NFTs and Gaming: The Good, The Bad, And The Ugly.

December 29, 2021
Written By:
Written By:
December 29, 2021

NFTs are becoming an essential part of our lives with their ability to -literally- change the world. From the runway to the streets, from art to sports, NFTs are now everywhere. The gaming industry is no exception, in fact, it’s where NFTs are projected to proliferate the most. The integration of NFTs in gaming brings about a significant amount of positive feedback. The possibilities are awe-inspiring and make us tingle with excitement. Still, it is not without its challenges too, and it’d be amiss not to consider them. However, not all hope is lost, as many of these challenges could have a solution. Let’s dive into it, shall we?


NFTs in gaming carry promising possibilities that offer virtual game maps, authentic characters, unique skins, and even chances to be featured as NPC. This new technology can provide an enhanced reality to the gaming industry, thanks to the personalized gaming experience. Paired with the technological advances in augmented or virtual reality devices, many believe that NFTs in gaming could be the key to imitating our perception of material life. We can literally be the protagonist of our stories, and feel like it too.


Source: Fortnite


There are some arguments against NFT’s proliferation in the gaming industry. The main objection to the happening being the environmental impact that this shift may cause. Combining the energy required to run the computers with the energy needed to operate the NFTs raises questions about the sustainability of the gaming sector.


However, the community discovered this crypto-drawback, and alternative ways to compensate for this flaw are discussed. A Proof-of-stake system can appease the anxieties on the environmental effect of NFTs. As opposed to cryptocurrencies such as Ethereum, which run on Proof-of-work and consume astronomical amounts of energy, cryptocurrencies such as Flow employ Proof-of-stake which needs tonnes less energy. On top of that, another possibility is mining with renewable energy. These methods would be helpful to reduce the carbon footprint generated by NFTs, and they also can contribute to environmental sustainability efforts.


Source: Cyrex


Some people’s concerns about NFTs in gaming have to do with economic reasons. Video games are generally priced with specific criteria such as the content of the game and the demand it generates, and those prices are more or less in the same band. The introduction of NFTs as a more prominent second market could harm how the industry operates. The prices may skyrocket out of control and can even be considered exploitive. That market-oriented perspective would hurt the community-building purposes that video games share, which also harms the industry. Let’s face it: if a game lacks community building, the commercial success isn’t plausible.


On the other hand, some economic concerns can be minimized with deep research and knowledge on the field. Gaming’s NFT markets can actually support the community-building process by uniting NFT and gaming communities. The digital realm opens its virtual arms to both communities in free and decentralized verse, so we may even witness the construction of a meta-community.


Source: Balenciaga


Another economic concern comes in form of investment, as NFTs made collections more accessible. Individuals may observe the NFT boom earlier this year and want to benefit from this new hybrid NFT-game business model. However, the value of in-game NFTs is only limited to the game’s popularity and longevity. So, it can be a risky venture.


Nevertheless, isn’t investment is risky by its nature? People do their best to seize the opportunity and benefit from it. But, how would you know if you have an undiscovered gem in your hands? Maybe an analysis, or simply a hunch? No one knows the definitive answer, but you’ll surely need lots of information on the subject. Doing your research is a must, because knowledge is the key to virtual success, and being careful when it comes to scams does no harm, especially in the gaming realm.


We could go on and on forevermore with the discussions on NFTs. Their incredible growth is still very much recent, and their full potential is yet to be discovered. But there are a few things we can be sure of: They are here to stay and their influence and impact on the gaming industry are inescapable.


The bad news? It’s up to us to ensure that we use this technology the right way, in order for it to become a sustainable, positive venture. However, the good news is that the community is aware of the drawbacks and is willing to work on the flaws. Only time will tell what the future of NFTs holds for us, but we have high hopes.


Source: Venturebeat

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