With the launch of blockchain-based games, Non-Fungible Tokens (NFTs) are changing how iGaming is done. NFTs are unique tokens that represent digital assets and can be used in several ways, from outside of games to securing titles and in-game items. As this technology grows, so does the potential for using NFTs in new and innovative ways.
Experts believe that NFTs could eventually revolutionize how the gaming industry operates as a whole. This makes them an exciting prospect for anyone involved in iGaming or looking to get into the market. So, what exactly are NFTs, and why are they so important? Let's have a look.
What Are NFTs?
Non-Fungible Tokens (NFTs) are vital aspects of blockchain technology. NFTs are tokens that represent digital assets, such as in-game items. They differ from regular cryptocurrency tokens because they're not fungible and can't be interchanged. They're also designed to be unique and immutable. Users can purchase NFTs on exchanges or on sites that sell them directly, such as OpenSea. You can then use these tokens more specifically for rare items that you want to show off.
Furthermore, NFTs are generated by the Ethereum blockchain protocol, whereas most legitimate cryptocurrencies (i.e., Bitcoin) are generated by a process called mining. Mining is essentially the validation of transactions on the network, but it's quite computationally intensive and requires a lot of electricity and time to get done.
Non-Fungible Tokens (NFTs) are vital aspects of blockchain technology. They can actually be thought of as any token on the blockchain that is unique, verifiable, and trackable. This means that every specific token has its own unique identity, which cannot be copied or replicated.
How Are NFTs Used In iGaming?
NFTs are being used in many ways in iGaming, some of which are disruptive to the industry as a whole. Here are some of the most popular applications for NFTs in iGaming:
Crypto casinos are online casinos that use cryptocurrency as their primary form of payment. These casinos are growing in popularity because they offer several advantages over traditional online casinos. One of the advantages of crypto casinos is that they use blockchain technology to secure player funds. This means that players can trust that their money is safe and won't be stolen by the house.
Crypto casinos also offer games that use NFTs as part of the gameplay. One such casino even instated a slot machine game that uses CryptoPunks characters as a prize. These characters are all NFTs and can be traded and sold on online marketplaces. Keeping in mind that one of the CryptoPunk NFTs sold for $500 million with a flash loan, you can see why these slot machines would be so popular.Metaverse casinos are another example of a crypto casino that uses NFTs. Metaverse is a blockchain platform that allows users to create and use their custom tokens. This means that casinos on the platform can use any type of token imaginable, including NFTs. One such Metaverse casino is Decentral Games, which offers many games that use NFTs.
Sports betting is another industry that NFTs are disrupting. Already a multi-billion dollar industry, sports betting is expected to continue growing as it has in the last decade. Mobile gaming is a big factor behind this growth, which now makes up around one-third of online casino revenue.
Most reputable sports betting platforms offer collectibles and prizes that can be used in their gaming experience. Now, NFTs can be used as part of sports betting platforms to incentivize more players. The NBA's Dallas Mavericksare even contemplating issuing tokenized passes to the games, essentially rendering their tickets Non-fungible tokens.
Fantasy sports are also on the rise, and NFTs can do a lot to increase their success. Fantasy sports have been around since the 1990s, with sites like DraftKings getting started in the late 2000s. NFTs can be used to keep track of players, games, and even individual achievements on fantasy rosters.
This means that NFTs could allow users to purchase or earn tokens representing their stats or other players on their team. The sky's the limit as to what kind of unique tokens could be used with fantasy sports.
As traditional sports are fighting to adjust to the new digital era, their little brother, eSports, is comfortably thriving in it. One of the major advantages eSports has over traditional sports is that it is much more accessible to fans. With eSports, one doesn't need to leave their house or be in a certain place to watch a game or match.
The global eSports market is expected to grow from $1.084 billion this year to $1.617 billion by 2024. This is primarily due to the growing popularity of games like Fortnite and League of Legends. NFTs are being used in eSports in multiple ways. One such way is through the use of digital collectibles. These items can be collected by players and traded or sold on online marketplaces.
Esports can also benefit from the rarity of NFTs. Creating collectibles tied to your game gives players an incentive to play the game longer, generating brand loyalty and more revenue. Other video games have begun to use their non-fungible tokens, allowing them to generate revenue from gamers around the world.
Certain NFT-based collectible games have become incredibly popular, including CryptoKitties. These types of games can go either way between being fun for players or incredibly frustrating, depending on the game mechanics put in place by developers.
Many of these games use the Ethereum blockchain to store and manage player data. This means that players can be sure that their assets will be safe and won't lose them due to game crashes or server failures. It also allows developers to create unique gameplay mechanics that wouldn't be possible on other platforms. For example, one game will enable players to auction off their assets (NFTs) to the highest bidder.
The Future Of The Gaming Industry
It's clear that the iGaming industry has been shaken by NFTs, and this is only the beginning. The advantages that NFTs offer are simply too significant for the industry to ignore. Blockchain technology is slowly becoming part of our daily lives, and it's impossible to predict how much this will change the iGaming industry.
However, one thing is for sure: we can expect an entirely new gaming landscape with NFTs at the center of it all in a few years. Most applications for NFTs haven't even been discovered yet, and it will be exciting to see what new companies come up with.