Applications of NFT in Gaming

Reading this article, it is likely that you or one of your family members are gamers. The gaming industry is one of the most thriving industries globally, with a revenue of US$ 136 billion in 2019. Depicting massive growth has overwhelmed the industry with around US$ 5 billion processed transactions via blockchain currencies like Ethereum and TRON as of 2018, making it clear that blockchain-based gaming is growing vastly in potential.

NFT can be in the form of crypto-collectibles or digital assets. A non-fungible token can represent assets like real estate or alternative assets like gold or silver. It is like a unique asset to get as a reward in a game in the gaming world. For example, a tare sword won from a boss or a gamer's reputation, that if many game platforms use the same NFT standard for their in-game assets, creations will have resale value outside their games traded in the marketplace.

Blockchain technology has had a significant influence on gaming, most especially video gaming. The coming of the NFT (Non-fungible token) innovation is presumed to be a great disruption to various industries. NFT has some unique features, including transferability, making it possible to transfer or sell out digital assets acquired from the video game system to a third party in a marketplace without the game developer’s consent. The non-fungible token has a high token standard that brings authenticity and proves its almost full ownership.

Ethereum protocols used for NFT

The most used token standard is called ERC721, a free, open standard smart contract that can allow unique tokens to be managed, owned, and traded. With three digital asset levels, namely a digital asset whose ownership is controlled inside the game application, second is whose ownership can be verified on the blockchain. The last one is whose control is accepted to a comprehensive recognized protocol where users can trade digital tokens in third-party markets. Also, there's a new token standard, ERC1155, that allows both fungible and nonfungible token ownership.

NFT uses in gaming

Recent developments and applications have added to the gaming industry, as there are game developers. NFT concept has given birth to a thriving global fantasy football game called Sorare. Players in the game application are turned to digital collectibles that increase based on real football games’ performance. Users can earn points that can be traded with other users in blockchain marketplaces.

The concept has brought some beneficial features to the gaming industry that are vantage to both the developers and users. NFT has brought digital ownership and portability; users can own game assets for the first time on the internet, with player cards owned on Sorare in NFT. He can trade it on any accepted blockchain platform. The value of any collectible depends on its scarcity. Being that collectibles are uniquely owned, it increases its scarcity and, in the same manner, increases the value of the collectibles and creates a peripheral market to the existing blockchain markets.

Conclusion

The NFT concept is one of the greatest innovations in the blockchain world today. Players can enjoy the benefit of earning game points in NFTs, which can be traded in blockchain marketplaces. NFT brings a unique way of ownership to online games. It makes the game more valuable because gamers can own assets without being compromised.