Crypto Collectibles in Gambling: Betting with NFTs

A game-changing development, dubbed “Crypto Collectibles,” is paving the way in the online gambling sector. This recent wave of innovation comes in the form of betting with Non-Fungible Tokens (NFTs) – unique, digital assets stored on a blockchain that efficiently assures ownership and scarcity. With increasing momentum, NFTs are fostering an unmatched form of interaction on gambling platforms. This article delves into the world of Crypto Collectibles presenting an extension to the classic perspective of online gambling.

First Appearance of NFTs in Gambling

The first notable appearance of NFTs in the gambling industry is traced back to 2017 when CryptoKitties, a blockchain-based virtual game, took the crypto world by a storm. Users would breed, trade, and sell uniquely extravagant digital kittens, each subsequently represented as an NFT. According to CryptoKitties’ annual report, a single CryptoKitty was sold for as high as 600 ETH (over $250,000 at the time).

The crypto-gaming vista broadened post-CryptoKitties, showering gamers with NFT-infused online gambling platforms like Decentraland, CryptoSlots, and CryptoPunt. In such settings, players earn NFTs as rewards which can be subsequently traded or used within the game environment.

The Rising Phenomenon of Betting with NFTs

The growing popularity of NFTs is not without reason. Unlike traditional cryptocurrencies, NFTs cannot be mutually exchanged on a like-for-like basis. Each token retains unique information making them irreplaceable and granting them distinct value.

This distinctiveness is central to NFT betting. Gamblers are increasingly drawn to platforms where they can bet using these unique, digital tokens. Those who might have already possessed NFTs, for art or other collections, may find it exciting to use them in lieu of cash, thus turning the gambling scene on its head.

NFTs have also raised the entertainment quotient of gambling. Users can bet with exclusive, digital artifacts suitable to the game’s theme. A spin-off of this trend has been the emergence of NFT lottery systems where winning tickets provide exclusive, collectible NFTs.

Meeting of Gambling and NFT Marketplaces

Between OpenSea, Rarible, and Mintable, many NFT marketplaces have emerged allowing gamblers to liquidate their NFT winnings. This growing secondary market makes it possible for non-gamblers to invest and gain profit from online gambling winnings, without participating in the games themselves.

It’s also worth noting that NFT-backed gambling platforms have imposed stricter measures to ensure fairness and trust with the help of blockchain technology. Many incorporate provably fair algorithms, enabling gamblers to verify the fairness of every game action instantly.

Potential Downside

In spite of the potential, widespread adoption of NFTs within the gambling industry may not be without friction. Concerns regarding the intrinsic value of NFTs, high transfer fees, liquidity, and potential for money laundering are obstacles to be considered and navigated.

In conclusion, the fusion of NFTs and the gambling industry, while still in early stages, is an evolving and fascinating trend to follow. Players, developers, and investors alike are keenly observing these developments as we await what the future holds for Crypto Collectibles in this sector.

Sources:

1. “CryptoKitties”. https://www.cryptokitties.co/
2. “Decentraland”. https://decentraland.org/
3. “CryptoSlots”. https://www.cryptoslots.com/
4. “CryptoPunt”. https://cryptopunt.com/
5. “OpenSea”. https://opensea.io/
6. “Rarible”. https://rarible.com/
7. “Mintable”. https://mintable.app/