Assets in blockchain games, such as items and power ups, are now available as ownable and tradable NFTs. Plus, it’s now all too easy to rent or borrow NFTs too. But why is this significant? And what does NFT rental in games mean for the gaming industry?
How is the Blockchain Game Industry Growing?
Blockchain games are at the forefront of an evolving gaming industry. This new and agile species of game is sprouting many weird and wonderful specimens. In fact, there are over 1,700 blockchain games listed on Dappradar right now.
Clearly, Blockchain games are here to stay.
The ecosystem is evolving continuously thanks to the growing number of users. Each has its own unique set of tokens and NFTs that enable its game economy. These are the stars of the gaming galaxy – isolated, yet part of a greater interconnected system of influence.
Why should people rent NFTs?
Most blockchain games use NFTs with some form of in-game utility. This utility can vary from simply cosmetic, to more serious benefits like game advancement and earning.
The main difference between micro-transaction items or other ‘earned’ items (as seen in traditional games) is ownership. NFTs are unique and immutable. Not only that, the blockchain can always prove ownership.
NFT Rental in gaming allows players use of in-game items without the need to commit to ownership. Meanwhile, game item owners receive payment for items they lend.
What is the impact of NFT ownership?
With NFTs, game item collectors can trade their NFTs openly on secondary markets. Collectors get the benefit of both the NFT’s utility and its underlying value.
Today, the in-game digital asset market for traditional games is a $50 billion industry. Currently, this industry focuses on primary sales, as traditional publishers do not allow the resale of items on the secondary market.
However, the grey market for digital assets was valued at $5 billion in 2015. Then, in 2021 this valuation increased to an incredible $10-15 billion. As the ecosystem opens up, more games are turning towards web3. Accordingly, it’s likely secondary markets in blockchain gaming will continue to explode.
In due time, predictions state Gaming NFTs could become a $100 billion financial market. Thus, NFT Rental in gaming will clearly rise too.
What makes gaming NFTs so valuable?
The main value of in-game NFTs is to open the ecosystem. In turn, this allows participants to reap the rewards of their hard work.
In a high-quality game, most play just for fun. In that case, a player’s biggest focus is on the game’s emotional value. Of course, game NFTs are the assets of trade, regardless of player motivation.
This presents game developers with two competing objectives. While, the game is primarily a mechanism for fun, it must also act as an economic machine. These objectives often clash with each other, and developers find themselves walking a tightrope.
Often, in the case of blockchain games, a decentralized authority manages its vision and direction . The game DAO is a great example. The game DAO’s players, investors, and project founders directly control the value of NFT items. Of course, there must always be a careful balance of short-term earnings and long-term game plans.
Why do gamers rent NFTs?
Until NFTs are invisible to the vast majority of players, blockchain games will struggle to grow.
But what does that mean? Well, NFTs need to serve a game’s purpose, rather than an easy method to generate revenue. The technology and economic structure of the game need to make NFTs as normal as an armor drop in World of Warcraft. The technology behind it should not matter to the player.
NFTs: powering the blockchain gaming economy
Likely, the new wave of blockchain games will create NFT assets. For example, Axie Infinity users have already minted 12 million Axie NFTs. Accordingly, over the next few years, game developers will likely mint hundreds of millions of tradable NFT assets. Of course, with the ability to trade such assets on the secondary market, both users and game developers can get much more out of a game.
The gaming NFT market will become bigger than some traditional financial markets. This will result in secondary trading of game NFTs becoming a $100 billion financial market.
Like traditional financial markets of stocks and bonds, this opens up the ecosystem to multiple solution providers – all adding and extracting value. Undoubtedly though, the players are the real winners.
Oasis Provides a Platform allowing NFT Rental for Gamers
In conclusion, as long as blockchain games see the kind of growth they are experiencing so far, it’s clear that rental of NFT items in-game will continue at a fast pace. Now you know about all of the possibilities of blockchain gaming, maybe you might want to get involved too.
That’s where Oasis comes in. Oasis is an NFT Rental platform specifically for gaming. If you want the best items for games and don’t know where to start, check out their website, twitter and medium accounts to get involved.
Guest Post By Mathew Elliott