An article to understand the tokenization of game assets

The so-called "tokenization" means that players have more control over game items, game characters and game currency. The power previously held by game developers is now in the hands of gamers, thus giving birth to a thriving player economy. This article will explore how tokenization is changing the gaming industry.

**What is the relationship between blockchain and tokenization? **

*Token is a digital certificate stored on the blockchain, which can represent the ownership of assets. *

Blockchain is a decentralized and permissionless network. Storing the pass on the blockchain prevents the pass from being manipulated, gives control to the user, is open to all, and enables interoperability across the entire Web3 ecosystem. The combination of blockchain tokens and smart contracts can also be encoded according to predefined logic, binding the value of tokens with programmability. Tokenization lowers the barriers to entry in the financial market, simplifies the back-end processes of enterprises, and creates a valuable online community around NFT. Today, tokenization is disrupting the gaming industry in the same way.

Game tokens are divided into three types: homogeneous, non-homogeneous and dynamic

Game assets can be represented by homogeneous tokens, NFT and dynamic NFT (dNFT)

Comparison of different types of game tokens

| | | | | | --- | --- | --- | --- | | | Homogeneous Token | NFT | Dynamic NFT | | Full Name | Homogeneous Token | Non-homogeneous Token | Dynamic Non-homogeneous Token | | Definition | Arbitrarily convertible assets represented by blockchain tokens | Digital tokens on the blockchain, each token representing a unique asset | NFT containing metadata, based on external conditions while triggering a change | | Uniqueness | Homogenization | Unique | Unique | | Upgradeability | Not Upgradable| Not Upgradable| Upgradable| | ERC Token Standard | ERC-20 | ERC-721 or ERC-1155 | ERC-721 or ERC-1155 | | Application scenarios in games | Game currency, game rewards that have value in the real world| Game skins, characters, weapons and rewards| Upgradable game characters and weapons|

Game asset NFT

game character

Players of many Web3 games can use NFT avatars as game characters. And the same NFT avatar can be used in different Web3 games.

NFT avatars in Web3 game Illuvium are called "Illuvitas"

thing

NFTs can be used to represent a range of game items such as weapons, armor, tools, trophies, and health packs. Players can trade these items in the NFT market to level up faster in the game.

Planet IX players can buy and trade NFT assets such as Energy, Astro Credit, BioM0d, Blueprints, etc.

land

Players can trade land in the metaverse of the game and build on it. The game creates a fixed amount of land in a virtual world and maps real-world real estate supply and demand.

Players in Planet IX Can Buy Land NFTs

skin

Skins can change the appearance of game characters, but usually only the appearance and not the force value. In Web3 games, any creator can design new skins and set restrictions on NFT skins to increase their scarcity.

More than 200 million players on the Epic Games Store and Gala Games will have the opportunity to purchase skins for Grit, a cowboy-themed Web3 game

Upgradable and interactive dynamic NFT

Changing Game Characters

As the player continues to level up in the game, the dynamic NFT representing the game character will also change accordingly. For example, the dynamic NFT starts out as a soldier, then upgrades to a knight, and finally becomes a king. Please follow the link to learn how to build your own dynamic NFT.

As players continue to upgrade in the game, the dynamic NFT will also upgrade accordingly

UPGRADABLE GAME ITEMS

Likewise, dynamic NFTs can also be used to upgrade game items. A sword can be upgraded into a knight grab, which can then be upgraded into a soldier.

Dynamic NFTs can be upgraded based on real-world events

Using homogeneous tokens to achieve a sustainable game economy

GAME CURRENCY

As the game continues to advance, players need to trade their own game NFT items and rare dynamic NFT game characters. Using in-game currency allows players to avoid inefficient bartering and gain a smooth trading experience.

GameFi project Aavegotchi rewards gamers with 1.5 million GHST tokens

REAL WORLD CURRENCY

As the gamer base continues to grow, rare game items will also have higher real-world value due to more buyers. Please follow the link to learn about future prospects for a sustainable gaming economy.

In-game currency can be traded for in-game NFTs or exchanged for real-world currencies

Advantages of Game Asset Tokenization

Asset Tokenization Will Unlock Infinite Possibilities for Web3 Games

Digital Asset Ownership

NFT can give players full control over game assets. Assets are stored in the Web3 wallet, and players can use them anytime, anywhere and in any way.

Open Market

With asset ownership, players can trade game items, game currency, and game characters on various open markets. And game publishers no longer have the ability to control these assets.

Game Economic Incentive

Once game incentives have value in the real world, it will make the game experience more exciting and exciting. Effective game incentives can attract players to join early and identify loyal players. Play-to-earn games, for example, reward players for their time, creativity, and value they contribute to the game.

Cross-Platform Compatibility

Tokenized assets will not be locked in any game platform or ecosystem. Players can seamlessly transfer their hard-earned weapons or customized in-game characters between blockchains and games.

In the Web3 world, the same NFT can be used in multiple games

Player Economy

Any game developer, creator or player can contribute value to the game, or even develop their own game. With a permissionless infrastructure, NFT gaming community, and an open marketplace, the gaming economy is open to everyone.

Higher Security

The essence of Web3 infrastructure is to provide trust minimization, encryption guarantees, and transparency to protect player assets from malicious attacks.