How NFTs are Revolutionising Online Gaming

Published March 24th, 2022 - 08:27 GMT
How NFTs are Revolutionising Online Gaming
NFT innovation in gaming is growing by leaps and bounds by the day. (Shutterstock)

By Julien Partouche

As the NFT marketplace has exploded over the past year, it seems there is no area of the digital universe left unchanged.

Aside from being its own booming alternative art industry, NFT’s are now showing up in almost every conceivable field from entertainment, to e-commerce, to digital authentication.

But one of the sectors most impacted by the NFT craze has been none other than the burgeoning domain of online gaming.

The Latest Craze, Brought to you by Blockchain

NFTs, or Non-Fungible Tokens, are designed to be one-of-a-kind digital goods. Fungible means something can be functionally replaced by another item--like money for instance. One dollar bill is practically the same as any other. But the whole value proposition of an NFT is that it is a one-of-a-kind impossible to replicate, digital creation. The ‘non-fungibility’ of an NFT is supported by digital contracts generated by blockchain technology which, as put by NFT marketplace OpenSea,"a digital certificate stored on a publicly verifiable distributed database." called a blockchain. The information contained in that "smart contract" is what makes an NFT unique.

So how has this come to influence the world of gaming?

The process has been a gradual one, but no longer one that can be ignored.

The first avenue in which gamers have utilized NFTs is what is referred to as the “soft integration”. In a nutshell, this means players are able to own digital items that can be utilized and integrated into the playing experience. This stands in sharp contrast to the lease model used by big-name merchants like Epic Games. Costumes, weapons, really anything at all, can be legally owned by the player via his or her account. There are already several popular games that let you have NFTs as functional items. One online play venue even sells virtual plots of land as NFTs. with the opportunities for players to buy a unique in-game tool or accessory as an NFT, there are now gaming flexs that most serious gamers could actually appreciate.

Then there’s the next level up in NFT integration.

P2E stands for Play-to-Earn. And it's begun to take the world of internet games by storm. P2E is based on the idea that blockchain assets that appear in the game can have value in the real world as well. A variety of ways can be used to ‘transfer’ this value into reality, including cryptocurrencies and national currencies. 

The P2E model is largely made possible through the emerging phenomenon known as Decentralized Finance (or DeFi) which is also, in turn, a product of the blockchain sphere. DeFi is all about secure distributed ledgers similar to those used by cryptocurrencies which allows for a secure ecosystem of trade and financial transactions.

The DeFi system's integration with online games has opened up whole worlds of possibilities for NFT / gaming. Game developers are implementing a slew of ways for players to profit from their platform: farming digital currencies, breeding characters, and selling coveted items to other gamers are just some of the more lucrative ideas already available.

About KokoSwap

One of the most important names in the NFTs-meet-online-gaming space is KokoSwap.

KokoSwap is a decentralized ecosystem made from the synthesis of DeFi and the power of NFT tech.

With the inclusion of online playing programs, in-game NFTs, and a slew of staking capabilities, KokoSwap is the comprehensive ecosystem for the modern user to leverage the core features of DeFi and NFTs to achieve higher yields, in the most immersive gaming experiences.

Kokoswap’s ecosystem includes NFT platform-based role-playing games that allow players to tokenize in-game assets. These unique MMORPG platforms include thousands of accessories that can all be represented as rare collectibles. Kokoswap also enables users to stake crypto assets and earn more crypto or real-world currency.

The Sky’s the Limit

NFT innovation in gaming is growing by leaps and bounds by the day.

The multi-billion dollar industry of online gaming is fertile ground for nascent technologies to find modes of application. And there seems to be no slowing down on that front.

From the creative capacity of players and platform creators alike, NFTs will surely continue to be one of the most important influencers in the online gaming space.

Julien Partouche is an Economics and Political Analyst based in Paris, specializing in cryptocurrency and their evolution in society, Middle East studies and economics dynamics between Asia/Middle East and the West.

The views/opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Al Bawaba Business or its affiliates.

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