Cryptocurrency21 hours ago (Nov 14, 2021 03:00AM ET)
© Reuters. How NFT Gamification Transformed the Gaming Industry
- The gaming industry has seen the biggest growth in NFT innovation.
- NFT games provide a variety of offers traditional gaming doesn’t.
- The number of NFT game players keep on increasing.
Non-fungible tokens (NFTs) continue to revolutionize industries with their ground-breaking technology. Among the fields NFTs have upgraded, the gaming space has seen the largest growth. Every day, the number of crypto investors and gamers getting hooked into NFT gaming keeps increasing.
With their unique benefits, NFTs have changed the gaming industry. Their blockchain attributes and vast utility let players use them as in-game characters, special abilities, commodities, and other tradable objects. Furthermore, they also bring additional in-game income to players.
NFT gamification applies blockchain technology to elements like competition, point scoring, and play rules. This integration has led to the birth of GameFi, where the trading and swapping of game assets for financial rewards happens.
Understanding how NFT gaming works is not as difficult as it seems. The in-game assets are programmed as NFTs, which are valuable for players and collectors as they can also be sold.
For example, in the game , each creature (called an Axie) is minted as an NFT. Axie players can battle with their NFTs in exchange for crypto rewards. Meanwhile, in the upcoming My Neighbor Alice, players create virtual lands. They will be able to interact with their neighbors, do certain activities, and earn rewards in the form of NFTs.
There are endless possibilities for how crypto can be used to up the gaming space. Some of the most remarkable differences NFT gamification has made are the following:
1. Source of Income
Traditionally, gaming has been using a play-to-win structure, where players purchase items and upgrades that generate no economic return. Today, the new play-to-earn model serves as a source of income for players who obtain financial rewards for achievements made in the game. They can either gain NFTs from trading or earn in-game rewards and cryptocurrencies.
2. Play-to-Earn Guilds
Play-to-Earn Guilds help new players get started. Guild members can rent in-game assets instead of buying them. The new player will allot a percentage of their earnings to the lender. In turn, the player gets what they need to start gaming.
3. Interoperability of Game Assets
Blockchain-based games feature interoperability. It allows players to use individual game assets in multiple games if allowed. Crypto games can be on the same or interoperable blockchains where assets can be traded in the marketplace.
4. NFT Staking
Another interesting development in crypto gamification is NFT staking. Some NFT games let users lock up cryptocurrencies in smart contracts, which will then generate rewards.
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