Research Summary
The article critically examines the concept of ownership in the context of Web3 gaming. It argues that while blockchain technology allows for the permanent ownership of in-game assets, the reality is more complex. The article presents three main arguments: 1) NFTs only validate ownership of game assets, not the visuals, which are stored in the game’s centralized database. 2) Web3 game developers can nerf or weaken NFT game assets, affecting their value. 3) The ability to trade NFT assets at multiple marketplaces is being challenged by the NFT marketplace war.
Actionable Insights
- Understand the Limitations of NFTs: NFTs validate ownership of game assets, but not the visuals. If a game shuts down, the visuals are lost, leaving only the title.
- Monitor Game Developer Actions: Web3 game developers can nerf or weaken NFT game assets, affecting their value. They can also mint copies of NFTs or new collections, diluting the value of existing assets.
- Stay Informed on Marketplace Developments: The ability to trade NFT assets at multiple marketplaces is being challenged by the NFT marketplace war, affecting where and how assets can be traded.
