In a recent statement, the CEO of EA games, Andrew Wilson, made news-breaking remarks claiming the non-fungible tokens (NFT) and blockchain are as the future of the video game industry. However, he was not sure if it’s working, indicating that the method was unclear. Before heading forward, let us look at what NFTs are.
What are Non-Fungible Tokens?
Non-Fungible Tokens (NFTs) are unique or one-of-a-kind assets in the digital arena. It can be traded like any other piece of property but does not have any tangible form of its own. These digital tokens serve as certificates meant for virtual or physical assets.
How does NFT work?
Conventionally, art pieces such as paintings are deemed as valuable because they are one of a kind. However, there is a chance that digital art could be comfortably and seamlessly duplicated and copied. Through NFTs, the artwork tokenizes in the form of a digital certificate. These digital certificates serve as evidence of ownership, which can be bought and sold in hefty amounts. As with cryptocurrency, the blockchain helps to keep a record of ownership stored in the ledgers.
Moreover, thousands of computers around the globe keep the detail, abstaining from the records turning to forged ones. NFT’s purchases use multiple cryptocurrencies, such as the notable Bitcoin and Ethereum. Furthermore, the innovative Islamic Shariah-compliant currency of Caizcoin can be part of this futuristic process. The NFTs include smart contracts that give the artist the cut of the future revenue earned.
NFT is the future – Looking into the development of the gaming industry
Play-to-earn games require the players to pay the upfront fees to participate in the contest. They pays through cryptocurrency before the collection of in-game items. Therefore, the in-game items increase in value before being sold to other players. It is not the trend that has just kicked off, as the FIFA games were designed with this pattern. In the context of the games, these are created along with the live services offered. Hence, collectible digital content has a meaningful part to play in the future.
EA, however, abstains from revealing it is directly investing in the NFTs and blockchain games. However, there are signs of EA stepping into this market, courtesy of their recent job listings. These listings have specified the words of NFT and blockchain. It suggests that the gaming giant is planning to penetrate this game development side. But, prior to this news, the gaming giant Ubisoft also announced its plans to develop blockchain games and NFTs. The aim is to deploy play-to-earn techniques enabling the players to earn digital content by playing Ubisoft games. The sports collectible market sees NFTs as the strong fit, especially between the FIFA card-based Ultimate Team and the use of the NFTs. But it raises a few implications and heavy criticism.
Criticism on NFTs and Blockchain Games
Blockchain games and NFTs have drawn heavy criticism recently due to their significant part in the current environmental damage. The experts strongly believe that the use of cryptocurrencies, used in the trading of the NFTs, and mining of currencies result in the emission of carbon dioxide, leading to degradation of the environment. The idea is controversial among gamers.
The primary issue lies in the use of the absurd amount of energy used to create NFTs. As per a Verge report, the average NFT has an equal carbon footprint as a month worth of household electricity, questioning its sustainability. A massive PC gaming platform, Steam has banned the blockchain and NFT-based games from its games. Moreover, one of the renowned gaming industry analysts Piers Harding-Rolls from Ampere, claims the NFTs and blockchain are a disruptive force in the industry.
At this moment in time, cryptocurrency use is generally deemed harmful to the planet. Ethereum, one of the most popular cryptocurrencies, intends to start the era of sustainable and eco-friendly currency. Regardless of it, EA is on the verge of accepting and embracing the notion of NFTs, and blockchain games. Hence, it has also stated it as the future of the industry.
Frequently Asked Questions
A couple of game veterans, including Graeme Devine at QXR Studios, have launched the first of Metropolis Origins. It is a digital collectible trading card game, which uses non-fungible tokens (NFTs). These are used in gaming through blockchain to verify rare or one-of-a-kind digital items.
There is a need for a wallet funded with crypto to buy the desired NFT. For instance, an NFT built on the Ethereum blockchain will require Ether tokens for its purchase.
There are a variety of marketplaces that assist NFT purchases. The notable ones are OpenSea, Rarible, SuperRare, and Foundation.
Most people currently know NFTs are attractive but unvalued pieces of digital art for most of the time. But it can turn out to be a once-in-a-lifetime jackpot item. It is similar to gambling and unlike equity investments, where the fundamental asset has a business irrespective of its stock price.
One of the prime benefits of buying NFT is to financially support the artist fraternity. Moreover, it gets you the general usage rights to use the image or piece of art the way you want, tweaking and moulding it on any social media platform.