What are non-fungible tokens anyway? Join us for a deep look at some of the questions and reservations about NFTs in Japan’s gaming world.

Daniel Robson, for JAPAN Forward

On July 3 on IGN JAPAN, we published an article titled “Why do gamers hate NFTs?” by our freelance writer Nobuaki Shibuya. It went on to become the second-most read article on our site this month.

As Shibuya writes in his article, Japan has yet to see a major influx of NFT-related content in videogames. But the trend is growing in the West, and the strong response among IGN Japan’s readers suggests that the Japanese gaming community is watching these developments with interest.

But why do gamers hate NFTs? Which Japanese companies are using them? And what are NFTs anyway?

What Are NFT’s Anyway?

NFT stands for “non-fungible token,” used in this instance to mean a digital code that proves ownership of a digital product.

These NFT digital codes have become associated with the art world in particular, and videogames are close behind. On the surface, the concept provides a way for completely unique digital items to be sold and resold with a clear line of ownership recorded in the blockchain, just as you would trade the deeds of a house.

The main intended benefits are that creators can create and sell one-off creations with unique value and be paid accordingly. And the second benefit is that speculators can purchase one-off digital items that may (or may not) increase in value – and which are resalable.

As a common example, you’ve probably seen JPEG images of a monkey wearing a hat, available in hundreds of slight variations and sold at a premium because they are “unique.”

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