Getting Started: Understanding the Basics of Owning NFTs

Blockchain-based gaming economies are the future

Axie Infinity revealed the gaming industry is just a sliver of what blockchain-based gaming can manage and the industry. 

The first video games got out in the late 50’s — a simple tennis game like Pong. Later, Atari was born in 1977. Nintendo began releasing popular games starting in the early ’80s with Mario Bros, The Legend of Zelda, Donkey Kong, etc.

It’s essential to note that the business model has evolved significantly over the years. 

Gaming today appears on walled-off data networks. This indicates that users cannot have their in-game assets (skins, avatars, abilities, etc.). The platform keeps them. Axie Infinity meddles this model because users own assets like nonfungible tokens (NFTs) on Axie and can sell them in a free market/gaming economy for value. 

Annualized revenues per Token Terminal move out to $2.7 billion for this open and permissionless pay-to-play blockchain game. What is essential is that blockchain technology is the medium through which users can own their in-game assets. This is not plausible on the tech used today.

Blockchains support for gaming economies to develop organically

Gamers can be paid to play. Over, Axie Infinity is directing the attack here. Axie users make purchases to obtain the Axie NFTs and the AXS native token to start play. From there, they can make the SLP token by playing/competing, as the tokens received can then be traded for other crypto assets or fiat, etc. 

Public blockchains are admissible to all and permissionless

Do you possess a cell phone and an internet connection? Great, you are welcome to join. This isn’t actually how it works in today’s closed data architecture, mainly if you live outside the United States. Not only can you participate on a blockchain, but you can also make income. Smartphone adoption proceeds to balance out the growth of 4G and 5G technology in emerging markets. Hence, we should anticipate more users to enter crypto and blockchain-based games shortly.

Open protocols fall and reduce the cost of existing technologies

Public blockchains are clear protocols. Ethereum is an open protocol. Anyone can create games on Ethereum. One is outsourcing much of their operating and capital expenses to the Ethereum base layer blockchain. It is much more comfortable to begin a game for entrepreneurs. 

Decentralization

Because blockchains are public and permissionless, anyone can use them. This suggests we should anticipate a future where blockchain games are on top of various layer-one blockchains, for instance, Ethereum, Solana, Cosmos, etc. 

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