advertisement

The Addition of NFTs and Blockchain Technology Into Games

blockchain technology

Introduction:

The global gaming industry continues to grow in leaps and bounds across all markets. It’s well structured, so game developers benefit from it. At the same time, it allows players to use their money to unlock gameplay configurations and in-game assets. Decentralized apps and games built on blockchain technology help players acquire game assets and in-game purchases effectively.

Gaming blockchain technology is driven by NFTs (non-fungible tokens) and digital assets that represent the game’s contents. Tokens are rare, unique, and indivisible. Blockchain technology and NFTs facilitate player ownership, immutability, interoperability, and provable security. When combined, NFTs and the blockchain can quickly drive mainstream adoption to obtain an equitable value model.

Blockchain Technology and NFTs in the Gaming Industry

The gaming world continues to expand at an alarming rate with no signs of slowing down in the near future. The industry is valued at $200 billion, with an estimated three billion gamers worldwide. Yet, surprisingly, blockchain technology is embedded deep in all the latest casino games.

Both NFTs and blockchain technology have become hot topics to explore for game developers. They’re being used to create the best gaming experience for players and complete control over their assets. NFTs allow players to own a piece of their own game. At the same time, it will enable players to sell or trade assets in the secondary market to earn rewards.

Pros and Cons of NFT Games and Blockchain Technology

Pros

  • Immutable: The inherent value of NFTs is real and tangible. Once blockchain technology verifies and approves them, nothing can replace them.
  • Unique Ownership: Since NFTs are immutable assets, players can take pride in owning something unique. This, in turn, can change consumer behaviour.
  • Monetisation: Players can easily convert digital artwork into digital assets. Take the meme ‘Charlie Bit My Finger’, a great example of digital artwork with monetary value.
  • Revenue: The main objective of NFTs is to build a business model and allow players to grow financially. The non-fungible token can increase income and popularity while gaining internet visibility.

Cons

  • Unpredictable Market: It’s pretty tricky to measure the overall price of NFTs. Their price is based on the aesthetic value of digital assets.
  • Theft Risk: Cybercriminals are always on the lookout for NFTs that come under old security protocols. So, there’s always a possibility of digital theft.
  • Environmental Concerns: Processing a large amount of digital data requires significant computing power. Running such a system requires massive power usage, which can deplete the environment.

The Blockchain and NFTs Have Transformed the Gaming Industry

According to experts, implementing blockchain technology into games is easy. First, it’s possible because of tokenisation and liquidity. In addition, players can buy in-game items using real or virtual money. So, blockchains with NFTs can help keep track of all transactions in one place. As a result, they positively impact cryptocurrency and casino-related games that require online transactions.

Some of the different challenges in the gaming industry can be solved with non-fungible tokens and blockchain technology, like:

1. Gaming Market Security

It will become practically impossible for hackers to access the server data due to decentralisation strength and sophisticated data encryption. So, it would create a secure atmosphere for the game developers and players, which in turn increases productivity,

2. In-game Assets Ownership

Blockchain technology and NFTs have brought legislation and transparency into the gaming industry. Digital ownership allows players to buy, sell and exchange in-game assets to earn financial rewards. The smart contracts in the blockchain-based game quickly transfer in-game assets to the public address accounts of the players securely.

3. Intangible Assets Projection Value

Gamers invested around $7 million within 10 days of the launch of Crypto Kitties back on November 28, 2017. When an exciting blockchain-based game is launched, players will place real money on intangible digital collectables. The combination of NFTs and cryptocurrency in games will undoubtedly boost investment.

Final Thoughts

The adoption of non-fungible tokens in the gaming industry comes with a world of benefits. At the same time, it presents significant challenges to overcome. For non-technically oriented people, NFTs should be made more intuitive and appealing. They have great potential to motivate the players to purchase in-game assets to sell them in the future for materialistic gains.

Despite the challenges, the profit potential within the gaming would certainly convince non-blockchain brands to experiment with NFTs. Moreover, they might form a partnership with third-party blockchain projects with technical expertise. In short, decentralised gaming apps will play a pivotal role in catalysing the NFT infrastructure and drive innovative solutions developments to unlock the mainstream adoption.

Photo by Markus Spiske on Unsplash

Disclaimer: This is a paid article. KryptoMoney does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. KryptoMoney is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.

Get Latest Cryptocurrency And Bitcoin News

Signup this form below to get latest Cryptocurrency and Bitcoin news, directly in your mailbox

Note:

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.