With the rise of games offering NFTs on the internet, this now begs the question of if there is a difference between a Gacha Game and NFTs.

Defining an NFT

NFT stands for Non-Fungible Token. An NFT is a digital asset, usually artwork or video, that has its own unique identification code and encryption backed by blockchain technology.

What is the difference between a purchased NFT and a copyrighted image?

The answer lies in ownership and scarcity. Unlike copyrighted images that could be used by anyone who gives appropriate credits or pays the right price for any form of use, an NFT can only be legally used by the person who has purchased it. Most NFT creators would limit the sale of an NFT to a single buyer to increase its value in the market.

What can you do with NFT?

TLDR, it depends. Many NFT owners buy it to look into an opportunity to resell it at a higher value. However, NFTs are basically works of art at the end of the day. The value of beauty and art varies in the eye of the beholder, much like how wealthy people purchase Renaissance paintings. Some people like collecting unique NFTs that they use to replace their discord profile every other week. Others do it to support the NFT creator's cause. The uses are wide and vast on the internet.

Defining Gacha Game

Most people are familiar with some household names when it comes to Gacha Games, even if they don't play it. Genshin Impact and Zenless Zone Zero are some of the hottest gacha games that drive gamers crazy in both good and bad ways.

Deriving from an early capsule toy machine concept, gacha games function similarly, allowing players to "roll" or "pull" for characters that they could use in their games. Not all gacha games require players to spend money to enjoy the game experience. However, it could be frustrating to wait for a daily reset to try again for a new character to complete a collection, which prompts a number of players to buy in-game currencies for a chance to get the characters they want.

Unlike NFTs, spending money in a gacha game does not always guarantee you can get the product you want. It only increases your odds of getting it. Some gamers liken gacha games to gambling for this very reason. Many people fall into gacha addiction, similar to gambling. Even top streamers like Sykkuno are not immune to this.

Key Differences

Range of Usability

Gacha Game assets can only be used inside the game. It cannot be brought out of the game for use elsewhere. However, NFTs are copyrighted assets that belong to the buyer and can be used by the buyer however they wish, including reselling them.

Ownership Exclusivity

Gacha game characters and assets inside a game still belong to the gaming company that created them. Hence, many gaming companies prohibit the trading of characters or selling accounts among players. Using these characters outside of the game is also subject to copyright laws. However, in the case of NFTs, the buyer owns all rights to the asset and can use it in any media, including for commercial endorsements. This goes beyond using it to make memes and replace your Discord profile picture.

Financial Value

From the perspective of an investor, an NFT is an asset with monetary value attached to it because it could be resold in the market for a better price. It is backed by cryptocurrency, which works similarly to stocks and forex. Although the price attached to any NFT fluctuates wildly, like most cryptocurrencies, there is value attached to an NFT. On the other hand, Gacha in-game assets cannot be monetised by the owner. Hence, it is considered a purchased product with no further financial valuation. The same could be said about a can of soda that you buy from a supermarket for consumption, or a desk plushie from a creator's fare.

Bottom line...

There is a fine line between gacha games and NFTs. However, the gaming community senses a humungous opportunity to change this in the future with a huge market that covets exclusivity. Presently, there are games that offer NFTs within them with an extravagant price point that turns games that wish to play for free away. There are also games like Fatty that offer players an opportunity to "earn" while playing. While all these are experimental hybrids, bigger gaming companies like Riot, who developed Valorant and League of Legends, are investing heavily in blockchain technology.

It is safe to say that the gaming industry will become an important element that supports the success of NFTs and cryptocurrencies in the near future as the line continues to blur between these two.