NFT PFP projects may have been all the rage during 2021 – but it’s NFT games that are going to take this nascent blockchain technology to the next level, and truly introduce what NFTs are capable of to the masses.
For the uninitiated, it may be difficult to understand why. After all, what is so different between NFT games and non-NFT games?
In a word – everything.
NFT games have the potential to completely change the dynamic and economy of gaming – by allowing users to take game assets out of the game, and into the hands of the players who earned them and who acquired them through the NFT game.
Below we explore just what this means, and why this capability will help drive adoption down the line.
The Problem with Games Today
Prior to the advent of NFTs, value extraction from games simply was not possible. That is, users could spend hours (or weeks, months, or even years) playing a video game – and besides extracting the joy from completing various missions and quests, no other value extraction was possible.
The hours and effort put into earning in-game currencies, in-game assets (e.g. weapons, vehicles, boosters, etc..), and other in-game valuables would be completely lost to the player once the player ultimately decided to stop playing the game.
Sure, in some cases, it might be possible to sell the user’s account online via platforms like eBay – but this form of monetization rarely occurred, and is extremely cumbersome should someone want to go through the process.
Therefore, when players stopped playing a particular game – all value (time, energy, effort) was simply lost to the user.
With NFT games, this no longer needs to happen – but how?
The Promise of NFT Games
Because NFTs can exist independently on of the blockchain, NFT assets which are usable in-game will not mandate that the asset needs to stay in the game. That is, users who earn NFT assets within the game will be able to freely transmit those assets to and from the game – giving flexibility for NFT owners to trade their NFTs freely on an open marketplace, and to eventually exchange their NFTs for cryptocurrencies – which ultimately can be converted to fiat (or other cryptocurrencies).
Imagine playing a suite of NFT games for over a year. Eventually, the player may tire of the game, while new entrants continue to pour in. With interest in other NFT games, the experienced player can take all of the NFT assets which have been earned to date (e.g. weapons, armor, etc…) and put them up for sale on an NFT marketplace like OpenSea.
Due to the continued demand of those games and the players who wish to play – there will be a natural demand for the items which are listed by the experienced player. As new players purchase these NFT assets, the original player is compensated financially for the time and effort which they put in to earn those assets, and can take those earnings and start acquiring other assets for different NFT games – thereby stimulating and advancing a brand new economy.
The Future of NFT Games
To be fair, the current state of NFT games in 2022 is still very much in its infancy. Remembering that NFTs only took off as an industry during early 2021, and that a very good and comprehensive game often takes game studios years to develop – it may be some time before the world actually sees a collection of NFT games which are exciting and worth spending months and years on.
However, make no mistake – NFT games are here to stay. With the promise of NFTs and what they enable for the end user – as well as the entirely new experiences that NFTs allow in the gaming world, there is very little to doubt that the evolution of gaming will next iterate to NFT games.