Do NFTs create value in games? A closer look at three key perspectives
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The introduction of blockchain technology into video games, especially through Non-Fungible Tokens (NFTs), has reshaped how in-game economies function.
NFTs allow players to own unique digital assets, but does this ownership truly create value in games?
According to Alesha Serada’s research at the University of Vaasa, there are multiple ways to understand the value NFTs bring to games—and it’s more complex than just owning rare items.
Serada’s doctoral dissertation explores the value of NFTs in games, using CryptoKitties as a case study.
CryptoKitties is one of the first and most famous blockchain-based games, where players collect and breed virtual cats represented as NFTs.
This game offers valuable insights into how NFTs create, or fail to create, value in gaming communities.
When blockchain was introduced into gaming, many believed it would empower players by granting them true ownership of in-game assets, independent of game developers or publishers.
The idea was that players could buy, sell, and trade items, like characters or skins, freely, unlocking new economic opportunities.
However, after eight years of blockchain’s integration into gaming, the promise of NFTs revolutionizing the industry has not been fulfilled. Few blockchain games have gained widespread popularity, and many of those that have are often criticized for lacking real value to players.
According to Serada’s research, the true value of game items doesn’t just come from their rarity or price, as many blockchain games emphasize.
Instead, it comes from the social interactions and relationships formed within the gaming community.
For example, CryptoKitties succeeded in building a friendly and active community, which helped the game survive during difficult times in the cryptocurrency market, known as “crypto winters.”
Serada introduces a model that highlights three ways value is created in games:
- Designed Value: The value created by the game’s developers when they design game items.
- Subjective Value: The personal value that individual players attach to their items.
- Collective Value: The value created by the community of players interacting with each other.
The third type, collective value, is the most important and sustainable way that games generate value. However, most blockchain-based games, including NFT games, struggle to create this kind of community-driven value.
Serada’s research also provides a decision flowchart to help game designers determine whether NFTs in their games truly offer value or are merely gimmicks.
While the future of NFTs in gaming remains uncertain, the research encourages game developers to focus on fostering strong communities rather than relying solely on artificial scarcity or ownership models.
