NFT Games: What are They and What are Their Benefits?
In recent years, the video game industry has constantly been growing, and those who benefit most from it are video game developers. The more exciting and unique the gaming experience it offers its players, the more willing to spend their money to gain access to bottom assets and premium configurations.
The top three market subsets from which the video game industry generates revenue of hundreds of billions of dollars are mobile, PC, and gaming consoles. In terms of traditional games, players buy the latest video games and console types, and money flows in one direction, from them to video game developers. In return for this investment, the utility and value of in-game purchases are not even at maximum levels. The players accumulate coins and items by achieving a milestone in the game. But they don’t own these items outside the gaming ecosystem.
In contrast, blockchain-enabled games focus more on generating value and allow players to capture better the utility and value of assets acquired through in-game purchases, regular gameplay, or promotional events. For example, when players buy an item in a traditional video game, the only benefit is that the item improves the game. But in video games that use cross-platform non-fungible tokens (NFTs), that purchased item becomes transferable, can be exchanged for cash or other assets and benefits. NFT games allow players to transfer their earnings to another game or exchange it with any other player with cryptocurrency.
What are the NFTs or non-fungible tokens?
An NFT is a digital asset that can be in the form of in-game assets but also can be found as memes and GIFs. Players own the NFTs they earn in games and can further exchange them or later sell them when the items reach rarity and become more valuable. One of the NFT’s purposes is to preserve the value of objects related to a gaming collection.
NFTs have unique cryptographic tokens that cannot be exchanged with other non-fungible tokens. In addition, each NFT has metadata inside that cannot be changed on the blockchain. This metadata recorded inside the NFT is like a certificate of authenticity and describes what it represents, the history, and the transaction record. Non-fungible tokens can be developed to keep value exceeding the game they were created. As a result, blockchain-built games can extend gaming economies dramatically, induct new gaming categories, and fuel the development of new game.
Also, there are other utility tokens in many industries, such as cryptocurrencies like bitcoin (BTC) and ether (ETH). But these are not similar: bitcoin is identical to each other, so uniqueness is no longer a feature for tokens like cryptocurrencies. Unlike cryptocurrencies, gaming Non-Fungible Tokens cannot be exchanged with each other, as no two tokens are the same, but each is unique. Now, the world of video games allows you to obtain NFT that you can sell for cryptocurrencies, which becomes an excellent opportunity to invest in digital assets. Most of these digital assets are based on the Ethereum blockchain network standards.
What are the NFT games?
NFT games are just like traditional video games. Players can get items and coins in classic video games by achieving new levels or after battles. However, these prizes remain inside the game, and the players do not have them outside the game. The difference between traditional video games and NFT games is that players can transfer their earnings to another game or exchange it with any other player with cryptocurrency.
Currently, the items and objects from video games have become available to any player. Before, only those who had advanced game skills or paid could get certain items. However, NFTs can only be owned by a single player. The blockchain technology on which the development of video game NFTs is based allows the authenticity of an element to be registered as unique. And this is the basis of NFT video games. Unique objects can be sold on marketplaces within a game and earn income.
The reward is no longer only competitive but can also be financial. For example, you aim to get an armor of your favorite character from the game. This armor is unique in the game, and you can only have it if it is for sale. Of course, you could also get a copy of it, but it would have a different value since it is no longer original. What offers worth to these NFTs elements is the belief that it has such value on those inclined to pay an amount for them.
The global economy of video games, blockchain, and cryptocurrency is growing daily, so there is great potential to earn through blockchain and crypto markets. NFT games have become a new way to market services and products effectively. At the same time, they attract both investors and more players in the game. The value of a game is determined by the number of players regularly involved in the game. That’s why NFT options increase the value of a game because it attracts many players and offers more exciting options for them.
What are the benefits of NFT games compared to other video games?
NFT games bring benefits to both investors and players. Compared to traditional games, NFT games offer publishers certain advantages such as:
- Potential to attract venture capital. Being still at the beginning of the road, investors intuit the potential of this market; that’s why game developers and owners would like to jump on the bandwagon of blockchain-based gaming solutions to attract venture capitalists.
- Income from the App Store or Play Store. Developers can earn a percentage of the download fee when many users download an NFT game from the App Store or Play Store. The more downloads, the higher the publishers’ revenue. Also, special events, festive sales, and in-app purchases are a steady stream of revenue for game developers.
- Revenues from the transaction fee. When players sell or exchange an NFT, developers may charge a transaction fee. Sometimes, this transaction can be a significant amount so that the profit will be proportional.
Some of the attractive and considerable NFT games’ benefits to players are:
- Complete control over his earned. NFT games give players the ability to have complete control over their assets. This is an attractive option because it allows players to earn cryptocurrencies if they sell the NFTs. In addition, physical ownership gives more incentives to play on a blockchain-based game and can be a regular source of income.
- Impenetrable safety shield. The NFT game provides players with a highly secure environment. Blockchain technology is sophisticated and provides a high level of security and reliability.
- Transparency. The rarer an NFT, the higher its value. NFT games. Blockchain helps maintain the transparency of digital transactions and demonstrates the rarity of NFT, which leads to an increase in its value.
- A possible profession. Many have seen this market potential, so players turned NFT trading from a hobby into a real profession.
NFTs bring changes to the gaming industry and further increase growth potential. In the past, the idea of buying a $ 15,000 non-consumable item seemed crazy. However, people are currently doing this because it can be resold for more money and is unique. There are no others equal. It is not bought because you like it or not, but because of the value it acquires being an NFT. Blockchain technology has already played a path-breaking role in the video game industry and other markets. Those who have embraced this technology have already begun to enjoy the results.
If you find NFT gaming an opportunity, contact us at email@example.com and schedule a free consultation with one of our Starloopians to find how you can use NFT to make your video game even more profitable.