NFTs have been trending on the internet lately and there are several mentions of them going into the gaming space. This article should explain what these things are and how they might affect you as a gamer.
What are NFTs?
NFT is an abbreviation for Non-Fungible Token. There are many attempts to define them on the internet but in essence, that is a fancy name for a digital certificate that provides proof that you own a digital asset. These digital assets are often unique.
The fact that these assets are rare or unique gives them value for some interested parties. It is the basic economics rule of rarity - the lower the availability of something, the higher its value. It is also the reason why diamonds are more expensive than water , even though they are not of vital importance to anyone.
How do you make digital goods unique?
You can't make anything on the internet exactly unique since everything is so easy to copy. Then again, the Mona Lisa in Louvre isn't the only Mona Lisa in the world as there are many copies around. However, it is the original one, making the painting unique and therefore the one with the highest value.
The same concept applies to digital assets and NFT is what serves as proof that the asset is yours. One good comparison is the recent sale of the first tweet by Twitter founder, Jack Dorsey. Sina Estavi bid $2.5 million to have a chance of owning that historic but ultimately digital moment.
How do NFTs affect gaming?
Applied to creations, items or events in gaming, NFTs could provide proof of ownership to their holder. With an ecosystem developed enough, this could result in players being able to buy and sell NFTs in-game and even earn a living that way.
While an item doesn't necessarily have to be unique, it will still fetch a higher price the rarer it is. In a simplified example - if a game allows NFT trading, you could grab that shiny piece of gear from a new or hard to complete raid, get the digital certificate of ownership and then sell it to the highest bidder.
It may not be raid gear, it could be anything the game would allow you to sell. Selling assets from video games is hardly news too, people have been doing it for a long time. Planet Calypso was sold in Entropia Universe for $6 million more than a decade ago.
How can I trade NFTs in a game?
That is done through the use of blockchain , a whole other beast. If you are still processing information about NFTs, you might want to give your brain a pause before reading up on the digital ledger topic.