Part 2 - NFTs, Collectible and Game Economy
In my previous article, I outlined the basic concept around NFTs in order to help newcomers understand this emerging space. Here are four key points;
1) NFTs are non-fungible. They can’t be equally exchanged even if they look alike. Each NFT is unique.
2) There are two main categories within NFTs. There are Utility Tokens and Security Tokens. Utility tokens primarily are used for collectibles and in-game economies. Security tokens are often associated or tied to real world assets and often followed by stern regulations. See recent Youtube video from VID-T and Rolex watches.
3) NFTs are transparent. You can see transactions on what is called block explorers.
4) NFT are disrupting traditional finance. As the NFT market continues to grow and adapt, and as new participants from both categories begin to see the value of these tokens many more will join this ecosystem.
In this part 2/2 article I will focus on Utility Tokens (collectibles and in-game economies) geared around the simulation property trading game Upland.
If you are unfamiliar with Upland, it is a property trading game where each parcel/lot is mapped to real world addresses. As a player you use your game avatar known as Block Explorer (not to be mistaken for block explorer on the blockchain) to browse for properties you find of interest and value. Each parcel is an in-game NFT. Each marked by a unique address, border, size and value. Imagine owning a digital/virtual version of a well-known property that’s a business, landmark or a famous home.
If that’s not possible then can you imagine building your very own home on top of the parcel you purchased. Design as you like (at a later date) with maybe a gallery or a garden. Then real soon, sell that home for either in-game currency called UPX or for traditional money USD. Plus, later on, you will have the ability to run your own business after you obtain a business license – of course lol. Perhaps even a business tied to a real world establishment. These are just a few ideas the Upland team is in the works of developing.
But what does this have to do with NFTs?
Many blockchain games use NFTs as a means of managing something like a portfolio of assets. I will use common stocks loosely as a comparison only because it is a category many people are familiar with.
Say I bought a few stocks from an exchange. I have a portfolio of assets (more related to securities).
They go up and down in value over time. I can sell or buy more. Each stock is unique but not transparent. There is no way for me to SEE what is going on behind the scenes. Nor can I build on top these securities and in regard to governance the option to vote is limited.
In Upland, I have a few properties (in-game NFTs) that generate a percentage yield per month. A higher yield if you are the first owner or that yield radically changes if you are second or above owner.
With an opportunity to increase your yield if your property is part of a collection.
As the program develops, with structures and businesses, in theory so will the value of adjacent properties as well. Similar to real world real estate.
Take for example Upland’s recent Landmark auction;
The Ferry building. Image courtesy of Wikipedia. This virtual parcel and structure established a closing auction price of 5,321,050UPX (US$5,321). See full article here. Now what would naturally or organically happen to the value of its surrounding lots?
That means each parcel/lot could rise in value. Added structures can also assist in that appreciation. Let’s not assume this is automatic, there are and will be other factors that can and will affect value just as in the real world. Nothing is a guarantee of course, very few things are.
In addition, with these NFTs is governance that is mostly guided by the community – players like me.
The community also has opportunities to build and create items and content that are NFTs based to sell or market to an already established audience. Therefore, over time creating Upland player based NFTs to market and brand.??
So why would You want to do this?
That really depends on your perspective.
A traditional gamer may find it difficult to cross over to a blockchain gaming environment. As this area is geared more to a slower build vs fast and immediate action.
As a player (in any blockchain game) you and you alone must obtain, search, secure and manage all your personal assets.
However with strong communities there is someone available to help you get yourself established.
But generally, people just want to jump in and play within an environment ready to go. That’s entirely fair.
Yet, if you enjoy simulation at a moderate pace (slower than traditional games), building an environment, content creation, marketing options, teamwork and collaboration, I would suggest taking a look at Upland and the timing couldn’t be any better. Fair Start city Fresno opens tomorrow. More on that next article.
Regardless if you are #babyboomer, #genxer, #gamer, #femalegamer, #artist, #coder hopefully this article has provided a glimpse into the vast world of NFTs.
Referral link:
https://discover.upland.me/TheCatalyst
Blog:
https://www.gardnerprojects.io/upland
