Fungibility is the desirable aspect of any currency that aims to be a unit of account, a store of value, or a medium of exchange. When it comes to cryptocurrencies, fungibility takes up the role of maintaining the legitimacy of the currency’s interchangeability between units. Non-fungible Tokens are the new kind of tokens that have popped up recently. They perform as unique assets that come laden with exciting applications. In the gambling industry crypto games tokens have been developed that enable new gaming assets with a whole range of new possibilities.
In the gaming world, NFTs are transforming the sector and thanks to the TRON blockchain things are changing at a rapid pace. It enables ownership of platforms by the users of the decentralized casinos and betting sites instead of a centralized model. Crypto games tokens are used as shareholdings as well as gaming credits so it means that those who play get rewarded with dividend payments which are processed by smart contracts.
What are Non-Fungible Tokens?
Non-Fungible Crypto Tokens take up the role of virtual tokens that represent goods or assets. They use cryptography to help in verifying the ownership and authenticity of an asset. Case in point; a virtual piece of art whereby the artwork gets tokenized. Owning the token proves that you’re the owner of the art piece and it gets immutably stored on the blockchain ledger. Non-Fungible Tokens are made to be unique and non-replaceable.
NFTs (non-Fungible Tokens) have come to obliterate centralized authorities, thus creating a future class of digital assets. The disruption has also led to the realization of fractionalized ownership that tie world assets to digital tokens. In the gaming world, it means that players rather than centralized organizations can become shareholders of the platform by holding the propriety crypto gaming tokens.
Fungibility is predominant in cryptocurrencies such as Bitcoin. Each BTC is worth the same as the next Bitcoin. In essence, all bitcoins hold equal value. That said, however, there is an argument that BTC doesn’t achieve full fungibility through blockchain analysis. It means that BTC that have been used for illegal activity can be blacklisted. With this regard, stepping away from a fungibility platform and adopting NFTs is welcomed as it offers impressive potential results.
How Crypto Gaming Asset Tokens Began
Non-Fungible Tokens concept went mainstream thanks to CryptoKitties. The latter went viral by the last quarter of 2017 where some coins sold for hundreds of thousands of dollars. In as much as protocols and standards exist outside Ethereum for Non-Fungible Tokens, the leading standard used in the creation and exchange of the same is the ERC-721 standard.
The ERC-721 standard acts as the backbone for creating, issuing, and trading NFTs assets. Just the other day, the developers’ team that created the Enjin platform has proposed a new token standard. They are fronting the ERC-1155 standard. The new platform is intended to provide improvements over the original standard platform.
ERC-1155 renders a plethora of benefits when it comes to NFTs. Moreso, the standard ensures that a token contract contains both Fungible and Non-Fungible Tokens. Moreover, the ERC-1155 platform ensures that multiple NFTs are implemented in the same transaction. The result of this is a more efficient process when it comes to exchanging NFTs in a distributed Marketplace.
NFTs Types And Use Cases
Non-Fungible Tokens generate a verifiable scarcity of specific assets. NFTs continues to expand significantly and are going beyond the digital realm, making them a better platform. Today, the virtual 3D platform created by Ethereum (Decentraland) allows users to make unique purchases. They can buy plots of land in which they can build whatever they please. They build structures such as DApps and unique digital structures.
Plenty of the NFTs implementations in place today lay focus mostly on the game skins trade. Users trade armor and customized weapons in first-person shooter games like Counter-Strike. The trade of the assets mentioned earlier is the primary focus on distributed exchanges like WAX. Where the NFTs focus is predominant in regards to the gaming industry as it’s currently set up. One of the main eSports crypto platforms for NFTs is Unikorn Gold which has created a marketplace where players can buy these form of gaming assets.
That said; however, a lot more developments continue popping up and will see the application expand. Fractional ownership of rare and physical pieces of artwork can now be tokenized. The digital asset can be sold off and split into smaller fragments to a bunch of owners. One of the best examples in the Tronext token as it provides shared ownership and dividend payments as all holders of the tokens become shareholders of the platform.
Once the art piece sells, the profits are split and divided into fractions that form the asset stake. The process is also applicable to the commercial real-estate sector too. Today, emerging platforms are now using blockchain-tech to provide artwork provenance. The technology is helping in the establishment and maintenance of chain-of-ownership of certain art pieces. A significant number of distributor marketplaces rely solely on NFTs exchange as well. They include the likes of WAX, OpenBazaar, and Rare Bits.
One of the problems with the world is that 1% own virtually everything and the rest of us are left to fight over the remaining 99%. Non-Fungible tokens will help to redistribute wealth thanks to community ownership against a single person or organization. In the gaming sector, it is going to transform the structure as gamers will enjoy ownership rights thanks to NFTs and therefore enjoying a share of the profits.
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