Since hitting headlines in early 2021, NFTs have evolved from the fad everyone hoped would die out to become the latest unstoppable arm of the crypto machine.
NFTs are infiltrating everything, with all forms of art and entertainment at risk of becoming another commodity. The latest victim of what is becoming a big business NFT is the video game industry: every week, another big-name game studio, publisher, or showcase incorporates NFT into its 2022 business plan.
But what can NFTs offer video game players? Companies promise that these digital assets will enhance the player experience, but the truth is that gaming NFTs are not an upgrade to our current system, and here's why.
What are NFTs?
Discussions about NFTs are prevalent these days, so most of you probably know what they are. However, for those of you unaware of this latest technological trend, NFTs, also known as non-fungible tokens, are unique digital objects or assets.
If we have an MP3 file and you want that same MP3, all we have to do is click copy and paste to create a replica and send it to you. This means that the MP3 is fungible, because two copies of the MP3 file are basically the same: you won't be able to tell the original from the copy. You can have one; everyone can have one.
Now imagine you want something different, more unique, like the Mona Lisa. As any art lover will tell you, we can't just take a photo or paint our own version and claim that the copy is identical to the original; the replica is not the same as the original painting, so the Mona Lisa is classified as non-expendable.
NFTs are digital assets that were minted on the blockchain, the technology behind cryptocurrencies like Bitcoin and Ethereum. These digital assets become files that you can't just copy and paste. Like the Mona Lisa, this makes these digital assets non-fungible.
Naturally, things get a bit complicated when you get down to it, but for all intents and purposes, NFTs are designed to be separate digital objects that cannot be duplicated.
How do NFTs fit into video games?
Video games and NFTs collide in two ways.
For the most part, video game NFTs resemble the Konami Memorial NFT collection that releases in time for Castlevania's 35th anniversary.
Those who purchase these NFTs will receive a digital seal, much like a certificate, indicating that they own the pixel art, music track, or clip. There could also be other benefits, as in the case of Konami's NFTs. Konami will also list their name on their website and provide the owners of each NFT with content that "can only be unlocked and revealed by the owner."
In general, the offerings with these types of NFTs are pretty standard, and that's what we expect from a collection of NFTs, whether it's related to the game or not.
Now, there's another kind of NFT that we're starting to see examples of in video games. Ubisoft offers trial versions of this type of NFT in Ghost Recon Breakpoint; Square Enix also seems interested in the idea.
Through its Ubisoft Quartz platform, players in certain regions can claim or purchase NFT cosmetics called Digits. The numbers were created using the Tezos blockchain, but they work like any other cosmetic item in the game: you can use them to give your character a unique design, but you don't get any functional benefits.
NFT cosmetics are distinct from standard collectible NFTs in that each figure will only be available for purchase from Ubisoft for a set period of time, before disappearing permanently. This means that if you want that particular number in the future, the only way to get it is to trade with someone who already has it.
Although Square Enix hasn't officially revealed its NFT plans, company president Yosuke Matsuda recently released a letter explaining how NFTs will create opportunities for those who "play to contribute." In other words, Square Enix's NFTs could be part of a marketplace for user-generated content in games.
If you're thinking, "Huh, that actually sounds great," you're not wrong. The ability to trade cosmetics or sell your own creations in-game would be a useful addition to many games, which is why many video games already include these types of systems. There is no need for a blockchain to create something that already exists.
Roblox, Counter-Strike: Global Offensive, Star Wars: The Old Republic, and RuneScape are just a few of the games that contain systems that make it easy for players to trade in-game items.
Of course, not all in-game markets are created equal: some allow you to use real money or in-game currency that can be converted to cash, while others only allow you to use virtual dollars that are trapped in the game, but the basic concept of player-to-player trading exists and works.
User creation isn't new either, and several games have already found ways to monetize user-generated content so that creators can be compensated for their work.
If a metaverse takes off and our digital spaces become more integrated and sustainable, then NFTs could be put to good use in creating trusted digital commerce. But for now, there's really no need to trust them as our games are years away from functioning as a true metaverse.
In fact, there are many strong reasons why we should avoid NFTs.
Why we don't need NFTs in video games
For one thing, cryptocurrencies are still quite volatile: some long-standing coins are a bit more reliable, but the last two years have shown us that any coin can fall from the top of Everest into a channel similar to a Mariana trench. in a drop of hat
If the cryptocurrency in which the NFT is minted takes a dive, the value of these digital assets could plummet, drawing the ire of many players and investors who have sold out on the new technology.
Also, while games like Ghost Recon Breakpoint are popular now, what will the player base be like in five or even 10 years? By then, Ubisoft will likely have released a few more entries in the series and players will have abandoned the old game in favor of the new trend. Breakpoint servers can even be shut down permanently.
Who wants a cosmetic NFT for a lost game?
On top of that, the environmental impact of cryptocurrency mining, a practice that NFTs depend on, is huge.
Bitcoin farming produces about 60 million tons of CO2 per year, while Ethereum produces almost 17 million tons of CO2 per year. A country with this combined carbon footprint would be the 48th worst CO2 polluter in the world; but given that there are more than 8.000 coins, the environmental impact is probably much worse.
The present and future of NFTs in video games
Currently, NFTs do not provide anything of value to video game players, and we have known for a long time how harmful cryptographic blockchains are to the environment. So why are NFTs embedded in video games?
Considering our view that NFTs currently offer nothing new to the gaming world, it's hard not to feel that NFTs are just another way to make money, brought into video games by publishers and studios looking to cash in on the latest buzzwords. industry fashion.
If so, it makes a lot of sense: the sale of NFTs has been a huge source of income for creatives throughout 2021 and is still very popular in parts of the internet.
The problem here is that the studies are too promising. We're told these new blockchain-powered systems will create unique and special opportunities in the games we love, but the features currently being rolled out aren't new.
Some people have speculated about the incredible potential of NFTs, such as Linkin Park's Mike Shinoda, who envisions a future where a player could wear a cosmetic skin in a variety of games from different publishers. Sounds good to me. Unfortunately, the video game industry currently does not cooperate in this way, not having any kind of shared space.
Even if something like this could become a reality, such a system would require a lot of effort and input from competing brand design teams, and you know what they say about too many cooks in the kitchen.
Oh! So here's something people don't explain: NFTs don't have to be jpgs. Imagine taking your favorite Valorant skin and wearing it in Fortnite. And don't pay extra, because you are the owner. Then use it in CoD, Minecraft, even Twitter, IG. So many possibilities, right? https://t.co/cJTA6E0z698January 2022, XNUMX
Read more
In theory, the situation could change, never say never, but don't hold your breath hoping that the video game NFTs you're buying now will be available in a different title than the one you bought them from.
And thankfully, today's gamers are quick to point out all these issues and seem uninterested in interacting with NFT content.
Early estimates suggest that Ubisoft only managed to sell 15 NFTs through third-party vendors in the month after Quartz's announcement. Also, the developers of Stalker 2 abandoned their NFT plans after some backlash online.
While other studios still seem determined to include NFTs in their latest projects, we hope that players will continue to speak loudly about their rebellion against such plans, forcing changes based on player preferences, at least until NFTs are released. clean and incorporate in a way that provides significant improvement.