NFT Games are the latest in the gaming industry. These games empower players to earn in-game assets that can be sold later on the market to convert to real-world money. NFT games have grown in popularity, given the rise of metaverse games.
However, like any new development in any industry, a concept has its advantages and disadvantages, and NFT games are no exemption. Given this fact, let’s take a detailed look at the pros and cons of playing and settling with NFT games this year. Read along to be educated. Let’s start.
Pros or Advantages of NFT games
1. NFT games open up a solution for licensing digital creations
NFTs cannot simply be duplicated and plagiarized. Each of them is linked with varied values, as each non-fungible token exists in a decentralized digital ledger based on blockchain technology.
2. NFT games are a great way to profit from digital assets
Monetization is an excellent benefit for NFT games. Converting digital items to digital assets essential means assigning them their respective monetary value. We can observe the early stage of NFTs in the monetization of digital works of art.
For example, various internet memes have become digital assets, such as the Disaster Girl Meme and the popular Doge meme, which sold for almost $4 million.
3. NFT games are full of collectibles, fundraisers, and addicting games
Physical collectives such as baseball and NBA cards have become digital assets by bringing about their digital equivalents and showcasing them with non-fungible tokens. The tokenization of these in-game resources can also form the basis for establishing play-to-earn crypto games, opening many exciting opportunities.
4.Investing and trading NFTs
The transformation of digital files into non-dispensable digital assets leads to delivery restrictions, meaning you can never play the NFT game yet still make money from MFT items. For instance, the digital collectible “CryptoPunk #3100” was first sold for $2,127 in 2017. When it was sold to another collector last year, the original collector made more than $7.5 million return on investment.
5. NFT games and loyalty
NFT games help to foster a loyal community. These communities are built from the mutual enjoyment of the games and grow from the value that gamers yield from playing them. Take Axie infinity, for example; a blockchain-based NFT plays to earn a game worth almost $3 billion.
6. NFT create value
Players in NDT games do not only create value for themselves; they also create value for the game. It is through when developers of the game get revenue, and the players have access to full ownership of assets acquired in the game, all of which translates into tangible, real-world value.
Cons or Disadvantages of NFT games
1. NFT games hype and uncertainty
Those who have purchased NFT-minted digital assets secure their investments. However, the current fever for buying these assets has opened up several experts to anticipate the phenomenon of an economic bubble that would, at some point, crash NFT investments. However, there exist countless NFTs to have proven their worth and growth potential, and still, we cannot neglect the possible scope for over-speculation and herding in NFT investments.
2. Environmental dilemma against blockchain technology
A notable disadvantage occurring against NFT is that the underlying blockchain technology that underpins its development significantly impacts the environment. NFT is energy-intensive, and it is worth noting that our world still relies on fossil fuel consumption to generate electricity, hence the concern for the environmental dilemma.
3. Lack of infrastructure
Blockchain technology is still new, and so are NFT games. They still have a long way to go, and issues still can manifest. For example, GameFi projects lack the scale and infrastructure vital for mainstream accessibility, contributing to high upfront costs, fees, and potential network bottlenecks.
4. Possible loss of money
NFT games costs can run pretty high. Players generally try to recoup their money by playing the game, but some things hinder this.
Players may, in some cases, not be good enough to yield assets to cover their initial expenses. Moreover, there can also be limitations on how much one can earn in a period of time.
Frequently Asked Questions About NFT Games
1. How do NFT games work?
NFT games are gaming platforms that arise from blockchain technology; it is utterly dependent on the functionalities of the blockchain. The primary concept behind these games is the process of monetizing the in-game assets. These NFT assets then act precisely like a regular NFT, where they are traded over secondary marketplaces to gain profits and futuristic rewards.
2. What is the future of NFT games?
NFT games are expected to evolve like metaverse because it is still a growing platform. The future is bright for them, as they say, because a wide range of audiences prefers them, and we can see millions of people playing them every single day.
3. What are some of the rising NFT game development platforms?
A broad range of businesses is adapting NFT gaming development, and currently, even non-gaming companies have entered the NFT scenes by leveraging NFT gaming development. The forge arena and forsaken are the two upcoming NFL games that have secured announcements so far in the digital media.
4. Are the standards applied in NFT games?
NFT gaming platforms are trending in the world of crypto. Nearly everyone nowadays is playing this mode of the game, with vast amounts of business platforms adapting this game. The standards used in NFT gaming are extensive. In the case of Ethereum, the standards are ERC-20 and ERC-721 token standards.
5. How will NFT gaming be beneficial for gaming enthusiasts?
NFT gaming has opened up the concept of play to earn in the virtual world. Every action that leads to the completion of tasks is furnished with the ability to monetize them in the countless marketplace. Only the developers and parties associated with the gaming platform reap benefits in traditional gaming industries. In NFT games, it sets the bar or the ground rule that players can earn money through playing.
By weighing NFT games’ pros and cons alongside answering the frequent queries around them, what do you now think of this booming gaming concept? Is it for you? As much as we’d like to encourage you into engaging yourself with them, try to meticulously weigh its appeal to you.
Consider sharing our words if you find this piece helpful!