NFT a fad or a trend of the future?
NFT is slowly being experimented with in the games industry, with games like Axie Infinity or NFT items of larger games. But will it be supported by players?
In 2017, EA - one of the largest game production and publishing companies in the world was heavily criticized for forcing Star Wars Bettlefront II fans to buy characters with real money if they don't want to spend too much time opening the game. lock that character. The scandal became so large that it attracted the attention of regulators in several European countries, leading to the government banning the business model.
Currently, users are interested in the presence of blockchain technology, cryptocurrency and NFT (non-fungible token) in certain games.
On December 7, game developer and publisher Ubisoft, known for popular games like Far Cry and Ghost Recon, announced an NFT ant called Ubisoft Quartz. Under this initiative, Ghost Recon: Breakpoint players will be able to purchase, trade, and exchange in-game items such as costumes and weapons as NFTs through the Tezos cryptocurrency.
On a larger scale, games like Axie Infinity, developed by Vietnamese studio Sky Mavis, allow players to collect, nurture, breed, trade, and use virtual creatures in the form of NFTs to fight. Axie Infinity also allows players to "play for money" by receiving tokens in the form of Ethereum-based crypto-currency traded on Binance.
The fact that a number of game developers both large and small are starting to experiment with NFT products could be a sign that the game industry is ready to enter the blockchain world and find ways to adopt the technology. into the game in the future.
However, some senior figures in the industry do not think so. Phil Spencer, Microsoft's executive vice president of gaming and head of the Xbox brand, said the current NFT application in games is more about exploiting and exploiting players than enhancing player entertainment.
The majority of players strongly opposed the inclusion of NFT in the game in two cases of Ubisoft and STALKER 2. GSC Game World had to announce the cancellation of all NFT features only 2 days after the original announcement. Meanwhile, the number of Ubisoft NFT items sold is only 15 items, generating revenue of up to $ 400.
This reaction is also understandable if we grasp the trends of the gaming industry in recent years. Since mid-2010, loot boxes have appeared more and more in free and paid premium games. Major game lines such as Call of Duty, Assassin's Creed, Counter Strike, Overwatch or FIFA all use random drawing for greater revenue.
The future of NFT and blockchain in the gaming industry is still unclear, as game developers are still tinkering with research and experimentation to integrate extremely new technologies into their products. However, what is clear here is that the majority of their customers - gamers - are not very keen on this trend.
The NFT non-replaceable token first appeared in 2012, but it was not until 2017 that it officially flourished. In the form of NFT, many people have spent millions of dollars to own a video, image, picture that is converted to the corresponding value.
The NFT non-replaceable token first appeared in 2012, but it was not until 2017 that it officially flourished. In the form of NFT, many people have spent millions of dollars to own a video, image, picture that is converted to the corresponding value. So what is NFT? Is this the new trend of the cryptocurrency market or is it just a fad that will be “submerged” by someone?
What is NFT?
NFT stands for Non-Fungible Token. Where “fungible” is often used in economic terms, it means that the individual units of an asset are interchangeable and essentially indistinguishable from each other.
In the crypto market, NFT is the hottest emerging phenomenon right now. It is similar to the real life mutant orchid market. A product for sale as an NFT can run into the millions of dollars.
Some typical NFT-based historical transactions include:
A painting by artist Mike Winkelmann sold at auction an NFT painting for $69.3 million.
Artist Beeple has sold many works of art, including paintings, online videos, selling for millions of dollars.
Singer Grimes has successfully "sold out" the collection of NFT paintings for $ 5.8 million in less than 20 minutes.
Twitter CEO Jack Dorsey tweeted that he was paid $2.5 million in the form of NFTs.
As can be seen, it is the crypto rush of early 2021 that has created a solid premise for investments in the form of NFTs. So what is NFT?
NFT is a non-fungible token. It is a type of virtual item that has been authenticated by Blockchain technology, including the digital signature of the owner. An item to be identified as an NFT should have the following properties:
Intact, Indivisible: All cryptocurrencies, whether the Bitcoin king or the Ethereum queen are divisible, tradable as fractions. But the NFT is an indivisible property.
Authenticity: All NFT data cannot be destroyed or tampered with. These data are stored on the Blockchain platform through smart contracts. NFT is unique, independent of any company.
Transparency: NFT items are all original, absolutely no copies. Anyone can trace back to the creator of the work because the ownership data is stored on the Blockchain. Thus, when trading NFT, you can rest assured that the product is always genuine and can verify it yourself. Unlike real-life antiques sales, an expert appraiser is required.
Why is NFT valuable?
NFT has value simply because it is rare, exclusive. Each item is unique in the entire cryptocurrency market. The pricing of an NFT product is all about the user's sentiments on the asset. Many products are overvalued not because of their usability, but because of their scarcity.
NFT is exclusive and unique
NFT is recognized by the community. This is a key point. The cryptocurrency market works also thanks to the recognition of the community. The larger the recognition community, the higher the value of exclusive items. At that time, the liquidity of NFT also increased. For owners, this is an opportunity for them to sell their products at the highest prices and save costs compared to other forms of real sales. For collectors of rare items, the rarer and more recognized the item, the more the price skyrockets, the opportunity to resell to take profit will be within reach.
Is NFT a sustainable trend or just a fad?
NFT is a very interesting investment trend innovation, a playground for professional investors. The important thing is that the NFT will be worthless when the market is saturated. But in the immediate future, the cryptocurrency market is still having great attraction, good liquidity and no sign of saturation.
According to many experts, a lot of innovators have already entered the market. They can monetize their work through selling NFT items. Buyers can authenticate the product copyright and this will certainly protect limited editions, special collections.
For collectors, the NFT provides the "scarcity" they desire.
As such, we can understand that in a market of banknotes of various denominations, the NFT is likely to be gold or diamond with rarity, exclusivity, high value and is being traded in tandem with other currencies. Paper money. So, from a general perspective, do you think this is just a fad?
Many experts say that NFT is still very new. Therefore, it is necessary to go through many different cycles of the NFT market to determine their true value and know if this is a sustainable trend or not. However, at the present stage, NFT is really becoming the need of many people, both owners and investors. The Blockchain platform has given NFT a solid and secure foothold. So, as long as NFT is recognized by the crypto community, it will still be valid.