While the global gaming industry continues to grow in all markets, it remains structured in a way that primarily benefits game developers and perpetuates a one-way value stream where players spend money to unlock access to game assets and game settings. In contrast, blockchain-powered games and decentralized applications allow gamers to capture utility and value from in-game purchases and asset acquisitions more effectively.
Blockchain technology in game development is powered by non-fungible tokens (NFTs), digital assets that represent in-game content. These tokens are unique, rare, and indivisible, while the blockchain networks that underpin NFTs facilitate player ownership, immutability, interoperability, and verifiable scarcity. Together, these advantages have the potential to drive widespread adoption and a much more equitable value model.
What Are NFTs in Games?
NFT stands for non-fungible token. It plays an important role in the gaming ecosystem. The term non-expendable states that the tokens used in the games are not replaceable and are unique. They represent certificates of ownership for the owners of the NFTs.
NFTs are digital collectibles that have an important place in video games. NFTs, when induced into games, allow users to buy and sell them for more profit. NFTs can be anything like video clips, images, memes, etc. A player holding any type of NFT owns the certified token on the blockchain.
Why NFT games?
Until now, we buy some game resources when we play online games. Since the game development services are specifically not based on the blockchain, all our in-game purchases become worthless once we stop playing for whatever reason. With this in mind, a modern blockchain-based gaming system comes up with a solution for NFTs.
When players purchase in-game assets in the form of NFTs, all of those assets become accessible even if the game crashes or the player stops playing. The tokens earned by players still belong to them and they can exchange them whenever they want.
Non-fungible tokens grant ownership of assets to game players. When a player buys game assets, he gets the right of ownership and is eligible to make any decisions related to NFTs. A player can hold them for more future profit or sell them for immediate income.
The Benefits of Gaming NFTs
Here, we are going to mention the benefits of gaming NFT so, it will become easy for you to understand why you should hire a game developer. The many benefits of decentralized gameplay include
- Ownership: Traditional in-game purchases are one-time, non-transferable investments that remain locked into a single game world. By contrast, the use of NFTs in gaming environments gives gamers ownership of their in-game assets rather than game developers. Through blockchain technology, players can save in-game purchases, sell them to other players, or move them to other supported games.
- Provable Scarcity: Collectors value rarity and authenticity, and the scarcity of in-game NFT purchases can be proven through immutable records built into an NFT’s underlying blockchain network. This distributed public ledger validates the number and uniqueness of each NFT, as well as its own track record.
- Interoperability: Traditional online games exist on centralized servers. As such, game assets exist within proprietary systems that do not communicate with others. Rather, decentralized games exist on separate blockchains that act as the back-end framework for other interconnected games. As a result, game assets represented by NFTs can be designed to be interoperable in different environments. For example, two games built on the Ethereum network can feasibly support the same game resources, such as vehicles, armor, or even entire characters.
- Immutability: When a traditional online game shuts down, users traditionally lose all their in-game purchases. However, NFTs exist independently of a specific gaming platform and live on the blockchain itself. As such, in-game purchases can be bought and sold regardless of what happens to the game, and new games can be designed to connect to an existing blockchain protocol. Additionally, blockchain-enabled gaming assets cannot be duplicated or tampered with due to the permanent record each NFT generates upon issuance.
What are the benefits of NFT games compared to other video games?
NFT games bring benefits to both investors and players. Compared to traditional games, NFT games offer publishers certain advantages, such as
- The Potential to attract venture capital
While still at the beginning of the road, investors sense the potential of this market; That is why game developers and owners would like to jump on the bandwagon of blockchain-based gaming solutions to attract venture capitalists.
- Transaction fee revenue
When players sell or trade an NFT, the developers may charge a transaction fee. Sometimes this transaction can be a significant amount for the profit to be proportional.
- App Store or Play Store revenue
Developers can earn a percentage of the download fee when many users download an NFT game from the App Store or Play Store. The more downloads, the higher the revenue for the publishers. Also, special events, holiday sales, and in-app purchases are a constant stream of revenue for game developers.
NFTs and the Future of the Video Gaming Industry
While there are benefits to NFT adoption in the gaming world, it also presents significant hurdles to overcome. As per some NFT game development company, NFTs need to be made more attractive and intuitive to mainstream consumers who may not be technically oriented. And because NFTs have intrinsic value, there is a risk that some will be used predominantly as speculative assets. This potentiality could motivate players to purchase in-game assets in the hope of selling them for future profit instead of using the assets within the gaming ecosystem as intended.
Despite these challenges, the profit potential within the gaming industry will motivate more non-blockchain-focused brands to experiment with NFTs, likely forming partnerships with third-party blockchain projects that have the technical expertise to bring their vision to life. Hire game developers in India to get the broader success of gaming apps and drive the development of innovative solutions that unlock mainstream adoption.
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