Are NFTs the Future of the Gaming Industry?

Have you ever been curious like me, who always wanted to have a specific skin that nobody else has in the whole game? If yes, then hold tight, as it is happening right now. We are finally in the era where we can have our unique costumes and skins, which actually belong to us only. It’s possible now with NFTs. But wait a minute, what are NFTs?

An NFT is a Non-Fungible Token, which is a digital representation of a unique object. A token is an item that can be traded or used as a virtual currency. It can represent a physical object (such as a car) or a digital object (such as an in-game weapon).

In short, Non-Fungible Tokens are digitized assets that are usually associated with a specific company, brand, or product. These tokens are unique and cannot be replicated.

Are NFTs the Future of Gaming?

The answer is very controversial, as some people are opposing this thing, while on the other hand, there are multiple new game companies that just started on the basis of NFT projects.

Reasons Why NFTs could be the Future of Gaming

There are a bunch of reasons that could potentially agree with you and me on thinking that NFTs are surely the future of gaming. Here we will discuss this point from the perspective of growing avatar use in the gaming industry.

1. Sense of Ownership

These days people purchase the skin, and anyone else can purchase the same skin with the same amount of money. So, there is no sense of ownership.

While on the other hand, if we take NFTs in games, there is only one specific skin or outfit that anyone in the world can have. It gives you a real sense of ownership and lead.

2. Tradeable

You can easily sell your skins and costumes to any other player in the game on a secondary marketplace like OpenSea. All you have to do is just sell the token, not the item itself. It will allow you to find a person who wants to purchase your exclusive item at a price that suits your needs.

It doesn’t just stop there, the ownership can be transferred to the new owner on the blockchain, but at any time, you can check the history of that specific skin or costume to show others who was the 1st owner of that specific skin.

3. Diverse Themes

Human love diversification and NFTs are one step towards diversification in games. It will allow companies to create an infinite number of costumes with different themes, not just the same old skins that everyone already has.

As a person who loves gaming, having something unique is always better than having the same item as others do.

4. More Profits

It’s proven that most people who purchase access pass only purchase it for one character skin that they can grind in-game, so they don’t mind paying for it. But with NFTs, a new concept arises where a person will have to pay a premium price to get a single skin or outfit, this will increase profits by adding more revenue channels.

On top of that, it’s not about skins and outfits, and there is a bunch of other stuff that companies are selling to increase revenue. For example, cars, weapons, powers, wings, etc. The more the options are available to players, the more they are likely to spend on their gameplay.

This encourages the circulation of money, which is the basic principle of economics. If you can circulate money, you can generate money.

5. More Freedom

The most amazing thing that we can get with NFTs is the freedom on how we want to spend our money on gaming. Right now, if you want to purchase a skin or an outfit for your character, you have to purchase it from one single company, but NFT-based games are not going to be the same.

Players can buy skins on an open marketplace, so they don’t have to wait for a specific game company to launch new skins. They can always choose from alternatives that will satisfy their needs with less money.

The same is the case when you are selling your NFTs because you are the one who decides when, where, and for how much you want to sell your specific game piece.

You can always decide the price on the basis of rare traits of your skin/character. You can use Rarity.Tools to check the rank of your specific NFT with respect to other NFTs in a specific category.

6. Removing the Risk of Monopolization

Monopolization is when a single firm takes over the market by relentlessly pushing out its competitors). It has been a big problem in the gaming industry since its existence. But with NFTs, monopolization can come to an end.

With the use of ERC-20, there are an infinite number of unique items that are created by everyone, which makes it impossible to have a single company controlling them all. The only way to have complete dominance over the market would be the purchase of every single rare item available in the marketplace.

That is a major shift from how the gaming industry was run before by a few big companies. Having a free and decentralized economy will bring a lot of new people into this space.

7. Crisp Gameplay

Keeping the uniqueness of NFTs aside, it also brings crispness to the gameplay, which is amazing. For example, if you want to purchase a skin for your character but it cost $100, the game will limit your gameplay to just grinding and leveling up so that you can afford that specific skin.

But now, with NFTs, there is no more need for grinding or spending time just to level up so that you can get access to the items you want.

With a cryptocurrency wallet, you can purchase a skin instantly without any hassle of any specific level requirement. More money is always good for the industry, and it will make everyone happy in this space who is interested in gaming.

Wrapping Up

Now that we know the cool aspects associated with NFTs, we can depict its active involvement in the gaming industry in the near future. EA (maker of FIFA football series) also says that NFTs are a part of the gaming industry’s future. In fact, it is anticipated that the NFT gaming industry will even surpass the Hollywood industry in just a few years. In a nutshell, it’s a big “YES” that NFTs are a part of the future of the gaming industry.

Are NFTs the Future of the Gaming Industry? was last updated February 16th, 2022 by Hamza Razzaq