The integration of NFTs into video games is still in its infancy. However, it has great potential for positive change, says Jonathan Schemoul, CEO of Aleph.im.
In late 2021, Ubisoft became the first major video game company to announce the integration of playable NFTs. The so-called “Digits” were released as a beta in the PC version of Tom Clancy’s Ghost Recon: Breakpoint released. There, users can purchase unique items such as helmets, pants and weapons and then use them in the game. In collaboration with Aleph.im, Ubisoft is also working on integrating NFTs into console games.
Player: Why are some against NFTs?
The reaction to the news came quickly and was in part quite negative. Many players worry that the integration of NFTs will lead to utopian prices for in-game items and a pay-to-win environment. There is also concern that the use of NFTs will lead to increased decentralization, as large companies want a monopoly on the NFT market.
These concerns are in no way unjustified. In the past, players’ wishes were often ignored. Especially when it comes to integrating microtransactions or other pay-to-play features. As a result, many gamers feel left behind by the rapidly changing landscape of the video game industry.
The video game studio Team17 provides an example of these reactions. They put their plans for NFT integration in their game on hold after receiving negative feedback from staff and players. And Ubisoft has also had to deal with this type of criticism.
The benefits of NFTs in video games
However, it is important to keep in mind that the integration of NFTs into video games is still in its infancy and offers great potential for positive change. For example, the use of NFTs may allow players ownership and portability of their assets in the game. It would make them feel like they had more control over the gaming experience. It can also lead to players developing a deeper and longer relationship with the game.
Consider, for example, that trading in virtual objects in video games is already a large $ 50 billion industry. If more of this value could be captured and redistributed, it could have a major impact on how we think about video games and their value. Items in the game could be more than just digital jewelry. They could become real assets with real value.
Gamer: NFTs could be the solution
It is also important to note that NFTs can solve some of the most pressing problems in the video game industry. These include the lack of a secondary market for in-game items and concerns about microtransactions. For example, if developers integrated NFTs into their game, they could create a direct connection between the value of the elements of the game and the game itself. This would give players a greater incentive to play the game and support the developers. At the same time, it allows for a more transparent and fairer secondary market for in-game items.
Ultimately, the integration of NFTs into video games has the potential to create a fairer and more sustainable industry for all involved. Players would have more control over their gaming experience and could be rewarded directly for their time and effort. Developers wanted a new tool to create more immersive and rewarding games while earning more profits that can be reinvested in other projects. The industry as a whole would benefit from equal terms, where the value of objects in the game is more closely linked to the game itself.
In addition, the use of NFTs can help decentralize the video game industry by giving smaller developers a chance to prove themselves. This creates more competition and ultimately leads to lower prices for the players.
The long-term future of NFTs in video games
IN Ready Player One Ernest Cline tells the story of a world where the only escape from a gloomy reality is the virtual world OASIS. In this world, people can be who they want to be and do what they want. OASIS is a place where people own their digital selves. The virtual world is shaped by the interactions between the users.
It may sound like science fiction, but it’s not that far from the truth. Integrating NFTs into video games has the potential to create a similar world. There players have full ownership of their assets in the game and can shape the world just as they choose.
We are still in the early stages of NFT adoption. However, there is already a growing ecosystem of projects and platforms exploring this new technology. For example, Decentraland is a virtual world based on the Ethereum blockchain. Users can buy, sell or exchange virtual earth NFTs there. Over $ 500 million of “virtual real estate” has already been sold through such projects.
Other projects are also experimenting with different ways to incorporate NFTs into video games. For example, The Sandbox is a user-generated content platform that allows creators to monetize their 3D voxel creations by tokenizing them as NFTs.
Dynamic NFTs even provide added value
Dynamic NFTs are a relatively new and innovative development that increases the usability of NFTs in games. With the ability for the attributes (ie the metadata of the NFT) to be changed and developed based on the player’s activities in the game, dynamic NFTs offer a level of customization and development that traditional NFTs simply cannot match. Aleph.im were the first to bring dynamic NFTs and mainstream games together. Other projects like Chainlink are also pioneering in this area with their vision of dNFTs.
With Aleph.im’s technology, the metadata for NFTs evolves from player to player. You can see information about who previously owned NFT. This creates a sense of community and connection between players that would not be possible without NFTs. In addition, Chainlink enables dynamic NFTs that connect to oracles to retrieve real-world data.
NFTs and Players: Summarized
Clearly, there is a lot of interest in using NFTs to build new types of video games and virtual worlds. As the technology matures and more projects come on the market, we are likely to see even more innovative applications for NFTs in play.
So what does the future hold for NFTs in video games? It’s hard to say for sure, but there is reason to be optimistic. The benefits of NFTs are clear and there is already a growing ecosystem of projects exploring how NFTs can be used. As more people understand and use this new technology, we are likely to see more amazing uses of NFTs in games and beyond.
About the author
Jonathan “Moshe” Schemoul is the founder and CEO of Aleph.im, a cross-blockchain decentralized storage and computer network. Previously, he was a community developer at NULS Blockchain, as well as a freelance developer and software architecture, where he developed software for banks and hardware for start-ups. Jonathan and his team at Aleph.im aim to revolutionize the web through decentralized cloud computing and Web3 infrastructure.
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