By Ollie H - Cryptocurrency Broker - 03-08-2021
Non-Fungible tokens (NFTs) and blockchain technology employed as gameplay incentives are gaining traction in popularity. Digital assets and technology are growing within the e-sports and online gaming communities. NFT's are crypto market investments that, unlike cryptocurrencies, are not interchangeable. These often come in the form of digital art pieces, music, and unique pieces of content.
Aside from the gaming market, the NFT industry is expanding significantly. NFT's sky-rocketed to over $2 billion in sales within the first three months of this year. This displays a growth of eight times the total sales from the previous year.
That being said, this massive growth rate is still considered to be early, with far greater potential to follow. A high increase however, for some users does raise concerns for an economic "bubble." Due to this, one method to reduce this potential risk is to develop initiatives to build an ongoing financial strategy. Having projects in place would prevent the NFT industry from becoming just another hype craze.
A browser-based online skill game, Snook, allows players to commercialise or "buttle" their in-game achievements through skin customisations. The monetised custom skins are also a version of an NFT; this also means that their in-game asset can be improved upon and modified to make it even more unique depending on how good the player/owner develops their play.
The value of an NFT is typically dependent on how rare the piece is, so within the game Snook, creating rarity within the game depends on the level of skill the player has. Players are able to use the ERC20 $SKILL, using crypto to buy NFT to mint their characters. Within the game, characters are the NFTs, more specifically, an ERC721 NFT. When players mint their NFTs, the token used for minting is incinerated because the value of the amount of $SKILL used is transferred into the NFT.