I’m behind the times. What’s does this have to do with gaming future? Got all lost way backwith bitcoin and any online currency. It doesn’t make sense to buy digital items/pixels, or play hours for a chance to get and sell at a profit.
I’m not sure what i was reading to research. Thought “fungible” was a typo at first!! Lol Then thinking fungus is more appropriate, or pyramid scheme. Why is S-E doubling down on an idea from what I could gather crashed in the last few years?
As you can see my knowledge on this is naturally imperfect and full of the holes where I don’t understand how it works or why anyone but the already rich would get involved. Or what it has to do with video games.
I don’t know the proper definition of the word “fungible” , but the general concept with NFT’s in video games is for the publisher/developer to sell digital goods at a higher price because they are of limited quantity. That limit is completely artificial as well. basically each item gets a digital serial number to show its “uniqueness” , but they can make as many as they want since its all digital, but the lower the quantity, the more they are likely to charge.
Its FOMO BS. no one needs limited edition digital items… but knowing how people covet rare items in wow, i could see it being profitable by taking advantage of folks with more dollars than cents.
Non-fungible means fungible, meaning they are susceptible to being funged, which… I’m sorry, got carried away there. It’s supposedly a way of “owning” a digital asset, but all you really own is a link to it, and it’s vulnerable to disappearance and not actually worth what they claim.
Fungibility basically refers to the liquidity of an asset. A non-fungible asset is one that’s less exchangeable. For instance in WoW you’d usually rather have 20,000 gold worth of leather than you would say a BoE leather helm worth roughly the same, because it’s much easier to exchange the leather for gold because it sells much quicker and therefore has a higher liquidity. A modified good is usually less fungible than a raw good. Hope this helps.
Fungible is like a work of art. Works of art are easily exchangeable and it doesn’t matter who created it. Prints of the Mona Lisa are fungible. They are all the same.
Non-Fungible is a specific original work of art, like the Mona Lisa. There is only one original work and it can generally be traced back to its creator.
A non-fungible token (NFT) is a type of digital asset that represents ownership of a unique item or piece of content. They are called non-fungible because they cannot be replaced or exchanged for other tokens or assets in a one-to-one manner like a dollar bill can be exchanged for four quarters. Some examples of non-fungible tokens include collectible items in online games, digital art, and even tweets.
One key feature of NFTs is that they are stored on a blockchain, which is a decentralized, digital ledger that records transactions across a network of computers. This means that NFTs are unique, verifiable, and cannot be counterfeited or altered.
Some people buy and sell NFTs as a form of investment, similar to how some people collect physical art or other collectibles. Others use NFTs to own and share unique digital content, such as music or videos. There are many different platforms and marketplaces where you can buy, sell, and create NFTs.
Credit: I asked ChatGPT to explain the basics of non fungible tokens (NFT) in layman’s terms.
Can you give examples of NFT applications in the context of video games?
There are many ways that non-fungible tokens (NFTs) are being used in video games. Here are a few examples:
In-game items: Some games allow players to purchase or earn NFTs that represent in-game items such as weapons, clothing, or accessories for their avatar. These NFTs can often be traded or sold on third-party marketplaces.
Collectibles: Some games feature NFTs that represent unique collectibles, such as rare characters or special edition items. These NFTs may be harder to obtain and may be more valuable to collectors.
Virtual real estate: Some games allow players to purchase NFTs that represent ownership of virtual real estate, such as a plot of land or a virtual home. Players can then build or customize their virtual property and potentially sell it to other players for a profit.
Art and music: Some games feature NFTs that represent unique pieces of digital art or music created by the game’s developers or other artists. These NFTs can be collected or traded like traditional art or music.
Overall, NFTs are a way for game developers to create new types of content and experiences for players, and for players to own and trade unique digital items within the game.
It’s also the interchangeability of an asset. One piece of leather is just like any other piece, but the leather that was put into the helm is now not interchangeable with other leather. In the real world, crude oil, for example, is roughly fungible – one barrel of crude is (excepting technical things like “light” and “sweet”) much like any other barrel of crude. One dollar is exactly like any other dollar. But if you exchange some dollars for a Beanie Baby, then suddenly those dollars aren’t as fungible, because the Beanie Baby is of interest to fewer people (not as liquid, as you say).
I’ve played sketchy F2P MMO’s with loot boxes and extremely rare/scarce mounts/skins where only like 5 people have them and they cost a fortune as a result.
Nothing. It’s a stupid scam that some developers thought they could start pushing into their games, but have now been ridiculed into backing off. Except for square enix apparently. They want to keep riding that wheezing mule until it topples into a ravine.
Anyone who tries to tell you it’s not a scam is either in on it, or they’ve been duped by it.
It is stupifying that as a species we’d go out of our way to create scarcity instead of eliminating it and making share-alike and open licenses the baseline. But that’s humans for you.
Anyway, I think the big thing to understand what differentiates a NFT from your run of the mill JPEG is the concept of fungibility itself.
A fungible asset is one that can be replaced or exchanged for another asset of the same type and value. For example, money is a fungible asset because one dollar can be exchanged for any other dollar. Other examples of fungible assets include commodities like oil, wheat, and gold. It doesn’t matter what dollar or what pint of oil you get: they’re all the same.
Non-fungible tokens (NFTs) are a type of digital asset that are not interchangeable in this way. On a blockchain ledger, each NFT represents a unique item or piece of content, and as a result, it cannot be replaced or exchanged in a one-to-one manner like a fungible asset can.
Look, I work with the stuff and even I think it’s patently stupid for 99% of the current use cases in digital art. It’s basically an overengineered way to assign a really, really, really, pinky-swear we promise it’s unique, unique ID to one item of digital content.
