Last year, the NFT market flourished almost as much as the best online casino, thanks to NFT artwork that leveraged blockchain’s transparent and secure digital ledger to verify one-of-a-kind products uniquely. This gives gamers digital ownership of their game characters and allows them to profit from them, allowing for a new business model for games known as play-to-earn, in which players earn prizes. NFTs began to pick up in February, according to Google Trends, and then spiked as related NFT sales, such as digital art, exploded. Some NFTs have a monetary value in the tens of thousands of dollars. What’s more intriguing is that it appears to be a trendy issue among gamers right now. As a result, the question is whether NFTs are the next big thing in gaming or just hype.
CryptoKitties was one of the original NFT games. The game, which was launched in 2021, was so popular that it had a daily transaction volume of 50,000 on the Ethereum network. In the world of blockchain gaming, this was a watershed moment. Although it functions similarly to other digital pet simulators, what sets it apart is that each cat is unique. As a result, cats could be bred and exchanged to produce more unusual and desirable cats.
CryptoKitties, which had a market cap of $20 million and high trade volumes a few years ago, now seems to have been buried behind the slew of new NFT games. Its daily volume is currently as low as 100 transactions, and you might wonder if the NFT games currently in the spotlight will suffer the same fate.
We don’t believe so, which is why many people have turned to NFT games as a source of money. To play and make money with NFT games, one does not need to be a professional gamer. The NFT games are designed so that anyone can benefit from them. This broadens the target audience to practically everyone, making NFTs a desirable addition to the game business.
When it comes to gaming, big companies see NFTs as a way to generate a steady stream of cash from digital material. If a rare Fortnite skin was provided as an NFT, for example, a player might be the first to unlock it in-game and then claim ownership of it. After that, the skin’s token can be resold to the highest bidder, perhaps for a large sum of money. Regardless of how much the skin sells for, the skin’s creators at Epic Games will take a portion of the proceeds, and the new owner will be able to resell it.
It’s easy to see how NFT concepts may be used for card-collecting games, in addition to any game that sells cosmetic skins. For example, every card in the mode could essentially be its own NFT, and you could then sell ownership of any card in your deck to other players.
While some people welcome the novelty, as with anything new, others are opposed. The distinction between rival video game digital distribution services exemplifies this paradox. Steam has categorically stated that blockchain games are not permitted on their platform. In contrast, Epic Games has embraced them with open arms.
NFTs have the potential to become the next step in the evolution of in-game microtransactions. This notion has progressed from loot boxes to battle passes, and now that the latter has gotten boring, many consider NFTs the next best way to make money from fans.
As a concept, I find NFT’s intriguing, and many content creators have made a lot of money by selling their work. And while its execution has flaws, it is still in its early stages. However, its drawbacks could have disastrous consequences for privacy, civil liberties, copyright laws, the environment, and even national security. Without question, more research is needed in this developing industry, and we all have a role to play.