NFT in gaming: Claim your ownership in a digital world.
Hello, This is Team Protocon.
Following last week’s <When Metaverse meet game: Roblox & Zepeto>, we’re going to talk about the game industry, which ranks first in the field of NFT, especially the game NFT market.
The NFT was briefly described in the <What is Digital Asset Model?> research. Non-Fungible Token (NFT), also known as irreplaceable token, refers to cryptocurrency that cannot be replaced with one token with another. In other words, things of different values are incompatible with each other. Due to the different values and prices of NFTs, it is being used in many areas, including games, art works, and music, where ownership can be granted.
The game market, in particular, grew at an alarming rate as non-face-to-face contact became common and more people spent leisure time at home due to covid-19. According to the NFT market analysis platform, Nonfungible.com, the total trading volume of the NFT market in 2019 was about $62 million and increased to $250 million in 2020. This also means that the gaming sector, which accounts for half of the NFT market, has more than quadrupled year-on-year.
If you are a game user, the most interesting thing about NFT games is the trading of game items. When a blockchain is combined with a game, items and game history acquired in the game can be recorded and stored on the blockchain even if a specific game shuts down, and transactions occurring in the game can be carried out safely. A new ecosystem will be established where the assets and rights of game users are protected.
As the volume of transactions increases, the game NFT market that supports NFT transactions is also being released one by one.
A typical example is Wemade Tree, which recently introduced NFT market services. Previously, Wemix tokens and game tokens could be kept or exchanged in the DEXs of its own blockchain platform Wemix wallet. However, with the addition of NFT market services to the wallet, we can now freely trade with NFT. Users can create NFT with items acquired in the game, sell them to users through the market, and play with it directly in the game.
Likewise, Argentine blockchain-based game developer ‘The Sandbox’ released a beta version of ‘The Sandbox NFT Market Place’ in the first quarter of this year. ‘The Sandbox’ is a game that uses NFT that allows users to produce their own voxel, which they can generate profits by sharing and selling their created works.
The Sandbox Marketplace offers four types of NFT assets: character, equipment, fashion, and art. In the beta version, 107 NFTs created by 46 artists belonging to ‘The Sandbox Creator Fund’ were pre-released. The Sandbox announced that it will support the sharing of NFTs created by individuals freely in the future.
Binance, which announced in April that it would provide the world’s best NFT trading platform, launched Binance NFT in June. Binance NFT is a marketplace that provides all types of digital artworks and collectibles. Unlike the WeMade Tree NFT market, it supports NFT in a wide range of areas, from art, games, music, and sports.
Binance NFT provides the same traditional market services such as issuing, selling, bidding, and buying NFTs, but is introducing an interesting method called the Mystery Box. The Mystery Box contains one random NFT and gives you a chance to win Normal (N), Rare (R), Super Rare (SR) or Super Super Rare (SSR) NFTs. It is a kind of random box or lucky box that you can collect from common items to rare items.
There is a lot of interest in the game NFT market around the world, but the situation is different in Korea. Currently, in Korea, in-game items are not recognized as personal property by law, so the review of blockchain games is very difficult. In April, NFT-based game developer Sky People’s mobile game “Five Stars” received a cancellation of the rating decision from the Game Rating And Administration Committee.
SkyPeople filed an administrative lawsuit against the Game Rating And Administration Committee, and the court recently upheld SkyPeople’s hand, raising expectations that the blockchain game market in the domestic game industry will be in full swing.
In line with this trend, Protocon is also developing a ‘Block City’ (tentative name) that combines blockchain technology with Minecraft. NFT will be used to guarantee item ownership and facilitate transactions, prove digital real estate ownership, prove transaction history, prove game experience, issue, and distribute digital badges, and apply them to BlockCity games.
Today, we briefly learned about the NFT market. We ask for your interest in BlockCity of Protocon, which will be released in the first half of 2022, and please keep an eye on the research that will be updated in the future!