So what are the real world benefits of gaming NFTs?
It’s not just about digital collectibles. Gaming NFTs bridge digital worlds by introducing a new era of game asset collecting. It is the technology that will facilitate a unified metaverse, and Web3 gaming will bring several benefits that traditional gaming lacks.
Provable scarcity: The scarcity of gaming NFTs can be proven via the immutable records of the blockchain. This is important when you consider that rarity and authenticity are valuable traits in the minds of collectors. Furthermore, gaming NFTs cannot be tampered with or duplicated due to the immutable record generated on the blockchain upon digital asset issuance
In this context, gaming NFTs are simply a record of game asset ownership on a public blockchain such as Ethereum, Cardano or Solana.
The decentralization of GameFi allows game assets (or NFTs) to be transferred out of and between games. This transferability gives the assets value outside of the gaming ecosystem. And because the ownership status of an NFT is tracked on the blockchain, they can be bought and sold as collectibles on third-party exchanges.
GameFi explained
GameFi, as the name suggests, is the intersection of gaming and finance. It’s considered a sector of Web3 because ownership is decentralized between builders, investors and players. These two industries found each other on the blockchain through an exciting ecosystem of in-game tokenomics and gaming NFTs (non-fungible tokens).
Ownership: In traditional gaming, in-game purchases are non-transferable investments locked within a single gaming world. Gaming NFTs bestow ownership of in-game assets to players. That ownership is more meaningful as it’s not restricted within the game publisher’s walled garden.
Interoperability: The traditional online gaming model relies on centralized servers. Such games operate on disparate systems. When it comes to gaming NFTs, they can be designed to be transferable, interconnected and interoperable with other games built on the identical underlying blockchain. The player then has the freedom to use them in other games (if other games support those assets) or to sell them to other players.
This evolution in gaming isn’t about game mechanics. Rather, it’s about moving game monetization closer to the ultimate vision of Web3. Many big GameFi builders hope these games will become blockchain marketplaces where the free market gives value to in-game assets within a player-owned ecosystem.
