Could video games bring NFTs to the masses?

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Video games have the potential to help popularize non-fungible tokens (NFTs).

A year ago, NFTs were an ambiguous virtual asset known only to tech geeks, but as video game companies enter growth markets, industry players want them ready to become mainstream. is.

Abbreviation for “non-fungible token”, NFT is a digital item whose authenticity and ownership certificate is registered in the blockchain, the technology behind cryptocurrencies.

From art to fashion, the creative industries have quickly experimented with innovations that have similarly sparked excitement and skepticism in the technology sector.

Auction houses like Sotheby’s currently sell NFTs with oil paintings, but film director Quentin Tarantino is involved in a legal battle over the NFTs in his cult movie “Pulp Fiction.”

And now that they’re featured in video games, advocates want millions of players to get used to ideas that are hard to move.

“NFTs are still a niche market, but we’re really a mainstream industry,” Nicolas Pouard, head of the blockchain initiative for gaming giant Ubisoft, told AFP.

This month, Ubisoft released Quartz, a platform that allows players to get NFTs called “Digits”. This is an in-game item that can take the form of a weapon or vehicle.

Electronic Arts, the company behind The Sims and FIFA, and other game tycoons such as Take-Two and Atari are also showing interest in NFTs.

Meanwhile, investors have poured $ 680 million into French startup Sorare this year. This platform allows sports fans to trade NFT versions of old-fashioned football cards.

3 billion gamers

Since NFTs are inherently collectable, they can be easily integrated into games that create fun by collecting objects and points.

However, most of the world’s video gaming industry, which is currently estimated to be more valuable than the movie sector, is ripe for introducing NFTs to more people.

According to a DFC Intelligence report, more than 3 billion people play video games, which is about 40 percent of the world’s population.

Cryptographic evangelists claim that concepts like blockchain (a digital ledger that publicly records all transactions) are already familiar to millions of people.

By June, about 221 million people around the world owned cryptocurrencies, according to a survey by trading site Crypto.com. This number has more than doubled since January.

Analysts predict that due to its widespread popularity, games could significantly increase access to blockchain-based assets such as NFTs and cryptocurrencies.

Proponents allow players to “play and earn” crypto, and NFT games like Axie Infinity, which are popular in developing countries, allow the general public to benefit from technology. Is called.

Such games had “positive social and economic implications for Asian and Latin American countries,” claimed Franklin Ovalles, a 40-year-old NFT collector based in Miami.

Is there a market crash?

According to blockchain research firm Chainalysis, NFT sales changed by a whopping $ 26.9 billion in 2021.

Like the work of digital artist Beeple, some individual NFTs sell for an astonishing $ 69.3 million.

But most traders lose money.

According to Chainanalysis, only 28.5% of NFTs sold immediately after production are profitable, while in a thriving resale market, 65.1% of sales are profitable.

Investors also need to consider the serious volatility of the cryptocurrencies used to trade them.

Jonathan Teplitsky of blockchain company Horizen Labs said investors are taking risks in the NFT market as interest rates remain low.

“That said, there is a market crash for high-priced NFTs,” he predicted.

But he also sees this as a potential factor in further democratizing markets under the protection of a small number of selected people.

“In addition to providing revenue from creators around the world and removing barriers to access, we also see the NFT industry transforming and driving mass adoption,” he said.

However, Teplitsky believes that more than the gaming industry will be needed for NFTs to become a popular name.

“I think NFTs will become more’non-nerd’when non-gaming companies start using NFTs,” he said, potentially offering digital items that brands like McDonald’s can ultimately collect. Suggested that there is.

“When NFTs become a part of everyday life and give users benefits in non-nerd facilities like the food chain and clothing stores, NFTs will become more mainstream,” he added.

“To be honest, most gamers are geeks,” he said.


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© 2021 AFP

Quote: Can video games bring NFTs to the masses? (December 19, 2021) Obtained December 19, 2021 from https: //techxplore.com/news/2021-12-video-games-nfts-masses.html

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