

There are also interesting benefits for developers. When an NFT changes ownership, the game publisher can charge a percentage of the total amount of the transaction. This way, the publisher earns money every time an NFT is sold. Several NFTs have been sold for millions of dollars, making this a great way for game publishers to earn money.

Ability To Attract Venture Capital

Investors with a good understanding of cryptocurrency and NFTs are always looking for promising projects to invest in. Game developers can attract venture capital for themselves.

Conclusions

So, what do NFTs mean for gaming? NFT games are causing a massive change in the gaming industry and handing power to the players. They offer advantages that were previously deemed impossible to derive from games. 

“Play-to-earn” is more than a new source of income where people can earn real money by playing computer games. It’s having a significant impact on crypto markets by enabling investments in new categories and letting crypto holders earn yields. It’s creating a three-way economy of building wealth while simultaneously simplifying entry into the crypto world.

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