NFTs invaded the gaming lexicon at the end of 2021 and will no doubt become one of the hottest topics across a multitude of industries in 2022. If you’re still confused as to why gaming is riding on the blockchain or whether this is a good or a bad thing for games and gamers, the jury is still out. But it’s a good idea to get a firm grasp now about what the industry’s most perplexing new trend means. We’ll unpack what NFTs are, how they might become present in games, and what publishers like EA, Ubisoft, Square Enix, and others have said about featuring them in their design portfolios.

What are NFTs in games?

Regardless of whether it’s used in gaming or elsewhere, the acronym NFT refers to a “Non-Fungible Token” for a digital item. It sounds a bit complicated in name, but the idea is actually fairly simple. An NFT is a certificate of ownership of a digital good that’s supposed to be made in a limited quantity. They can be attached to digital pictures or memes, video clips, or even something as abstract as the original source code for the World Wide Web. If something is “fungible” then it is a mutually interchangeable commodity — like a dollar bill.

NFTs offer opportunities to sell all sorts of digital goods from video game skins to JPGs.JUSTIN TALLIS/AFP/Getty Images

No matter what form it takes, when you have an NFT for a specific digital item, you own the certified token for it on a digital ledger or blockchain. Simply put, you get a specialized link that proves your connection to that digital asset. Just like someone can own a highly valuable car in the real world, NFTs offer an opportunity to claim a small slice of the digital landscape.

It’s like owning the deed to something that exists purely on the internet.

How NFTs might work in video games

Especially when it comes to gaming, large corporations see NFTs as an avenue to make a continuous revenue stream out of digital content. For example, if a rare Fortnite skin were offered as an NFT, a player could be the first to unlock the skin in-game and then take ownership of it. Once they do, the token for that skin can then be resold to the highest bidder, potentially for a lot of money. Regardless of how much the skin sells for, its original makers at Epic Games would still take a cut of that payout, …….

Source: https://www.inverse.com/gaming/nfts-in-video-games-square-enix