The Role of NFTs in Video Game Industry and Metaverse

Remember Pokémon cards? You could collect and use them in battles with other players. Now there is this game called Axie Infinity that’s built off the same concept. But this time, these game characters are NFTs.

You can make real money from owning them. Axie is only one example of a play-to-earn game that is not growing in popularity.

This new model in online video games allows players to generate income from earning cryptocurrencies or NFTs.

So, how do play-to-earn games actually work? And what can this new model teach us about the Metaverse?

NFTs Role in Video Game Industry and Metaverse
NFTs Role in Video Game Industry and Metaverse

Play-to-Earn in Today’s World

Play-to-earn doesn’t even constitute 1% of the global video game industry. Nevertheless, it has managed to garner an enthusiastic community that believes in the future of NFT video games and their potential to shape the Metaverse. Gaming pushed a lot of industries forward in its time.

So, according to many experts, exactly the gaming industry is going to be at the forefront for NFTs, as well as Metaverse.

The concept of buying virtual goods in video games isn’t new, but play-to-earn games are capable of turning these goods into NFTs. And this allows players to sell the acquired assets for a profit.

To profit from NFTs, you don’t need to be an avid gamer. You can create NFT artworks on your own.

Turn your pictures and photos into unique NFTs and sell them on dedicated marketplaces. Want to know how to do it really fast? Go Deal Now!

How to Earn with NFTs in Video Games?

NFTs are essentially digital deeds that verify that a certain item is authentic and unique and represents some value. So, how do players make money in such games as Axie Infinity? Let’s review some popular methods.

One way to earn cryptocurrency is by winning battles. The objective is quite clear here: you need to defeat your opponent to get your reward, which you can subsequently exchange for a token. Another way is by selling your game characters to other players on an NFT marketplace.

No wonder, more and more people opt for NFT games because of their potential to earn real money.

This allows gamers to combine their hobby and work and make money in a relatively easy and enjoyable way.

So what can play-to-earn games teach us about running an economy the Metaverse, a virtual reality where people can work, play, and shop?

First, it shows how owning such digital assets as NFTs makes it possible and easier for people to purchase goods and sell things online on dedicated marketplaces, much like they would on the stock market.

Axie Infinity notes that over $4 billion worth of Axis has been traded on the marketplace to date, which illustrates the popularity and growth potential of NFT games. Players may choose to hold onto their digital assets for the long term.

But as with all things crypto, it’s still too early to tell how valuable and permanent these assets will be.

Second, play-to-earn shows how the earning aspect can encourage people to learn about blockchain, crypto, and NFTs.

This model also incentivizes current players to educate others about this space. For example, in Axie Infinity, players developed a scholarship program to recruit new players who may not have money to join on their own.

Third, many Metaverse companies promise interoperability, or the ability to travel between virtual spaces with the same virtual assets. And some play-to-earn games are experimenting with this idea to some degree.

For example, Splinterlands, a play-to-earn card game, allows players to trade goods on marketplaces on two different blockchains that are connected by a bridge.

Axie Infinity says they are looking toward interoperability as well, but it’s unclear how safe it’s right now.

Despite its passionate fan base, play-to-earn has experienced pushback from some longtime gamers who say that’s just another way for companies to squeeze money out of them. NFTs have also been under fire lately over concerns about the security of this technology.

Final Thoughts

Play-to-earn is still evolving. But some companies already see it as an integral part of the future of gaming.

FarmVille maker Zynga and Assassin’s Creed creator Ubisoft Entertainment are among the first big publicly traded video game companies to say they are experimenting with the strategy.

It’s very likely that more companies and games will want to add NFTs because they are already selling virtual goods.

And as more video game makers are contemplating adding NFTs, tech experts say the ability to purchase and sell tokens in the Metaverse will be key, putting gamers in an important role.

To know more about video games, read our articles Do Video Games Make You Smarter Or Dumber? and What Is The Hardest Video Game Ever?