Technology, Media & Telecommunications

It is no secret that gaming companies have been increasingly keen to integrate or express enthusiasm for blockchain technology.

Game developers have been increasingly integrating cryptocurrency and Non-Fungible Tokens (NFTs) within their games hoping these digital assets will increase their games’ longevity with an expanded content offering. But, early feedback suggests these features risk fan-blowback so developers are advised to proceed deliberately.

Questions remain as to what the financial impacts of the Metaverse will be, and what will drive the potential trillion-dollar online economy. The answer can be found in blockchain technology, with cryptocurrencies like Bitcoin and Ethereum acting as the money used to purchase the stuff that makes up the Metaverse—digital assets in the form of NFTs.

It’s no secret that scarcity (real or perceived) can drive demand, remember beanie babies? In the last year, there has been a surge of Non-Fungible Token (NFT) trading volume, much attributable to popular projects with limited numbers such as CryptoPunks, Bored Ape Yacht Club, and Meebits, which are essentially collections of unique images whose ownership is proven by an NFT. While this all may seem silly, NFTs are not a fad or transient internet phenomenon. They may enable fads that lead to asset bubbles, but NFTs are simply certificates that prove ownership of an asset—which can be anything from clipart of a rock to a patent—and are here to stay.

The potential applications of non-fungible tokens (NFTs), like blockchain technology in general, are attracting attention across the economy. Some early projects by mainstream videogame publishers have been met with mixed reviews, but adoption shows no sign of slowing down. But like blockchain technology in general, NFTs, including in videogames, cause environmental concerns because of the energy required to create, transfer, and track them.

Videogame industry leaders have been optimistic about the endless possibilities of the metaverse, Non-Fungible Tokens (NFTs), and blockchain technology despite relatively recent developments.

The metaverse has taken the digital and physical world by storm. Many companies, including Facebook, have developed augmented reality products within the metaverse and many of these products utilize Non-Fungible Tokens (NFTs) to integrate the digital and physical consumer experience.

Concerns regarding the application of securities laws, such as those banning “wash trading,” are increasing given the popularity of Non-Fungible Tokens (NFTs) and cryptocurrency transactions, and Chairman Gensler’s recent remarks on the regulation of these assets.

Jack Fonss and his consulting company, True Return Systems LLC, are auctioning U.S. Patent No. 10,025,797 (‘797) on the NFT marketplace OpenSea. Bidding for the patent, which is believed to be the first auctioned as a non-fungible token (NFT), starts around USD $7.5 million.

Steam, the world’s largest gaming platform, quietly banned the use of blockchain games and NFTs on its platform on October 15, 2021. Steam’s decision raises new questions about the ramifications of NFTs for videogame companies. 

Increasingly, more and more money is spent on virtual items in the virtual worlds of videogames.