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    What are blockchain gaming and its relevance to the NFT Market?

    While the global gaming industry continues to expand across all regions, it is still structured in a way that favours game producers and sustains a one-way flow of value in which players pay money to gain access to in-game materials and gameplay customizations. Blockchain-based games and decentralised applications (dApps), on the other hand, allow players to better capture the usefulness and value of in-game purchases and asset acquisitions.

    Non-fungible tokens (NFTs), digital assets that reflect in-game content, are the driving force behind blockchain technology in gaming. The blockchain networks that support NFTs permit player ownership, verifiable scarcity, interoperability, and immutability, while the tokens themselves are unique, rare, and indivisible. These benefits, when combined, have the potential to encourage widespread adoption and a considerably more equal value model.

    Non-Fungibility

    Each NFT is a cryptographic token that signifies something unique or non-fungible, which means it cannot be exchanged for another NFT. On the blockchain, the metadata contained within each NFT exists as a permanent, unalterable record. This record specifies what the token represents, as well as the token’s ownership history and transaction history, comparable to a certificate of authenticity (title). Many cryptocurrencies, such as bitcoin (BTC), ether (ETH), and other utility tokens, on the other hand, are fungible, meaning that one BTC is effectively equal to any other, and so are not unique in this sense.

    Rarity

    Each NFT’s scarcity is an important part of what makes them desirable. In the CryptoKitties game, for example, players gather and breed digital cats, each of which is represented by a unique NFT. Some of these CryptoKitties are regarded uncommon collectibles, which drives up their price among collectors who value their proven rarity. Dragon, a CryptoKitty, was sold for 600 ETH in 2018, which was the equivalent of $170K at the time.

    Indivisibility

    Given its fungibility and intended use as a means of exchange, cryptocurrencies such as bitcoin can be divided into smaller pieces. Most NFTs, on the other hand, must be purchased, sold, and held as a full unit and are thus indivisible — just as you can’t buy 10% of a concert ticket or 60% of a plane ticket.

    Benefits of Gaming NFTs

    Ownership – In-game purchases are traditionally one-time, non-transferable investments that are locked in a single gaming universe. Using NFTs in gaming settings, on the other hand, gives gamers control of their in-game assets rather than game producers. Gamers can save in-game purchases, sell them to other players, or transfer them to other compatible games using blockchain technology.

    Provable Scarcity – Collectors place a premium on uniqueness and authenticity, and the scarcity of in-game NFT purchases can be verified thanks to the unchangeable records built in the underlying blockchain network. This decentralised public ledger verifies each NFT’s number and uniqueness, as well as its ownership history.

    Interoperability – On centralised servers, traditional online games exist. As a result, in-game elements are contained within closed systems that do not communicate with one another. Decentralized games, on the other hand, are built on separate blockchains that serve as the backbone architecture for other interconnected games. As a result, game assets represented by NFTs can be created to work in a variety of contexts. Two games created on the Ethereum network, for example, might potentially share in-game assets such as cars, armour, or even complete characters.

    Immutability – Users typically lose all of their in-game purchases when a traditional online game goes down. NFTs, on the other hand, exist outside of any single gaming platform and are stored on the blockchain. As a result, independent of what happens to the game, in-game purchases can be bought and sold, and new games can be developed to work with an existing blockchain system. Furthermore, because each NFT establishes a permanent record upon issue, blockchain-enabled game assets cannot be replicated or tampered with.

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