NFT (Non-Fungible Tokens) are digital assets that comprise a string of code which is with the owner of the asset. The code uses blockchain technology to keep it safe.
NFT are unique and one of a kind. The original copy is kept in a digital ledger. People can make copies, but they cannot replace the original.
The hype is so much that celebrities and influencers have started using NFTs too. Recently, Melania Trump launched a digital platform selling an NFT painting of her eyes. The art, “Melania’s Vision” is available to buy till 31st December for 1 Solana.
Cryptocurrency is used in buying and selling NFTs, and one such is Solana. Solana is a digital currency like Ethereum and can be bought with a credit card for around $150.
Any product can become an NFT. It could be a song, a piece of art and even be used in the gaming industry. NFTs can be saved in any formatting also.
Market Size of NFTs
JP Morgan’s report finds that the market size of NFT sales has exceeded $7 Billion. That amounts to sales of $2 billion every month. The digital arts have provided the necessary boost to NFTs.
While the market size is large, the continued growth depends on the legislation of this industry.
Like cryptocurrencies, NFT has no legislation in place. There is the issue of copyrights and other regulatory hurdles that need to be met and sorted.
The legislation will protect against copyrights and digital thefts of NFT assets. Of course, blockchain is very secure. But extra protection can be given using legislation.
Right now, nothing is stopping the strong growth of NFTs. Legacy auction houses have joined the NFT trend and launched a marketplace.
The NFT marketplaces create a space to appreciate the value of items that are supposed to be low value or illiquid.
NFT impact in the gaming sector
Non-fungible tokens are the new in-game feature. They put value in a game and unique properties.
There are some impacts of NFTs that got discussed below:
The decentralized blockchain servers will give data protection to the user. The technology is secure and efficient in this regard. With everything going online, monetary transactions data needs protecting.
NFT adds liquidity to valueless items. NFT minting is instantaneous. The asset does not need to wait to be sold. It has value as soon as it is acquired.
Play to Earn
All games before NFT were taking money from players without any value for money. Now, these games provide value for the money which can keep players active for a long time. NFT games could pull in more players and even non-gamers. The in-game currency in NFT games can be exchanged and traded on blockchain in the form of digital currency.
If a game shuts down, all in-game purchases are lost. With NFTs, if a game shuts down the in-game purchases are safe. This is because the purchases are on a blockchain that is independent of the gaming platform.
NFT game purchases and special equipment give the player ownership of that equipment or purchase. Traditionally, ownership of these items remained with the game developer.
NFTs in Gaming World
Non-fungible tokens have rocked the gaming industry. There is a split between opinions and concerns raised.
All giant companies and gaming platforms have their question while the players have concerns as well.
NFT has been hyped up because of its success in the music and arts industry. A lot of artists and sellers are using this to earn money.
Electronic Arts Games
Recently, EA sports showed support for NFT based gaming calling it an “important part of the future” of gaming.
EA’s extremely famous game series “FIFA” might go on the NFT route in the future.
It is still early to say if the reception for NFTs will be like for EA games customers. EA might release the next football game as an NFT.
Ubisoft has invested in the NFT gaming sector and it seems bullish at the moment. They created a dedicated NFT platform called Quartz NFT in December 2021.
Since then, they were able to sell just 15 gun skin NFTs which indicates consumer displeasure. The investment that they put into NFT seems to have tanked.
Ubisoft had minted around 3000 NFTs in total thinking that NFTs would be sold well. But the first months’ sales are very discouraging.
Challenges of NFTs in the Gaming Industry
NFTs are hyped but not popular yet. It has caused hesitation among the giant gaming developers for making NFT based games.
NFT is associated with blockchain and cryptocurrency. There is not enough study that can tell if players outside the crypto interest are interested in such games.
Some major PC gaming platforms do not trust NFT games or blockchain and others do. Steam Engine banned NFT and blockchain-based games from its platform. On the other hand, Epic has allowed these games.
Industry experts also claim that NFT is going to be disruptive. They consider that the costs of this once-in-a-lifetime equipment are going to trade at very high costs.
Some parents might not want their children on such platforms and games where there are bids and trades.
Another challenge is that cryptocurrencies are not accepted globally. Multiple countries have placed a ban on them such as the subcontinent countries.
OpenSea admitted to insider trading for NFTs so such news also gives a bad name to the technology.
Lastly, these NFT based platforms might not be available in several countries similar to cryptocurrencies. This means that gaming companies are losing out on a lot of customer bases.
Offshoring for NFT solutions
NFT games need expert developers for this Big Data technology and blockchain. Offshoring these would save time and cost for the company.
Offshore vendors have experts and teams formed at flat rates which save financially. The vendor takes on the expansion and requirements for the teams.
Offshore vendors provide consultation as well. They can be consulted about the development of NFT and blockchain.
Offshore experts are constantly updated about newer technology and avenues. So, if there is any change in the NFT technology, chances are that the offshore team knows and is in training.
Mashkraft for NFT
Mashkraft is a development firm and involved in mobile application development. Our offshore team can provide its services and solutions. We have clients across Europe, North America, Asia and Africa. Please reach out, and our experts will help you find the right solution that fits your budget and needs. You can find out more details about our services and successes at www.mashkraft.com.