NFTs and Blockchain: Reshaping the Gaming Industry

The worldwide video game business is divided into three segments: smartphone, Computer, and controller games, all of which are worth millions of dollars and rising. While champions in the sector benefit from this strong progress, gamers produce minimal long-term worth for themselves.

Gamers join gameplay settings that provide a tier system user interface after purchasing costly controllers, Computers, or smart gadgets. Revenue only travels in one way in these conventional games: gamers must pay to access in-game material and unique characteristics.

Blockchain-enabled video games, some of which are decentralized programs, on the other hand, place a greater emphasis on producing wealth for gamers. This aspect creates a fundamental change, allowing gamers to fully understand and appreciate the usefulness and worth of items obtained through in-game transactions, normal gaming, or promotional activities. When a gamer buys an armor improvement in conventional games, for example, the sole advantage they get is better gameplay in that specific game.

In a gaming environment that uses cross-platform NFTs, though, the similar armor can be tokenized in a manner that turns in-game transactions into transferrable commodities, which can be used to get advantages throughout interlinked video games or traded for cash or other digital items.

According to DappRadar, a Lithuania-based statistics analytics firm, trade patterns of prominent NFT collections like Axie Infinity, Crypto Punks, and Art Blocks have grown by upwards of three hundred percent in the last month. The upswing came as the marketplace lacked momentum after a record-breaking first quarter that saw a record-high market cap of more than 1.5 billion USD in revenue, and may pave the path for the sector's long-term expansion.

According to the company's recent study, NFTs hauled in over 1.2 billion USD in revenue in July, nearly half of the 2.5 billion USD aggregate selling volume in the first two quarters of 2021, and the DAPP sector as a whole approved upwards of 1.4 million regular active visitors, a 23.72 percent rise from the preceding month.

Most of the increase is due to the popularity of video games like Axie Infinity, a blockchain-based video game, that enables users to make money in the shape of tokens and other prizes by raising, fighting, and selling virtual creatures known as Axies. The video game, which debuted in 2018, has taken off largely in the Philippines, offering an alternate means of money for the pandemic-affected people.

The Ethereum-based video game Axie Infinity is the current phenomenon in the NFT market. The play-to-earn game has surpassed the $1 billion milestone in sales and has over 1 million active players daily at the time of publication.

The AXS token, which is crucial to the game's economy, has soared in value. The coin was trading at $5.66 at the beginning of July, and it has now increased to $32.19, a 469 percent increase. In July, it had a market capitalization of $900 million; currently, it has a market capitalization of $2.6 billion. Because the AXS token holder receives a share of the money generated by the system, investing in AXS is a profitable alternative.

Although there are advantages to bringing NFTs into games, there are also major challenges to address. NFTs, in particular, must be developed as more attractive and accessible to general customers who are not necessarily tech-savvy. Since NFTs have inherent worth, there is a chance that some of them will be primarily utilized as speculation investments. This possibility may encourage gamers to buy in-game items in the hopes of later trading them for gain rather than utilizing them as planned within the gameplay environment.

Notwithstanding these obstacles, the prospects for profitability in the gaming sector may encourage more non-blockchain-focused businesses to dabble with NFTs, most probably through collaborations with third-party cryptocurrency initiatives, which have the technological competence required to put their ideas to reality.

Meanwhile, the wider popularity of blockchain-based gaming apps will most certainly serve a hand in accelerating additional NFT infrastructural upgrades and driving the creation of novel approaches that facilitate general acceptance.