The Transition From Dumb NFTs To Smart NFTs

How NFTs work

As a concept, NFTs aren’t new. They are units of data stored on a blockchain digital ledger — a consequence of the blockchain technology that enables developers to store extra information, making them unique in nature. The ownership of NFTs can be managed through a unique ID and metadata that no other token can replicate. They rely on the blockchain — the tool is used to create the NFT — and can be traded in NFT marketplaces like OpenSea.

Smart NFTs

Smart NFTs are NFTs that have properties in their metadata that can be changed or altered. These NFTs, along with their metadata, reside on a blockchain. Metadata is the data that provides information about other data on the NFT record. In the case of NFT, it describes the NFT’s essential properties, including its name, description, and anything else its creator feels is important. This data acts as the primary data that defines the NFT and cannot be changed or modified in the future. This unmodifiable metadata is called Static Data. The metadata that can be modified or changed is called Dynamic Data.

In-game Items

In-game items play a major role in any video game, enabling players to own collectibles and digital assets. However, they are not easily transferable or exchangeable. Brands like Altura function as smart contract platforms that enable game developers to mint, distribute and transact Smart NFTs representing in-game items. This provides the gamers with true ownership of their in-game items and accelerates the adoption of NFTs. These smart NFTs can also be transferred and distributed.

Loot Boxes

Loot Boxes are virtual products that can be redeemed to receive random in-game items. The authenticity of this randomness or the odds of receiving a certain item is in question because of the game developers centralized control of loot boxes. With smart NFTs, when the user initiates an in-game function to open a loot box, Altura calls for a Verifiable Random Function (VRF) for randomness.

Revenue

The typical way of generating revenue through Smart NFTs is through transaction fees. Every time a transaction or transfer is complete, the Smart NFT provider takes a small fee. Game developers can also generate revenue by providing in-game items or loot boxes that have an infinite supply. Additionally, the developer can pre-define a fee they are entitled to receive whenever a transaction is made.

About Altura

Altura is the next-generation gaming NFT platform, with a goal of providing gamers with true ownership of their in-game items and accelerating the adoption of Smart NFTs. Alura token, the native currency of the Altura digital-asset marketplace, and is used to buy and sell NFTs.

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