5 challenges NFT games could face in 2022
In 2021, NFT games became one of the most popular sectors in the cryptocurrency development services. For the first time in the video game industry, a player could put hundreds of hours into a product, engage with a community, explore a digital world, and watch their time turn into real-world rewards.
Most GameFi models supportnon-fungible tokens (NFTs). These digital assets allow users to receive unique tradable items on the native market, which can be bought, sold, or traded with a community of players.
On the other hand, NFT games have the potential to disrupt the traditional billion-dollar gaming industry, as some projects promise players a say in determining the future of the game, approving or disapproving changes, and being rewarded. for participating. Therefore, they can be totally self-sufficient environments.
However, the new trend will have to face many challenges as it joins the masses and comes under the scrutiny of the players themselves, investors, international authorities and regulators. 2022 could be the year that determines whether NFT games will be a fad or a permanent disruptor.
NFT games vs. regulators
The US Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, has become more hostile towards the cryptocurrency development company. Unlike his predecessors, Gensler seems intent on gaining more regulatory jurisdiction over digital assets and the DeFi sector.
At various times during 2021, the regulator hinted at the possibility that most cryptocurrency development services and projects are operating as unregistered securities. Additionally, Gensler and other politicians have touched on the alleged dangers for investors who entered the digital asset space through DeFi, NFTs, or DAOs.
NFT games, a threat to the environment?
Last year and in the last months of 2022, more gaming giants, such as Ubisoft, EA, Take-Two, and Microsoft, opened the door or directly tried to integrate NFT into their games. However, most have seen a backlash from their users.
There is a perception among gamers that NFTs are bad for the environment or are perceived as another excuse for big studios to turn the play-to-earn model into just profit, benefiting big corporations.
The big studios seem determined and most are unwilling to integrate NFT games without hearing feedback from their own communities. In the long term, the merger between traditional games and digital assets seems like the next logical step and the fastest way to bring these industries into the future of finance.
Where NFT games could use improvements
In addition to the above, NFT games will need to be able to harvest their growing popularity and economic support to provide users with a better gaming experience. One of the reasons gamers might be less attracted to the GameFi model is due to the high cost of participation; minting and transacting in NFTs could be very expensive.
In that sense, NFT game projects must find a solution so that players continue to enjoy the experience even in times of network congestion. At the same time, users will need different features, customization, engaging graphics or gameplay, a unique way to interact with an ecosystem, and an active community.
This will require projects to provide users with incentives that show them the benefits of incorporating this new on-chain gaming model .
NFT games, a highway to the economy of the future
In terms of scalability, networks are building the capabilities that will allow them to support the millions of users entering the industry. Ethereum, with its second layer scalability solution, Solana, Avalanche, and Binance Smart Chain, are making rapid progress in that direction.
Additionally, there are projects in the crypto space that address other issues, such as the Meta DAO Guild . This project aims to provide users and investors with a solution that looks poised to bring millions more into the GameFi model.
Meta DAO allows players, investors, and others to lease their NFTs, so that other players with fewer resources can rent them without needing to inject thousands of capital. That way, the entire gig economy becomes more dynamic. NFTs have another use case, and all gamers can enjoy the GameFi experience in a win-win environment for borrowers and lenders alike.
GameFi's model, despite its critics and skeptics, has the potential to support a new financial model, which many have dubbed the "gig economy”.
