NFTs, as they are more commonly referred to, are the upcoming phenomenon in the cryptocurrency world. 2021 is regarded as the year of NFTs, much like 2017 was the year of ICOs, and 2020 was the year of decentralized applications.
You must be familiar with the idea of fungibility to understand what these NFTs are.
A good or asset’s fungibility refers to its capacity to be exchanged for other similar goods or assets individually. Because fungibility implies equal value between the assets, fungible assets streamline the exchange and trade processes.
- A good or asset’s fungibility refers to its capacity to be quickly switched out for another similar kind.
- Non-fungible items and assets include owned cars and homes that cannot be exchanged.
- Money is a prime example of a fungible good because a $1 bill can be easily converted into four quarters, ten dimes, etc.
Potential for NFTs
With their distinctiveness and the adaptability of blockchain technology that supports them, non-fungible tokens present a wide range of applications. Musicians, artists, and celebrities like Lindsay Lohan have all used it. However, one of the NFT’s most well-known uses is in the field of video games. There are lots of NFT gaming platform development company and other parts of world who are working on NFT games.
A Synopsis of Blockchain and Video Game History
Even before the Super Mario Brothers became a worldwide sensation, video games had been around for a very long time. However, the gaming industry changed in 2017 with the release of the video game CryptoKitties. Players could buy, collect, and sell virtual kitties in this game. In the game, each cat that was created was distinctive. Ownership was felt, and the created kitty’s originality raised the digital asset’s value. This is possibly one of the earliest and most well-known uses of NFTs. It should be noted that the game’s non-fungible tokens were created using the ERC-721 standard.
Unexpectedly, the game’s creator made more than $40 million off CryptoKitties. This led the same game developer to work with the NBA to produce a new game called NBA Top Shot. It was an online game where basketball fans could buy and sell special video clips from previous season’s games called “Moments.” In essence, they serve as blockchain NFTs representing the ownership of a specific video clip. The person who bought the NFT has the ownership rights to the particular video clip, even though it could have been shared on various platforms. Over $370 million was reportedly spent on this game’s transactions overall, according to estimates.
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Advantages of NFT gaming
In blockchain gaming, NFTs can appear in many different forms.
NFTs in gaming has many applications for MENA gamers that go beyond monetization and transparency. Other top uses of NFTs in gaming besides giving game developers a way to make money from their content. Those are
Transparency and Rarity
NFTs typically operate on the principles of rarity and scarcity. As a result, NFTs are generally uncommon, and the underlying blockchain technology ensures the transparency of all digital transactions. Additionally, the rarity of digital assets makes them unique because they can be traded for high returns.
Ownership of In-Game Items
NFT game players have complete control over the digital assets they win in the game while playing and earning crypto coins. The security of players’ assets is further enhanced by blockchain preventing asset theft and hacking. Blockchain-based NFT games give players ownership of immutable assets and the safety of their possessions.
Additionally, with Web 3.0, gamers—particularly those in the MENA region—can gain more decentralized control over their digital assets. Additionally, Web 3.0 gives players and developers back control by letting them determine how transactions and permissions are granted rather than a centralized authority. Web 3.0 has made it possible for the developer community to finally receive the recognition they deserve for their contributions to the online community.
Developers can now monetize their content using both the traditional in-app purchase and the new in-game economy, thanks to NFTs. By using NFTs to create digital tokens representing their game ownership, developers can generate various forms of revenue from their games.
Similarly, developers can build a player base and boost game engagement rates by using NFTs to create digital tokens. Additionally, with physical ownership, MENA players are encouraged to play NFT games, which can be a reliable source of income. The same is true for players in low-income nations, as evidenced by the fact that in just a few months, the number of players in the Philippines and Venezuela increased from about 4000 to two million.
Why Are NFTs the Ideal Platform for Gaming?
The blockchain supports NFTs, which have many advantages for the gaming industry. In contrast to conventional games where the game developer grants access to a virtual asset in the gaming world, NFTs transactions take place between players, making the NFTs world genuinely decentralized.
Several games can communicate thanks to blockchain technology flawlessly if they are all created on the identical blockchain. Compared to the conventional gaming ecosystem, where a single asset purchased for a specific game is only helpful, this offers a significant advantage.
An NFT’s value increases in direct proportion to the level of scarcity. Since a single distributed public ledger combines immutability, transparency, and security, it is simple to demonstrate its absence in the blockchain world.
Above all, remember that if a game’s developer decides to discontinue it, all of your virtual investments could be lost without any compensation if you purchase in the gaming industry. But in the blockchain world, due to interoperability, ownership, and immutability, you can use that asset in a different game on the identical blockchain or even sell that asset to another user, enabling you to cash out on something you paid for.
What are NFT games? It should be an easy question for you to answer at this point. You are aware that these are Web3 gaming applications that use NFTs in some way, whether to reward players with them, implement them as part of in-game mechanics, or even both.
Additionally, you know you do not have to go the challenging and time-consuming route of developing NFT games from scratch. Instead, you can expedite the procedure by delegating to Moralis to handle the challenging backend component. Let us reiterate that we strongly urge you to take on the aforementioned follow-along example project. In this manner, you’ll quickly pick up how to create NFT games.
Let us reiterate once more that Moralis provides not only numerous shortcuts for NFT programming. Such as a way to send NFTs with just one line of code, but also a fantastic backend solution for the full range of Web3 development on multiple leading chains. You can, for instance, create tokens on Polygon, Arbitrum, and the Binance Smart Chain (BSC). So you don’t want to miss out on opening a Moralis account and taking advantage of all its features. If you want to invest in blockchain-based technology like this, you can hire Enterprise Blockchain Consulting Company USA, so that you can save your time and money by utilizing their experience in this industry.