What Do NFTs Mean for Gaming?

Non-fungible tokens, cryptocurrencies, and blockchain technology, in general, are quickly becoming hot subjects in the gaming industry as well. Each game has the potential to create its microeconomy, which players and investors support. Let's discuss the role NFTs will play in gaming and how they could fill a significant void in the present metagame.

 

What is a Non-Fungible Token Used For?

An NFT's primary function is to validate the ownership and authenticity of a unique digital asset. These digital tokens are non-replicable cryptographic assets that are kept on a blockchain.

NFTs can be connected to any type of asset. They can be tied to actual assets such as real estate or physical things such as shoes, or digital assets such as artwork.

Blockchain technology is the primary driver of NFTs. This platform for securely and transparent transactions eliminates the need for an intermediary and enables the creation of markets for NFTs and the associated digital assets.

The gaming business is one in which NFTs and cryptocurrencies begin to demonstrate their immense value.

 

The Current Gaming Meta

Most games derive most of their revenue via microtransactions in the modern era. Microtransactions are generated when gamers purchase in-game things with in-game currency, purchased with real money.

Activision Blizzard, the corporation responsible for Call of Duty and Overwatch, generated almost $6.4 billion in microtransactions compared to $2.3 billion in actual game sales in 2021. This suggests that corporations generate far more revenue through in-game purchases than physical game sales.

Epic Games, the developers of Fortnite, embraced and expedited the implementation of microtransactions. Fortnite's only means of generating cash was through in-game purchases, which are essentially microtransactions,știince it was released as a free game. Players may play the game for free, but they have to pay for additional features, such as skins or increased experience gain.

One of the concerns with the current gaming meta is that players do not always own the in-game assets they have labored. They belong to the platform and are stored on compartmentalized data systems. This indicates that the existing in-game assets obtained have no worth outside of the game.

This is where NFTs and cryptocurrencies have the potential to fill voids and exponentially grow. This is because gamers and only gamers control the current atmosphere. By introducing NFTs and cryptocurrencies, you're introducing actual market value and, consequently, investors.

 

NFTs as In-Game Items

In the present gaming ecosystem, in-game items motivate players to play the game and acquire this virtual stuff. Even though these objects may or may not have monetary value, they inspire millions of gamers to play and collect.

Imagine transforming these game objects into non-transferable tokens. Unique virtual assets recorded on the blockchain possess real-world monetary worth and are tradable on a global market. The ability for players to sell in-game stuff provides an incredible incentive to play and earn while doing so.

It is also important to highlight that players will be able to exchange these items and currencies without interference from the game publisherștiiștii. This will significantly encourage trade.

Non-fungible tokens will also fill a large void by granting gamers control of their assets. Players and investors can utilize these assets for their in-game advancement or sell them on real-world marketplaces.

 

Cryptocurrency as In-Game Currency

Now, I indicated that most of a game's revenue is generated through an in-game currency. Replace this in-game coin with a local cryptocurrency. This coin could theoretically be gained through completing game objectives, but it can also be purchased via a cryptocurrency exchange.

The connection between NFTs and cryptocurrencies is that in-game items (NFTs) can be purchased or sold using in-game cash (native cryptocurrency). Players or investors can trade the native cryptocurrency on worldwide exchanges for other cryptocurrencies with real-world value, like Ethereum or USDC.

This movement has the potential to produce microeconomies in any game willing to implement blockchain technology. These microeconomies attract gamers and investors, resulting in a rise in demand for both in-game items and the native cryptocurrency, increasing both assets' value.

 

Illustrations of In-Game Economies

The MMORPG genre is one of the best instances where NFTs and cryptocurrencies might (and will) thrive. The term "MMORPG" refers to a type of online role-playing game in which tens of thousands (or even millions) of players participate in a shared virtual world.

Currently, these types of games are quite popular and highly addictive. One of these video games is World of Warcraft. World of Warcraft, released in 2004, remains one of the most popular games today.

The game's emphasis is on character creation and development from the ground up. Players can engage in exploration, quests, and player-versus-player combat (PvP). World of Warcraft's in-game money is Gold, which players can earn by completing missions and partaking in other activities. Additionally, players can discover goods during their excursions. These things can be bought and sold for Gold by other players in the game.

Imagine this in-game economy being replaced by an NFT and crypto economy. In-game objects are transformed into unique NFTs, while Gold becomes the native cryptocurrency.

Such games would create a fully operating, real-value economy that would attract millions of players worldwide. The combination is straightforward. Game mechanics of the highest caliber and the ability to earn while playing. This is the future of gaming, but it will be some time before the major players enter the blockchain ecosystem.

Decentralized governance of the game's direction and ultimate decision-making is an intriguing factor that blockchain provides to games. Numerous forthcoming blockchain-based games incorporate DAOs (decentralized autonomous organizations) into their strategy. This eventually means that project leadership and decision-making are distributed among many stakeholders as opposed to a small number of leaders.

Players will be able to have a say in how the game is optimized or updated in the future, which will offer an interesting twist to the creation of a game.

 

Blockchain Gaming Adoption

Blockchain technology and gaming are a match made in heaven, and several organizations have already reaped enormous benefits from this. Axie Infinity was the first game to truly implement the play-to-earn (P2E) aspect, and many players have profited greatly from playing it.

Some players have even made Axie Infinity their primary source of revenue. Covid-19 had a terrible effect on employment and the economy in the Philippines, leading to many people using the game to stay afloat and potentially earn more than their former jobs.

Axie Infinity burst when it was initially released. It felt like a dream come true to be able to make money by playing video games. AXS, the game's governance token, has the third-highest market capitalization among the extensive list of gaming and metaverse initiatives.

Even though Axie destroyed it at first, various flaws in its tokenomics are becoming apparent. Tokenomics refers to a cryptocurrency token's value, distribution, and manufacturing.

In poorer nations, the game is very common, and many players use the money they make to support their daily costs. This results in the in-game token not being utilized efficiently within the game, leading to inflation.

Hundreds of game creators have joined the play-to-earn bandwagon since Axie Infinity to develop their own in-game economies that anyone, whether a gamer or an investor, may participate in.



The ICO (initial coin offering) is where the gaming company plans to introduce its cryptocurrency. The corporation will hold a public sale where the token/coin will be offered at a pre-defined price or determined by how the sale progresses.

To raise money for a game, an initial coin offering (ICO) will be used, which will happen long before the game's actual release date! The project's development, marketing, and expansion will be funded through the coin offering.

Immediately following the ICO, these tokens will be available for trading on centralized and decentralized markets.

Smaller game creators might use this fundraising method to raise the money they need to produce and advertise their products. Previously, these developers could not offer their ideas to potential investors, and now they can.

There are a lot of ICOs and NFT dumps going on at the right moment. Game creators are frantic to get their game out there, and money is at the top of their list of priorities." While the announcement of these projects may be thrilling to some, most of these games are unlikely to be accessible until the end of 2022 or the beginning of 2023 at the earliest.

 

Play-to-Earn Games to Look Out for in 2022 & 2023

A play-to-earn approach has been used in hundreds of games now, generating money and developing. However, a few promising ventures have a world-class team in place and are on track to meet their objectives, even if the majority of these projects fail.

 

In my opinion, these are three games that will be a big hit when they're released:

MonkeyLeague



MonkeyLeague is one of the first promising ideas that aim to replicate the success of soccer-based games like FIFA, such as EA Sports. In the spirit of FIFA Street, but with elements of Final Fantasy, this is a "play to earn" paradigm. Unreal Engine will be used to create the game, available on both desktop and mobile platforms.

One player can manage the entire team, or up to four different players can take control of individual players in a 4 versus 4 game style.

Earning money can be done in one of three ways:

Winning as a competitor

NFTs can host matches by renting out stadiums (stadiums).

As a matcher, cheering on the victorious team


The game's protagonists are a group of monkeys. Different qualities or, as MonkeyLeague defines it, DNA determines the ranking of each Monkey. There is a direct correlation between the rarity of Money's qualities and their ability to perform special moves and overall game stats.

Playing more and winning matches might improve even less unusual monkeys, which is a motivating factor. This means that any Monkey can increase their performance over time by playing with other Monkeys.

$MBS is the in-game currency or token. It can be used to breed new Monkeys (characters for additional players) or to purchase in-game consumables.

$SCORE is the MonkeyLeague's governance token. DAO (decentralized autonomous organization) will control the game, which means that the players will significantly impact the game's direction.

Experts with over a decade of expertise in the gaming industry have been brought in to help build and market MonkeyLeague, a formidable team.

Keep a lookout for MonkeyLeague, a FIFA-style game with the potential to make money from your efforts.

 

Dark Frontiers



Space exploration video game Dark Frontiers sees players stranded on a desolate planet after the destruction of the Earth. Land claims on several planets are available to players, and resources are essential to their existence.

Player vs. Enemy Ecosystem: Players will be able to explore other planets and battle against local populations who interrupt resource farming.

You'll be able to farm and store materials on Earth and in spacesuits that need oxygen.

You require $DARK, the game's native currency, to acquire land and craft in-game items for use in quests or exploration. It is, of course, possible to exchange it for other real-value cryptocurrencies on exchanges.

Dark Frontiers is a good place to start if you've never played a survival game before. Some gameplay and visual previews have been made available, and they're rather good. Take a look at this, for instance.


Magic Craft



One of the goals of Magic Craft is to create an MMO with a fully integrated crypto economy. The native token, $MCRT, can be earned through free-roaming, completing missions, joining a clan, and participating in clan battles.

For example, Universe of Warcraft-style games like this one tries to bring in successful components like character development and building in a big online world. Magic Craft will also feature a more competitive side. Battles and global leaderboards can be climbed by creating teams and strategizing together.

Each character will have tiers of rank in the first NFT collection drop. The higher the rank, the more $MCRT the character has the potential to earn. Collections of NFTs will be made available in the form of unique objects that can be used by characters or exchanged on marketplaces.

Quests, fights (PvP), and clan conflicts are all ways players can earn $MCRT. In addition, Magic Craft will be free-to-play, which means that you won't have to spend a lot of money to earn. Players can begin earning $MCRT and then use it to buy a character that will provide them a greater return on investment when they engage in battle.

The Magic Craft staff is open and honest. They're frequently updating their community on their progress and actively soliciting advice from it. As a result of bringing on consultants with extensive knowledge of the crypto sector, some very seasoned game developers have heavily affected their game model.

 

Big Game Publishers Entering the Blockchain Environment

The majority of P2E projects are being led by new companies and startups, which I've personally noticed. The most enthusiasm and public adoption will come from a small number of big game publishers that have expressed their intention to produce games on the blockchain.

Rockstar, Activision, and Epic Games already have a sizable following and fan base. As soon as they introduce this concept to their followers, the buzz and adoption rate will skyrocket! Playing Grand Theft Auto now has the added benefit of earning money.

Ubisoft is one of the first large gaming publishers to exhibit interest in blockchain technology. Quartz, a new platform developed by the French firm, was unveiled. Using this site, players can trade NFTs used in Ghost Recon Breakpoint, the company's current game.

Well-known gaming businesses are just beginning their forays into the blockchain gaming realm. That would be a seismic shift in gaming, and it's something we could expect to see in the next few years.



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Waheed Ewesami

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I'm a professional freelancer writer

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