Non-Fungible Tokens (NFTs) have been a hot topic in the world of technology, art, and collectibles over the past few years. While NFTs have seen massive media coverage, capturing the attention of many game developers and artists, for many it’s still a mystery why they’ve never taken off and only ever seem to be used by scammers and money laundering. In this article I’ll talk about NFTs, what they are and a few of the many reasons why they’ve no place in games.
What are NFTs?
NFTs are unique digital tokens that are created using blockchain technology. Unlike fungible tokens like Bitcoin or other cryptocurrencies, which are interchangeable and have equal value, each NFT is one-of-a-kind and represents a unique digital asset, such as an image, video, audio, or game item.
They use a decentralized ledger system, typically the Ethereum blockchain, to verify the ownership and authenticity of the digital asset. This means that once an NFT is created, it is permanently recorded on the blockchain and can be transferred and traded between individuals without the need for intermediaries or third-party platforms.
To create an NFT, an artist, game developer, or other creator first creates a digital asset, such as an image, video, or game item. They then mint the asset into an NFT by using a smart contract, a self-executing program that enforces the rules of the NFT and ensures that it is unique and cannot be replicated.
Once the NFT is created, it is assigned a unique digital signature, or hash, that is recorded on the blockchain. This hash acts as a digital certificate of ownership and authenticity, and it can be used to verify that the NFT is the original and not a copy or forgery.
Why they won’t work in videogames
- You don’t own anything: the holder does not have any rights other than saying they own it, to the work. This means you don’t own copyrights, rights to making the asset available to the world or the rights of adaptation or reproduction.
- Potential for exploitation: The use of NFTs in gaming has raised concerns over potential exploitation and market manipulation, which can harm players and erode trust in the gaming industry. Alongside that, scams are common place in anything NFT related.
- Concerns over speculation and volatility: Some gamers may be hesitant to invest in NFTs due to concerns over speculative bubbles and market volatility, which can lead to significant losses.
- High transaction fees: The cost of buying, selling, and transferring NFTs can be high due to transaction fees, which can limit their appeal to players.
- Limited value proposition: While NFTs can offer unique in-game assets and collectibles, their value proposition may not be compelling enough for many players to justify the additional cost and complexity.
- Ethical concerns: The use of NFTs in gaming has also raised ethical concerns over issues such as environmental impact and the potential for unequal access and participation.
- Lack of mainstream adoption: NFTs are still a relatively new technology. A NFT bought in a game rarely if ever has been useable in any other game or project.
- Limited interoperability: While some games have implemented NFTs, they often have limited interoperability with other games and platforms, which can limit their value and usefulness to players.
- Complex implementation: Implementing NFTs in a game can be a complex process that requires significant technical expertise, which can make it challenging for smaller game developers to adopt them.
In conclusion, while NFTs have gained popularity, their adoption has been and will stay limited and decaying. Despite some companies insisting in investing in the technology, there are several reasons why they may never takeoff in games. So far, all gaming communities and majority of the internet as a whole have shown that they do not want anything to do with this crypto token technology and all the risks and downsides that are accompanied by it.