The Future of NFT Games: Hype or Long-Awaited Value? | Game-Ace
NFT technology first appeared as a concept in 2013 with the help of the Bitcoin blockchain. Interestingly, the first NFT-based project, which was more or less ready for a broad audience, appeared in 2015, being rather a failure than a success. Unfortunately, in October 2015, the Etheria project received an icy, indifferent reaction from the public.
Besides, what was the impetus after which the entire Etheria project was sold in less than a day in 2021? Well, it was the inception of the hype surrounding NFTs. On the wave of the Bitcoin bull market, not only altcoins grew, but it was also a path paved for non-fungible tokens. Then the global community proved mentally prepared for this technology.
Today each modern NFT game development company tries to squeeze the most of this concept and get the best of both worlds — security and fun. This article will provide insights into what future awaits NFT games so you can know what to expect from the industry.
Current State of the NFT Game Market
Although each NFT game’s future can’t be predicted with accuracy, one thing is for sure — blockchain technology is one of the harbingers of Web 3.0, and it’s going to define what we understand by game development. However, now we should stop on the current state of affairs in the NFT game industry, inasmuch as it’s a curious time to live in. Do you agree?
But first, let’s answer why the initial emergence of NFT projects turned out to be a complete fiasco. Many market players, having a gruesome experience behind their backs, proved skeptical regarding the new technology, foreseeing no practical application in it. After all, technology for the good of technology is doomed to oblivion once the wave of hype goes off, so there must have been something larger behind the NFT concept.
The same fate should have awaited games built over the play-to-earn model as well as the NFT constituent on board. How to evaluate the current NFT market even when major studios like Ubisoft or GSC, a Ukrainian developer of the legendary Stalker series, receive global criticism of even announced in-game NFTs? At first sight, it may seem that NFTs have no value and application in the gaming industry. Still, the ultimate truth is yet to be found.
According to the statistics, the sale of NFTs significantly surged in 2021, as several tokens gained popularity. Notably, most of these transactions were likely related to one famous play-to-earn video game Axie Infinity. Its NFT collection proved the most valuable back then. Another research demonstrated that the NFT market was worth $41bn in 2021. So today may be the best time to put everything at stake and make a captivating NFT game.
The Fate of NFT Games: What to Expect?
Prior to foreseeing the fate of NFT games in the near future, let’s specify that we need to consider non-fungible tokens an innovative technology instead of examining them as a speculative tool for quickly getting rich. Fundamentally, the most valuable purpose of this technical solution implies a digital proof of ownership that can be applied to anything, from a JPG or video file to music or game asset.
Another crucial point in blockchain and related NFTs is that you can conduct safe transactions to transfer ownership to anyone. So, are NFT games the future? Maybe. The fate of crypto games lies in several vectors providing value for players and developers:
1. Play-to-earn model. It’s no secret that you earn actual money in the form of cryptocurrency like Ethereum as you play an NFT game. Connect your favorite crypto wallet and get financial profit from entertainment. Simple as that, right?
2. Collectibles & provable scarcity. Fans of NFT games are keen on collecting game assets. Swords, armor, props — any in-game object can become a token. Moreover, these assets will likely appear in the marketplace, where other players have the right to buy them. There’s only one law: the more limited an item, the higher its price.
3. Interoperability & immutability. The ability to earn game assets as NFTs and use them in other blockchain-based games is a value that mustn’t be underestimated. In addition, immutability presupposes that players don’t lose their progress or in-game purchases once a game shuts down because everything is stored not on traditional servers but distributed among digital ledgers.
Thus, let’s explain what NFT games are, in essence. Do they serve as conveyors of money for players and developers, or is there anything more significant behind this idea? Such games allow you to play as always but earn assets that function as non-fungible tokens. In light of a fading hype, the odds are that the gaming community will discard this understanding of NFT games and adopt a new meaning, relying on genuine value.
So, NFTs Are the Future of Gaming — Or Not?
To be honest, there are multiple benefits of NFT games, and this number will only grow with the pace of blockchain improvement. What this technology needs to have in the long run is government support. With legal assistance, limited emission, and an official regulator that validates the legitimacy of tokens, this solution can be of significant value for businesses.
Another essential shift in this direction presupposes importance for digital artists as their intellectual property will be safely protected from illegal copying. The same goes for in-game assets like weapons or skins — certificates as proof and authentication of ownership provide an excellent opportunity for players to maximally take advantage of what they’ve earned throughout the gameplay.
It’s more likely that NFTs will indeed become the future of gaming, inasmuch as this technology ensures a secure, straightforward, and fun way to play games. NFT gaming platform development will also become the new normal for studios. Tokenization, apart from gaming, is already incorporated into the global economy, especially after the procedure of KYC (know your customer) and the evolution of crypto exchanges.
Hence, since the global industry has already adopted blockchain and NFTs, it’s a matter of time before this system will capture the gaming segment. At any rate, the foundation and groundwork have already been laid. Just imagine — you earn a legendary NFT weapon, and you’d like to sell it safely without addressing any third parties. After all, you always have a choice either to keep an asset or trade it. Isn’t it an ultimate benefit?
How the Players Already Benefit from NFT Games in Reality
Once players understand the meaning behind non-fungible tokens, the technology will truly spread its wings. As long as you keep in mind how to create an NFT game, you are aware of the way this technical solution benefits all parties, from developers to players. For instance, unique in-game weapons, armors, or props can become powerful tools in the hands of both studios and end-users. Whenever needed, they can be crafted and sold for real money.
The same relates to other vectors of game development. Say, cheaters in large-scale online games. With a centralized game hub, user passport, and safe progress records stored on blockchains, NFT games will likely turn into gold mines for everyone interested in the digital entertainment industry.
Convert NFTs to Long-Term Value with Game-Ace
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Merely contact us to gain more insight into how we can benefit your NFT game and help release a quality product for long-term profit.
Originally published at https://game-ace.com.