Do NFT-Based Video Games Do More Harm Than Good?
The collision and confusion around cryptocurrencies, NFTs and video games is as sharp as in 2021. But with the development of more and more NFT-based games, is it still clear who benefits?
So you’ve heard a lot about Bitcoin, Dogecoin, and NFT lately and like me, you’re a little stumped. I know I’ve seen Valve’s decision to ban NFT games on Steam and Epic Games’ decision to possibly accept them in the future. There are memes about Dogecoin and the story of how Grimes managed to grab $ 6 million by selling his music using NFT. But what is a TVN? And what does all of this have to do with the gaming industry?
While Happy has covered NFTs before and the really good potential it has for musicians and artists, the playing angle is a bit different. After some intensive Google searches and survey readings, I can safely say that I understand what this is about now.
The summary of the NFT
NFT stands for non-fungible token. What they do is assign a unique, non-interchangeable certificate to a digital asset and, through blockchain technology, prove legitimate ownership. Blockchain technology allows us to trace the origins of a file back to its original creator and thus allows us to confirm ownership.
In other words, if you had an NFT of a Van Gogh painting, it would be like owning the original. Since Gogh is long dead, you won’t be making any royalties when people copy the painting, but unlike copies, you get the real deal.
In this case, it’s pretty much a flex.
Going back to the digital world, yes that NFT image you bought costs $ 500 and pretty much anyone can download or copy it. But you own the original and thanks to NFTs and blockchain technology you can prove it too. For fine art collectors, this sort of thing matters.
NFTs can also be more than just pictures. They can be just about anything digital, be it art, music, and now video games. They can also be bought or sold in whatever currency the seller prefers, but the majority of the market accepts Ethereum cryptocurrency.
For artists and musicians, NFT has a cool feature where you can allow it to pay you a percentage every time NFT is sold again. This means that if your work starts to gain in value, you always benefit.
I started my own project and I am giving these 3 gold NFTs to my new subscribers💛
– SolStoner (@solstoner_) November 1, 2021
So why is this important for video games?
NFTs have had a lot of bad press regarding their use in video games in particular. I’m here to tell you that it’s not all bad, but it’s not all good either. NFT-focused games are usually advertised as a way to make money while you play, which sounds like a dream. But the reality is a little different, at least currently.
Usually you buy a copy of a game to play, but NFT-based games are usually free. This is because they instead focus on getting you to buy their NFT assets (which can be weapons, armor, or cosmetic skins), which means the game keeps running and you start contributing to the game. community economy.
We applied to publish on the @EpicGames shop! Thanks to our community for all the amazing support so far – Wish us luck! ??
Learn more about the project: https://t.co/wDBndFrz3N#UnrealEngine #epicgames #horror #nft #NFTGaming #Game development #independent game pic.twitter.com/ynvO1iu3hJ
– The Bornless (@TheBornlessGame) 28 October 2021
Other ways to make money could be a small amount of cryptocurrency awarded to players in addition to things like achievements or experience. You can either invest in NFTs with that developer’s cryptocurrency of choice, or cash it in and turn it into your local currency.
Or there are games that allow you to buy and sell NFTs between players, with the small condition that the developers take a share of each trade.
Where you’ve worked for 20 hours to get a specific NFT skin, you can sell it to a new player who trades time for money – and the developers benefit as well. Which obviously helps keep the game going. It sounds like a win-win-win situation. Law?
An update to Steam’s rules and guidelines reveals that the site has banned games based on blockchain technology or allowing NFT and cryptocurrency trading.
Source: https://t.co/ANmy88oTIY#unix #unixplaytoearn #crypto #cryptoworld #nft #nftgames #playtoearn #blockchain pic.twitter.com/OFiQxyRIgk
– Unix Play-to-Earn (@unixplaytoearn) October 26, 2021
Kind of. Community economy is an important part of making money by participating in NFT based games. Supply and demand, my friends. If a game’s popularity increases, so does the value of its NFT assets. Whereas if the pendulum swings in the opposite direction, you are wasting your investment. If the game is completely abandoned, you can say goodbye to your investments.
Obviously, it’s much worse for people who have turned a game like this into their actual income. Rather than a hobby and a fun way to find entertainment, gambling is suddenly a job for these people. For those who have invested a lot of money in NFT assets, the stakes they have in these games become much higher. There is no such thing as a risk free reward, after all.
There have been a few mentions of the Diablo Auction House fiasco. What was not mentioned is that he failed not because he added a profit motive to Diablo. This failed because it made Diablo little fun.
– Damion Schubert, Zen designer (@ZenOfDesign) November 2, 2021
To use a quick example: if World of warcraft NFT contents, some people might have made an insane amount of money over the years thanks to its overwhelming popularity. But in light of the recent Activision-Blizzard lawsuit, the player base has collapsed. Which means that in this hypothetical situation, the value of these NFTs would be too. That frame you’ve worked so hard for? Yes, it went from $ 2,000 to $ 20. Pity.
However, most NFT based games don’t have huge companies behind them like Activision-Blizzard. So far, there aren’t many (if any) that combine the entertainment factor of popular games with the ability to buy and sell NFTs.
If this made happen, chances are it will work just fine. The community economy would be booming thanks to the popularity of the game, and this would become a big incentive for developers to not only maintain servers, but add more content.
– GalaxyWar (@GalaxyWarNFT) October 29, 2021
It is difficult to say whether the future of NFTs in gaming will be purely good or purely bad. There are certainly ways for developers to take advantage of their player bases. But, they could still cut and run once they’ve made enough money for themselves and leave their players with unnecessary investments.
There is also the risk of the skyrocketing popularity associated with the games themselves, which means skyrocketing value for your products online.
But if NFTs can be used properly in industry, it just might turn out to be one of the most interesting and perhaps fun ways to make money. I’m not sure I would make it my daily job, but a little extra on the side just for the game looks pretty cool. At the very least, try to remember the golden rule: “Don’t invest what you can’t afford to lose”.