Non-fungible tokens (NFTs) have been steadily gaining popularity for some time now. This has led game developers, recognizing the potential for profit, to increasingly implement NFTs in their latest titles.
As a unique, unrepeatable, and impossible-to-forge token, an NFT confirms the authenticity and uniqueness of the digitized value assigned to it. This value—transferred to the computer gaming market—could be represented by, for example, a personalized avatar, a favorite weapon skin, or the appearance of the main protagonist in a game. This token can therefore be assigned to, among other things, a graphic, audio, or text file, which determines its originality and uniqueness. Therefore, NFTs can be easily compared to works of art. While such a work can be copied many times, such a copy will never have the same value as the original. The original will always be unique, exceptional, and unrepeatable, just like an NFT.
Axie Infinity, released in 2018, is currently one of the most popular "play-to-earn" games that allows you to acquire and then trade NFTs. The game involves creating cute creatures that can be trained, improved, and then sold as NFTs, with prices for the rarest of them hovering around $1 million.
Currently, there are, of course, more games of this type; as you can see, NFTs are nothing new in the gaming industry. The NFT-based game market has existed for several years, generating huge profits, so it was only a matter of time before pioneers in the computer gaming industry took an interest in the topic. Despite the lukewarm reception among players, they are implementing NFTs in their latest titles.
Some game developers, eager to enter the NFT industry, are even establishing their own dedicated platforms for trading unique tokens. However, these platforms often contradict the very idea behind blockchain, so they are criticized not so much for the introduction of NFTs themselves, but for the format in which they are introduced. NFTs are recorded on the blockchain network, which in turn is a decentralized IT system. However, the nature of platforms offered by game developers is usually completely centralized by the developer. A common practice among such platform owners is that blocking (banning) a user's account means that the user's NFTs are simply forfeited. Currently, it is difficult to discuss the possibility of effective legal protection against such actions, as Polish law does not regulate NFTs, while the internal regulations of such platforms generally permit such actions. This gives the owner of the platform enabling token trading full control over the market they have created.
Currently, there are no regulations governing NFTs. Due to their new nature, it's difficult to clearly determine which existing general regulations might apply to them, and to what extent. One thing is certain: NFTs are a novelty that modern legislation will sooner or later have to address.
It's also worth noting that platform developers are currently touting NFTs as cutting-edge technology and a complete breakthrough in the gaming industry. In reality, however, NFTs in games were first mentioned in 2018, so we're not dealing with any groundbreaking project. Secondly, from the perspective of the average user, the creation of such platforms aims to implement yet another form of microtransaction "wrapped in a box" with the word NFT.
It should be noted, however, that differences between NFTs and microtransactions do exist and from an economic point of view it is more advantageous to own an NFT than a virtual item purchased for real currency that is not an NFT.
The first difference is that, unlike regular virtual items offered for money, NFTs are unique and unrepeatable. However, the form this "uniqueness" takes is up to the creators. For example, items offered to players in the form of NFTs may have their own unique code, a unique appearance, produce a unique sound, or possess unique characteristics.
Moreover, NFTs—unlike virtual goods acquired through microtransactions—are finite, meaning their number is limited. This, in turn, means that NFTs represent real value that can be monetized as soon as the owner expresses such a desire. Furthermore, because the data—validated by the NFT token—is stored on the blockchain, it is virtually uneditable. It is also possible to view the history of a given NFT, further increasing its value if, for example, the previous owner of such a token was a famous person. NFTs therefore represent "real" value that can be resold after purchase.
This alert is for informational purposes only and does not constitute legal advice.
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