NFT and blockchain games and the possible problems with it
The terms NFT and Blockchain games have recently been bandied about a lot when it comes to the alleged next stage in video game growth. Andrew Wilson, EA’s CEO, stated on the company’s earnings call that NFT and Blockchain games represent the future of the video game business. Similarly, Ubisoft made a similar remark. According to Ubisoft CEO Yves Guillemot in IBTimes, Blockchain games are a “revolution” in the gaming business. But, in order to understand where they’re coming from, let’s first define an NFT.
What Is NFT?
NFT is an abbreviation for non-fungible token. It is non-fungible, which implies it is one-of-a-kind and irreplaceable. A dogecoin, for example, is fungible. If someone offers you a dogecoin, it doesn’t matter what sort it is; it’s still a dogecoin. Football jerseys, on the other hand, are non-transferable. Even though both are football shirts, if someone offers you a Brisbane Roar jersey and you give them a signed Kevin De Bruyne Manchester City home kit, the two are not the same.
The Ethereum blockchain is home to the vast majority of NFTs. The blockchain of this cryptocurrency supports these NFTs, allowing them to hold more information and behave differently than conventional coins. NFTs may be anything digital, from high-end art to gaming goods.
What Are NFT Games?
An NFT is a one-of-a-kind record on the blockchain that grants the original owner public ownership. It can appreciate over time, just like any other asset.
This is the basis of so-called “pay-to-win” games. To play the game and obtain unique in-game goodies, users are normally required to spend a set amount of crypto upfront. When the worth of the things rises, they may be sold to other players. Furthermore, as de facto shareholders of the game, players often have a say in its evolution. As the monetary investment of the player base in the game grows, so does the game’s total worth.
What Are The Potential Problems With NFT Games?
While some people appreciate this novelty, like with everything new, many others oppose it. The distinction between rival video game digital distribution systems exemplifies this paradox. Steam has categorically prohibited blockchain games from its platform, but Epic Games has embraced them with open arms. One major concern with Ethereum mining is that it has a negative impact on the environment due to the enormous quantity of energy required.
However, there are clear ramifications for the gaming industry as a whole. The financial potential for gaming NFTs is great enough that collectibles that would otherwise be bundled with games or sold as tangible things would not be seen. For SEGA, this may contain some of Sonic’s early production sketches or a game’s original music. Nobody actually needs either, but it would incentivize SEGA to sell them as NFTs to a small number of purchasers, keeping them out of reach for years.
Limited-edition games might also be created by companies. If the previous owner is unable to remember their login or manage ownership in any other way, that version of the game will be lost permanently. It’s more like losing access to your bitcoin wallet than forgetting your PSN account login and/or password.
Furthermore, the majority of existing NFT games aren’t really AAA re. Most of the time, they are nothing more than glorified bitcoin mining. But, there have been multiple cases of developers stealing millions of dollars in cryptocurrencies from their user base.
However, the most insidious aspect of NFT is that it serves as a haven for thieves. For copyright trolls, NFTs are a money mine. Numerous content creators have previously had their work stolen and claimed by thieves using copyright. This is especially troubling for the art community, but neither gamers nor individuals should dismiss this.