NFTs might not be everyone’s favorite topic these days, but they are a significant part of an ever-growing blockchain ecosystem. My issue, however, is that the tech behind NFTs is largely being wasted on things like profile picture (PFP) NFTs, AI-generated NFT collections (BAYC, Crypto Punks, Pudgy Penguins, etc.), or simply scanning a picture someone drew and minting it as an NFT.
The NF of NFT stands for “non-fungible”, meaning that it’s unique and can’t be copied or replaced with something else. While applicable to the recent art craze of NFTs, we’re vastly underutilizing the technology that powers them.
Let’s use the video game industry as an example. Traditionally, when a player buys an in-game item, such as a gun or a unique character skin, money is sent directly to the game publisher before the player receives the item, which is stored in-game. Such in-game assets have no real-life monetary value, and once a player moves onto a new game, the purchased assets are left sitting there.
Here’s one way that NFTs can actually be useful. If in-game assets are designed as NFTs, then a player would own what they purchase, meaning that they could sell it to another player, trade it for something else, or send it to someone as a gift. Game companies would still receive the full purchase amount from the initial purchase and could implement a code into the NFT (a creator fee) to receive a percentage from each future transaction involving that NFT. Players win since their assets are truly theirs, and game companies would make more money compared to selling individual assets with no recurring costs.
Another great use of NFTs would be to use them as the digital twin to a real-life asset, such as a smart ticket to an event. VIP passes, general admission tickets, secret invites — these could all be sent securely and privately on the blockchain as NFTs to a user’s wallet, allowing them access to the event. Plus, you’d have a digital record of all the events you attended since NFTs can’t expire or get lost.
The current trend of NFTs being a collection of cartoon animals with varying traits and the fact that they are often sold for hundreds, if not thousands, of dollars is beyond me. Maybe that’s just me. Maybe I’m jaded. Maybe I’m the guy who looks at art-based NFTs and thinks, “I just don’t get it.” Or maybe people are too focused on the current profitable trend of NFTs and traditional game publishers don’t have the time, wherewithal, or a detailed plan to incorporate NFTs into their games in a way that is beneficial not only to the game developers but also the players.
All opinions expressed in this piece are the writer’s own and do not represent the views of KrASIA. Questions, concerns, or fun facts can be sent to [email protected].