Connect with us

NFT

When NFT Gaming and the Virtual Economy Collide

Because of the growing popularity of NFTs, play-to-earn NFT games are becoming more popular.

Published

on

NFTs have arguably moved from being a minor player in the crypto and blockchain sphere to a more prominent one in popular culture. Indeed, the seeming hoopla around NFTs appears to be pushing increased adoption of digital currencies, as cryptocurrencies and decentralization appear to pervade the debate across social, political, and economic lines.

Gaming has frequently been mentioned as a prospective use case for the commercialization of digital collectibles inside the NFT domain. There appears to be an increasing convergence of gaming, blockchain, and the virtual economy within the scope of play-to-earn NFTs.

Projects like Axie Infinity, which combine the delight gamers get from playing games with the possibility to make money in the form of cryptocurrencies, have seen substantial growth within this confluence point. As a result of their growing popularity, the token value of these NFT games has increased, resulting in even greater patronage.

NFT play-to-earn gaming could be the next big thing in the crypto economy. Because of the model’s rapid rise in popularity, it may soon be referenced in the same language as other aspects of bitcoin commerce like mining, staking, and trading, at least in terms of wealth generation potential.

$1-billion Axie Infinity

Axie Infinity (AXS) surpassed $1 billion in all-time volume on August 9, confirming the game’s status as one of the most important initiatives in the current bullish NFT epoch. The NFT game reportedly generated $780 million in sales from over 1.4 million transactions between July 9 and August 9.

According to data from Similarweb, the Axie Infinity website was listed in the top 1,200 sites in the world as of the end of July, with internet traffic nearly tripling in the last six months. Additionally, Axie Infinity announced on Twitter on August 6 that it has reached one million daily active players.

This announcement of Axie’s one-million-user milestone provides insight into the app’s rapid rise in popularity. The game’s userbase has surged 1,000 percent in the same time as the Axie token price has increased 18-fold since early June. AXS and other comparable tokens have defied the crypto price fall trend that has been in place since mid-May, owing to the increasing appeal of the play-to-earn NFT gaming wave.

The NFT game has risen to become one of the most valuable crypto ventures in the business because of Axie’s remarkable growth over the last two months. As of this writing, AXS is ranked among the top 40 cryptocurrency assets by market capitalization, with price action trends indicating a possible climb past the $100 barrier in the near term – a move that would boost the token’s year-to-date performance to more than 18,700%.

The microeconomics of play-to-earn

Many crypto and blockchain use cases face the “mainstream adoption” dilemma, which involves determining how their unique protocols and operations will gain widespread interest within and beyond the cryptocurrency industry. For example, Play-to-earn gaming for nonfungible tokens could be the key to altering the narrative around digital collectibles and blockchain gaming.

For starters, the possibility to earn crypto as a reward for playing games is likely to offer economic incentives for would-be adopters, whether they are casual or hardcore gamers. There’s even evidence that titles like Axie Infinity are becoming something of an occupation for the younger generation, particularly in areas affected by COVID-19’s present economic downturns.

In May, an Axie Infinity player from the Philippines could purchase a home with the money earned from the NFT game. According to data from Similarweb, the Philippines accounted for nearly half of all worldwide web traffic to the platform in July, with the website ranking as the 33rd most popular in the country.

Axie Infinity is a popular game in Southeast Asia, developed by Sky Mavis, a gaming firm based in Vietnam. South America, particularly Argentina and Brazil, is a big supporter of the NFT game title.

Since the summer of 2020, play-to-earn NFT games appear to have taken on a life of their own, attracting a growing number of gamers. This steadily growing interest, combined with the current NFT craze, has most likely helped propel such blockchain gaming titles to even greater heights.

Dragos Dunica, the co-founder of DappRadar, a decentralized application analytics platform, commented on the intersection of decentralized finance (DeFi) and gaming in a conversation, saying:

“At the moment, we’re witnessing a convergence of DeFi and gaming features to promote interaction and usage. The most popular games are developing environments where users can not only own a one-of-a-kind NFT but also use it for a reward within the same platform.”

According to Dunica, the present trend is the beginning of a “true revolution” in gaming and decentralized applications (DApps), which will likely spill over into conventional games. “The idea of transferable NFTs for in-game stuff, for example, will be a game-changer in the future,” Dunica continued.

According to DappRadar’s Axie Infinity dashboard, the game’s all-time volume is around $1.4 billion, based on more than 3.1 million sales. Since its launch, the gaming site has attracted over 416,300 dealers.

Nonfungible transformation: A new virtual existence

The growing popularity of blockchain-based play-to-earn games provides another window into how NFTs appear to be changing digital interaction. As Craig Russo, director of innovation at PolyientX, an NFT vault, and marketplace protocol, put it:

“Within the NFT sector, play-to-earn is a high-potential area, and we’re already seeing some amazing market validation, which has resulted in a price increase across most gaming-related tokens. Play-to-earn gaming, on the other hand, is relatively niche, and significant inroads into the mainstream gaming ecosystem will be required before adoption levels rival those of non-blockchain gaming segments like esports.”

He claims that projects such as Ape In, an NFT-driven virtual environment, are already focused on a “consumer-friendly” approach to DeFi by incorporating features like in-game character staking. Such initiatives to boost NFT liquidity, according to Russo, will aid in the transformation of nonfungible tokens into more productive assets, hence increasing their on-chain utility.

“The idea of spending time in a virtual environment is not as unusual as it once was,” says Dunica, who believes the transition to a digital lifestyle is proceeding at a rapid speed.

Given the rise of platforms like Axie Infinity and the opportunity for gamers to retain ownership, NFT play-to-earn games could be the “first meaningful mass adoption use case in the blockchain space.”

NFT

Users’ email addresses are massively exposed due to an OpenSea data breach

The NFT marketplace stated that it has informed law enforcement of the occurrence and that an investigation is in progress.

Published

on

The largest nonfungible tokens (NFT) marketplace in the world, OpenSea, has issued a warning to users after learning that a Customer.io employee may have sent the list of OpenSea users’ email addresses to a third party while working on the platform for managing email newsletters and campaigns.

All users who have provided their email addresses to the marketplace, whether it be for the platform or its newsletter, have been impacted by the incident. OpenSea warned consumers about potential phishing attempts after the hack.

On Thursday, the NFT market reported that it had spoken to law enforcement about the incident and that a probe was ongoing.

The most recent data breach is far from the only significant attack this year on OpenSea and its subscribers. The popular NFT marketplace’s Discord server was compromised in May, which sparked a flood of phishing attacks. Numerous user wallets were in fact abused. The platform experienced one of its most severe attacks to date in January, during which a vulnerability allowed attackers to sell NFTs without authorization. The market covered losses of $1.8 million.

Customer.io rival Hubspot was breached in March, exposing users’ usernames, contact information, and email addresses on BlockFi, Swan Bitcoin, NYDIG, and Circle. Names, phone numbers, and email addresses of users of various platforms were disclosed to an unidentified entity.

Hackers may try to contact OpenSea clients by sending emails from domains that resemble OpenSea.io or OpenSea.xyz, according to a warning from OpenSea. Spam calls, texts, and emails have all increased, according to Twitter users.

Continue Reading

NFT

The Future of NFT Gaming Doesn’t Rely on Big Capital Expenditures

Large game publishers typically oppose your ability to trade freely. The economic model used in popular games, where players purchase in-game cash or points in order to unlock more content and improve their experience, is at existential risk from NFTs (non-fungible tokens).

Published

on

If it were possible to regulate the flow of NFTs in a closed market, this would be a different story. Interoperability will be key in the future, according to industry upstarts, and digital assets represented by NFTs will be portable from one platform to another.

Large gaming companies generate billions of dollars from microtransactions, and a key factor in their success is their ability to retain players willing to pay money for in-game items. These businesses have developed systems that entirely exclude any legitimate third-party access to certain material or digital assets because they want their player base to invest a lot of money in the game.

NFTs have the potential to be revolutionary since they open the door for broad lending of these assets in addition to allowing speculators to profit. It’s no longer necessary for a player to put a significant number of money into the game in order to fully enjoy it by enabling investors to purchase an NFT and then loan it out to someone – either for a fee or a profit-split arrangement.

How play-to-earn is implemented

A fully developed gaming ecosystem will see the emergence of two different types of stakeholders. Investors who have a sizable portfolio of in-game NFTs are less likely to play the game in exchange for a daily return of $50. Then there are gamers from all over the world, who in certain circumstances would make significantly more money than the minimum wage under a profit-sharing system for lending.

The second category, who can have less money, is more worried about the short-term volatility and low liquidity of digital assets. They are unable to take the risk of accumulating NFTs in the hopes that they will be steadily profitable and hold or increase in value.

In the gaming industry, tradeable digital assets already exist. However, the practice of putting these assets on the blockchain is expanding; this was a general trend in 2021, when NFTs earned $8.4 billion in revenue. The logical next step for this sector is video games, and since more and more of these sales are shifting to blockchain gaming, there may soon be a noticeable increase in established companies moving in-game objects, characters, and skins on-chain.

As opposed to nominally belonging to the investor or player but really being at the mercy of a centralized gaming platform that can ban the user at any time, on-chain assets are designated as unique and belonging to one true owner. It’s more decentralized and provides users a lot more room to choose their own routes, especially when it comes to lending in-game items and lowering entrance barriers.

creating the framework for play-to-earn players to borrow If NFTs result in a rapid expansion of the player base in new markets, they can be extremely advantageous for game producers. Even before one considers how digital assets might be coded to meet cross-platform use cases or be employed in metaverses, making the industry more accessible irrevocably alters the entire landscape.

The compatibility of digital resources

The idea of full cross-metaverse employment of NFTs on a single digital identity raises a host of hitherto unimagined benefits. As a result, potential value is unlocked and speculation may be brought under control in a less erratic and more stable market.

The restrictions must be adjusted and will be based on the rarity of particular assets and what you may do with them. Can they be upgraded? Can you construct on NFT land to increase its value? Should players be able to own an entire mountain, or can they only purchase plots? It will be entirely community-driven if gamers own everything, but creators should have some voice and may feel the need to impose restrictions.

It is likely that a DAO (decentralized autonomous organization) operated system, in which the entire globe is owned by members and NFT holders, is now being developed. However, it is unclear whether this will be sustainable without a rigid set of regulations.

establishing NFT financing

When you attempt to transfer an actual NFT to another user’s digital wallet, problems happen. You would want the loanee to post collateral to secure the loan because there is a danger of the loanee defaulting. This creates a capital cost that acts as a barrier to entry for a sizable number of potential players.

A preferable approach would be one in which the NFT’s utility, or “wrapped,” is the sole thing rented out. An NFT holder can put the asset in a smart contract, specify the loan terms, post it for rent on the market, and let the free market function as it should.

The wrapped NFT is a newly created copy that has the same metadata, URLs, and other characteristics as the original and can be programmed to expire after a specific date. By doing so, the human-trust layer is removed, and the remarkable security that blockchains offer is provided. In essence, this wrapped NFT is only useful and cannot be spent.

It expires, returns to the smart contract at the maturity date, and is burnt as the result of a frictionless, risk-free, and collateral-free NFT lending system. Additionally, if the loanee improves a piece of land or gives a character a lot more playtime, the original NFT might appreciate as a result of the loan.

The blockchain will be updated with these changes as a direct result of the wrapped NFT’s experience. Most NFT projects and protocols are moving in the direction of this methodology in the wake of the infamous Axie Infinity hack, which cost $600 million.

The rumor about large developers

Popular game producers will find it more difficult to avoid presenting some sort of product if current trends continue and the NFT lending sector experiences significant expansion over the following few years.

Ubisoft and Epic Games are already testing, and it’s feasible that NFTs may follow the same trajectory as the idea of cryptocurrencies in general, where everyone will eventually use elements of distributed ledger technology. The notion is that this will become too alluring for businesses to ignore, or they may employ private chains or something similar.

The play-to-earn buzz is not something that traditional gamers like, and they frequently have a point. The overall quality of the market is now relatively low, and players just play these games to earn cryptocurrency, so there isn’t much to get excited about. This has a detrimental effect because it was once hailed as the new paradigm.

The problem of people quitting a project because the value of the rewards has declined due to a token price fall is still there.

Some time may pass before those seeking a better future in NFT gaming. The profitability of large developers’ existing strategies won’t be simply abandoned in favor of a more decentralized NFT-based economy because doing so would undermine their economic model. However, seasoned creators may begin experimenting with already-existing in-game assets as NFTs, and they may profit greatly in this fashion.

Unless their bottom line is in danger or a highly lucrative opportunity arises, multibillion-dollar corporations often adapt slowly. Maybe both of these elements will be crucial in bringing about a change in how we handle digital assets.

Continue Reading

NFT

How Axie Infinity Recovers From $600M Hack and Relaunches New Ronin Bridge?

The popular non-fungible token (NFT) game Axie Infinity’s developer, Sky Mavis, celebrated the Ronin Bridge’s re-launch.

Published

on

Users may deposit, stake, withdraw money from the game, and access additional functions thanks to this cross-chain platform. In March 2022, the bridge’s remaining $600 million was drained.

Sku Mavis and the Axie Infinity team have been collaborating with law enforcement since the incident to retrieve the 173,600 ETH and $25.5 million in USDC. In this way, they have re-deployed the Ronin Bridge and compensated any users who lost money as a result of the attack.

All users have been fully compensated, as indicated in the release. Two outside firms, Verichains and Certik, have audited the new Ronin (RON) network. These businesses investigated the Ronin Bridge Smart Contracts and its components, then made their security findings public. Verichains reported

The audit team found certain weak points in the application during the audit process and made some recommendations as a result. The Sky Mavis team addressed and updated the smart contract code in accordance with our suggestions. There were no issues of Medium, High, or Critical severity with the Ronin Bridge Smart Contracts.

The updated architecture of the Ronin Bridge has added a new “circuit-breaker” feature in addition to the two independent audits of its smart contracts. This was specifically included to stop malicious actors from repeating the prior attack or making use of any potential new attack vector.

The corporation will reportedly make an effort to find the stolen monies, according to the notification. As previously announced, all users will be able to withdraw their funds in the interim:

As promised, all wETH and USDC that Ronin Network members own are now completely backed 1:1 by ETH and USDC on Ethereum. The entire user base has been restored.

This prevented the Axie Infinity DAO’s 56,000 ETH from being used. The condition of these assets will depend on how well law enforcement efforts go. The Axie DAO will “vote on next moves for the treasury” if this plan doesn’t produce any results after two years.

How Users Will Be Protected By Axie Infinity From Potential Attacks
The circuit-breaker system will function using a withdrawal restriction depending on total value. Large withdrawals will require the approval of over 70% of the node or, if they exceed $1 million, the signatures of 90% of the validators.

Withdrawals of more above $10 million require the approval of a manual review process that takes up to 7 days and requires the signatures of 90% of the validators. The daily maximum withdrawal amount on the new Ronin Network will be $50 million.

This limit must be manually reset by a Ronin administrator if network transactions exceed it. The project’s leadership stated:

We are more determined than ever to see Ronin establish itself as the de facto standard for consumer and gaming blockchain applications.

Continue Reading

Trending

bitcoin
Bitcoin (BTC) $ 19,082.84 5.22%
ethereum
Ethereum (ETH) $ 1,030.05 9.29%
tether
Tether (USDT) $ 1.00 0.17%
chiliz
Chiliz (CHZ) $ 0.093575 8.75%
enjincoin
Enjin Coin (ENJ) $ 0.469246 11.14%
decentraland
Decentraland (MANA) $ 0.806043 9.38%
flow
Flow (FLOW) $ 1.41 13.46%
the-sandbox
The Sandbox (SAND) $ 0.967451 9.31%
wax
WAX (WAXP) $ 0.086809 11.72%
ecomi
ECOMI (OMI) $ 0.001313 6.75%