Non-fungible tokens can no longer be mere collectibles or status symbols. The key to the longevity and relevance of the once-hyped blockchain asset is usability.
Posted on February 12, 2024 at 1:21 pm EST.
The non-fungible token (NFT) landscape is undergoing a revolutionary change, challenging long-held beliefs and traditional norms. No longer simply digital collectibles, NFTs are on the cusp of a revolution, set to redefine digital interactions and asset ownership in ways that may seem controversial to some, but which are undeniably Are unprecedented.
But as NFTs evolve, it’s clear that not all will emerge winners in this new digital renaissance. As the landscape continues to change and expand, it is becoming clear that the key to longevity and relevance in this sector is usability, and nowhere is this better demonstrated than in the web3 gaming world.
Renz Chong is the CEO of BreederDAO, a firm that equips stakeholders with NFTs tailored to their specifications.
In the early days, NFTs functioned primarily as status symbols, often in the form of art or collectibles. They introduced a new way for individuals to show off wealth, taste and technical understanding. Owning a rare or highly sought-after NFT became akin to owning a luxury item in the physical world, a digital badge of honor that signifies one’s involvement and contribution to the growing world of blockchain and digital art, often to a particular community. as part of. ,
But today, NFTs are transforming from collectibles to tools for ownership, authenticity, and critical components in the broader digital ecosystem.
Consider the resurgence of gaming NFTs. Although this area was previously overshadowed by other types of digital collectibles, gaming NFTs are now at the forefront of innovation. Functional prototyping and immersive gaming experiences are driving this shift, transforming gaming NFTs from mere in-game items to valuable digital assets with real-world relevance.
For example, as of early February 2024, many gaming NFTs were trading at an average of 1.55 ETH, more than US$3,000. And the number of people joining these NFTs is quite high. In December 2023, DappRadar reported that there were an average of 2.2 million monthly active blockchain game users in 2023.
This growth points to the fact that the integration of NFTs into gaming integration is not just a novelty; This is a strategic development adding real value to the gaming experience.
Read More: What are NFT DApps?
For example, currently, most of the highest-tier NFT collections are in gaming. These are NFTs that can either serve as in-game characters in upcoming releases or as access passes to unlock other rewards. While most of the games from these projects are still in beta, the promise of potential in-game utility – including previews of the games and the innovations they plan to introduce – is what sets a winning collection apart.
DigiDaigaku’s Genesis collection is a great example of this, Launching in 2022, This was a free mint, which was an innovation in itself at the time. Since then, DigiDaigaku has released several collections under its umbrella term Factory NFTs, promising a new and unique experience for gamers when the game comes out. Despite the game not being out yet, the promise of potential game integration (among other things) has driven the price up. Shortly after the first mint in August 2022, NFTs were selling for around 1.2 ETH; By mid-February 2024, this figure had increased to 4.09 ETH.
anything can be a game
NFT collections that were not initially included in the gaming world are also undergoing a change. Pudgy Penguin, for example, has long been highlighting how far a Web3-born brand can go. Recently, Pudgy Penguins announced the upcoming alpha release of their new open-world game “Pudgy World” on Ethereum, which will be powered by zkSync’s technology. And despite the initial reaction, Pixelmon’s open-world RPG NFT game has now been heralded as a leading project to watch in the NFT innovation space.
The increased versatility in NFT utility in gaming also points to a larger shift towards an increased emphasis on the fundamental purpose of blockchain in gaming, a maturity in the gaming sector that marks a deeper understanding of blockchain’s potential. It is no longer just about trading digital assets; It’s about enhancing the gaming experience by inviting each player to make their playing experience uniquely their own.
This means that players are offered valuable, tangible elements within the game world, increasing the importance of these assets beyond token trading. And yet, challenges remain, with public perception still largely held to the idea that Web 3 games lack engaging user experiences, or that they exist primarily as speculative ventures. This perception needs to be changed in order to move forward on the path to widespread user adoption of Web3 games.
Another challenge lies in balancing blockchain integration with game-play quality. Developers should ensure that blockchain complements the gaming experience rather than detracts from it. They should create captivating games where blockchain serves to enhance the experience rather than being the main attraction.
Read more: Crypto’s strange flirtation with the world of video games
Therefore, they should create Web3 games with challenging, fun UX while ensuring that blockchain integrates in a seamless, unobtrusive way. And with innovation happening at the NFT level, we’re starting to see these types of games come to life in Web3.
So the key to sustainability and success in this new era lies in the project’s ability to blend a compelling narrative with real utility, strong community support, and a certain level of publicity.
These values will continue to be reflected in the NFT industry of 2024. NFTs are not just about aesthetic appeal. NFTs that will define the future will offer narrative, community engagement, utility, and innovation. The future of NFTs lies in their ability to provide value and utility beyond their initial artistic scope. This is an essential step that will reshape the digital world in profound ways, and Web3 Games is leading the way.
UPDATE Feb 12, 1:40pm: Added a slug indicating this is an opinion piece.