By Shubham Gupta
Think of NFTs as unique possessions within the vast digital landscape of the internet. Just like you might own a car in real life and have purchase/registration papers to back your ownership, an NFT can be an asset in the internet realm. It can be a Car or a house in a future metaverse whose ownership can be linked back to you in the digital realm. They are similar to crypto tokens but non-fungible, meaning they are not interchangeable.
Your Rs 10 note will hold the same value as my Rs 10 note, whereas your NFTs are 100 per cent unique and its ownership can be linked back to you transparently. Our currency notes are also unique in a way because of the serialisation that exists on them but the inherent value is the same.
One BAYC NFT fetches a different value than others because they are 100 per cent unique in the way they look and feel. While there are NFTs that may have a limited fixed supply like an MS Dhoni NFT which is let’s say the same “Image” but has 100 copies. If there is something dynamic about these NFTs they might fetch different values from collectors but if they are 100 per cent identical in how they look and their utilities they should all be valued the same amount theoretically if we don’t include market movements or supply-demand changes.
Why Rre Gaming NFTs A Big Deal?
Gaming has always been a space of evolution, innovation, and boundless imagination. With advancements in technology, we now see the onset of a unique blend of gaming and blockchain.
Imagine owning unique in-game assets, from weapons to avatars, having verifiable proof of that ownership and having 100 per cent control on the asset. This is where NFTs are changing the game, quite literally.
- They represent digital ownership of in-game assets, be it weapons, skins, characters, or even entire game realms.
- Their scarcity is verifiable, guaranteeing the rarity of certain items and assets within a game, which brings in the economic levers of supply and demand.
- NFTs provide interoperability, allowing gamers to use certain assets across different games or platforms.
- They empower gamers, granting full control over items that could have real-world monetary value, reminiscent of the economy surrounding Counter-Strike skins on Steam.
What To Do Before You Get Started?
1. Educate Yourself On Web3 Basics
Unchartered territories are always harder.
Understand the value blockchain is bringing to the gaming ecosystem and most importantly the value the game has to offer before you invest.
Familiarising yourself with Wallets and Marketplaces is very important as you will need them to secure and trade your assets.
There are two major wallet classes — custodial and non-custodial. Custodial means the game takes custody of your assets and may offer you services that will let you withdraw your assets to a self-custody or non-custodial wallet. On the other hand “non-custodial wallets” are 100 per cent owned and managed by the user.
If you are a user not very good at handling sensitive information like passwords, go for a custodial wallet that most games offer built in their ecosystem.
If you can securely store your seed phrase through which your wallet is created, you can opt for a non-custodial wallet like Metamask or Trust Wallet. Store the seed phrase carefully and securely as your wallet cannot be recovered or accessed without it. Losing the seed phrase is equivalent to losing everything inside the wallet.
If you are using a non-custodial wallet like Metamask, do not connect and authorise activities on just any website. Only connect to sites that are trustworthy, official and used by a large community of users. It may be a scam and may wipe out all your assets and tokens in seconds
2. DYOR (Do Your Own Research)
Knowledge is your best ally.
Explore popular games first. A good way to start is to play games with high market caps in terms of their governance token. This is a direct measure of community engagement and trust.
Understand the costs and value proposition before investing.
Be in touch with the latest news and trends if you are investing for more than just fun and entertainment. NFTs are tradable assets and hence are governed by the macro’s of the web3 ecosystem and are also known to be very volatile in prices.
Engage with communities on platforms like Discord and Reddit to gain deeper insights into a game and its fan base. However, stay vigilant against individuals who might pose as project members with enticing offers, as these are most often deceptive scams. If anything seems too good to be true, it probably isn’t.
3. Start Modestly
Dip your toes before diving deep.
Choose a select few games that intrigue you. Start with a basic (preferably free) inventory, immerse yourself in the gameplay, and then ponder over expanding your involvement. Play-to-earn gaming may promise lucrative returns, but risks are omnipresent. Prioritise genuine interest over purely monetary motivations.
With the right approach, the world of NFTs can be both fascinating and rewarding. Venture forth with knowledge and caution. Happy gaming!
(The author is the Co-Founder and CPO of STAN, an esports fan engagement platform)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
