An Intro to Non-Fungible Tokens (NFTs) for Games, Virtual Worlds, and the Metaverse

Non-Fungible Tokens (NFTs) are about to change the gaming industry as we know it. A significant number of game developers have already started to adopt NFTs in their games, whether it's for trading items with players or creating collectibles. It is also a hot topic in the metaverse.

Generally, NFTs can be used to create and manage unique virtual items that can be owned and managed by players on the blockchain.

NFTs allow for true ownership of digital assets on the blockchain that is extremely customizable for game developers and they also empower players to build their virtual worlds with NFTs.

The idea of a metaverse where millions of players can come together in a virtual universe and live out their fantasies is an exciting one. This going to play a significant role in building games, virtual worlds, and the metaverse.

What are Non-Fungible Tokens (NFTs)?

Non-Fungible Tokens (NFTs) are tokens that are unique and cannot be replaced by another token of the same kind. This means that every NFT is unique and has its distinct value. NFTs can be anything digital that you can own something that is a unique unit of currency, data, or assets that can be exchanged through the blockchain.

NFTs use metadata to track ownership of unique digital assets, which could be anything from in-game items to entire game worlds themselves. While this technology is still in the early stages, it has the potential to revolutionize how we interact with games and other virtual worlds as well. It's only a matter of time before it becomes an integral part of how we develop, own, and monetize virtual assets.

This kind of technology also enables the ownership of scarce digital assets, which can be bought and sold on marketplaces with ease using blockchain-based exchange protocols.

How will NFTs change the gaming industry?

This kind of unique virtual asset has the potential to revolutionize the gaming industry by providing players with true ownership of in-game assets. It can be used to create a more immersive gaming experience by allowing players to own and trade virtual assets that have real-world value.

The gaming industry is a perfect fit for the use of NFTs because it already has a dedicated user-base and well-tested processes to handle virtual assets.

Examples of games that have successfully integrated ERC721 tokens include CryptoKitties and Axie Infinity. In these games, players can buy or breed digital creatures that represent a unique asset. These assets can then be traded on secondary markets, allowing players to monetize their collections.

Uses of NFTs to the virtual worlds and the metaverse

More practical use of NFTs is for digital art and collectibles. This can include digital paintings, 3D models, music tracks, or unique photos - all created by independent artists or groups. These unique pieces of work can be traded on secondary markets such as OpenSea, allowing artists to monetize their unique works. The potential for unique digital works of art is huge - all you need to do is look at the recent surge in popularity for digital artists on social media.

The most exciting application of NFTs is virtual worlds, where users can own objects that have a monetary value. An example of this is Decentraland, an online world entirely built on the blockchain. This virtual world uses ERC-721 tokens to represent land parcels for building games, applications, and business within the platform. Users purchase land in Decentraland with MANA tokens - the native currency of the game. This allows users to buy and sell land with other players, creating a real-estate market within the game.

Ultimately, the possibilities for NFTs are endless and I can’t wait to see how the gaming industry, virtual worlds, and the Metaverse will use them. We’ve only scratched the surface of what is possible with these unique tokens.

If you want to be one of the first people to get updates on this new digital frontier, follow me on Hackernoon. With people like you,  we can create a more decentralized world where everyone has true ownership of their digital assets.

What kind of NFTs do you want to own?