Introduction: What are NFTs?
Non-Fungible Tokens or NFTs are a new kind of digital asset that is unique and can’t be replicated.
NFTs are a new blockchain-based token that allows for the ownership of digital objects. These tokens are used in gaming as well as in other industries where ownership needs to be tracked.
NFTs can be used to represent physical or virtual items, which makes them perfect for the video game industry.
The idea behind NFTs is to create individualized tokens for each item on a blockchain, so you know who owns what and when it was transferred from one owner to another. Sounds complicated right? Don’t worry, all will be explained.
In the following sections, I’ll be touching on:
- What types of NFT exist.
- How NFTs and the blockchain will affect gaming.
- How NFTs give you true ownership over game assets.
- How to buy and sell NFTs.
Let’s start off with what types of NFT are available.
Types of NFTs
NFTs are digital assets that are unique, scarce, and tradable. They can take the form of a digital collectible like CryptoKitties, an Ultimate Team player, or a cryptocurrency like Bitcoin.
In the future, NFTs will be used for many purposes such as in-game items, tickets to events, and even for purchasing physical goods online.
NFTs are not fungible which means that every token is unique and cannot be substituted for another. They can be used to represent ownership of all sorts of things like in-game items, real estate, stocks, bonds, etc.
Type of NFT include:
- NFT art
- NFT Games including in game assets
- NFT Fashion
- NFT Music
- NFT Memes
Gaming on the Blockchain with Non-Fungible Tokens
Non-fungible tokens are a form of digital collectibles that are unique and cannot be substituted by another token. They can represent a variety of things, but they are mostly used in the gaming industry to represent game assets.
The concept of non-fungible tokens is not new, but it has been made popular by CryptoKitties, which is one of the most successful blockchain games to date.
CryptoKitties made it popular by incentivizing the creation of collectibles on the blockchain.
Users collect, breed, and trade virtual cats. Each cat is unique and comes with a set of 100% fully owned genetic traits. The game was developed by Axiom Zen in partnership with Angel Investor Benny Giang and Ethereum Co-Founder Vitalik Buterin.
The game is based on the Ethereum blockchain and CryptoKitties are created by 3rd party developers.
In, the future NFTs may be used in many different ways by the gaming industry. For example, EA, the maker of FIFA and Madden, has already claimed that gamers want to see NFTs used in popular game modes such as Ultimate Team.
We will, in all likely hood, see more of the larger game publishers such as Ubisoft embrace NFTs as a means of generating revenue and putting assets in gamers’ hands in the near future.
However, there has been opposition from the gaming community against NFTs and what they could mean for the future of gaming.
Selling Game Assets for True Ownership
Digital assets may be a boon to the gaming industry. They provide a way for gamers to own their in-game assets, buy and sell them as they please, and even make money off of them.
Imagine playing Fortnite and winning or discovering an incredibly rare hat. At the moment, the only benefit of owning this hat is vanity: you can wear the hat and show it off to friends and foes alike. But that’s pretty much the limit of its benefit.
However, if you turn that same ultra-rare hat into an NFT it becomes an actual saleable asset that has real money value just like a physical object would in the real world. That ultra-rare hat could now be worth thousands of dollars. And all you need do is choose to sell the item through the blockchain and your Fortnite gaming will have put cash in your pocket, in true CareerGamer style.
The game industry is currently worth hundreds of billions of dollars, and with NFTs, like the Fortnite hat, it’s only going to grow.
Soon, with the introduction of NFTs, the industry could be worth trillions.
How to buy and sell NFTs?
NFTs are digital assets that are usually traded in crypto marketplaces. Some of the popular NFTs currently traded are CryptoKitties, CryptoPunks, and Rare Pepe Cards.
There are many ways to buy NFTs. Some of the popular ways are buying them with normal currencies like USD or EUR, using cryptocurrencies like Bitcoin or Ether, and trading them on secondary markets with other users.
With the explosion of crypto assets in the last few years, more and more people are looking to use tokens as a store of value. However, it can be difficult to find these assets in secondary markets.
Here are some of the largest NFT Markets currently available:
Axie Marketplace sells new “Axies” as NFTs to players. The Ali Marketplace also sells other products such as in-game products, items, and even land. The Ethereum network is used exclusively by the Axie Marketplaces for all its NFTs.
The Foundation’s NFTs marketplace is dedicated to digital artists and allows them to make money from unique digital art that would otherwise be easy to duplicate in uncontrolled ways. Unique to the Foundation, each artist earns an extra 10% of every resell of their art. So if they sell their original art for $100 to buyer A, and then buyer A sells the art to buyer B for $100 the artist will make $110 in total.
Created in India in 2018, WazirX is a cryptocurrency exchange that launched its NFT marketplace in 2021. In mainly caters to regional, independent, and traditional artists.
Beyondlife, is an up-and-coming big player in the NFT marketplace industry. Known for its celebrity and fan marketplace, BeyondLife is home to its Rare Art NFT Collection, a collection of highly valued and sort after digital art.
One of Asia’s largest NFT marketplaces, Colexion has one of the places to be if you are a digital artist keen to sell your art. And it’s a must-visit if you’re looking to invest in digital art assets.
Launched in 2020 in anticipation of the popularity of NFTs, Rarible is a big marketplace for all types of NFTs including gaming NFTs.
Conclusion: The Future of Gaming is in Blockchain
Whether we like it or not, NFTs will become a huge part of the gaming industry. Currently, a lot of gamers are fearful of NFTs. However, I’d found that most of this fear can be put down to a lack of knowledge. To me, NFTs is an exciting move forward that could put real money-making power in the hands of everyday gamers.
Imagine being able to play a game like FIFA Ultimate Team and trade rare players for thousand of dollars. You might get Lionel Messi in a random Ultimate team pack, and as an NFT he could be worth $5000 dollars. That’s a cruise around the Caribbean for you and your partner! All because you banked Messi in a game.
Or perhaps, NFTs will lead to digital special edition copies of games that are numbered and unique to you and can be sold at a profit.
For us CareerGamers, NFTs open up new and exciting pathways to make money from the hobby we love. So I’m super excited for the future of NFTs in gaming. And you should be too.
Here’s a quick rundown of all the main points from the article:
- NFTs are a new blockchain-based token that allows for the ownership of digital objects.
- Gaming companies such as EA and Ubisoft are actively looking to use NFTs in their games.
- Games and in game assets could be turned into NFTs. This means that they would be unique items that can be tracked and resold, often for a large profit.
- There are many marketplaces where you can buy and sell NFTs. Soon there will be many more.
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