NFT in Video Games: What is an NFT and How Does It Work?

Many people find NFTs quite perplexing. Despite them being popular, many people did not understand them well. So in this blog, you’ll find out exactly what they are and why they are profitable as well as how the purchasing procedure works. We will also talk about NFT in video games. We will be covering the utility for NFTs inside of these games. We will also break down the advantages and disadvantages of such games and highlight the importance of CCCI as a professional video game localization and support service.

Key Takeaways:

• Over seven thousand different kinds of cryptocurrencies are there.
• The Sandbox is gaining popularity as one of the most NFT games.
• NFT in video games is becoming the new trend in the industry with more than nine big game developers and publishers investing in the field.

Table of Contents

• What is an NFT and How Does It Work?
• What makes NFTs valuable?
• NFT in Video Games
• Pros and Cons of NFT Games
• CCCI – Professional Game Translation and Support Services

An NFT or non-fungible token is an example of a digital token or asset. For example, when you purchase an NFT, you are essentially purchasing the rights to that particular asset. Non-fungible indicates that it can’t be modified once. Unlike Bitcoin, a bitcoin is identical to another bitcoin. NFT, on the other hand, is never the same and also serves as a token. 

Technically, tokens are simply a piece of data that belongs to a specific address. That piece of data belongs to whoever has a password to that address. This piece of information can be bought and sold to many addresses. The data is confirmed on a blockchain and you may examine the owner’s history.

It is also crucial to understand what you are getting when you acquire an NFT. You are purchasing a piece of data that leads to a server that holds a picture or a GIF. You should be aware that the server has the ability to change the image or GIF. It’s the particular piece of data on the blockchain that you actually possess, not the connection to the server nor the image or the GIF. 

In some ways buying an NFT is like getting a small bit of data that reflects something bigger. similar to purchasing a stock you’re not owning the entire company when you buy a stock. you’re not truly getting much from it unless it’s a dividend stock. This leads to the question why would you really want to purchase an NFT in the first place?

First and foremost, just like bitcoin has been recognized since it was the first cryptocurrency, the first NFTs of specific founders or businesses would be valuable as well. NBA cards, for example, are rapidly gaining popularity and the most valuable cards are those made in the initial edition. 

Assume you have the first NFT in the United States. it will almost certainly be regarded as valuable. In other words, the usability of an NFT or its real-world advantages is the second factor that makes it valuable. For example, consider what would happen if Michael Jackson was still alive! In Seoul NFTs you might have lifetime access to several of the shows he was part of and if you own one of them due to their real-world benefits these NFTs would rapidly become popular and quite expensive. 

Therefore, people would consider purchasing an NFT if it provided a real-world advantage. It is believed that in the future practically all NFTs will have this feature for profit. Creators will sell NFTs in exchange, create a membership group or host a monthly group gathering. 

The third factor that determines how valuable an NFT is if it is unique or rare. For example, Stan Lee only made three NFTs. Even if they are merely photos of Marvel characters, it would be extremely valuable because they are only true originals. Others could have the photograph but they would never have the one created by Stan Lee.

The last factor that has value to an NFT is its ownership history. An image of a dog can be worth a million dollars to someone if it’s at one point held by LeBron James for example. In the end, because of these factors above, you should think about what makes an NFT profitable. would it be the first of its type, would it provide a real-world benefit if it is rare, or was it owned by someone famous? 

When evaluating an NFT you should consider these questions: does buying Elon Musk’s NFT of his first Twitter post for 1 million dollars for example fulfill any of these criteria. To begin with the top of the list, it is the first NFT of that kind. second is it useful or does it give perks? not at all. you really don’t get to edit the tweet or use it to promote your business or anything else. Is it unique in any way? it is, of course, one of a kind. Finally, what is the history of its ownership? either yes or no is the answer for this. Despite the fact that it is Elon Musk’s first tweet, no one famous has yet to own the NFT in question.

In other words, if you buy his initial tweet you are hoping that somebody will want to purchase it in the future for a higher price because holding that NFT isn’t going to help you in any way. 

Gaming is going to be huge for the world of NFTs and it honestly could be the largest and most profitable sector for the space in the past 12 months. There is tons of money flowing into gaming to begin building these new blockchain games and the infrastructure for the space.

Alongside that, we have also seen some of the largest gaming companies in the entire world begin to announce their entrance into NFTs or even begin implementing NTFs within their games. Those big names start with companies like taking to interactive which publish Grand Theft Auto. We also have Sega Konami, UbiSoft Square, Enix Xanga, Microsoft epic games Roblox and much more. As you can see, big players and a massive amount of money are starting to enter this sector.

NFT games are essentially the by-products of the whole trend. There is a lot to be talking about, but primarily, these games are highly potential for profit.

The first thing to mention is how massive the gaming industry is. it is absolutely gigantic as of 2021, the global gaming industry brought in around 178 billion dollars in revenue. which is absolutely massive. The gaming industry is still expected to grow. By 2025 it is forecasted to hit 268 billion dollars in revenue. Some other really interesting statistics are that there are over 3.1 billion gamers worldwide and that makes it 26 to 28 of the total global population. Moreover, the amount of time being spent per gamer is a total of 8 hours and 27 minutes per week. So as we can see the gaming industry is continuing to grow. Some people speculate once blockchain games come into the picture and games are being integrated with crypto and blockchain. Some of the most massive companies in the entire world are starting to hop in on this train and build out towards the Metaverse.

The company that has really pushed this conversation was Facebook when its name changed to Meta in 2021. When they announced to change their name as well as the direction they were taking their company to build towards the Metaverse. It signaled off a lot of other companies that this was the next frontier of the internet. We now have companies like Microsoft going all-in on the Metaverse.

They actually just recently acquired Activision Blizzard for 69 billion dollars in an incredible acquisition. Now they own some of the most popular gaming in the entire world like Call of Duty, World of Warcraft, Starcraft 2, and much more. They also have Minecraft 2 which is often considered as a metaverse just without the blockchain. 

As we can see, gaming is going to play a big role in the Metaverse. a lot of it is going to be revolving around gaming. We have games like Roblox and Minecraft that essentially act as metaverses right now just without blockchain technology. We also have new games that are coming out like the Sandbox, the Central Land, and a few others that are going to involve blockchain technology and NFTs. 

The first big advantage is the possibility of making money. People can own what is essentially a certificate of authenticity for an NFT.

Digital pieces of art and people are willing to spend millions of dollars on owning an NFT for an original digital artwork. The proof of their ownership is there on the blockchain for everybody to see and now they can flex about owning that piece of art. 

NFT in video games has been causing a bit of controversy. Are they destroying the gaming environment? Is NFT in video games a scam?

Are they something that will flip the starving artist/gamer trope on its head? Will NFT games provide a new easily accessible way for a sizable and sustainable income for artists and gamers along with the entertainment?

Therefore, the general confusion is causing much hesitancy of gamers especially to enter this new gaming sphere.

How can you instantly increase the revenue of your video game title and make the game successful overseas? Nowadays, in the video game industry, most game developers and publishers are well aware of the need for localization.

While game translation refers to the process of contributing the text source in another language with small adjustments, localization is adapting the text to a particular culture or language.

In other words, localizing a video game means retelling a game story in a different language and culture. The process involves translating both in-game dialogues, character names, technical parts, changing metric conversions, etc. Video game localization agencies take into account essential points like the game’s source and target language, cultural similarities and differences between the languages, genre, industry audience, and many more.

Check also – Game industry in Italy: Italian Game Localization.