IntoTheVerse — “Web3 Gaming and NFTs: How non-fungible tokens are changing the game.”
Welcome to another IntoTheVerse Journal!
A metaverse that is focused on creating utility, impact and provides players with total control.
“Nobody ever changed the world by doing what everyone else was doing.” (Mark Cuban)
Gaming has always been at the forefront of technological innovation. Web3 has developed groundbreaking technology which utilizes non-fungible tokens (NFTs). These digital representations grant players ownership of in-game assets.
At IntoTheVerse, we will be incorporating NFTs into our games, so we wanted to focus on how NFTs, as unique digital assets, are revolutionizing the gaming landscape.
What is a Non-Fungible Token (NFT)?
A non-fungible token (NFT) is a digital asset that represents proof of authenticity and ownership of a unique piece of content, artwork, collectible, or in-game items that are stored on a blockchain.
NFTs are different from cryptocurrencies because they cannot be exchanged on a like-for-like basis. They each have a distinct identity and individual value, and cannot be replicated.
What are the advantages of using NFTs in gaming?
Ownership
NFTs in Web3 give players full ownership and control over their in-game assets, in contrast to traditional gaming, where the assets are owned by the game developers. This revolutionizes gameplay for users because it removes previous limitations of single-game assets. NFTs are interoperable and can be utilized across multiple platforms and games.
Decentralized marketplaces also enable players to trade, sell, or lend their NFTs to other users, which creates a new, vibrant economy that puts the players in control and celebrates their commitment to gaming.
Interoperability
NFTs create increased interoperability by enabling players to own and transfer in-game assets across different games or platforms. The standardized format of NFTs means they are compatible with most blockchains. This creates increased flexibility and freedom because players can move their in-game assets seamlessly across platforms.
Incentivized Gameplay
NFTs have enabled developers to create new game economies, such as play-to-earn, which incentivizes players to invest their time and resources in a game to gain monetary rewards. By allowing players to earn NFTs through achievements, or by contributing to the game’s ecosystem, Web3 is changing how we play games by transforming gaming into a verifiable earning option.
Vibrant Communities
NFTs reinforce the Web3 incentive to be community-based. NFTs enable community-driven initiatives, such as decentralized autonomous organizations (DAOs), where players can collectively make decisions about the development and direction of a game.
NFTs also encourage greater participation in communities because players can exhibit their collections, connect and build relationships with other like-minded individuals.
What are the challenges of using NFTs in gaming?
NFTs can, however, create challenges in Web3 gaming. This is mainly due to technological limitations but the main barriers hindering NFTs seamless adaption in gaming are:
Market Saturation and Quality Control
Like any trend, there is always the possibility that oversaturation may make it difficult for players to identify and find high-quality assets. Ensuring transparency, authenticity, and quality control is imperative to attract the mass market and sustain the value of NFT-based gaming assets.
Intellectual Property and Copyright Issues
NFTs raise copyright and intellectual property concerns. An NFT's digital nature makes it easier to copy or reproduce the artwork without authorization, which may amount to infringement of copyright and raises concerns over protection laws of digital assets.
As NFT usage and technology expand, it will become necessary to implement standardized legal frameworks to protect copyright, and to also address ongoing issues surrounding taxation, fraud, consumer protection, and money laundering.
Scalability
NFTs rely on blockchain and as with any new technology, there will inevitably be scalability issues, which could hinder the mass adoption of NFTs in gaming due to high transaction fees and integration problems.
Users may also face difficulties with NFT/Game integration because it creates additional complexities, such as the need to set up and manage digital wallets, navigate blockchain transactions, and also to understand the intricacies of ownership and trading.
Energy Consumption and Environmental Impact
Environmental concerns over blockchain energy consumption are an ongoing issue that threatens to eclipse the benefits of NFTs. Moves from Proof-of-Work (PoW) consensus mechanisms, which require significant computational power and create substantial carbon footprints; to more environmentally friendly consensus mechanisms like Proof-of-Stake (PoS) can reduce this environmental impact.
How will non-fungible tokens possibly change gaming in the future?
NFTs in gaming are still evolving but there are many positive future possibilities or trends that will redefine the gaming industry. Here are some possible trajectories we anticipate as NFT usage and technology expand:
Greater Integration of Real-World Assets
Many Web3 companies are already creating NFTs with real-world utilities. As NFT technology evolves this has the potential to merge the virtual and real world. One company that is already utilizing the twinning component between owning a digital NFT in a game and helping to support real-world issues is Wildchain.
Wildchain is a play-to-impact mobile game that lets a player digitally adopt and care for endangered animals, whilst you also simultaneously support real-world conservation initiatives.
Greater Integration of Blockchain-based Gameplay Mechanics
As NFTs become more mainstream, game developers will integrate blockchain-based gameplay mechanics into their designs. This would foster greater engagement by rewarding players with NFTs or cryptocurrency for their achievement. A Web3 company utilizing NFTs to create blockchain-based gameplay mechanics is Axie Infinity.
Axie Infinity is a blockchain-based game that combines elements of collectibles, breeding, and battling. Players can own and trade NFT-based creatures known as Axies. The game incorporates play-to-earn mechanics, allowing players to earn cryptocurrency by participating in battles and other in-game activities.
Greater Creativity with In-Game Assets
As NFT adoption grows, we can expect to see game developers creating more innovative and creative assets, such as rare collectibles, customizable characters, and personalized in-game experiences. One example of a Web3 company that uses NFTs to enhance creativity with in-game assets is Decentraland.
Decentraland is a virtual reality platform built on blockchain where users can create, own, and monetize virtual land and assets. The platform utilizes NFTs to represent ownership of virtual land parcels and in-game items. Users can buy, sell, and develop their virtual properties, creating a decentralized and user-driven virtual world.
In conclusion, the integration of NFTs in Web3 gaming has reshaped the industry by empowering players to become both the stakeholders and creators in this new evolving virtual world.
The potential of NFTs in gaming is only limited by our imagination. The advantages of NFTs illustrate that they possess the potential to revolutionize our daily lives by digitizing assets and offering solutions to real-world challenges.
Stay tuned for more tech articles from IntoTheVerse.
IntoTheVerse is building a mobile-first, composable, NFT-Utility & Impact driven gaming Metaverse.
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Aimee Gilmore is a Creative Writer at IntoTheVerse. Come say hi to her on Twitter or Discord.
