The NFT game suggestion is in question due to the refusal of regulators and traditional gamblers

The video game industry is a multi-billion dollar market that has traditionally been dominated by giants like Atari, Sony, Microsoft and Nintendo, among other things.

Throughout their history, these great companies have tried to provide fun gaming experiences in order to attract new players and increase their market share.

However lnon-fungible tokens (NFT) They try to provide players with a financial incentive to play in the form of NFT, in addition to an attractive gaming ecosystem.

The NFT game suggestion is in question due to the refusal of regulators and traditional gamblers
The NFT game suggestion is in question due to the refusal of regulators and traditional gamblers

These games, known as “play to earn” (P2E), unfold in a metaverse that is essentially a fictional universe. The P2E game model dictates that platform users are financially rewarded for their time and effort within the game. Because of this, the model has the potential to capture a portion of the $ 175.8 billion global video game market, which is set to grow to over $ 200 billion by 2024, according to a Newzoo report.

Minh Doan, The co-founder of Warena, a custom NFT game, explained the relevance of this model to Cointelegraph. Called:

“Today we call the play-to-earn model on the blockchain ‘GameFi’, the combination of decentralized finance and game mechanics, it has become a real sensation in the market as users receive tokens when they play, which can go up ten and even a hundred times in value. “

The protocols of the NFT gaming subsector have grown dramatically in terms of users and volume. The associated native tokens have also proven themselves very well. Axie Infinity (AXS) native tokens, an Ethereum-based NFT game, has led the subsector. The token has made a profit of 83.35% in the last 90 days, 706% in the last 180 days and an annual profit of more than 73,000%.

AXS is currently trading in the $ 120 range and has become one of the top 25 largest cryptocurrencies in terms of market capitalization according to CoinMarketCap data. This makes it the only token related to an NFT game passing the pica table. The platform itself has seen impressive growth in terms of users and volume since its inception. According to data from Dappradar, there was $ 2.6 billion worth of trading activity on the platform, with 836,149 traders participating. The platform has also announced a staking program for its native token.

Cointelegraph spoke to Alex Salnikow, Co-Founder and Chief Product Officer of Rarible, an NFT marketplace, who explained more about the drivers of this growth in NFT gaming platforms in terms of volume and users. Called:

“This growth is in line with the broader acceleration of the NFT market and appears to highlight the versatility of use cases for NFTs. Additionally, gamification is a general trend in cryptocurrencies and fits particularly well with the concept of NFTs, which are so closely related to fun and interactive experiences with community engagement. “

He added that too the value proposition of blockchain technology is understandable and comes from the video game industry, including P2E experiences and in-game assets with clear origins.

Growth in NFT gaming platforms

Although Ethereum is the most widely used blockchain network for launching decentralized applications (DApps), there are several other blockchain networks in the NFT gaming ecosystem such as Binance Smart Chain (BSC), Polygon, Hive, Harmony, Solana and Flow With increasing volumes, they also gain large user bases.

Salnikov further mentioned: “Polygon is widely recognized as one of the best blockchain networks because of its EVM compatibility, high throughput, and low gas rates. It’s also Ethereum’s top sidechain, which means it’s connected to the NFT core ecosystem at layer one. “

Cointelegraph spoke to Jesse Reich, Co-Founder and CEO of Splinterlands, one of the leading NFT gaming platforms in terms of users, on choosing the Hive network protocol to develop their game. Called:

“People thought our choice of Hive was weird since the early days, but it has a freemium structure. Players can log in with a username and password and get started. It’s hard to replicate that tariffs on blockchain networks “.

On October 12, Binance announced a multi-billion dollar accelerator fund for the overall development of its BSC ecosystem. Popular games on BSC like MOBOX: NFT Farmer, Faraland, ZOO Crypto World and CryptoBlades will grow due to this fund aimed at mass adoption of the network.

Despite the growth across platforms and networks in the NFT games subsector, the long-term validity of these games could be questioned as traditional gamers are used to playing well-designed games. Additionally, these titles have impressive gaming ecosystems as most of them are backed by large companies with lots of resources and development infrastructure.

This does not currently apply to games that use NFTs, native tokens and other incentives to reward users as they are still in the early stages of development and therefore not that mature. Hence, it is important to estimate the amount of time and effort that the users of these platforms expend to earn these rewards in video games that may not be as fun as traditional video games, which are also relatively easy to access.

Reich went on to mention: “First of all, there has to be a fun video game to be a mega hit. I’m sure that grind-to-earn” will be a thing, along with play-to-earn, and it will be reduced in the end. Minimum wage someone is willing to accept for a computer click job. “

Doan said that These video games are a whole new generation of games that are difficult to compare to traditional PC and console games. Called:

“It’s a kind of leisure economy where users get paid to play and then multiply their income like real dealers. The good thing about NFT games is that young people (the main audience) easily understand trends and technical nuances that are sometimes difficult for other users. “

The obstacles that lie ahead of us for blockchain games

Despite the rapid expansion of the NFT gaming ecosystem, the giants of the video game industry have not yet adapted to blockchain technology and NFT integrations in their pre-existing games. In fact, some of them specifically excluded the possibility.

Valve recently announced the removal of blockchain games from its Steam platform and even urged users not to post any content related to cryptocurrencies and NFTs. The Steam Market is home to immensely popular games like Counter-Strike, Battlefield, Halo, and Resident Evil, and many others.

The company was already flirting with cryptocurrencies in mid-2016 when it announced it would accept payments in Bitcoin (BTC), but soon stopped the service. Entitled to high commissions and volatility.

After this ban, the CEO of Epic Games, Tim Sweeney, announced that his company is open to hosting and supporting games that use cryptocurrencies and blockchain-based assets.

epos (the company behind the immensely popular Fortnite) It was pointed out that developers cannot use the platform’s payment service to accept cryptocurrencies. Instead, they have to use their own payment systems. This could become an obstacle to the acceptance and reception of games that do not have this infrastructure.

Valve’s perception extends to gaming industry regulators as well. ANDOn October 14, the UK Gaming Commission opened an investigation into one of the most popular NFT fantasy football games, Sorare. The watchdog checks whether the platform would need a license to operate and whether its services are concerned Gambling is all about.

Sorare has categorically stated that while she is ready to have an open dialogue and work with regulators to explain her gambling, she “does not offer any form of regulated gambling”. The platform is valued at over $ 4.3 billion and is growing rapidly.

Given that the entire ecosystem is at such an early stage of its development, it seems more of a waiting game to see the real potential, benefits, and long-term proposals of integrating cryptocurrencies, blockchain technology, and NFTs into video game ecosystems to estimate.

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