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As Authorities and Traditional Gambling Pull Back, the NFT Gaming Offer is in Doubt

As game regulatory authorities and established gaming firms flee the ecosystem, the NFT gaming market is exploding.

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Gaming is a multibillion-dollar business traditionally dominated by megacorporations such as Atari, Sony, Microsoft, and Nintendo.

These large corporations have strived to deliver exciting gaming experiences throughout their history to attract new players and expand their market share.

Non-fungible tokens, on the other hand, are seeking to provide gamers with a financial incentive for playing games in the form of NFTs, as well as a compelling gaming ecology.

These games, often known as play-to-earn (P2E) games, are set in a Metaverse, which is a fictional realm. Users of the platform are paid monetarily for their time and effort in the game under the P2E gaming paradigm. As a result, according to Newzoo, the model has a chance to capture a piece of the $175.8 billion global gaming market, which is expected to expand to more than $200 billion by 2024.

Minh Doan, the co-founder of Warena, a personalized NFT game, explained the significance of this model. He stated:

“Today, we refer to the blockchain as a play-to-earn approach.” Because players acquire tokens that can grow in value by tens or even hundreds of times during games, GameFi — the mix of decentralized finance with game mechanics — has become a real market sensation.”

In terms of users and volumes, the protocols in the NFT gaming sub-sector have been getting a lot of traction. Their accompanying native tokens have also done exceptionally well. Axie Infinity (AXS), the native token of the Ethereum-based NFT game, has been leading the drive for the sub-sector. In the last 90 days, the token has gained 83.35 percent, 706 percent in the previous 180 days, and almost 73,000 percent in the last year.

According to CoinMarketCap data, AXS is presently trading in the $120 level and has grown to become one of the top 25 cryptocurrencies in terms of market value, making it the first NFT gaming-related token to make the cut. Since its launch, the site has seen significant growth in terms of both users and volume. According to Dappradar, the platform has seen trading activity worth $2.6 billion, with 836,149 traders taking part. In addition, a staking program for the platform’s native token has also been introduced.

Alex Salnikov, co-founder and head of product at Rarible, an NFT marketplace, elaborated on the factors contributing to the rise of NFT gaming platforms in terms of both volume and users. He stated,

“This rise is in line with the larger acceleration of the NFT business, and it appears to illustrate the breadth of NFT applications.” In addition, gamification has been popular in the crypto world, and it fits in particularly well with the concept of NFTs, which are so tightly linked to participatory and enjoyable community engagement experiences.”

He also stated that the value proposition of blockchain technology is intuitive and natural for the gaming business, citing P2P experiences and in-game assets with transparent provenance as examples.

The number of NFT gaming platforms is increasing

Even though Ethereum is the most widely used blockchain network for the deployment of decentralized applications (DApps), other blockchain networks in the NFT gaming ecosystem, such as Binance Smart Chain (BSC), Polygon, Hive, Harmony, Solana, and Flow, are gaining large user bases and growing volumes.

“Polygon is usually considered one of the leading blockchains for gaming due to its EVM compatibility, high throughput, and low gas prices,” Salnikov continued. It’s also Ethereum’s leading sidechain, which means it’s linked to the main NFT ecosystem on layer one.”

Jesse Reich, co-founder, and CEO of Splinterlands, one of the most popular NFT gaming platforms in terms of users, spoke about the protocol’s decision to develop their game on the Hive network. He stated:

“People have thought our choice of Hive has been bizarre since the early days, but it has a freemium structure. Players can sign up with a username and password and get started. It’s hard to replicate that on POW blockchains with gas fees.”

Binance launched a $1 billion accelerator fund for the BSC ecosystem’s general development on Oct. 12. Popular BSC games like MOBOX: NFT Farmer, Faraland, ZOO Crypto World, and CryptoBlades will undoubtedly flourish due to this money, resulting in widespread network adoption.

Despite the increase shown across many platforms and networks in the NFT gaming sub-sector, the long-term viability of these games may be in doubt, as traditional gamers are accustomed to playing exceptionally well-designed games. These games also have excellent gaming ecosystems, thanks to the bulk of them being backed by large firms with significant resources and development infrastructure.

This cannot be true of games that reward users with NFTs, native tokens, and other incentives at this time because they are still in the early stages of development and hence are not as complex. As a result, it’s critical to assess how much time and effort users of these platforms put in to gain these incentives on games that may or may not be as engaging as conventional games that are also reasonably accessible to acquire.

“First and foremost, there has to be a game that is fun to be a mega-hit,” Reich continued. “I’m sure grind-to-earn, like play-to-earn, will be a thing, and it’ll come down to what minimal salary someone is willing to accept for computer click job.”

These games, according to Doan, are an entirely new generation of games that are difficult to compare to standard PC games. He stated:

“This is similar to a leisure economy, in which users are paid to play games and can then compound their earnings like real traders. The beauty of NFT games is that they are designed for young people, who are the primary target audience. They comprehend trends and technological details that other users may find difficult to grasp.”

Blockchain gaming has several challenges

Despite the fast-growing NFT gaming ecosystem, established gaming behemoths have yet to incorporate blockchain technology or NFT integrations into their existing titles. Indeed, a couple of them have flatly denied the possibility.

Valve recently announced the withdrawal of blockchain games from its Steam platform, as well as a request that users do not upload anything connected to cryptocurrencies or non-fungible tokens. Nevertheless, thousands of titles, including Counter-Strike, Battlefield, Halo, and Resident Evil, are available on the Steam store.

The company dabbled in crypto in 2016, announcing that it would take Bitcoin payments, but quickly ended the service due to high fees and volatility.

Following the ban, Epic Games’ CEO, Tim Sweeney, stated that his firm is willing to host and promote games that employ cryptocurrency and blockchain-based assets.

Epic Games, the company behind the massively popular Fortnite, has stated that developers will not take bitcoins through the platform payment service. They will have to develop their payment methods instead. Without this infrastructure, this might constitute a barrier to game uptake and inclusiveness.

Valve’s perception extends to game industry authorities as well. For example, the Gambling Commission of the United Kingdom launched an investigation into Sorare, one of the most popular NFT fantasy soccer games, on Oct. 14. The gambling watchdog is determining whether the site requires a license and whether its services are considered gambling.

Sorare has said unequivocally that it does not “provide any types of regulated gambling,” despite its willingness to participate in an open discourse and interact with regulatory organizations to explain its game. The platform is worth more than $4.3 billion and is rapidly expanding.

Because the entire ecosystem is still in its infancy, it appears to be more of a waiting game to discover the true potential, utility, and long-term implications of integrating crypto, blockchain, and NFTs into gaming environments.

NFT

To Be Sold for $70 Million, with Proceeds Used to Support NFT Purchases at MoMA

The auction of works by Renoir, Picasso, Bacon, and Rousseau will help the museum increase its online presence and maybe buy NFTs.

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This fall, the William S. Paley Foundation will hold an auction featuring works of art valued at at least $70 million in order to increase the digital presence of the Museum of Modern Art (MoMA) in New York and possibly acquire the institution’s first NFTs.

Since the passing of the co-founder of CBS in 1990, William S. Paley’s collection has been maintained by MoMA. Sotheby’s has been hired by Paley’s namesake organization, which includes endowment funds for museums and educational and cultural activities, to auction off 29 of the 81 items in the MoMA collection.

The sale proceeds will go toward growing the museum’s online presence. MoMA’s director Glenn Lowry stated in the Wall Street Journal that the museum had suggested several potential uses for the funds.

MoMA may start its streaming service, organize online exhibitions and video discussions with artists, or work with colleges and training organizations to offer online courses. More importantly for cryptocurrency enthusiasts, MoMA might also buy its first NFTs.

According to Lowry, the museum has a dedicated team monitoring the digital art scene to hunt for suitable artists to collaborate with or buy from.

In the interview, he added of NFTs, “We’re aware that we lend an imprimatur when we acquire things, but that doesn’t mean we should shun the domain.

What’s on offer?
The William S. Paley Foundation and MoMA have an agreement that gives MoMA the final say in how the collection is used. Other humanitarian endeavors championed by the late Paley will receive a tiny share of the proceeds from the autumn auction.

Most of the collection’s most famous works, such as Picasso’s “Boy Leading a Horse” from 1905–06 and Matisse’s “Woman with a Veil,” are not for sale. Rousseau and a Renoir, on the other hand, will be sold at auction, according to Lowry.

According to Sotheby’s, Francis Bacon’s “Three Studies for a Portrait of Henrietta Moraes” will be auctioned for at least $35 million in London in October, and Pablo Picasso’s “Guitar on a Table” will be sold for at least $20 million in New York this November.

It’s anticipated that the collection would bring in between $70 and $100 million.

Despite not yet owning a tokenized work of art on the blockchain, MoMA has already contributed to the development of NFTs. The MoMA gave all of its collection’s information in November of last year to the Unsupervised exhibition and NFT project by AI artist Refik Anadol.

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How NFT Projects Are Setting Up For Ethereum’s Network Shift to Stay Ahead of the Merge?

This week is finally predicted to see the occurrence of one of the most important occurrences in the history of cryptocurrencies. 

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The blockchain network will completely switch from its existing proof-of-work consensus process to the proof-of-stake model thanks to Ethereum’s significant software upgrade, known as The Merge. Ethereum is anticipated to carry on as usual, except that PoS authentication of cryptocurrency transactions will now be used instead of PoW.

Ethereum.org states that “The Merge signifies the combining of Ethereum’s new proof-of-stake consensus layer, the Beacon Chain, with its existing execution layer (the Mainnet).” It does away with the necessity for energy-intensive mining and instead uses ETH stakes to safeguard the network.

Sustainability, scalability, and security are the three key areas of concern that The Merge seeks to solve. Researchers at the Ethereum Foundation claim that the new architecture not only paves the way for future scaling improvements like sharding but also significantly cuts Ethereum’s energy consumption by more than 99% because miners won’t have a financial incentive to run computers constantly.

Further modifications to the NFT market are anticipated due to the switch from proof-of-work to proof-of-stake. The Merge may improve the tokenomics of the entire market, broaden the range of cryptocurrencies it supports, and potentially raise the price of NFT.

The bulk of NFTs are a part of the Ethereum blockchain, and many people are enthusiastic about the switchover because it is anticipated to use less energy, allowing users to mint and sell NFTs in a more environmentally friendly manner. However, other users worry that, as with every substantial technological change, there may be a chance for fraud, hacking, volatility, and confusion.

Do you have safe NFTs?
Due to duplicate NFTs existing as a result of the ETH proof-of-work chain and other future forks, it may be unclear which assets are “official” or “real.”

There is a chance that there will be two different types of NFTs when the merge is finished because Ethereum is projected to have at least one proof of work (PoW) fork that will continue to exist. Thus, NFT owners can experience a problem known as a “replay attack.” When a transaction is finished on one blockchain and then repeated on another, this occurs.

OpenSea, the largest NFT market, and well-known companies like Yuga Labs, the company behind the Bored Ape Yacht Club, have officially said that they will not accept the identical NFTs that are present on these chains. In a similar vein, Proof, the startup that is in charge of the Moonbirds NFT project, has stated that it will neither acknowledge or support any forks that are made after a merging.

The Merge will quickly establish itself as the dividing point between PoW-era and PoS-era NFTs. One of the first projects to launch during Ethereum’s new phase will be Supercute World’s SELFi3STM NFT collection. The project will be powered by Web3 developer platform, Alchemy, and will showcase the company’s new full stack NFT development capabilities.

Nikil Viswanathan, cofounder and CEO of Alchemy, stated, “Our objective has always been to bring web3 to a billion people, and we see NFTs being a crucial driver of that adoption.” We’ll keep investing in our full-stack NFT development offering and supporting innovative, exciting new projects like Supercute World to help reach that aim.

The first completely inclusive NFT initiative is SELFi3STM by Supercute WorldTM, which offers male, female, and gender-neutral variants so users can develop and represent the greatest versions of themselves online. Without ever changing the rarity score, holders will be able to select the best version of themselves.

The upcoming collection of 7,777 SELFi3S from Supercute World is anticipated to debut in October. Visit the website and follow the project on Twitter to keep up with developments and learn more about Supercute WorldTM.

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‘LG Art Labs,’ a new NFT marketplace, is introduced by LG Electronics

The second major South Korean television manufacturer to do so this year is the electronics giant, which just opened its own NFT marketplace.

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The “LG Art Labs” NFT marketplace has just been released by LG, a South Korean electronics business, and is now accessible to all US LG television owners running webOS 5.0.

From the comfort of their homes, users may purchase, sell, and trade non-fungible tokens (NFTs) through the marketplace, which is available from the LG home screen.

NFTs are non-fungible tokenized blockchain representations of non-fungible assets, making them distinct and irreplaceable. Similar to how antiques and works of art are frequently non-fungible in the real world, NFTs on a blockchain ledger typically represent digital versions of these items.

Wallypto, LG’s in-app cryptocurrency wallet created by the Hedera network last September, manages transactions on LG Art Labs.

Hashgraph, an alternative distributed ledger system (DLS) to blockchain that offers lightning-fast transaction times, highly functional smart contracts, high energy efficiency, and transaction fees that amount to only pennies, is the DLS that Hedera employs.

On August 12 of this year, LG submitted an application to register the Wallypto patent.

The two companies initially collaborated when LG joined other tech giants like Google, IBM, Deutsche Telekom, and Ubisoft on Hedera’s governing board in 2020.

LG Electronics enters the NFT market

LG is not the first Korean TV maker to integrate NFT trading into the viewing experience.

To develop a new NFT marketplace for owners of Samsung TVs, Samsung announced a partnership with NFT marketplace Nifty Gateway in March of this year.

Through a smart TV interface unveiled in January, users may view, purchase, trade, and display NFTs.

The Samsung MICRO LED, Neo QLED, and The Samsung NFT Platform supports the Frame TV models from 2022.

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