The rise of blockchain technology, along with non-fungible tokens (NFTs), has caused a dramatic shift in the dynamics of the gaming sector in the last few years. These developments are redefining how players possess, trade, and monetize in-game items. The increased use of decentralized technologies is turning gaming into a more secure and lucrative industry. Click here to find out more about how this technology is changing the gaming world for the better.
How Blockchain and NFTs Are Changing Game Ownership
The notion of assuming ownership of a video game’s features has lived with the developers and publishers for a considerably long duration. Players purchase various items such as skins, weapons, and characters, but in reality, there is no asset ownership. With the introduction of blockchain and NFTs, these digital assets can now be owned, and tangible proof of ownership can be issued and retained by a player in a decentralized ledger.
- True Ownership: Owning NFTs gives gamers the unprecedented power to claim ownership of one-of-a-kind digital assets without the risk of duplication or revocation by developers.
- Interoperability: Unique NFTs can be utilized across multiple games and online platforms, making them far more valuable than conventional assets.
- Security and Transparency:Fraud reduction and lack of unsanctioned changes are among the notable benefits of blockchain technology, which ensures complete security of all transactions conducted.
As game developer Will Wright once stated, “In the future, gaming will be about digital assets and a shifted economy.” This is being worked towards with the help of blockchain technology, which removes the restrictions of conventional gaming assets.
Monetization Opportunities in Blockchain Gaming
It’s made clear that blockchain gaming includes asset ownership, but it also provides the chance to generate revenue for the users and creators as well. Here’s how:
Play-to-Earn (P2E) Model
This model makes it possible for players to leverage activities executed in a game to generate real money. Completing tasks or winning battles earns players various quantities of cryptocurrencies or NFTs that can be traded or sold.
● Games like Axie Infinity and Decentraland are some of the pioneer games where the players earn in-game rewards with financial value.
● These NFTs can be sold by players in OpenSea and Rarible as well as other game specific exchanges.
“Gaming should encourage and reward the players, not just the developers,” says Vitalik Buterin, an expert in blockchain. The P2E model is exemplified by the financial rewards granted to players, which in turn incentivizes them to engage further.
Selling and Trading In-Game Assets
Since the inception of blockchain, players have now been able trade assets freely through other players without worrying about scams or account bans. This is possible due to the blockchain based assets that offer security and trust:
● Direct and clear transactions can be made through NFT marketplaces.
● Smart contracts remove the need for a middleman by guaranteeing proper implementation of the sale.
Royalties for Content Creators
Developers and artists benefit from blockchain gaming through NFT royalties. Every time an NFT is resold, the original creator receives a percentage of the transaction.
● This encourages the creation of content of the best quality.
● It’s a method to generate income for game developers and freelance artists over the long term.
Challenges and Future of Blockchain Gaming
There is much to gain from blockchain gaming but there are additional hurdles that need to be covered:
- Scalability Issues: Existing transaction on blockchains, such as payments, can be slow and costly.
- Regulatory Concerns: Policies for digital possessions and in-game cryptocurrency purchases are called by many governments.
- Player Adoption: A significant portion of gamers do not know of blockchain and are unwilling to make the change.
Nonetheless, holders of Ethereium 2.0 and Polygon will help lower fees and enable more transactions per second, so adoption will become more popular. Leaders of the industry believe that the time is near when blockchain gaming will rule the roost for possession of digital assets.
“Blockchain games will change the video gaming industry since in-game objects will have real-world value,” stated Gabe Leydon, who is a known entrepreneur in the field of gaming. As technology progresses, the distinction between virtual economies and those anchored in the physical world will diminish.
The Bottom Line
The integration of blockchain technology and NFTs is set to change the landscape of game ownership and monetization through digitized ownership, play-to-earn models, and safe trading. Even though there are hurdles to overcome, the gaming industry will largely be impacted by decentralization. As the embrace of this technology increases among developers and gamers, the gaming industry will undergo unmatched innovation and growth.
