The Impact of Blockchain on NFTs and the Gaming Industry

Since becoming mainstream, the blockchain has disrupted many industries, and its potential to disrupt more remains undoubted. Because of this, the technology has received a lot of interest from potential innovators. The gaming industry is one of such industries currently benefiting substantially from blockchain technology. The global blockchain gaming market size was valued at $128.62 billion in 2022 and the market is projected to increase from $154.46 billion in 2023 to $614.91 billion in 2030 at a CAGR of 21.8% in that period.

The blockchain’s unique and decentralized structure has transformed how we see gaming. No longer just consoles and controllers with pixel images to control on a screen. These games are now full experiences where players experience fun while earning in-game rewards that they can take out and change into valuable real-world assets. In this article, we will examine how the blockchain has affected the gaming scene and other ways/niches where blockchain technology is disrupting.

Blockchain Technology, Blockchain Gaming, and Virtual Reality (VR)

Virtual Reality is a technology that allows players to interact with each other in ways that were never possible. It creates an immersive environment and improves the experience with player interactions. The technology paired with that of the blockchain has opened up new possibilities. Because of the decentralized nature of the blockchain, developers can produce and distribute gaming products with VR experiences directly to users without the need for intermediaries.

There’s also the aspect of ownership on the blockchain and how VR helps with this. The blockchain enables virtual asset ownership like lands and built virtual real estate. These assets are securely stored and tracked on the blockchain, creating a market where users can buy and sell these assets. This creates a new stream of revenue for users of VR platforms and an increased sense of ownership. This ownership gives players a strong sense of control over their gaming experience. VR integration elevates the player’s gaming experience, as it provides an unprecedented level of engagement and realism. The VR industry is growing at a fast pace. The global VR market size is predicted to increase from less than $12 billion in 2022 to over $22 billion in 2025.

VR companies are building and providing brilliant products in the industry today. Africarare and Victoria VR are two such platforms. The former is an African VR Metaverse company that houses digital land with roots in Africa. Players can be on digital land, potentially replicating landmarks or creating spaces that celebrate their heritage. The latter is the world’s first realistic metaverse in VR built on the blockchain. Both projects push the boundaries of graphical fidelity and user interaction, promising an immersive experience unlike any other.

Non-Fungible Tokens (NFTs) and Gaming

NFTs are digital assets powered by blockchain technology. They have unique digital identifiers that are recorded on the blockchain and are used to certify ownership and authenticity. While these tokens became popular as digital collectibles, with their use case centered around transacting digital artworks and other forms of media, they are now playing a vital role in the blockchain gaming space. NFTs enable players to own and trade in-game assets securely on the blockchain. Players earn these NFT rewards via their gameplay and participating in virtual economies. Platforms like GGEM are doing immense work with attracting millions of players to the gaming ecosystem as they bridge the gap between traditional and blockchain gaming communities by onboarding Web2 gamers to Web3 games.

According to a report by S&P Global Market Intelligence, video game publishers made $3.64 billion in revenue from in-game NFTs in 2022. This figure is expected to grow at a 33.5% CAGR to $15.46 billion by 2027 as more games in the industry adopt NFT mechanics. NFTs in gaming grant players true ownership of their in-game assets, which is different from traditional gaming where games and their assets are built and stored on centralized servers. With NFTs, everything is powered by the blockchain and players have access and the ability to trade or sell their assets in an open marketplace.

NFTs are also interoperable, which allows players to use their assets across different virtual worlds. This in addition to player-driven economies where players can create, buy, and sell their in-game items makes NFTs invaluable to the blockchain gaming world. They (NFTs) also help with authenticating assets in games. This is possible because every NFT is unique, and their record is open and accessible on the blockchain. So you can be sure of the authenticity of your assets.

Examples of gamified NFT platforms include Sidus Heroes and Kryptomon. Sidus Heroes is a futuristic NFT-oriented play-to-earn Multiplayer Online Role-Playing Game (MMORPG). With the use of NFTs, users can own in-game assets on Sidus, and this creates a player-driven economy. With Kryptomon, think CryptoKitties meets Tamagotchi and Pokémon. Kryptomon offers a captivating blend of collecting, nurturing, and potentially battling, creating a deep connection between players and their virtual companions.

Fitness Meets Rewards

NFTs, apart from their use case in gaming are also proving vital in the health and fitness sector. Like the gaming niche with its play-to-earn mechanics, the fitness niche has the move-to-earn paradigm going for it. In a report published by UnivDatos Markets Insights, the Move-to-earn fitness apps market was valued at over $380.6 million in 2020 and is expected to grow at a CAGR of around 18.3% from 2022-2028. A perfect example of a project that has gamified the concept of staying healthy is Aniborgs. It is a Web3 Move2Earn application that combines fitness with fantasy, allowing users to earn rewards and acquire exclusive NFT characters as they prioritize their well-being. Imagine earning tokens for your daily jog or receiving a rare NFT character for completing a fitness challenge. Win-win.

NFTs and Other Aspects of the Blockchain

The blockchain industry is a vast one. It’s not enough to earn NFT rewards from gaming. You have to understand how to interact with other niches in the industry to enable you to make good use of your assets —whether you’re selling or moving them to different virtual metaverses. Knowledge of Decentralized Finance (DeFi) and Centralized Finance (DeFi) platforms and how to maneuver them would help you in the industry. GT-Protocol provides this access and knowledge. It is a Web3 AI-powered AI execution technology that gives users access to CeFi, DeFi, and NFT crypto markets through an all-in-one conversational AI interface. With platforms like this, navigating the various aspects of the blockchain world becomes effortless, opening doors for both seasoned and new investors.

Conclusion

As blockchain technology matures, we can expect even more innovative experiences that empower players, blur the lines between reality and the virtual world, and create a more inclusive and rewarding gaming experience for everyone. Imagine economies driven by player ownership, experiences that shatter the boundaries of the physical world, and communities built on shared passion and innovation. The future of gaming is brimming with so many possibilities, and blockchain technology is at the forefront of this exciting revolution.

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