How Do Gaming NFTs Change the Gaming Economy?

NFT stands for Non- Fungible Tokens. Simply meaning they are non-replaceable tokens. NFTs are unique digital, cryptographic collectibles that are stored on the blockchain.

NFT Games have become very popular in the gaming world as it offers a chance to earn income. It is a great source of passive income where players can play to earn.  One can sell their in-game NFTs to other collectors and players and even earn tokens.

Traditional Gaming

The gaming industry is involved in the development, marketing, and monetization of video games. This is a billion-dollar industry and has been so for many years. As per the latest statistics, in 2020, revenue from the worldwide PC gaming market was estimated at almost 37 billion US dollars. The mobile gaming market on the side generated an estimated income of 77 billion US dollars.

Gaming has experienced a lot of changes with the advancement in technology. From the development of electronic games to the era of Arcade games. the gaming industry has made an advancement beyond imagination.

A large number of games on all platforms include some type of competitive online multiplayer capability. Additionally, the industry is experiencing further significant changes driven by technological advancements particularly blockchain technology.

Blockchain Technology

Blockchain Technology is most simply defined as a decentralized, distributed ledger that records the provenance of a digital asset. It is a distributed database that is shared among nodes of a computer network.

Blockchain in Gaming

It is decentralized, which means that the game is not owned and controlled by a central authority, but rather by the users, who possess digital assets and game objects. Players hold a particular amount of digital assets called  NFTs on gaming blockchain. These are game objects and are owned by the players just like they own cryptocurrency. These are transferable not only to a wallet but also outside the game.

NFT in Gaming

As discussed earlier, NFTs are unforgeable and can be transferred to a wallet address just like currencies. An NFT in games can be of various types like a sword, a bow, a shield, a staff, or a portion. Even if a particular game stops working these assets will remain intact in the digital wallet and can be accessed for another game.

It is a unique gaming model which is designed for adults as participants are rewarded with cryptocurrency or NFT just for playing games that they would probably play for free. This way it becomes a great source of passive income.

Axie Infinity, the most popular platform for play to earn gaming at the moment. The game is a bit similar to the Pokemon game series but has its twists basically, it is the involvement of blockchain which makes the game more exciting. In this Ethereum based game, players breed and collect their own NFT based digital pet called Axies. The players collect these only with the purpose to battle other players. Each individual Axie has its genetic component.

These digital pets are tradeable on the Ethereum marketplace, and the price of each Axie will depend on its rareness and unique traits. Initially, the players have to purchase 3 Axies to start playing the game then later after each quest, Player versus Player (PVP) and the adventure they receive Smoothe Love Portion (SLP). It is the platform’s native utility token, the players receive it as a reward.

Players can also breed their pet which requires some specific amount of SLPs which they can also purchase at exchanges and gives them many more advantages.

Future of NFT in Gaming

Stefan Ateljevic who is the founder of CryptoBlokes says, that many people around the world are currently bringing in a side income with play-to-earn gaming and that the potential of NFT in gaming is unlimited. The user base and interest of people for virtual games and decentralized assets are rapidly growing. When all these factors are put together, it becomes a perfect catalyst for NFT adoption.

Conclusion

We have already observed a massive change that NFT has brought to the gaming industry and as per experts, it is just the beginning. So it is very clear that NFTs will completely revolutionize the gaming sector economy.