How are NFTs impacting the gaming industry? Here is what BigONE thinks
NFTs ‘(non-fungible tokens)’ are the latest trend in the blockchain/cryptocurrency industry. NFTs, like bitcoin, are being touted as the digital answer to fiat currency and have so far transformed the art and gaming industries by creating a virtual environment where prospective buyers can participate in an online auction and use tokens/cryptocurrencies to purchase collectibles of their choice on NFT marketplaces.
NFTs typically represent a digital/virtual record of ownership. Because it is based on blockchain technology, any data entered can not be altered or changed, making it an excellent method of determining the ownership of any collectible. In recent years, the widespread use of NFTs has been evident, as evidenced by the sale of a piece of digital art by Beeple for $6.6 million on Nifty Gateway, an online art marketplace, in just a few months ago.
Another distinguishing feature of NFTs is their wide range of real-world applications. NFTs can be a song, a tweet, a painting, a gaming card/character, and much more. BigONE will examine the role of NFTs in the gaming industry with our users and their unique benefits and drawbacks in this article.
NFT Tokens in the Gaming / Virtual Worlds
The “lack of exclusivity” in the physical sense was a problem for digital goods/collectibles before the advent of NFTs. They weren’t one-of-a-kind and were easily replicated by others, making it difficult for the true owners to establish/confirm ownership of their collectible. NFTs based on blockchain technology could be the solution. Virtual collectibles or in-game purchases can be purchased using NFTs on an “immutable blockchain” as a form of decentralized ledger technology. This means that any NFT-based in-game purchases can not be deleted, replaced, changed, or withdrawn. BigONE would like to briefly discuss some of the benefits that NFTs provide to the gaming industry.
● Multi-functionality:
BigONE believes that NFTs have progressed beyond their sole practical application as a digital collectible to become a more multifunctional, versatile token that benefits its owners. For example, in a game like “Legend of Zelda,” an in-game purchase like a magical sword purchased as an NFT can improve its properties over time through continued use. It can also become a rare collectible with increasing market value. NFT tokens’ multi-functionality and versatility contribute to a much better individual gaming user experience. There have also been discussions about the gaming industry considering cross-game NFT applications. As a result, the existence of NFTs is no longer dependent on a single game and can be transferred from one to another.
● “Play-to-earn”:
Even though this model is currently popular, it has been used long before the advent of NFTs. BigONE believes that the introduction of NFTs will alter the way this model operates. Players in NFT-based games are rewarded with unique NFTs for each in-game achievement. These NFTs may gain value as a result of blockchain-based transactions. The transfer of these NFTs is automated using a smart contract, which sends these NFTs based on in-game conditions being met. Because blockchain is immutable, no third party can change or alter the NFTs. The value of these NFTs can increase over time based on how popular their in-game uses become or how popular the game becomes. New players may be willing to pay reasonable amounts of money to obtain a specific in-game asset.
● Scarcity/Rarity
Rare in-game assets that give them an advantage over other players are something that gamers look for. BigONE believes that by allowing for rare in-game NFT purchases, gamers will receive a more personalized gaming experience and ownership of a rare asset that can be validated on the underlying blockchain.
Current Limitations of NFT tokens in the gaming industry
While there are numerous advantages to using NFTs, BigONE would like to point out to our users some significant disadvantages to using NFTs for in-game purchases and in the gaming world in general. One of this technology’s limitations is that it is almost non-recoverable. In essence, this means that if you lose the wallet in which your NFTs are stored, you have a very slim chance of recovering them. As a result, safeguarding your NFT assets is critical.
Another significant disadvantage of using NFTs is the high gas fees. Because most NFTs are standard ERC-721 tokens, the transaction fees associated with using the Ethereum blockchain can be quite high. These fees are currently quite high, but they can be drastically reduced as Ethereum moves toward cheaper and more scalable layer 2 solutions.
Closing Thoughts
After all, is said and done, BigONE believes strongly in the long-term potential of NFTs to change the gaming industry’s landscape. Although not without limitations, BigONE believes that the benefits of using NFTs outweigh their current limitations. NFTs in video games are here to stay and will be a driving force in the gaming industry soon, as evidenced by the involvement of major gaming companies such as Microsoft and Atari.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
