Welcome to The Age of NFT’s
GameStop recognizes game. Image by C. A. Ramirez
By C. A. Ramirez
You might be wondering aloud, “is he drunk right now?” Naturally, my answer is, “not yet.” GameStop released big news early last month, and the entire NFT world is about to link arms with the video game industry in an incredibly dynamic way.
Despite what any theatrical release might suggest, the GameStop saga is not over. The short squeeze is coming to perform a virulent encore, but there is more to absorb than simply profits and gains. They have been working feverishly on their NFT Marketplace in relative secrecy, encouraging content creators familiar with NFTs to submit their candidacy for consideration by GameStop just a few months ago. The end result still remains a mystery, but GameStop announced that they are now partnering with Immutable and Loopring to create an NFT Marketplace.
Immutable X is a pioneer in the world of NFTs, creating the first Layer2 Ethereum network designed to enable users to exchange, buy, sell, and trade NFT’s with zero gas fees. Loopring has created ZkRollups, or zero-knowledge Layer 2 contracts that allow data to be verified on Ethereum’s Layer 2 blockchain without having to verify personal data. Loopring is also able to bridge the gap between crypto by creating FIAT on/off ramps that allow users to directly invest money from their bank accounts into secure crypto wallets on the Ethereum blockchain. Simply put, ImmutableX is the highway that leads to GameStop’s new NFT Marketplace, and Loopring is the car that will get you there.
What’s an NFT anyway?
Good question, Bernard. Allow me to clear things up.
NFTs are not JPEGs that can be simply copy and pasted. That is the grossest misconception surrounding NFTs. Stand in front of a house and take a selfie – now go and try and sell that house on the real estate market. Not going to happen, is it? NFTs are smart contracts that assign proof of ownership. Video games are about to become the foundation of an entirely new economy, one that emphasizes and supports content creators, video game players, and game developers. It may sound like some sort of psycho-naut, hippie fever dream that combines tech with utopia, but that may just be what is to come. The unification of physical and digital assets via crypto currencies and blockchains is on the horizon.
I ask you all to take a look at the last five years of AAA video games and take stock of the trends that have come out as a result: loot boxes, overpriced skins, and “ultimate pre-order edition XYZ”. The gaming industry refers to these as mechanics, but we know it as literal gamified gambling. The issue at hand is that AAA game developers have constructed a nasty habit of charging the gamer more than ever before for far less. Video games used to come with both a single player and multiplayer game modes. The current trend is to forego single player because online is more popular. Naturally, this is not the case, and we have Counter Strike: Global Offensive to partly blame for this.
CS: GO is responsible for popularizing in-game items that can have both incredible value through its scarcity, skins. That’s right. The color and texture of a gun can now be worth hundreds, if not thousands, of dollars. These items cost absolutely NOTHING to create; skins are the bare bones of what makes a gun in an FPS. The AAA studios found a way to monetize digital assets and accidentally created the infancy of what gaming with NFT’s would look like. GameStop aims to wedge themselves right in the middle of that niche market of gamers and commodities by creating a partnership with Immutable and Loopring; effectively laying the foundation for developer and player to form a new relationship between in-game assets and their creators. While it may sound confusing to the average gamer who has absolutely no interest or foreknowledge of NFT’s or Ethereum blockchain, the end result is that in-game assets from skins to items will actually belong to the player instead of the AAA studio.
Gold ain’t for everyone. Image by C. A. Ramirez
Why would I want to own an in-game asset?
The answer to this question is another question: “why wouldn’t you?”. Imagine this concept applied to a single player game, like Skyrim. With GameStop’s NFT Marketplace, it would be possible for players to buy and sell their rare in-game assets to other players. The casual player who doesn’t have time to play and find these rare items could simply buy or trade with another player for improved items or rare ones. Every transaction has a portion of the profits go back to the developer and to GameStop. The rest belongs to the players. Video games have always been their own worlds that many of us escape to for relief from our work. Now that NFT’s and gaming are being combined, we are looking at opening a new avenue of employment where gamers can game as a profession, to supplement income, or to simply amass a collection of in-game items that could become a store of value.
The unification of gaming and commerce is not a new concept, but empowering the player so that they are a key part of that economy is. Indie game developers stand to benefit from this ecosystem by having direct access to a player base that can now benefit directly from their efforts. The Ethereum blockchain enables the use of smart contracts that can bridge the gap between developer and player, a relationship obscured by game publishers. Power to the Players, Power to the Creators, Power to the Collectors – this is the statement that you will find when you visit GameStop.com, and it should encourage and inspire every gamer to familiarize themselves with NFT’s, Ethereum smart contracts, Layer 2 FIAT on/off ramps, and the metaverse.
The future is not around the corner; it is already here. Revolutionary concepts are going to create incredibly lucrative frontiers for video game developers, players, content creators, and collectors alike. The pandemic has chased away tens of thousands from cramped cubicles and stifled offices into the path of a freight train with weird cryptographic symbols. There are millions more who are searching for something to call their own, searching for new experiences, meaning, and purpose. The metaverse, NFT’s, and video games are an odd trio to rest your hope of the future upon, but these technologies have evolved and are now working in concert to produce that rare moment that seems so rare these days: opportunity.
