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Crypto Games, a Market in the Making of Its Own Fortune

Since the release of a game called CryptoKitties in November 2017, the concept of nonfungible tokens has been rooted in the minds of developers and crypto investors alike. The year 2019 was groundbreaking, with large, multinational companies beginning to draw attention to the new sector of digital assets and develop their own projects. In 2020, however, new games backed by different technologies are starting to emerge. So, what does 2020 hold for crypto games?

Tokens that cannot be changed

There are a lot of fungible tokens that the crypto community uses every day, like Monero (XMR) and so on. An excellent example of such tokens is the well-known standard, ERC-20, which emerged back in 2015. Their interchangeability is mainly used in cryptocurrencies, but also in initial coin offerings. In addition to fungible currencies, tokens can be used in gaming — for example, to buy equipment or weapons — that is, they can be used for anything that does not require uniqueness and that can be exchanged.

Blockchain and Gaming could be perfect for each other

Then comes the need to make tokens unique. Imagine that a gamer has spent 100 hours to get a very rare artifact in a game, but upon receiving the item, realizes there is no way to trade or exchange it. So, the time spent obtaining it is wasted. To prevent this, special tokens have come to the rescue, which turn a valuable weapon in the game into a unique, one-off asset that can be exchanged or sold. Nonfungible tokens, or NFTs, are not interchangeable, as there is only one of each of them in the world. The most popular standard for such tokens is ERC-721.

The ERC-721 standard has become popular due to its convenience. It defines the minimum interface required by a smart contract to be comparable to the management, ownership and sale of unique tokens. One of the cases of using this sort of token is for game characters.

NFTs gained their popularity thanks to the well-known game CryptoKitties, which assigns tokens to each unique cat, the data of which is written into the tokens’ metadata. This data cannot be changed. The cats can have different coat colors, different eyes and accessories, and other features.

In Gods Unchained, a card game where each card is backed by a smart contract, the developers took it a step further, not only using NFTs to generate cards but also enabling cats from CryptoKitties to be added to the game. The cats are presented in the form of a talisman placed in the corner of the playing field. In this case, the talisman can be converted back into a cat and sold if necessary.

Thus, NFTs make it possible to transfer game items from one game to another. In addition, smart contracts that are based on ERC-721 have implemented a function that fixes the movement of tokens, so they can accumulate value by themselves. This is great for digitizing unique assets such as art objects, paintings, legal documents and assets in other industries. This has great potential for various stores that deal with unique digital goods. Read More