What is a Non-Fungible Token and why is it so popular? What is the NFT phenomenon in the gaming industry?

We are the GamerHash
Nov 17 · 4 min read

Blockchain technology provides many solutions that developers use to create new brilliant projects. NFTs that are backed by smart contract technology are just another application that blockchain enables. Lately, the world has been very loud about NFTs. What exactly are non-fungible tokens? Why are they so famous and loved by users all over the world? Well, let’s learn more about NFTs from the article below. You will understand everything, I promise!

How to explain NFT — what is it?

NFT stands for non-fungible token. The word non-fungible means that the asset is unique — each token’s history and ownership is separate. The word token, means they’re backed by the blockchain architecture and smart contracts. Everyone can create their own smart contract with the help of current NFT standards like the most famous ERC-721 and ERC-1155.

Okay, but how does NFT work? Most NFTs live on the Ethereum blockchain; the ownership and transactions are stored on a digital ledger (the blockchain) and behavior of each contract can be specifically designed through Solidity — the language that’s used to build the smart contracts on the Ethereum network it’s second layers like Polygon and its forks like BSC.

Thanks to cryptography, NFTs are protected by your private seed. To collect and trade NFTs you’ll need a crypto wallet — the most famous one is MetaMask, that will let you connect to the web 3.0 through decentralized apps (dApps).

Why are NFTs so popular in the modern world?

NFT’s popularity is mostly caused by the great interest in cryptocurrencies and blockchain technology. Especially recently, investors are more and more interested in putting their life savings in assets such as cryptocurrencies, stock market shares or gold and silver. NFTs are too considered as assets to hodl and wait until their value will increase immensely. One of the examples of the worth of such investment is the CryptoPunks tokens which are considered as one of the most expensive NFTs in the world. CryptoPunks are a set of 10 000 randomly generated, unique digital characters released on the Ethereum blockchain. They were developed by Matt Hall and John Watkinson from American game studio Larva Labs in June of 2017th. They were initially handed out for free. For years it’s been growing its market and community through discord and eventually people changing their Twitter profile pictures to the jpegs of their collectible tokens. Right now, these old school (4 year old) projects are considered OG and blue chip — which means they are very highly priced. One particular CryptoPunk was sold for $11,8 million! The owner may wait for an even more interesting offer and earn a fortune in the future.

Another reason NFTs are so popular is that they are usually a first contact with the blockchain technology of a common internet user. Even if people don’t know anything about programming and blockchain, they might be introduced to gaming and metaverses. That is where they meet NFTs for the first time and start to understand blockchain adoption since NFTs are often pets, characters, powerful armors or weapons. People also invest in NFTs to financially support their favorite artists. As fans of a music or painting creator, people like to show their commitment to him by buying his works, whether it is painting, recording or photos.

What does NFT mean to the gaming industry?

The gaming industry is aware of this new disrupting technology’s increase in popularity. That is why NFTs are often used in new online games. What’s the purpose of using NFTs in games such as Axie Infinity, ASPO World or The Sandbox? Well, the purpose of NFT technology in these cases is to enable the process of playing to earn. This technology is added to the games to draw players’ attention around the opportunity of earning money while having fun playing the game. In-game NFTs are usually equipment like special armor or sword. NFTs are the representation of your heroes, pets or even your nickname. YES — the non-fungibility of NFTs let them be an identification system.

What’s more, some of them provide the player additional skills, and attractive income. The better NFTs you have the more advantage you have over other players. In addition to experience and traditional loot in games, you could also get some amount of cryptocurrency that developers use in the game’s ecosystem. That is a really attractive way to earn tokens while you have fun playing games. Decentralized exchanges and NFT marketplaces provide you with a quick way of exchanging your game assets for more established tokens like Ether, GamerCoin, one of the stable coins or other cryptocurrencies.

Everyone has to admit that NFTs are the future of the gaming industry. Not only are they unique and almost impossible to be stolen but also they are fun to collect. NFTs are still a young topic and people are looking forward to seeing them expand and grow. Who knows, maybe GamerHash will introduce you to its NFT marketplace very soon? As always, stay tuned for more information!

GamerHash

Blockchain&Gaming company with over 600k users!

GamerHash

What’s GamerHash? Free and user-friendly app in which you earn by playing games and mining. Launch it and get 600+ rewards in our integrated Store!

We are the GamerHash

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We are a collective, we have one goal, revolutionize online payments, resistance is futile. GamerHash.com

GamerHash

What’s GamerHash? Free and user-friendly app in which you earn by playing games and mining. Launch it and get 600+ rewards in our integrated Store!