The qualities of non-fungible tokens (NFTs), including digital scarcity, immutable persistence, and transferability on a blockchain, make NFTs an attractive technology to integrate into video games. NFTs have been implemented into video games as in-game assets, transferable characters, and even as a means of rewarding players with cryptocurrency, and the recent success of Web3 games will likely lead to more games incorporating NFTs and related blockchain technologies. Before utilizing NFTs, video game developers should consider what rights are being granted when designing NFTs, as the mechanics of the NFTs may have legal, economic, and possibly regulatory ramifications.
Here are some key considerations for video game companies that are interested in integrating NFTs into their games:
1. NFTs as a Basket of…
