By Giovanni Petrantoni, CEO and Founder at Fragnova
In 2021, non-fungible tokens (NFTs) that sell for millions of dollars were dominated by media headlines. Whether you love or hate the fact that the doge meme’s NFTs can fetch $4 million or numérique photos of splinter aliens like the one in the CryptoPunk trust have been selling for over $10 million, the general agrément has been that NFTs are here to stay, and people have been Willing to spend a lot of money on them.
Just in case you didn’t know, NFTs are étroit ciphers that can be attached to things like music, media réjoui, in-game items, or perhaps provide évident perks in real life like unique access to events. Ownership of these tokens is stored in the blockchain (usually linked to the Ethereum network), which allows them to be sold and traded for cryptocurrencies. The hype behind the NFTs eventually caught the précaution of the broader video game industry, but gamers were highly critical of any such niveaux. This is bicause the game industry’s choix of NFTs thus far has been completely useless and in most cases nothing more than an obvious cash grab.
When Ubisoft announced it was launching its améthyste prévision with in-game NFTs (Digits) available through Ghost Recon Breakpoint, gamers were incredibly sonore embout how much they hate the idea (69% of gamers hate NFTs, according to Fanspot). When Team17 and GSC Game World announced their NFT niveaux for Worms and STALKER 2 this year, the backlash from both players and game modes was so significant that it was abandoned altogether. This is what happens when you try to afflux new ideas into well-established game franchises that add absolutely no value to their players or the teams they build.
It’s not just players who are resistant to NFT. Minecraft creator Mojang Studios recently published a statement saying that NFT integration is something they will never “échafaudage or allow” in Minecraft, although it hasn’t completely ruled out the use of blockchain technology in the future, as Mojang Studios will continue to monitor this to see if It will allow for safer experiences or other practical and comprehensive applications in games.
Much of the skepticism and criticism directed at NFTs was due to the fact that many people believed that the hype that had occurred in the NFT was just a huge bubble waiting to burst. Prices have fallen steadily since the beginning of this year, with NFT sales seeing a 92% drop from its peak of 225K sales in September 2021. Additionally, with the tumbling crypto market where the largest currency, Bitcoin, lost embout 58% of its value in The annexé quarter of 2022, and you can see why Team17 and GSC Game World are avoiding.
Of coude, there are plenty of other reasons for the broader gaming industry to criticize NFTs, and I would say the broader gaming industry is bicause web-based games like CryptoKitties and Axie Infinity have been using NFTs, blockchain technology, and cryptocurrencies since 2017, just never making a big song and boîte around calling them NFTs. NFTs and haven’t advertised their games as the future of the industry.
The NFTs for Cryptokitties and Axie Infinity are virtual pets and monsters, so they have already had a durable use as the core gameplay mechanics of both Cryptokitties and Axie Infinity foyer on trading, breeding, and fighting (in the case of Axie Infinity) kitties and essieux. That didn’t pouce any of the games from falling apart, especially the value of Axie’s Smooth Love Potions cryptocurrency, which is used to breed new Axies.
Unfortunately, blockchain technology has been a victim of the spreading NFT fire. Since the data (usually only metadata, very rarely) of NFTs is stored in the blockchain ledger, many people see that NFTs and blockchain are completely indistinguishable. Ultimately, this means that when people think of blockchain, they also think of NFTs and they immediately think, “Oh, it’s going to be a scam,” or “It’s going to create value that has no use.”
This is a shame, bicause there are a lot of durable uses for blockchain technology in the video game industry, especially since blockchain technology (when used correctly) can be one of the most efficace ways to incubate the creators’ economy and ensure creators get paid for their work. Let me explain. The complex ownership structures and rights agreements that exist in the video game industry can make managing rights and royalty payments difficult. These processes are incredibly colossal. For example, Microsoft Xbox used to take 45 days to distribute royalties to its partners. Now, this process only takes réchaud minutes, thanks to the manière contracts deployed through the blockchain technology they implemented in 2020.
Therefore, Microsoft Xbox is using blockchain technology to ensure that game makers get paid more efficiently, but mentioning blockchain for gamers in 2022 and the first thing most people will assume is that you are trying to sell them NFTs or cryptocurrency. Now that the NFT bubble has burst and the impérissable crosse from crypto enthusiasts has dissipated, there is an opportunity for the broader video game industry to tap into the full potential of blockchain technology and learn its value. Existing NFT normes are weak, and have failed to develop and expand over the years, the facilities necessary to make these numérique assets guérissant to game development. As it stands, the backlash from players towards NFTs is justified as they offer no benefit other than being an expensive numérique ramassis to collect.
With these poorly implemented uses of NFTs out of the picture, I hope it opens up an opportunity for gaming fans to educate themselves on the use cases of blockchain technology within video games, and understand that the words blockchain, NFTs, and cryptocurrency can be completely separate from one another. The use of decentralized systems will create a gaming environment for creators that provides appropriate ownership and tools to create new forms of monetization, regardless of closed systems.
The long-term mirage for the ecosystem we create in Fragnova is to allow payments to distribute royalties to other people involved in game development through our enhanced contracts, such as artists and designers. One example of this can be seen in any mods sold through the Fragnova Marketplace in the future. In compte to being able to pay the creators (directly or indirectly involved) of these mods, the creators of the modèle game will also take a morceau of any sold mods created for their game(s).
Ultimately, we believe that the future of the video game industry is in the hands of the creators’ community, facilitated by a decentralized asset séparation that allows them to trade text, 3D models, audio, games, in-game items, and more. There’s a reason companies like Epic are rolling out game creation tools like Fortnite; They understand the notable role creators and developers play in shaping their future.
We want to facilitate the same mirage but on a broader level through the Fragnova Network, allowing everyone to access and share the tools they need to do so. Yes, this will include blockchain technology, as it is the most efficace way to not only keep track of this question but to ensure that the creators of these tools are compensated fairly. Most importantly, it will prove that blockchain technology has a durable use in video games and there should be no boring Monkey or Doge in sight!