Web3 and NFT games have now become a growing topic of conversation among netizens. Play-to-earn has built a whole new paradigm for generating real-world value from gaming items and digital commodities through the use of non-fungible tokens (NFTs), which are based on blockchain technologies.
Therefore, people who are inclined towards gaming have now entered NFT space with the help of NFT gaming vibe. Since play-to-earn titles are now generating latest buzz with the help of NFTs to attract Web3 enthusiasts, startups and investors.
Risks:Some risks associated with Web3 and NFT gaming ecosystem that should be considered are listed below.
Web3 have led to the next level evolution of internet by making use of the blockchain technology. Therefore, the web3 encircles categories such as crypto-currencies, non-fungible tokens (NFT), decentralized finance (DeFi) and decentralized autonomous organization (DAO). Because the legal environment surrounding crypto-currencies is still unclear, having clarification on the legality and classification of virtual digital assets is critical. Despite the regulation risks, the investments continue to happen in India resulting to robust growth of the Web3 ecosystem.
As we all have witnessed remarkable growth of Web3 space, the upcoming crypto bill will result in adding a layer of legitimacy to digital currencies in India. According to the government’s latest income tax guidelines handed down in the recent budget. the profits on crypto transactions will either fell under business income or capital gains depending on the nature of transaction and tenure.
Therefore, it is a huge relief to see the Indian government adopting a more progressive approach to innovation. And by bringing in taxation the government will legitimize the industry to a large extent.
Rug pulls in Crypto space
Frauds and scams happen in every industry, so does in the crypto space. The pump and dump schemes commonly known as rug pulls takes place when developers illegally takeoff investor money and abandons the project after allocating a huge amount to a fake crypto project. Thus, such projects are generally created by people with malicious intent. Hence it is important for investors to do a detailed background check before investing in any project and be very much aware of cyber criminals who intend to drain out the invested money.
Experienced team is better than young teams
Young talents do have a lot of potentials, but when it comes to such an uncertain industry such as web3 one should always opt for experienced people. Therefore, when companies hire young people working on their first ventures face lack of needed experience causing additional burden to the managing community that further result in project fails.
As a result, many Web2 companies are looking to transition to Web3 but fail to understand that Web3 is a completely different ecosystem and not only is the tech different, but the core values of community are different and hence product thinking has to be driven from a very Web3 native perspective.
Rewards:Web 3.0 and NFT gaming in general provide a slew of advantages, especially as the industry grows in popularity and creativity. The following are some of the primary incentives or perks they offer to excite content creators, users, collectors and fan communities.
Great engaged community
On many levels, the Web 3.0 ecosystem is distinct, but the most important is the community-level interaction that is drawn from the space’s underlying values. The NFT community is a place where people engage their time by sharing and working on ideas, as well as supporting and investing in one another’s projects. A good example of an interconnected NFT community is the Bored Ape Yacht Club, which is a club for people who have the same type of NFTs.
Ecosystem grows exponentially when it works
Yuga Labs (owner of Bored Ape Yatch Club) just raised USD 450mn. The company was founded only a year ago, in 2021, and given the huge success of the NFT space, it’s remarkable how quickly some of these ecosystems can grow. Since many of such projects are successfully utilizing blockchain technology for a long time therefore they have created this community of creative content creators, collectors and loyal fan base. At the same time, significant influencers and industry figures in related industries are progressively identifying and betting on the Web3 & NFT space, creating much-needed buzz among their followers and the public.
Massive profits to be made
Crypto Punks were created for free (only needed to pay gas fee) and are now worth millions of dollars. NFT buyers and investors have made a lot of money, and it has transformed their life entirely. When Beeple’s NFT sold for $69.3 million last year, it transformed the way the world looked at digital collectibles.
There are numerous ways to profit from NFTs, including creating and selling your work, which can include art, music, memes, audios, and videos, as a digital asset as NFTs. One can also trade NFTs by buying and selling them at a profit, which necessitates a thorough understanding of the piece in order to profit from resale in the future.
Another way to profit is to play blockchain-based games, which allow you to buy in-game items in the form of NFTs, which can then be traded in the secondary market to make money. CryptoKitties is one such game, and its NFTs are currently extremely valuable in the market.
NFT games, such as Axie Infinity, process billions of dollars in transactions each month and provide a sustainable income for many gamers. This is very popular in the Philippines.
When gamers purchase in-game assets as NFTs, they gain ownership and portability, allowing them to move them to wallets and trade them with other users or, more likely, between different games. As a result, gamers have the ability tocapitalise on supply and demand in the secondary market and monetize their digital assets.
Finally, the Web3 and NFT space has already made a lot of noise in the world, and there are a lot of prospects for ordinary people like you and me. It also spawned a fair portion of the benefits and concerns that come with Web3.0 and related digital collectibles. Hence, it is up to you to weigh the benefits and drawbacks before entering this ecosystem in search of opportunities.
Views expressed above are the author’s own.
END OF ARTICLE