NFTs and Blockchain Technology for Digital Rights Management in Online Games

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If you are closely following the progress of digital space, you must be familiar with NFTs and Blockchain. These technologies have been getting all the attention for the past few years.

NFTs are unique digital assets stored on the blockchain, used to authenticate the ownership of a particular asset or digital content such as an image, music, video, or any other form of digital media. NFTs use blockchain to produce unique, one-of-a-kind, and indestructible digital certificates stored on a decentralized network. Additionally, NFTs allow users to be the sole owner of an asset by creating a smart contract. This way, the owner gets all the rights to a particular digital asset. Hence, NFTs provide a real, permanent, and unalterable record of ownership.

Blockchain technology provides a safe, secure, and transparent platform for managing these digital rights, making it an ideal solution for the gaming industry. It allows for the creation of NFTs that represent digital assets such as game items, characters, and in-game currencies. These NFTs can be bought, sold, and traded among players, providing a new way for gamers to monetize their virtual assets. New Web3 and blockchain based games are continuously dropping out and becoming players’ favorite.

In this article, we will learn why NFTs matter for digital rights management and the uses of NFTs for digital rights management in online games.

Credit Freepik

What are The Advantages of NFTs for Digital Rights Management?

The advantages of NFTs for digital rights management include the following:

  • Unique and Non-Fungible: Non-Fungible means something that cannot be replaced or altered. Hence, NFTs are unique, irreplaceable, and cannot be replicated. This provides a permanent and unchangeable record of ownership for digital assets.
  • Verifiable Rights and Ownership: The primary use case of NFTs include verifiable and secure digital rights and ownership tracking. As a result, piracy, theft, and copying are considerably reduced.
  • Monetization: NFTs allow creators to monetize their assets in new, innovative ways. They can earn by selling or even upgrading their possessions. Owners have more control over their possessions and use them however they like.
  • Transparency: Using blockchain technology, NFTs allow for secure and transparent transactions and decrease the risk of fraud and theft.
  • Enhanced User Experience: NFTs can improve the user experience by giving them a greater sense of ownership and investment in digital assets, creating a more immersive and engaging experience.
  • Decentralization: Since blockchain is a decentralized network, it means that no third parties or intermediaries are involved in the process. It makes your NFT assets less susceptible to censorship and cannot be controlled by any other body except the owner.
  • Interoperability: NFTs are interoperable as they can be used across different platforms and applications. This allows users to create, trade, and manage digital assets efficiently.

What are the Uses of NFTs for Digital Rights Management in Online Games?

NFTs and online gaming have the potential to produce unlimited benefits for players. Here are some of the ways we can use NFTs for digital rights management in online games:

NFTs are used for digital rights management in online games by giving players control and ownership rights of unique in-game assets, for example, weapons, skins, characters, avatars, or others. Players can quickly sell, trade, buy or use these items as collateral for other transactions, just like we do with physical items in the real world.

NFTs allow game developers and players to create new revenue streams and create a greater sense of ownership and investment in the game. It helps create a thriving virtual economy where unique and rare in-game items are highly in demand.

NFTs also prevent fraud and cheating in online gaming and promote game investment by providing a transparent record of ownership for all assets.

What are the Examples of NFT-based Online Games?

Online gaming allows players to play and interact with each other in real-time. These games are becoming increasingly popular as earn-to-play and skill-based games have caught the attention of investors and NFT enthusiasts.

Several great NFT-based online games allow users to manage digital rights:

  • Decentraland: This game will be your favorite if you love playing with others. It includes a virtual world where you can buy, sell, trade, and build property on the land. You can use NFTs to represent in-game assets as NFTs.
  • Axie Infinity: In this game, players are able to create unique characters called “Axies.” These in-game characters work as NFTs, and the users can buy, sell or trade them easily.
  • NBA Top Shot: Users can purchase and trade officially licensed NBA highlights represented as NFTs.
  • Rarible: This game works as a marketplace for NFTs where users can buy, sell and trade all types of digital assets, including in-game items. 

These games demonstrate how NFTs can be used to provide secure and transparent ownership for in-game assets, creating a thriving virtual economy and enhancing the user experience. It lets you see how digital money can make a difference and how ownership of digital assets can earn you only by playing games.

NFT-based digital rights management is becoming increasingly popular in online gaming and is likely to grow as more games adopt this technology.

Are there any Challenges to Using NFTs for Digital Rights Management?

The following are some of the challenges that can be faced when managing digital rights in online games:

  • Technical Complexity: NFTs and blockchain technology can be difficult for some users to understand and use, leading to a slower adoption rate.
  • Scalability: The current infrastructure for NFTs and blockchain technology may not be able to handle a large volume of transactions, leading to slow and costly transactions.
  • Regulation: The use of NFTs and blockchain technology is still a new field, and many jurisdictions lack a clear regulatory framework. This can make it difficult for creators and users to protect their rights and comply with the law.
  • Environmental Concerns: The energy consumption required for blockchain technology, including NFTs, can be high and have negative environmental impacts.
  • Market Volatility: The value of NFTs can be highly volatile, making it difficult for creators and users to accurately assess their worth and potential returns.

Still, these challenges are not as serious as the use cases NFTs are offering in digital rights management. Despite these challenges, the use of NFT games such as Axie Infinity is making headlines for digital rights management. NFTs are growing and will likely evolve as the technology improves and becomes more widely adopted.

NFTs and Blockchain Technology for Digital Rights Management in Online Games is written by Bash Sarmiento for

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