Even if blockchain and cryptocurrency are not your thing, you’ve probably heard about them in gaming news. Technology has been called the “future” of the industry and something that is considered revolutionary to those who aren’t.
It is hard to know what this technology means and how it affects games when there are so many emotions. Is it just the sale of JPGs or does it have other applications? Is this market worth the investment? Learn more about any risks when introducing this system to traditional games?
This article aims to answer these questions and others. Be aware that technology is constantly evolving and new. This means that much of what we know is not complete and how it can be used is still being explored.
What are NFTS?
NFTs stands for “nonfungible tokens” or in another translation, “nonfungible tokens“. Although the name may seem strange, it is used to identify the characteristics of virtual goods offered by the technology: they have unique registration numbers that can’t be duplicated and values that don’t correspond 100% with other digital assets, no matter how similar.
You can consider them collector’s items, or works of art, for ease of understanding. There is only one official Monalisa in the world. Even though it can be reproduced on t-shirts or printed on other t-shirts the official painting still has value. NFT is a bit more complex because we are talking about virtual goods or certificates attached to virtual objects.
An NFT can link to a single, extremely powerful sword in a gaming universe. The token does not grant you the sword, but a certificate that proves you are the rightful owner.
The NFT is a certificate that certifies that you are the owner. However, this doesn’t guarantee that you own the item. It can be displayed on social media, used by the developer for promotional purposes, or even stamped on a T-shirt. It will not be resold.
What is this “Fungible” thing?
Although the concept of what is or cannot be fungible is a constant part of our everyday lives, it is a word that isn’t used as often as it should. For example, a 10 reais bill is a fungible item. It can be.hanged for another bill of the same amount without losing its value, even if it is new or worn. .
It is important to note that the difference between fungible or non-fungible does not always hold true and can vary even for the same item. For example, a God of War Collector’s Edition may have a different value than another depending on how long it has been out and its state of conservation.
Do you think a physical collection value can be compared to an NFT?
Both were fungible at launch. However, an item that has been opened today and used is worth more than one that is still sealed and in good condition. This means that the rarest item in a collector’s collection is more likely to be unique and non-fungible than one that has been worn out. Money can also be used in the same way: A note on a coin that is no longer in circulation can be sold to collectors for more than its original value under the right conditions.
They can’t, they won’t.
This concept is what makes the old copy of Super Mario Bros 3 worth less than the millions that a collector will get at an auction in 2021. In practice, the value of an item is determined by its rarity and production, but it doesn’t shy away from speculation and subjectivity. It doesn’t matter if you think it is absurd to spend millions on something, no matter how desirable.
NFTs are also distinguished by their connection to the blockchain. This verification system guarantees digital goods’ authenticity and makes it virtually impossible to steal or copy them improperly.
Blockchain is a distributed ledger that is shared by thousands of computers. They all record every move of digital assets and authenticate each change. This makes it decentralized and secure. However, it also means that there is a lot of energy consumed.
It is possible to link one blockchain with millions of users. Each user can take part in the checks and carry out their own transactions, which triggers the block checking process. Although it’s not necessary to verify all blockchains for an exchange or sale, it does require a lot of machinery and processing power. expenditure of electricity.
How Does It Work In Games?
NFTs are able to be used with any digital element in the gaming world. This opens the door to the possibility of purchasing a certificate of possession of a song, texture, or other game-related content. However, the technology is usually associated with items and characters that directly interact with the gameplay elements.
Ghost Recon Breakpoint’s NFTs association is a powerful and unique equipment that players can use to equip their characters or sell it. The blockchain connects the virtual asset to the blockchain. This ensures its authenticity and permits operations to be carried out without the involvement of the producer.
This is a benefit of NFT implementation for “lawyers”. A developer cannot c characteristics. It is unique in appearance. This means that it is likely to become rare and increase in value. It can also be resold at a substantial profit. This is all without external agents, even though the market itself regulates itself.
An NFT is a product that allows the user more control over how it is used. This story is not perfect, however.
Nfts Are Decentralized, But Linked To Centralized Banks
NFT defendants, such as Mike Shinoda, ex-Linking Park, have made the promise that technology will allow interoperability between assets for different games. Imagine how cool it would feel to be able buy Chaos Chains from God of War and then use them to create Fortnite or Assassin’s Creed characters. Although this is theoretically possible, there are many complications. This is something players will need to consider.
The NFT market is built on blockchain technology, but games still operate under a highly centralized system. The assets of Sony Santa Monica that enable Chaos Chains use in their franchise are not guaranteed to be available for other games. The technology ensures that some players are interested in the virtual items. It does not mean that you will have the item, or any rights to use it.
Relevant Players Are Wanted To Move The Trend Forward
There are theoretically scenarios in which devs could move an item from one game to another. There are many obstacles to overcome. Different engines can exist between the two games. For example, Unity could be used in one game and Unreal the other. It’s difficult to move an item or equipment. A weapon of this type might not be suitable for another game. Even if it does, you may not be able to see it from the first person. It is impossible to use the item as it was in its original form.