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What Are Blockchain Gaming and its Relevance to The NFT Market?
While the global gaming industry continues to grow across all markets, it remains structured in a way that primarily benefits game developers and perpetuates a one-directional flow of value where players spend money to unlock access to in-game assets and gameplay configurations. However, blockchain-built games and decentralized applications can take advantage of the technology used to ensure that players can capture the utility and value of these purchases through their effort, time commitment, and skill.
For blockchain tech to thrive in the gaming ecosystem, it needs to leverage non fungible tokens because digital assets imbued with in-game content and their value cannot be replicated or counterfeit.
It is a single game that no longer binds a player’s items, as each community can share these prized possessions! This will stem the tide of illegal asset distribution, and gamers can feel secure knowing that NFTs can’t just be duplicated, adding another layer of security to what they already see as a safe platform to purchase goods they want or need. Let’s dive deep and know what is nft games.
Blockchain & Gaming
The gaming market has evolved quite a lot since the introduction of mobile devices to the industry. While the traditional way of acquiring new games with consoles remains a viable option for most gamers, many are tired of investing in gaming systems with limited value for continued play. In addition to PC video games that allow players to invest money into the experience directly, platforms such as cryptocurrencies offer an alternative method for players to fund their gameplay independently. Players have also become more interested in playing games on their PCs and computers rather than console or handheld games such as Nintendo.
The blockchain technology behind decentralized apps helps to create opportunities for players with unique roles within the gaming ecosystem. For example, as a player, you’ll be able to capture the value of your progress and assets at any moment should you decide to cash out your stake in the game or withdraw your tokens and use them elsewhere. The cross-platform play capabilities of blockchain mean that while other players may gain an advantage over you, they won’t be able to exploit them by transferring those assets off their platform into another game where they would still have an unfair advantage over you because they purchased those items with money instead of earning them through gameplay.
Tokenized digital assets enable the generation and deployment of unique assets within multiple gaming environments. Tokens created in these blockchain-built gaming economies are typically separated from the games in which they originate, thus creating a new ecosystem that makes it possible to trade digital assets across borders and regions while boosting economic activity dramatically. To learn more about how cryptocurrencies might contribute to gaming expansion, it’s first important to understand what tokens are.
Non-Fungible Tokens 101
Nonfungible tokens aren’t exclusively used for blockchain gaming. NFTs can represent digital and real-world assets, such as artwork, real estate, collectibles, and even personal identity! Their adoption is accelerating. As a result, NFTs present a wide range of practical applications that appeal to multiple industries and use cases. Key characteristics of NFTs include:
Nonfungible tokens (NFTs) have recently gone from one of the most niche, confusing subjects in the crypto space to a hot topic touching on just about every corner of blockchain innovation. In essence, a nonfungible token is a unique digital representation of an item or asset, as opposed to cryptocurrencies such as bitcoin (BTC), ether (ETH), and others which are fungibles. Rather than alluding to a single unit as BTC does, NFTs — backed by cryptography — can act as tokens for any form of property imaginable, whether physical assets like sports cars, houses, or land; intangible items such as loyalty points; or even your data!
The scarcity of NFTs is crucial to what makes them desirable. For instance, in the CryptoKitties game, digital cats are collected that are all embodied by their own designated NFT. These can be considered rare collectibles, increasing the demand for each unique NFT among collectors who value their provable scarcity. In 2018, an NFT named Dragon sold for 600 ETH, equivalent to $170K at the time.
Cryptocurrencies like bitcoin are divisible into smaller units, given their fungibility and intended use as a digital currency. In contrast, most NFTs must be bought, sold, and held in whole units and are therefore indivisible — in the same way, that you cannot purchase 10% of a concert ticket or 60% of a plane ticket.
The Advantages of Gaming NFTs
Although many NFTs are being built on the Ethereum blockchain, other networks can be used to develop these tokens. Examples of such platforms include TRON (Blockchain Cuties), EOSIO (EOS Knights), and NEO (Blocklords). While using a particular network does restrict one to their native programming language, some advantages associated with decentralized gameplay are:
Some games utilize a system in which users may invest money into the game. However, after making such a purchase, users aren’t really “owning” it by any means because they can’t trade or exchange that item with other players. The value of these items remains with the company developing the game for them instead. In this new process, blockchain adds a layer of security and simplicity which allows users to transact directly with each other without any intervention from third parties.
Users lose all their in-game purchases when a traditional online game becomes defunct. NFTs are independent of a specific gaming platform and exist on the blockchain itself. This means that in-game purchases can be bought and sold regardless of what happens to the game, and new games can be designed to plug into an existing blockchain protocol. Furthermore, gaming assets that NFT enables become permanent records upon issuance, so they cannot be duplicated or tampered with due to the permanent record each NFT generates.
Traditional online games exist on centralized servers. As a result, game data is stored within proprietary systems that separate it from others. In contrast, decentralized games exist on independent blockchains, giving them unique identities and making them more unified by default. As a result, game data can be transacted on the blockchain since game assets represented by NFTs can be built to be interoperable across different environments.
Collectors are among some of the most elusive creatures that aren’t commonly found in the wild. They can be hard to find, and shopping for them online might even be a nightmare task if one isn’t familiar with proper collecting forums such as Reddit or Twitter. It’s easy to get lost with so many options available, and it’s important as a collector to focus on what interests you most: prices, owners, background stories, etc. So make sure you look around and maybe even ask your friends which websites they recommend checking out first!
NFTs and the Future of the Blockchain Gaming Industry
Although the adoption of NFTs in the gaming world will come with benefits, it also presents significant obstacles to overcome. Most notably, NFTs need to be more appealing and intuitive to customers who might not be technically oriented. And because NFTs possess intrinsic value, there’s a risk that some will be used predominantly as speculative assets. This potentiality could motivate players to purchase in-game assets with the hope of selling them for future profit instead of using the assets within the gaming ecosystem as intended.
Despite this increasing competition and the challenges that come with it, the potential for profiting in this blossoming market will drive more brands to utilize nft blockchain, likely by forming partnerships with third-party blockchain projects that better grasp the protocol’s inner workings. Meanwhile, gaming dApps’ success will likely play a role in shaping infrastructure, which drives innovation and helps open up the market for new users to get invested.
Blockchain gaming is a type of gaming that utilizes blockchain technology and digital assets to create a secure and decentralized gaming experience. It uses digital tokens and smart contracts to store game data and track game progress.
Blockchain gaming differs from traditional gaming because it utilizes the blockchain to store game data and track game progress. Furthermore, blockchain gaming is not limited by any central server or third-party provider, allowing for a more secure, transparent, and decentralized gaming environment.
The relevance of blockchain gaming to the NFT market is that it allows for the creation of unique and secure digital tokens. This allows for the creation of permanently traceable assets and can be used to create unique gaming experiences. Furthermore, blockchain gaming allows developers to create independent games from third-party providers.
Several different types of games can be accessed via Blockchain gaming. These include collectible games (such as CryptoKitties and CryptoPunks), strategy games (such as Axie Infinity and Hash Rush), trading card games (such as Gods Unchained and Splinterlands), and even sports games (such as CryptoFights and CryptoAllStars). Other popular games available via Blockchain gaming include dice games, puzzle games, and even online casinos.
Yes, there are some risks associated with using Blockchain Gaming. These include the risk of data theft, data manipulation, and security vulnerabilities. Additionally, there is a risk of financial losses if the game is built on an unreliable blockchain platform or fails to provide adequate security measures. Lastly, due to the decentralized nature of blockchain, users may not have the same level of customer service or protection as with traditional gaming systems.