NFT is 2021 the new trend in the gaming, companies are worth billions - but why?

A non-fungible token (TNF, also recognized by phrase NFT, Non-Fungible Symbol) or Non-Fungible Vale is a unique type of cryptographic token that stands for something special. Non-fungible tokens are not, therefore, mutually compatible. This contrasts with cryptologies such as bitcoin, and also numerous network or energy tokens that are fungible naturally. The four primary attributes of the NFTs is that they are unique., indivisible, transferable and also with the capacity to verify its lack.

In gaming, there is a new trend: the blockchain and especially NFT (non-Fungible token). There are now some companies that set on NFT, and that are considered unicorns : they have a market value of over a billion US dollar. The big established publishers flirt with NFT. What is behind it?

What are NFTs? NFT is the abbreviation for non-fungible token. It is a protected digital object based on blockchain technology. On the blockchain, cryptocurrencies such as Ethereum or Bitcoin are also based.

A NFT is something like a limited, digital collect object. Photos, videos, audio files or any other type of digital data can be.

Essentially, you can imagine an NFT like an artwork designed by the artist:

Without a signature, a file is in principle worthless because it can be reproduced as desired With the signature, it becomes an authentic factory that has the value to the other.

Just as a famous painting on an auction can be auctioned, NFTs are also offered on auction sites: a NFT is then the picture of a pixel monkey, it s the clips of a twitch streamer like Index (cover picture) or is it a video, This shows like a basketball star spectacular.

Like other collecting objects, NFTs are treated by some as investment : they buy a work of art in the assumption that it rises in value, and they can be able to resell it at a later date for more money — similar to shares rising in value or can fall.

Investor pays nearly $70 million for digital artwork as NFT

What is the most expensive NFT, which has been sold so far? In 2021 the artwork Ever days: The First 5000 Days was auctioned in the auction house Christie s. It achieved a value of $69.3 million, the artwork was paid in the currency ether (via Twitter).

A programmer and Krypton investor from Singapore had done the artwork, which represents a collage on 5000 digital images of the artist Mike Beetle Tengelmann.

NFT is the new trend in gaming — it s about huge buzzing

What to do with gaming? NFT and the blockchain are seen in 2021 as the next big development in gaming. There are several new companies in the USA developing games based on blockchain technology.

As the economic side reports VentureBeat, there are already 4 gaming companies that have reached the status Unicorn. So you call it when a young company is already worth more than a billion US dollar. It is the companies IMOCA Brands, Mythical Games, Dapper Labs and Sky Mavis.

Only two years ago the company Forte was founded. She wants to be a platform that allows other studios to develop blockchain games and give them the technology. For an investment round, Forte was valued at $725 million.

The fact that a young company achieves such a high rating in such a short time shows how monsters are currently a lot of money in this business model and topic.

Items own — instead of renting them

Why do you think that this model brings so much money? Essentially, it will run out that players can create values ​​through the blockchain and NFT now in a game values ​​that are lasting and players really own:

Normally, a player can only put money in a game by buying it, paying a subscription or acquires items in the cash shop. The items belong to the player but not: A particularly strong item in Diablo 2 resurrected remains owned by Blizzard. You rent the items only. By NFT, however, it should be possible to actually have a digital object and sell it to another player.

Playing to earn money — Games to Earn and the Leisure Economy

The VentureBeat page speaks of a Leisure Economy : You can earn money with the game by creating or acquiring items there, which you sold to others.

The blockchain and NFT are seen as a next step in gaming. Gaming also applies to industry-related investors as a lucrative market in the entertainment scene because it is growing strongly. Currently, the market value of gaming companies is further increased by technological trends and Buzzwords such as Met averse.

A company like Roblox was in the meantime worth money on the stock market than a so-established group like Activision Blizzard.

Therefore, investors stuck a lot of money in the topic NFT — including established gaming studios is now offered again and again to become active in the area NFT :

The CEO of EA, Andrew Wilson, designated NFT and play-to-earn games as the future of industry (via gamer) The boss of Ubisoft, Yves Guillemot, believes that Blockchain and Play to Earn will help to grow the industry (via Vice).

In parallel, you can see how the players are to be addressed: On YouTube Krishan already some videos imagine the current NFT games. The videos are not about whether these games are good or bad — it s all about how to earn money in these games.

The companies apply NFT also actively with advertising deals by addressing popular twitch streamers and provide a great deal of money.

There is a lot of refusal against NFT, especially for environmental reasons

What is the criticism of NFT? The criticism of NFT is the same, as at the blockchain technique:

It is generally criticized that a lot of real energy is spent to create virtual objects — that is, the technology directly burdens the environment.

An article by Wired page reported that a Dutch artist who created six NFT and sold and sold more power in the few moments of auction more electricity than his studio needed in 2 years (via Wired).

This has shocked the environmentally conscious artist:

NFT is criticized because it was already used for some art dizziness, which ultimately betrayed investors around their money.

The site Kodak quotes, among other things, bosses of Gaming Studios, who say: NFT companies would have no idea and no relation to gaming. It is a bubble, behind the lot of money stuck, but of Buzzwords like NFT or Met averse lived, who hardly an investor really understand.

The gaming studios that set to NFT would quickly realize Oh God, I have no idea how to develop a game and then report on experienced studios (via Kodak).

Under players there are a strong aversion to NFT elements in many places. Often, as a counter-argument, you should pay a pile of money for a few pixels. Because it is not clear to players why a digital item suddenly should cost several hundred or a thousand euros — they are used to normal prices in cash shops.

There are also some horror history of NFT investments that have lost massively value within a short time.

It s like so often for speculation. Ultimately, the opinions go far apart:

Some faith, NFT are the new thing, they talk about exponential growth and enormous value gains. One believes any difficulties with high power consumption would solve when the industry is completely swinging on green energy.

Other faith, NFT be a bubble that could burst at any time. And given the environmental damage, the NFT currently causes, they also hope.

Currently, NFT for some players are like a red cloth:

Dead by Daylight sells controversial NFT killer — players find it damn suspicious