What is NFT Gaming?
The gaming industry has always been a hub of innovation and technical growth. From the early days of arcade cabinets and console gaming, through the emergence of the Internet and online gaming, to the present era of virtual reality, gaming has pushed the limits of what technology can do. We are now on the verge of another game revolution_the era of Non-Fungible Tokens (NFTS).
NFTs are one-of-a-kind digital assets held on a blockchain, which is a decentralized digital ledger. They may be used to symbolize everything from digital art and collectibles to virtual real estate and gaming goods.
NFT gaming, in particular, has piqued the interest of both gamers and investors, since it blends the excitement of gaming with the possibility of financial gain through ownership and trade of unique, in-game assets. While the potential of NFT gaming is enormous, it is also fraught with hazards, frauds, and fraudulent initiatives.
In this article by Gaming Arcade, we will look into the realm of NFT gaming and provide you a detailed guide of the NFT World and how you can thrive in this new universe while making money at the same time.
Rise of NFTs
Although the origins of NFTs can be traced back to 2012 with the concept of Colored Coins, the first true NFT emerged in 2014 as Quantum, a digital gif art piece created by Kevin McCoy and Anil Dash. However, it was in 2015 when Ethereum introduced 'smart contracts' on its blockchain, enabling the recording of ownership and authenticity, that NFTs gained traction. Ethereum's innovation made it easier to create, store, and trade NFTs, setting them on a path to fame.
NFTs garnered mainstream attention in 2017 with the introduction of CryptoKitties, a blockchain-based game where players could raise, trade, and collect virtual cats as NFTs. This success showcased the potential of NFTs and led to a surge of innovation in the space. While NFTs briefly faded from the mainstream, they reemerged in January 2021 and have since remained a topic of discussion. Various factors contributed to their renewed popularity, including increased interest in crypto investments driven by the pandemic and the success of NBA Top Shot, an NFT platform centered around basketball collectibles.
The astronomical sums of money being paid for NFT art, such as Beeple's "The First 5000 Days" selling for $69 million, have also fueled the ongoing hype surrounding NFTs. However, NFTs have not been without controversy. Instances of art theft, where works are stolen and sold as NFTs, have emerged. Additionally, concerns about the environmental impact of NFTs have been raised, as the energy-intensive nature of processing NFT transactions and mining cryptocurrencies used for purchases contributes to carbon emissions. Furthermore, the demand for NFTs has contributed to a shortage of graphics cards, as they are being purchased by cryptocurrency investors for mining purposes, exacerbating existing manufacturing issues caused by the pandemic.
NFTs and the Metaverse
When discussing NFTs and gaming, it's impossible to ignore the concept of the metaverse. While terms like "NFT" and "blockchain" may require some explanation, the metaverse is no different. It refers to a network of 3D virtual worlds that utilize augmented reality, virtual reality, and blockchain technologies, allowing individuals to exist as avatar versions of themselves. Think of it as the next evolution of the internet, a decentralized network where you can immerse yourself and interact rather than simply opening a browser window.
In this digital realm, NFTs play a crucial role by providing digital items that give meaning and value to the metaverse. Gaming is a significant aspect of this virtual world. Some argue that a form of the metaverse already exists within games. Minecraft serves as a prime example, as it has been a quasi-metaverse for quite some time. However, there are games currently in development and even some already released that focus specifically on the metaverse concept. Although Meta (formerly known as Facebook) would like to position itself as a pioneer in this space, the development of these metaverse-centric games began as early as 2015.
Two notable examples of these metaverse-focused games are The Sandbox and Decentraland. These games provide players with a 3D virtual world where they can purchase virtual plots of land represented by NFTs. These plots of land can then be sold, rented, or used to build their own games within the virtual space. The Sandbox has successfully established a bustling marketplace not only for land NFTs but also for various digital items sought after in the virtual world. It has consistently ranked among the top platforms for global NFT transactions. Investors, including gaming companies and even celebrities, are taking the metaverse seriously, as evidenced by their significant involvement in virtual land sales. Only time will unveil the creations and gaming experiences that will come to life within the metaverse.
NFT-Based Games
So far, there are two sorts of NFT-centric games on the market: play-to-collect and play-to-earn. The primary goal of Play-to-Collect games is to collect collectibles, which are NFTs in their own right, such as kittens in CryptoKitties or a form of video trading card in NBA Top Shot. In-game currency is often gained via gameplay in Play-to-Earn titles and may subsequently be used in-game or exchanged in an open market for cryptocurrencies. Axie Infinity, described as "an evolution of CryptoKitties" by Newzoo, is one example. The creators expanded on the notion of breeding, selling, and collecting virtual pets by giving users the opportunity to earn cash by using their pets to win bouts against other players' pets. In this situation, pet NFTs are not only assets that can be purchased and sold, but they can also generate money.
In-Game Items
When people think about NFTs in video games, the first thing that springs to mind is in-game stuff. After all, the simplest definition of an NFT is a "digital item." Incorporating NFTs as in-game objects is essentially the same as adding a special receipt to your skin or weapon that gives and monitors ownership. But what's the point of all of this? Attaching NFTs to in-game things, for the most part, gives the possibility of resellability, and hence investment and business. These in-game items are traded for other NFTs or cryptocurrency, thus generating money.
Secondary Marketplaces
In-game item black markets have always existed in some form or another around games like Runescape and World of Warcraft, but with NFTs, the option of real blockchain-based trade becomes possible.
Another factor to consider when determining the worth of NFT gaming goods is the NFT's ownership history. Giving an object an NFT tag distinguishes it from other items of the same type by making it unique and tracking its journey through time. Consider the enhanced worth of an in-game item owned by a prominent streamer or utilized by the champion of an esports competition. Without NFTs, this potential historical worth of in-game artifacts would not have existed.
Passive Income with NFT Investments
Owning crypto shares and making early investments in businesses is a great way to gain money without doing anything. Those who invested in CyberKongz Genesis, a set of gorilla profile images, for example, are presently earning 10 banana tokens every day. The project's cryptocurrency is banana tokens, which had a value of $900 per token in August 2022.
Here are some alternative ways to get passive revenue using NFTs:
Real estate: You may rent out your virtual property if you invest in digital real estate, such as The Sandbox Game or Decentraland.
Royalties: You may earn royalties as an artist or creator of an NFT for each sale of your work. Just make a note of it when you mint your NFT.
Staking: If you hold valuable NFTs and keep them on a platform or in a protocol for an extended period of time (known as "staking"), you can earn interest on them. For example, if you stake one of the 11,111 existing "Creepz" on MOBOX, you may earn $75 in interest every day (as of August 2022).
NFT Branding
Why should you confine your NFT revenues to the digital realm? When an NFT collection gets successful, it may be marketed in the "real" world. You may put your popular NFT collection's distinctive characters on t-shirts, shoes, purses, and phone covers. If you have a large fan following, you should consider clever merchandising and brand growth.
Establishing your own NFT marketplace
The final and most difficult way on our list is to create a new NFT marketplace. NFT markets operate in much the same way as online stores, so approach this project as if you were trying to build up an online store, and then go from there. First, you must determine whether you want to build the marketplace yourself or hire someone to do it for you. Let us look at how to develop your own NFT marketplace.
When developing your own marketplace, keep the following points in mind:
Come up with a target group (whether you wish to focus on one niche or keep it open for different NFTs)
Choose a blockchain network.
Integrate smart contracts in line with Ethereum standards and protocols
Integrate purchase and payment technologies for wallet
API integration for third party apps
Security protocols to ensure encrypted transactions
Common characteristics of online businesses and auction sites
Improved UI/UX design
Marketplace’s frontend design
Customer service
Conclusion
As we bid farewell to the captivating realm of NFTs, it's impossible to ignore the electrifying revolution they have unleashed in the worlds of art, gaming, and digital ownership. These non-fungible tokens have shattered traditional norms, empowering creators, collectors, and gamers in ways we couldn't have imagined. They've transformed intangible digital assets into tangible treasures, infusing them with real-world value and opening up a universe of possibilities.
But the journey of NFTs hasn't been without its fair share of drama and challenges. From art heists in the digital realm to concerns about their environmental footprint, NFTs have faced their fair share of controversies. However, these hurdles haven't dampened the excitement and potential that surround this groundbreaking technology. Instead, they've fueled discussions and prompted the industry to find solutions that balance innovation with responsibility.
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