Youngsters have always been lured into making a quick buck. The decentralized nature and volatility of digital assets like cryptocurrency and NFTs appeal to Generation Z.
Investing and trading have become a trend nowadays. If your friends or people you surround yourself with regularly discuss the latest news on crypto and NTFs, you’re likely to understand this topic more and consider investing in them sometime in the future.
However, whatever your perspective on virtual assets is, this topic is exciting and is here to pass the test of time. Keep reading and see what non-fungible tokens and cryptocurrency are, why Gen Z has a soft spot for blockchain and NFTs, and how they’re impacting the gaming industry.
What are NFTs, and what makes them unique?
Fungibility is an economic term that refers to the lack of uniqueness of certain interchangeable goods. For example, if you were to trade a barrel of oil or banknote for another, they’d be indistinguishable. But were you to have a banknote signed by a celebrity, that signature would make the asset distinguishable, likely increasing its value. Thus, non-fungible tokens are one-of-a-kind tokens that can’t be duplicated and only exist on a blockchain.
These and cryptocurrencies use blockchain technology, so they’re typically secure. There is one security risk to remember – you lose access to your NFTs should the hosting platform go out of business.
You can buy NFTs via online NFT marketplaces, but you can’t pay for them with anything but Ether. Therefore, to get hold of NFTs, you have to check the Ethereum price USD, purchase some Ether, store them in a digital wallet and then buy NFTs.
What are some famous examples of NFTs?
Non-fungible tokens can represent any digital asset, like online-only ones, and real assets like real estate. Nevertheless, it’s safe to say that some of the most significant projects the NFT world has seen are CryptoKitties, CryptoPunks, and Rare Pepes.
Cryptokitties debuted in November 2017 and are perhaps the most well-known application of NFTs. They’re digital representations of cats with unique identifiers on Ethereum’s blockchain. Every kitty is one-of-a-kind and has a monetary value in Ether.
CryptoPunks is one of the earliest NFT collections, and there are no less than 88 Cryptopunks on the market. Zombie CryptoPunks come from this collection and are among the most famous NFTs so far. They have an exorbitant price tag due to a purchase made by Keyboard Monkey, who bought and sold the Zombie Punk within a day, making a profit of almost 1M dollars. Many called this event the height of zombie NFT trading. Those days, around this time, the major investor Cozomo de’ Medici showed up.
Nevertheless, there are more examples of famous and widely traded digital artwork which can take the form of NFTs, such as:
- Event tickets
- Domain names
- Digital and non-digital collectibles.
What is a cryptocurrency, and what are the most popular digital coins?
Cryptocurrency is a digital means of transfer and takes the form of any virtual coin. It’s secured through cryptography and has a decentralized system that issues new units and records transactions. These digital coins don’t need a regulating authority or central issuing, which has led to cryptocurrency’s fame and popularity.
The most common cryptocurrencies are utility and payment tokens, but there are more popular examples besides these:
- Security tokens
- DeFi tokens
How does cryptocurrency work?
They’re not controlled by central regulatory authorities or government and work outside the banking system, using different types of coins or brands, with Bitcoin and Ethereum being the major players.
Digital coins are typically generated through a process called “mining”, which requires miners to solve mathematical, complex puzzles with specially equipped computer systems in order to be rewarded virtual coins.
Nevertheless, some upgrades occurred in September 2022, when The Ethereum Merge took place and changed the face of blockchain. Miners now have little to do with their GPUs because mining is no longer necessary for producing ETH blocks.
What’s blockchain gaming?
Unsurprisingly, blockchain technology is impacting the gaming industry, switching games from fun to play to earn. The number of blockchain games released recently has skyrocketed, especially since businesses that want to make decentralized gaming apps can now access this technology.
The 3 billion gamers worldwide and the gaming industry are set to benefit from cryptocurrency and create actual item ownership because gamers get stuck with in-game entities pretty often.
Blockchain gaming suits gamers who value customized gaming items and uniquely developed characters. This technology allows gaming items to be traded on platforms or transferred from one gamer to another. Users are, therefore, hooked on blockchain gaming due to this distinct feature, because they’ve long yearned to own game assets while playing independently.
Now, blockchain enthusiasts from Gen Z stand more chances to understand the greatness of gaming and develop a fondness for this not-so-leisure-time activity. This trend is exemplified by trading many valuable and unique NFTs in the gaming industry, meaning that blockchain plays an increasingly prominent role in this regard.
The market trends for the gaming industry are the following:
- Play & earn
- Cloud gaming
- Virtual tournaments and events.
Is blockchain transforming the gaming industry?
Blockchain games employ a decentralized model, allowing players to own their game profits and apply them to other crypto games. NFTs are used in blockchain games to create unique rules, characters, items, and more. Many blockchain games allow players to earn cryptocurrency using a play-to-earn model.
When thinking of the gaming industry’s modest inception, the Super Mario game played on your console might be all that strikes you. Nevertheless, Gen Z is now witnessing major, world-changing technology advancements, with pretty much everything possible virtual. They’re so accustomed to living life online nowadays that it can be overwhelming.
Young people have always been enticed by quick and easy money, but what draws Gen Z to crypto and NFTs, besides decentralization, are the numerous technological developments that come with it. A good example of a much-desired advancement is the possibility to become wealthier while playing online games.