The term NFT comes from the English “Non Fungible Token”. So, this means that NFTs are non-fungible digital tokens registered and stored on a blockchain .
This technological innovation of the blockchain which makes it possible to implement the notion of digital scarcity and digital property is at the origin of the Web 3.0 revolution
But NFTs are also a major upheaval in the world of video games by enabling a new economic ecosystem that experts call GameFi .
Want to know more about how NFTs work? On their place and their role in the world of Web3 Gaming? So check out our article and file below:
Summary :
What is an NFT?
First of all, it is important to understand that the term NFT refers to a technology , and not simply an image, or digital objects. NFTs are much more than that!
NFTs are a technological innovation
The term NFT comes from: Non Fungible Tokens. This refers to non-fungible tokens stored and secured on a blockchain . In summary, an NFT is a concrete application of a revolutionary technological innovation: the cryptographic blockchain protocol. Click here if you want to learn more about blockchain technology works .
Concretely, NFTs are a technological revolution which makes it possible to implement the notion of digital scarcity, digital uniqueness, and virtual property .
NFTs implement scarcity in the web
Indeed, before the invention of NFTs, it was impossible to create or buy a digital object on the Internet that was guaranteed to be unique. But it is now possible because NFTs are non-fungible digital objects, that is to say unique and non-falsifiable .
This technological innovation is therefore above all a fantastic opportunity for artists and creators. But not only !
NFTs are digital property titles
In addition to implementing the notion of digital scarcity and unique objects in the digital world, blockchain technology makes it possible to store, authenticate, and secure NFTs.
More concretely, an NFT is a certificate and title to a digital asset: photography, audio-visual creation, game cards, skins and equipment in a video game, etc.
NFTs are a decentralized and secure ecosystem
blockchain technology , NFTs benefit from the many advantages offered by this innovation: decentralization, cryptographic security, fast transactions with low fees, etc.
Concretely, Internet users can now possess unique digital objects in complete security, but also buy and sell them without needing to resort to an intermediary, a broker, or a trusted third party.
NFTs are at the origin of the Web 3.0 revolution
As we have just seen, NFTs are therefore a technological innovation which allows:
- the notion of scarcity on the web,
- digital ownership of digital objects,
- a decentralized and secure economic ecosystem.
blockchain technology and NFTs bring an additional and missing dimension to the Internet by implementing the digital ownership of digital objects. This is why we talk about a revolution when we talk about the creation of Web 3.0
blockchain technology will find concrete applications in our lives for all players in many areas: music, film, collectibles, notarial deeds, etc.
The economic ecosystem of NFTs
NFTs are victims of a lot of rumors and prejudice among the general public because they are often associated with scams, scams, or a simple speculative bubble that is based on wind.
Speculation on the economic market of NFTs
In the real or virtual world, all economic markets are by definition speculative. Even essential economic markets such as food or energy. So NFTs will not be an exception to this rule that the market price is that of the meeting between the offer of a seller and a buyer at a given time.
To put it simply, we can compare the principle of NFT with works of art. Indeed, the most famous paintings such as the Mona Lisa all have imitations and copies. However, only the original work of the painter, signed by the original artist, has real financial value.
And it’s the same with NFTs! Because operating on the principle of rarity and authenticity, holding an NFT means that you are the sole owner of the original good, and therefore only the latter has real value due to its rarity, unlike all the imitations that we could find on the Web.
This is why we have seen in the world of NFTs simple images of monkeys sold for millions of euros as unique works of art and which are now worth almost nothing.
In summary, the speculative bubble around NFTs is an epiphenomenon in an immature financial market and NFTs are above all a major technological innovation in the Internet universe in the process of revolutionizing the potential of the Web.
Scams and scams in the world of NFTs
The economic market for NFTs being relatively recent, and having benefited from strong hype and a great fashion effect, it has attracted many people with bad intentions.
Witness to an immature financial market, the slightest project on the Internet which was directly or indirectly associated with NFTs aroused strong interest from Internet users.
And it is in this context that many scams and scams have taken place. This is why it is very important to train yourself before investing in Web3.
How to properly invest in the NFT market?
Do you want to invest money in the NFT market? Please be aware above all that this is a risky financial investment, and that PLAY3R does not provide any investment advice.
However, we can recommend that you preferably focus on projects that speak to you, in areas that interest you, or with artists and creators that you like.
But you can also find out about NFTs that have a utility, like in Web3 Gaming, because the utility given to these NFTs gives them real financial value.
What is NFT Gaming?
As we studied in the first part, the technological innovation of blockchain and NFTs is at the heart of the Web 3.0 revolution by implementing the notion of scarcity and digital property.
And it is precisely in the leisure and entertainment industry that this invention finds a direct and concrete field of application, particularly in the world of video games.
The economic model of old Web2 video games
Developing a quality video game costs a lot of money. So to finance their development, video game publishers used to charge people who wanted to play them for their games.
Then “Free to Play” video games appeared in which players could play for free without needing to purchase the game. But in which the game was financed by the purchase of cosmetic or gameplay elements with a micro-system. internal game transactions.
In any case, in the world of Web2 games, players had to spend money to finance the development of a game, and then hope to be able to have fun and enjoyment in it.
The new economic ecosystem of Web3 video games
A Web3 game is a game that integrates the technological innovation enabled by blockchain and NFTs into its gameplay:
- the avatar and main character of the video game,
- the skins and accessories of its main character,
- boosts and equipment that can be used in the game,
- limited edition cards for card games etc.
So, like in Web2 games, players can purchase cosmetics through in-game microtransactions if they want to be able to use them, but these are NFTs that the player can then resell or trade.
In summary, if Web3 games do not radically change the financing of game development in the leisure and entertainment industry, Web3 Gaming is a real revolution for gamers.
NFTs in Web3 games return power to players
The main promise and slogan of Web3 Gaming is to “ return the power to the players”
Indeed, when a player now buys a digital object in a game, such as a sword in an adventure game, the player will actually own it, and its object will be truly unique, unlike Web2 games. As a result, its item, or the sword in our example, will have a financial value, and the player who owns it can choose to use it, or sell it. And the value of its NFT will be the price freely agreed by the buyer and seller on a decentralized “peer to peer” market.
Thus, players who decide to stop playing a Web3 game will always have the possibility of reselling the NFTs that they have purchased in this game, in the same way that players resold their second-hand games in physical version before the latter become dematerialized.
NFTs in Web3 games make money
In traditional Web2 video games, players could only lose money while playing. This was the business model of this industry in which players bought entertainment. In the world of Web3 Gaming, things are radically different because players can now hope to earn money while playing!
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