Google has recently announced that it will allow the advertising of non-fungible token (NFT) games on its platform, as long as they do not involve gambling or other illegal activities. This is a significant development for the NFT gaming industry, which has been growing rapidly in popularity and innovation.
NFTs are unique digital assets that can be verified and traded on a blockchain, such as Ethereum. They can represent anything from art and music to virtual items and characters in online games. NFT games are a type of blockchain-based game that use NFTs as in-game assets, such as weapons, skins, pets, or land. Some examples of popular NFT games are Axie Infinity, CryptoKitties, and Decentraland. Unlike traditional gaming assets, NFTs are not interchangeable, meaning that each one has its own value and identity. NFTs are also stored on a blockchain, a decentralized ledger that records transactions and ensures security and transparency.
Nft gaming has many benefits for both gamers and developers. For gamers, NFTs offer a way to own and trade their gaming assets across different platforms and games, as well as to prove their ownership and authenticity. NFTs can also create new gaming experiences, such as metaverses, where gamers can explore, socialize, and create in virtual worlds.
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For developers, NFTs can provide a new source of revenue, as they can sell their gaming assets directly to gamers or through marketplaces, without intermediaries or fees. NFTs can also enable developers to create more engaging and immersive games, as they can leverage the blockchain technology to create dynamic and interactive gaming environments.
Nft gaming is still a nascent industry, but it has already attracted a lot of attention and investment. According to a report by DappRadar, the total volume of NFT gaming transactions reached $2.3 billion in the first half of 2021, a 111% increase from the previous year. Some of the most popular NFT gaming projects include Axie Infinity, a game where players breed and battle fantasy creatures; CryptoKitties, a game where players collect and breed digital cats; Decentraland, a virtual world where players can buy and build on parcels of land; and NBA Top Shot, a platform where fans can buy and sell video highlights of NBA games.
Google’s decision to permit the promotion of NFT games is a reversal of its previous policy, which banned all ads related to cryptocurrencies and blockchain technology in 2018. The ban was intended to protect consumers from scams and frauds involving digital currencies and tokens. However, Google has since relaxed its stance and allowed some exceptions, such as ads for cryptocurrency exchanges and wallets that are registered with relevant authorities.
According to Google’s updated policy, NFT game developers and publishers can apply for certification to run ads on Google’s network, which includes YouTube, Gmail, and Google Search. The certification process requires the applicants to comply with Google’s advertising policies, as well as the legal requirements of the countries where they operate. One of the key criteria is that the NFT games must not facilitate or promote gambling or other illegal activities, such as money laundering, terrorism financing, or human trafficking.
Google’s move is seen as a positive sign for the NFT gaming industry, which has been facing regulatory challenges and uncertainties in some jurisdictions. For instance, in the UK, the Gambling Commission has warned that some NFT games may fall under the definition of gambling and require a license to operate legally. Similarly, in China, the authorities have cracked down on cryptocurrency-related activities and banned the trading of NFTs on e-commerce platforms.
Nft gaming is not without challenges, however. Some of the main issues facing the industry include scalability, interoperability, accessibility, and regulation. Scalability refers to the ability of the blockchain network to handle the increasing number of transactions and users without compromising speed or performance.
Interoperability refers to the ability of different platforms and games to communicate and exchange data with each other. Accessibility refers to the ease of use and adoption of NFT gaming by mainstream gamers and audiences. Regulation refers to the legal and ethical implications of NFT gaming, such as taxation, intellectual property rights, consumer protection, and environmental impact.
Nft gaming is a new frontier for the gaming industry that has the potential to revolutionize the way we play, create, and monetize games. As the technology matures and the market grows, we can expect to see more innovation and diversity in NFT gaming projects and applications. Nft gaming is not just a trend or a fad; it is a paradigm shift that will shape the future of gaming.
By allowing the advertising of NFT games, Google is acknowledging the legitimacy and potential of this emerging sector, which is expected to grow further in the coming years. According to a report by NonFungible.com and L’Atelier BNP Paribas, the NFT gaming market generated over $1 billion in revenue in the first half of 2021, up from $71 million in 2020. The report also predicts that NFT gaming will become a mainstream form of entertainment and social interaction in the future, attracting more than 500 million players by 2025.