Blockchain and NFTs are set to disrupt the gaming industry in a major way. This is creating a seismic shift in the gaming industry. Real in-game asset ownership and play-to-earn models with legitimate secondary marketplaces are replacing pay-to-win revenue models.
Finance was the first sector to find itself in the path of disruption by blockchain technology’s first use-case in cryptocurrencies. But there has long been an understanding that the tech could disrupt any number of industries in different ways. The gaming industry seems set for an overhaul – and that overhaul may already be underway.
True Ownership of In-Game Assets
Traditionally, any in-game assets players won or bought, like character skins, weapons, and other items were not truly theirs. They remained under the ownership of the game developers. Grey markets arose where players would trade in-game assets. But those were never sanctioned – and players were often punished – for participating in them.
In-game NFTs have changed all that. Almost everyone in the blockchain space is familiar with Axie Infinity; whose characters, Axies, are NFTs on the Ethereum blockchain. The smooth love potions (SLPs) players need to find to breed new Axies, are cryptocurrency tokens that are tradeable and have a dollar value on the exchanges they trade on, such as Binance.
HodlGod players are rewarded with in-game NFT drops. Those NFTs are theirs to keep. They can be traded, exchanged, and now staked on Onessus’ NFT staking platform, WhenStaking. NFT staking offers NFT hodlers a way to earn a yield on their NFTs.
This movement toward allowing players to truly own their in-game assets, either as NFTs or more traditional fungible tokens, has turned the gaming item ownership model on its head. A $200 billion industry is set for major disruption.
The Play-To-Earn Model
Play-to-Earn mechanisms with legitimate secondary marketplaces are replacing pay-to-win gaming models and proving a more enjoyable experience for gamers. All of this is made possible by blockchain technology.
Pay-to-win is often considered unfair. Players with deeper pockets could simply buy valuable in-game assets, like weapons, and outmuscle other gamers. The spirit of gaming – skillful players would succeed where others wouldn’t – falls down when pay-to-win is a way to get ahead.
A more fulfilling model, play-to-earn (P2E), rewards skilled gamers with NFTs and other blockchain-based assets, such as crypto tokens. HodlGod players who earn NFTs during their gameplay are rewarded for their skill, not their capacity to buy in-game assets for themselves.
From financial services, investing, supply chains, art, and now gaming, blockchain and NFTs are changing the way industries work. We think it’s for the better.