We cannot ignore the pace and innovation of the 21st century. A decade back, technology had given us Blockchain, and that significant technology is enhancing the digital world in a disruptive way.
If you have the idea of Blockchain, you also know that Bitcoin has been ruling the Crypto world since 2009. The choices are always specific for the people, and the audience chose to go with Cryptocurrency.
The world is changing with the advancement of technology, and new and innovative processes are emerging. NFTs have been very much popular in recent days, and significantly since 2021, it is changing the notion of the whole online gaming industry.
Non-Fungible Tokens (NFTs) are the new discovery of the Blockchain process, which mainly runs on the Ethereum platform. It is non-fungible because it cannot be altered to any other currency like Bitcoin.
You can trade and transact Bitcoins through the bitcoin era, but you cannot convert NFTs, and that is why it is too secure and trustworthy.
DLCs To NFTs, The Transition
As time passes, the notion of online gaming is shifting its gear from DLCs to NFTs. It’s interesting to understand the change process.
The Blockchain process is changing the digital asset inside video games into real-world assets through the help of NFTs. The gamers spend real-world money to purchase from the grey market.
Let’s know about DLCs!
In-game purchases were always there in online games, and gamers are too fascinated to use skins and materials of their choice that they decide to purchase them from the games.
The downloadable contents (DLCs) are mainly controlled by the game owners or developers. They decide where you can buy those and where you can use those. They also decide if your ownership is authenticated.
When you purchase something, it is directly linked to your gaming account. The change process started with multiplayer games where you can play games with other users. The inspiration for NFTs in gaming came from multiplayer games like World of Warcraft and Runescape, et cetera.
On the other hand, NFTs use an external process to increase your own abilities.
For instance, if you try to purchase a war skin for a battleground using NFTs, you do not need to confirm your ownership through the electronic account. Through an eternal Blockchain process, you will be able to seal your ownership of the skin.
In addition, you can transfer the skin to another user, and that is known as the selling of NFTs.
Moreover, there are games like Axie Infinity, where you can earn smooth love potions (SLPs) by winning the battles. This Cryptocurrency can be exchanged with real-world cash. Isn’t that interesting?
We have acknowledged the transitions of gamers and gaming companies from DLCs to NFTs. That is not enough.
We need to understand the pros and cons of using NFTs in the gaming world.
Advantages Of NFTs In Gaming
- ‘Right to transfer’ is applicable with NFTs as it stores directly on the Blockchain.
- If you purchase a limited edition game instance, you will have a chance to get more value if the demand remains the same.
- The ‘play-to-earn’ is effective in compensating the players for the time they spend in a game.
- The potential of converting the in-game rewards to real-world cash through Cryptocurrencies can be exciting for gamers.
- NFTs give power and autonomy, and profit to the users.
Disadvantages Of NFTs In Gaming
- The ability to trade skins is also possible without the NFTs and Blockchain process, and the argument suggests that 99% of the users will not understand the difference.
- The ‘play-to-earn’ can be seen as a gambling process where gamers can earn or lose assets.
- People might spend more time exchanging assets than playing the actual game.
- The collaboration and alternation of real-world assets and the game token can be a cause of market manipulation and breach of security regulations.
It’s Time To Change.
We know that it’s hard to accept the change instantly. The developers are trying to implement something new in the gaming world, and we are very much excited about the metaverse.
The real results might not be hopeful, and in that case, we need to implement a much better Blocckchian process to secure all processes and use NFTs wisely.