Cyrex Explained: NFT’s in Gaming
4 November 2021
NFT’s have become increasingly popular over the years, with different industries such as entertainment, fashion and even sports benefitting from these tokens. One industry that aligned with both of our specialities and interests was gaming. But how secure are they?
What is an NFT?
We already gave a thorough breakdown as to what NFT’s are in a previous blog. In short, NFT stands for a non-fungible token, meaning that these tokens aren’t replaceable by something identical to it. Each NFT is unique, only one can exist, and they can’t be broken down like regular cryptocurrencies.
Regarding blockchain, we also recently broke down what it is and its level of security. In short, it is a list of records of every transaction, cryptocurrency exchange and interaction, which are then all recorded and kept within the ‘blockchain’.
Impact NFT’s have on Gaming
Game developers are early adopters of new technology and are always experimenting with new game mechanics, user interfaces, and revenue models. Developers are particularly keen to put NFT-based gaming features to the test.
Before, different downloadable skins and weaponry in games such as Fortnite or League of Legends were just an extra colourful coat of paint you could put on your character. Now with NFT’s, these items have real-world value, with some specific tokens creating an in-game economy. Blockchain built games and decentralized applications often allow the user/player to gain and own value of in-game and in-app purchases.
These assets provide digital property rights, be used to build “play-and-earn” economies, and help developers earn more money, ultimately resulting in better and more equitable games.
Enjin, a decentralized gaming platform, was one of the first mainstream gaming businesses to recognize (and capitalize on) the convergence of gaming and blockchain in 2017. It integrated blockchain technology into its infrastructure and launched ENJ, a gaming cryptocurrency that has been approved for usage in Japan.
Sites such as Mythical Marketplace specialize in this in-game economy, with Mythical Games recently announced as the first developer partners for the service. The platform is a full-service system to build or integrate playable blockchain-based economies into games, facilitating a new level of ownership of digital assets for players, content creators and brands. With these successes, major developers such as Epic Games recently announced they will also begin selling blockchain-based games and NFTs through their store.
NFTs drastically improve the gaming experience by giving players greater control over their digital assets, making it simpler to buy and sell those assets with other players and providing developers with a new income stream via in-game transactions. If a gamer has an NFT of a virtual item that they created or purchased a skin for a game, they can be assured that this asset will remain theirs forever.
While this latest trend certainly has its perks, it can also come at a cost if not secured correctly. The blockchain concept has been consistently proven to be secure in its design. But we also previously established that once something is in the blockchain, it’s there forever, and if there is a weakness, hackers will exploit it.
This can be extremely worrying for gamers who use blockchain built games with blockchain-based economies. In-game assets that have real-life value can be hacked, stolen and sold to third parties. Your custom-built NFT is compromised, stolen and then devalued or sold on for double the amount it was originally worth.
Thankfully at Cyrex, we are experts in both blockchain AND gaming. How much more secure can you get? It’s vital you test your services with us if you want to keep your games and economies secure.
Our game penetration testing and cybersecurity services are aimed at creating a safer online environment for both your game and your business. We help develop and secure the applications that empower businesses using our testing services and software development expertise. Pushing the boundaries in both gaming and crypto, by helping drive innovation and creativity.
Penetrating Mythical Games
As mentioned above, Mythical Games recently broke into the NFT scene, in conjuncture with fashion label Burberry, where they launched custom NFTs in their hit game Blankos Block Party. We were fortunate to get early access to the game and conduct a series of penetration tests using our Grey Box penetration testing service.
Here we checked the validity of security across all sectors of the title and covered a wide range of services. You can find out more about what vulnerabilities we discovered on our portfolio page.