Minecraft Developers Won''t Allow NFTs on Gaming Platform

Minecraft will not allow tokens that are not fungible (NFTs) to be used on the game platform The company describes them as antithetical to Minecraft''s "values of inclusiveness and playing with others".
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NFTs give ownership to a unique digital item typically an image or a video, with ownership recorded on an electronic register that is decentralised and referred to as a blockchain.

Digital files can typically be copied or deleted for free, but a NFT can identify the owner of the original file for purposes of buying, selling or trading ownership - usually in exchange for cryptocurrency.

NFTs were the hottest subject in January, with sales reaching an all-time high of US$12 billion (AU$17.4bn around the world). However, coinciding with the decline in cryptocurrency, sales recently began crashing to an all-time low of US$1bn (AU$1.45bn) in June.

Minecraft is a game that allows users to create entire virtual worlds, is extremely customisable. Minecraft has been in existence for more than 10 years and has a vast user base that creates skins maps, mods, and skins.

Minecraft was a promising market for NFTs and has a large user base of more than 141 million by August 2021 - already sharing exclusive digital items developed for the game.

But the Microsoft-owned studio for development behind Minecraft, Mojang, has ended speculation that NFTs could be allowed in the game. Mojang''s developers said that blockchain technology was not permitted in Minecraft, stating that it was contrary to Minecraft''s principles.

"Each of these applications of NFTs and other blockchain technologies creates digital ownership that is based on exclusion and scarcity which is not in line with Minecraft values of creativity, inclusion and playing together," the company said.

"NFTs do not include everyone in our community and create a situation of the haves and have-nots. The speculative pricing and investment mentality associated with NFTs diverts attention from playing the game and encourages profiteering, which we think is inconsistent with the long-term joy and the performance of our players."

Mojang claimed that the games in Minecraft had intrinsic value and there have been instances when NFTs were sold at artificially or fraudulently overinflated prices.

The studio was concerned third-party NFTs may not be reliable and could end up costing players. It also said it was worried the implementation of Minecraft that is entirely based on blockchain technology could also disappear without notice, which means players could lose their money.

It is also known as an "rug pull" which is when the developers behind a crypto project end the project and make profit from the money. It appears that this has already happened with one third-party Minecraft project called Blockverse. PC Gamer reported that the project went under in January after more than US$1 million (AU$1.45m), had been invested.

Mojang left the possibility of using "more secure" blockchain technology in Minecraft in the future but said it had no plans to permit it at the moment.

We''ve shared the following announcement in Discord regarding the current @Minecraft and @nftworldsNFT issue. pic.twitter.com/ARbKABRK4A

We''ve shared the following announcement on Discord channel regarding the current @Minecraft and @nftworldsNFT issue. pic.twitter.com/ARbKABRK4A

One group working on NFTs in Minecraft claimed that the move was a "step backwards" in terms of innovation and that they would have to switch to a different gaming platform if they were banned.

Another hugely popular and customizable game, Roblox, which allows for in-game purchases of goods but hasn''t yet announced its position on NFTs. Craig Donato, chief business officer of the company stated to VentureBeat that he did not find any reason why the game wouldn''t allow NFTs, and that it was just an issue of when.

Other gaming companies such as Square Enix and Ubisoft are also experimenting with NFTs. Square Enix announced this week that people will be able to purchase physical trading cards as well as digital versions of Final Fantasy VII for the 25th anniversary next year.