It wouldn’t be an understatement to say that 2021 saw a blasting growth for most digital assets, including non-fungible tokens (NFTs). Last year, the NFT market nearly surpassed the global traditional art market. After starting the year with a market cap of almost $1 billion, the NFT market grew to over $41 billion by the end of 2021.
One of the key reasons behind the rise of NFTs was the sheer rise in play-to-earn games and crypto gaming ecosystems. Notably, in 2020, the revenue of the gaming cryptocurrency market was estimated to be $321 million, with about 42 million gamers owning a crypto game — the same stands witness to the rise of crypto in gaming.
Evolution of NFTs in Gaming
Conventional gaming formats were based on free-to-play, play-to-win, and pay-to-play models where the purchased items and paid upgrades offered no real-economic return. With the evolution of the crypto-verse and the recent NFT boom, the concept of in-game rewards in crypto assets has gained traction.
Integrating blockchain technology with online games allowed developers to monetize the games in the most disruptive ways. Games now offer users and players an opportunity to gain financial returns for their gaming skills and time invested.
Game developers emphasize monetizing the game in two ways – trading NFTs and earning in-game rewards or cryptocurrencies. Thus, users can now make purchases that come with real economic value for players. Furthermore, features like trading, selling, and exchanging in-game assets outside of the gaming ecosystem have made gaming more interactive and profitable for many. Game developers and publishers are constantly looking for possible ways to improve their gaming technology while building on blockchain networks.
Evolution of In-game Transactions in NFTs
Many in the industry believe that NFTs are poised to be the next evolution of in-game microtransactions. But why are NFTs particularly preferred? For one, NFTs can be scarce.
Since NFTs are based on a blockchain with their records published in the public domain, they are generally considered more secure. Blockchain technology guarantees the security of digital assets and data, making for a safe way of in-game transactions. Furthermore, through blockchain, NFTs offer transparency and legislation in the gaming business, thereby promoting an improved gaming experience for users.
By owning digital game assets, gamers can profit from exchanging or trading their NFTs or other crypto assets they earn within the game. Interestingly, platforms like Xchange Monster leverage smart contracts to handle all transactions to support the transfer of in-game assets to other game users. The use of these smart contracts further secures in-game transactions.
Since blockchain has a decentralized control system, it becomes impossible for hackers to break into the database. Notably, when it comes to gaming ecosystems, blockchain helps improve the effectiveness of the security system of the gaming industry through its data encryption measures.
Games such as Xchange Monster intend to take advantage of the opportunity of bridging blockchain and gaming. Xchange Monster provides a safe platform for gamers and developers to increase productivity. They can get in touch via the Xchange Monster ecosystem, which strives to strengthen their interaction and aims to provide a better gaming experience.
Working on one of the most crucial issues of safe and secure in-game trading, Xchange Monster gives a platform to gaming enthusiasts. Gamers can enjoy seamless transactions and freedom in collecting, creating, and trading NFTs. On the other hand, by using the platform, developers can earn money using their favorite games with the platform’s monetization models and support for in-game currencies.
NFTs to Take Over
Seemingly, NFTs have already opened a variety of doors for creators, buyers, and sellers alike. In gaming ecosystems, NFTs are taking over as a way of in-game transaction paving the way for a more secure, safe, and interactive gaming experience.
The new play-to-earn gaming models are decentralized in nature and provide a shared sense of asset ownership to players. While NFTs in gaming are still in their growing stage, there’s a lot of research and progress being made in the cross-section of the two verticals.
Furthermore, looking at the benefits of NFTs as in-game assets for players and game developers, the boom of NFTs in gaming could be expected in the long term.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.