The video games industry is talking a lot about NFT. What do you need to know?
Why are video game publishers are now creating NFT-based games? What do gamers have to do with NFT’s? I mean what are NFT’s? Many do not know about it. The answer lies in the interdisciplinary barren and drylands of the economy and computer sciences. Bear with us today, as we will answer all your questions.
NFT and Video Games Industry
NFT’s have penetrated the games industry, some have embraced it while others have disregarded it. Big names in gaming like Valve have banned any game on its platform that uses NFT’s. Likewise, the Video Game Awards 2021 will not feature any NFT-based games.
Phil Spencer of Xbox has clearly stated that NFT’s are, “more exploitative than about entertainment.” Ex-employee of Facebook and Yahoo, Alex Stamos, has regarded NFT’s as scams. Yet the likes of Sega, and Ubisoft have come in support of NFT’s and are planning to join other corporations in the domain of Blockchain and crypto-based games.
The question is valid, but the answer is simple: “because the crypto community decided that it is.” This is how things worked in the past when it comes to the economy. Human beings as a society decided to put value and trust behind the paper currency to symbolize the value of services and assets.
The government comes in and regulates it to keep things in order. Some other examples where people put a value on certain things are real-estate, fine art, collector’s item, and old video games. NFT is the same thing, so in crypto.
Blockchain technology is used to keep a digital record of ownership and proof of work chain. Now when it comes to games, you can own and possess NFT’s or in-game collectibles, like in Axie Infinity’s NFT cat monsters, and exchange them for real money.
However, there are ethical questions also linked with it, especially the energy-intensive verification system. The massive energy requirements and consumption result in environmental issues.