NFTs are the latest rage within the cryptocurrency industry and they have hit headlines for a number of positive reasons recently, however, what are they and can they have a positive impact on the gambling industry in the future?

What is an NFT?

Whilst NFTs are currently being spoken about all around the world and in all corners of the internet, it is important to actually be able to understand what they are and how they can be used by individuals that hold them. An NFT stands for non-fungible tokens and these are incredibly popular assets that live on the blockchain network. This means each one is digitally unique, thus making them unable to be traded like traditional forms of cryptocurrency available on the blockchain can be.

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What have NFTs been used for so far?

Recently, there have been a number of large-scale purchases that have taken place using this seemingly new technology, with gifs and artwork being amongst the assets to have been sold recently via this method. In fact, these digital assets have been able to sell for an incredible amount because an NFT will provide individuals the permanent ownership of the piece that has been purchased. The market and their use has continued to expand recently, with there having been evidence that the iGaming market could be the next industry to benefit from their availability in the near future.

How will NFTs have an impact on the iGaming market?

Evolution Gaming is one of the biggest casino game developers in the world currently, and they appear to be leading the way in introducing NFTs to the industry, as they recently announced that they had purchased four of these tokens – known as CryptoPunks. This will be used as prizes for their slot machine games, with many of them available to play at bitcoin casino Winz.io. Having spent a total of 86 Ethereum on the four NFTs (a total thought to be worth just slightly over $160,000 at the time, Evolution Gaming revealed that they had planned for these tokens to be available as prizes on their NFT Megaways slot game as they look to test out how it will work and whether it is a route they can continue to go down in the future.

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There could be some drawbacks or teething issues faced

Naturally, there will always be a number of challenges that will need to be faced when something new has only just been introduced to a market and the possibility of providing NFTs in the iGaming industry is certainly one that will have its own issues to face head-on. For instance, one of the first factors that could make it a rocky road for these tokens to succeed within the gambling sphere is that there is only a very few games currently exist, whilst only a handful are still in the developmental stage.

Additionally, there could be some concerns regarding the scarcity of the non-fungible tokens, as this could send the value of the assets into a state of flux at times, which could make it difficult for businesses within the iGaming industry struggling to adopt the right strategies.

Conclusion

However, when looking at the positives that these assets can provide, there is no doubt that NFTs have a very promising future within the online gambling sphere and one that can flourish when the right strategies are adopted. They will not change the overall gaming experience, which is what a lot of players will have been concerned with, whilst they can also potentially offer a lot to the industry in the future. Regardless, it will be interesting to see what happens in the future, but if Evolution Gaming has already decided to test the market and see what kind of future NFTs have, it would not be a surprise to see other developers test the waters, as well.