Before we get started on how NFT is related to iGaming, first of all, let’s explain what NFT is all about. Backed by blockchain technology, NFT is a unique cryptocurrency and stands for Non-Fungible Tokens, serving as a form of authenticity of a unique item. It started out as a new trend back in 2014, however, it took another 3 years before the term NFT became widely known.
NFTs can be looked at as digital proof of ownership. Compared to other cryptocurrencies, NFT is non-replaceable and cannot be exchanged. It also stands out from its competitors, including Bitcoin and Ethereum, in at least three aspects listed below.
- Uniqueness: This is the leading characteristic of NFTs because their uniqueness means each NFT has an irreplaceable and well-defined value. They can be used both for physical and digital representation of virtual real estate, in-game items, and even artwork.
- Wholeness: NFT cannot be divided or shared in smaller units. This way, buying or selling NFT means you trade it as a whole unit.
- Ownership: Since NFTs are stored on a blockchain, they are in fact the source and proof of ownership and transparency.
As it tends to happen with new trends, online casinos and the eGambling industries have started exploring the benefits of using this innovative technology to boost engagement, and profits, and to provide non-conventional benefits both to players and service providers. And with players being attracted to additional bonuses and perks, the use of NFTs in casinos – whether traditional or online – has a huge potential.
Contents
How Is NFT Linked To iGaming
Now that we understand what NFT represents and has to offer, it’s time to figure out how NFT finds its way into iGaming and casino online. Some relationships between the two are more than obvious, while others might be a bit out of sight.
Digital Collectibles And In-Game Items
Every gamer loves digital collectibles and in-game items such as weapons, customizable skins, character outfits, and more. Players usually buy or trade across games, using NFTs namely for the purpose of collecting in-game items and it’s those NFTs that give the actual ownership to the digital assets. The possibility of trading gives players an additional perk: potential passive income from the sales of their digital assets.
One-Of-A-Kind Gaming Experience
Thanks to the implementation of NFT, gamers are given the opportunity to encounter an entirely different gaming experience including new monetization methods. While developers can clearly profit from initial NFT sales and other royalties, players on the other hand can make passive income from investing in NFTs.
On top of that, blockchain technology and its mechanics offer the unique possibility of interoperability which, simply said, means players can use previously acquired NFTs in a given platform the same way in another gaming platform backed by the same blockchain innovation. Without a doubt, this gives way to a customized game experience. Some slot developers have already begun to implement the technology into their products. An example of such a symbiosis is the game Aviatrix, where players can buy their unique NFT planes and exchange them with other users.
Is NFT Being Implemented By Casinos
The short answer here would be that NFT is not widely popular with traditional stationery casinos, just yet. And while they face potential development in that industry, NFTs have caught the attention of online gaming platforms and online casinos. One of the main obstacles NFT faces in the casino sector is that of overcoming various regulatory and operational challenges set by local and international law.
One way NFTs can be used in casinos is as tokenized casino chips which could help reduce the chance of counterfeit and fraudulent activities. NFTs on blockchain technology, as we already mentioned, offer transparency and can be easily tracked. Loyalty programs are another potential benefit of NFT in casinos. They would serve as a rewarding token with the possibility to be traded in or swapped for other casino-related activities. Unlike traditional casinos, online casinos could look into offering players digital collectibles after passing certain milestones or ticking off achievements. This would encourage players to feel distinguished and lead to increased engagement.
It needs to be noted that NFTs differ from country to country because of specific cryptocurrency regulations. The development of blockchain technology is another factor that plays a role here. Before the implementation of NFTs can start, local jurisdictions and regulations have to be carefully explored.
NFT’s Continuous Development
Given their nature, NFT’s uniqueness makes them a highly valued and desired cryptocurrency for different audiences in the digital world, including gamers. They promote transparency, security, and provenance because of the blockchain technology they’re based on. But most importantly: NFTs can revolutionize the gaming and casino industries by allowing players to have more control over purchased in-game assets and will continue to evolve in the near future.
