Splinterlands and the blockchain video gaming revolution based on NFTs.
The Splinterlands video game, previously called Steemmonsters, is a blockchain based video game the utilizes Nonfungible tokens as a core component of ownership of in game characters and various game components. The use of these special type of cryptocurrency tokens called non-fungible tokens enable video game players to own the game accessories they work so hard to earn in the game. This ownership allows players to both sell and rent the valuable game characters as a vital part of the micro-economy inside the Splinterlands video game. This allows players to profit from the time and effort they put into playing video games. This is truly revolutionary, and for many Splinterlands players all over the world it has been life changing.
Fungible and Non-fungible tokens
First in order to understand non-fungible tokens it's good to understand what are fungible tokens.
- Bitcoin and Hive are technically known as fungible tokens.
- That word Fungible means that each Bitcoin is worth the same as any other and they are interchangeable, just like you and I can exchange dollars we have in our wallets, because they are interchangeable or the same.
- Non-fungible Tokens or NFT’s are different, in that each is created to be unique, or to represent something unique.
- They can describe an entire object or a specific piece.
- For example an NFT could represent your entire body or a piece of it, like your right arm or left leg.
- The NFT for your arm would differ from the one for your leg and they would not be interchangeable, just like your arm and your leg are not interchangeable.
- Nonfungible is a long word and not easy to say, so a popular abbreviation for it has developed and it is NFTs. Which is pronounced Nifties
Video game assets can be changed to non-fungible tokens or NFTs
In your normal video game you win items.
- These can be clothing, armor, swords, bows, arrows, guns, knives and various other things, which are valuable in the game.
- But these things are software constructs, which don't exist outside the game and frequently can't be transferred from your old character to your new character.
- They certainly can't be transferred to another player the majority of the time and although they may represent hours of game play to earn these in game items you don't own them and can't sell them.
- However, if those items and the game they are in were on a blockchain, those items can be represented digitally as NFT tokens and you could own them.
- Once you have ownership, you can buy and sell these unique in game items.
- But some in game items are so common that they have no value, but others are rare and are valuable to other players to use in the game or as collectibles.
- For these items it is perfect to represent them as non-fungible tokens or NFTs.
#Tokenization is the process of converting rights of an asset into a token that can be subdivided, traded and stored on a blockchain system.
- Once the asset has been tokenized or more precisely, the rights of ownership of that asset tokenized, the asset ownership rights can be bought or sold.
The in game economy and earning opportunities
Video games based on a blockchain can tokenize items from the game like clothing, armor, weapons or other items which have utility or value.
- Tokenizing these game items means the player becomes the owner of the item and can transfer it to a wallet or inventory.
- Then the player can use it on other characters or trade it to other players for other items or for a in-game currency.
- This allows the player to accumulate items of value while playing and sell them for in-game currency at the games end.
- If the in game currency has value outside the game, like Hive, Dec or SPS tokens, players could use it to buy real things like food, clothing or pay bills like their rent.
- This revolutionary new economy is made possible by the tokenization of game items into non-fungible tokens and the in-game currency.
Cryptocurrency and the blockchain are transforming the world around us.
People talk about the adoption of cryptocurrency and the blockchain as if it’s a future event where everybody will wake up one day and decide to use cryptocurrencies and Blockchains. I think mass adoption is a gradual process, like the adoption of the Internet. It started out slow and will spread silently until one day we will wake up and wonder how we ever got along without it.
The End…for now.