Non-fungible tokens (NFTs) are a new form of digital assets that can be traded and used in online games. What is an NFT? It’s similar to the idea of trading cards, but instead, it’s digital assets on the blockchain.
They were first introduced by CryptoKitties back in 2017 and have been widely adopted by many other companies since then. In this blog post, we will discuss what non-fungible tokens are and how they work so you can decide if they’re right for your game.
Tokens vs. Coins: What’s the Difference?
A token is a representation of an asset or utility that can be traded, like coins in games like World of Warcraft (WoW). Tokens are created on top of blockchain technology, and they have their associated addresses on a network. Each NFT has its unique address, which allows users to send them just like an email.
NFT allows you to create digital scarcity and own unique things in a game, which is why many games are starting to adopt non-fungible tokens for their item system. It also allows players the opportunity to gain more items or currency without spending money.
Traditional Gaming Elements in NFT Games
Many blockchain games have moved past the traditional wallet model, where players need to pay for items. Instead, they’re using decentralized assets that are stored on Ethereum and other blockchains to allow players full ownership of their digital goods. This means no company or central entity is controlling your game assets which makes it fully yours.
Items and collectibles like cards can be traded with other users on the platform. This makes it possible all over again to not only own something in a game but also for your investment to pay off down the road, especially if you’re playing an online trading card or strategy RPG (role-playing games). Not only that, but NFTs can also be used to create unique game mechanics like quests, trading systems, and more.
NFT games are different from traditional video games in a variety of ways including:
- No central entity controlling the item supply or dictating how it is played with. This means no loot boxes or microtransactions! Your wallet won’t be drained from a game that’s constantly asking you to pay to play.
- Most NFTs are non-fungible, which means they’re unique and cannot be replicated or destroyed by the user — only traded! This makes it so that even if someone hacks into your account, then there is no way for them to strip you of your items.
- NFTs are transparent and open source, which means there is no central party controlling the item supply or dictating how it’s used in the game world. This makes for a truly decentralized gaming experience!
NFT Games: The Future of Gaming?
Since blockchain technology has redefined how we look at digital assets, we’ve seen a new wave of decentralized games like NFTs that allow gamers to own their in-game items.
While the technology is still relatively new, and there are some issues with blockchain gameplay such as slow transaction speeds and high gas costs (the amount required for transactions), it’s an exciting time where people can own their game items forever!
NFTs are already beginning to gain traction in the gaming industry, and some promising games will soon be releasing digital assets on the blockchain. As more developers create NFT games, this gives gamers a chance at owning unique items which they can use for trading or sell later down the road!
There is a lot of buzz surrounding blockchain game studios that are working on bringing NFTs to the gaming world. Games like Blockchain Cuties and Axie Infinity are just one example of how non-fungible tokens can be used in gameplay and allow players full ownership over their digital goods. We’re excited for what 2022 holds as far as decentralized games go.