Anyone who keeps a look at the daily news events around our favorite hobby Games, which is likely to be increasingly stumbled over terms such as cryptocurrency, NFT or blockchain in recent weeks. Also, we have recently reported more and more often about Krypto-Gaming, because one seems to be clear: video games with cryptocurrencies will play an important role in the future.
But why is Krypto-Gaming at all on everyone? What do all the hard-faible terms that are used around the crypto gaming? And why are there many people who criticize the whole crypto gem, and others who see the future of gaming here? In this special we want to summarize everything that gamers have to know about Krypto-Gaming.
Digital goods with value
Each gamer certainly knows that: you will take a little time with a lot of time, sweat and passenger blood, and then this success or digital object has an emotional value. In online games where you want to compete with other players and want to stand out from these, especially rare items and successes have always been able to own a material value.
Lets just take Diablo 2: Already at that time there were Hack & Slay fans, the other players made real money for rare runes or items in hand. And comparable we could recently observe after the release of Diablo 2 Resurrected. The less often the find, the more euros or dollars are in it. And every longtime WOW player should certainly know someone who had no desire for Zeroth at some point and made his account with all characters to money. Even when selling crisp RAID and rare mount drops, real money should always be involved.
Was Hardly Diablo 2 Resurrected appeared, there was also sales offerings for rare items and runes. Source: eBay.DE
The thing is only: We players have no ownership of the items or characters that we highly play in WoW or Diablo 2. It is therefore not allowed to make our earned money. The exchange of money to Ingame-Gold is prohibited by the operators. Unless, of course, there is an official way to perform such transactions — we think here about to the WOW brand or the marketplace of Steam.
What are NFTs?
Lets hold: since there are online games, players have the desire to make their digital achievements to money. For a long time, only the ownership of such a transaction was missing for a long time. And here the so-called NFTs come into play. The abbreviation stands for non-Fungible tokens and refers to a digitally protected, unique object.
In real life, the Mona Lisa is often used as analogy for such a NFT. Even if they have been copied many times, the original artwork is only once. A replaceable, not unique object, however, is, for example, each cent or euro coin. In digital form, NFTs can be all possible, for example audio files, photos, videos or in game items — only there are these digital object originals, like the Mona Lisa, also only once.
What is a blockchain?
So that an NFT can be identified as a unique object (i.e. as the original), it requires quasi a fingerprint, only in digital form. This fingerprint provides you the Blockchain this is a cryptographically secured chain of information blocks that are lined up together as the limbs of a chain.
The cryptographic hedge should ensure that a blockchain can not be changed later. The chain of blocks is therefore considered unchangeable, counterfeiting and tampering. And thanks to digital signatures, information in the blockchain can be stored by which, for example, transactions can be detected.
Exercise a lot of money with NFTs
It seems absurd, but there are actually people who are willing to spend a lot of money for such a NFT. Here are some examples:
The 12-year-old artist Nola Hayes sells her pictures as NFTs and so far has earned the 3.4 million US dollar — Source
For the Digital Artwork The First 5000 Days, an art lover should have offered almost 70 million US dollars at an auction — Source.
The streamers Index Dares simply sold their streaming records as NFTs after their Twitch-spanned. The videos should always be sold out after a few minutes — at three to four-digit offers per video source.
In the third quarter of 2021 alone, the NFT market will have achieved a transaction volume of 10 billion US dollars — Source.
What are cryptocurrencies?
However, the NFTs are often not traded in dollars or euros, but in digital assets, which are also recorded in a decentralized database (Read: Blockchain). Here, too, users benefit from cryptographic hedging, and the ability to escape centralized control by, for example, banks.
Among the largest cryptocurrencies include Bitcoin, Ethereum or Ether, Finance Coin, Tether and Mariano. There are many more and most of these cryptocurrencies do not act as a purebred payment. In addition, these are happy to bring added value or other functions that can be highly different — for example, exchange messages, exercise voting rights or pay the transaction costs of certain networks.
Who wants to convert his bitcoins and Co. into euros, can not easily run to the next bank. You have to use internet marketplaces, such as Coinbase, ex.Io or bitcoin.DE.
NFTs in Games — Why are this concerned?
Even experts who are deep in the topic in the topic and see well positive about the new trend, find it relatively pointless to invest so much money in, for example, a GIF or JPG file for which you have the certificate that is in other But the job was probably currently copied.
However, other areas, the NFTs have a potentially more useful benefit, and the Games area is included. As suggested, you can spend money in many playing for characters, items, skins and more, but all these things continue to include providers, they are as assets on the servers of Blizzard, EA, Microsoft and Consorts. If the servers go offline, everything is gone.
This should work for games that use a blockchain technology and promise NFTs. There are no limits for the fantasy. In an early representative, Cryptokitties, you can buy virtual cats, breed and then resell. Solar in turn attracts digital football collecting cards and a fantasy league. And in Decentraleyes you will find a virtual world in the kind of Second Life, except that you can actually have land, avatars, accessories and more and buy more respective respectively. It is important to all these offers that the server structures of these games should be decentralized, in the sense of Web 3.0.
In Cryptokitties you can buy virtual cats, breed and then resell. Source: Dapper Labs
And if you listen to the operators of such players, then one might think they only have good for us players in mind: games that set blockchain technology or web3 token -based technologies can get the gaming experience A positive way expand and create new economic opportunities for users and creators, so promise. The NFTs would create opportunities for the interaction and cooperation of players through which a tangible digital world creates with tangible digital items that there would never exist. In addition, one would create such a way to secure copyrights in a way of which the artists benefit from which the artists benefit.
It should be clear, however, that in Krypton gaming is also a lot of money for the operators. Already there are several young companies from the Games industry, which have reached the status Unicorn because they are worth more than a billion US dollar after a short time (source). And if so much money lures, then the big players of the industry are not far. Great names like EA, Ubisoft and Square Enix already deal with the topic Krypto-Gaming and want to invest more in the future.
Thanks to the associated blockchain Games platform, Forte has been estimated at a value of $1 billion (source). Source: Forte Labs
Why is Krypto-Gaming criticized so keen?
But not everyone is good to talk about Krypton Gaming. Valve has, for example, in October all the games, which contain cryptocurrencies or NFTs and put on blockchain, banished by Steam. And when Jason Citron, CEO of Discord, showed a potential interface to NFT and Krypton services in a Tweet, the feedback of the users was so negative that he had to insure shortly thereafter: There are no concrete plans for such crypto Interfaces !
The fact that the whole theme is criticized around NFTs, cryptocurrencies and blockchain has a number of reasons:
Pushing to Bitcoins and other crypto feeds each year causes a lot of electric script. In addition, the enormous energy effort that could noticeably have a negative impact on earth climate (source).
NFT platforms like Open sea are repeatedly associated with money laundering and insider trading.
The current NFT hype also attracts a lot of black sheep. There is a lot of mischief around NFTs, such as copyright injuries, selling digital, unique garbage for partly horrendous sums or simply scams (an example). Around 400,000 Crypto fraud cases should have been registered in 2020. For 2021, a significantly higher number is expected (source).
Around the topic of cryptocurrencies, there are other problem areas such as the always possible, very strong price fluctuations, or the certainly beneficiary before targeted course manipulations or software errors, thanks to which a lot of money can be all suddenly away.
A legal conclusion of the contract should be better than a NFT when it comes to clarifying ownership rights. There are clearly defined regulations for these contracts, and if necessary, one can attract themselves to clarify a dispute. How should this work with a NFT? (Source)
The blockchain technology should not be completely sure, even more secure than many normal database systems (source) and as soon as a blockchain has been compressed, the associated NFT can also be changed or deleted.
At times new graphics card models were similarly difficult to get like a PlayStation 5 — Krypton Mining Hype and Corona are not a good combination. Source: Rabid Mining, El Chapters Informatics
Not only the Corona pandemic had a negative impact on graphics card stocks and prices in recent years, but also the mining hype around cryptocurrencies such as Bitcoin or Ethereum. Who suffered above all under this circumstance? Players looking for a new graphics card for your gaming PC.
The promise of digital goods that are actually belonging to you and the decentralized, of course, brings only something if you also have a corresponding advantage: for example, that you can take the digital asset with in the games of other providers. Always apart from that enormous technical hurdles need to be overcome so that this is implementable in practice: Does anyone actually believe that an Activision Blizzard, EA or Ubisoft would support such a thing? At a time when it comes to quarter reports, above all, how long one could bind players to their own products? It therefore seems certain that we often expect dog packs to earn the operators in the end (source).
Who wants to get deeper into this matter, we recommend this extensive execution to the weak points of NFTs and Blockchain.
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