In this week's episode of Understanding Crypto, Paul Abercrombie and James Burtt discuss Minecraft’s and Microsoft’s decision to reject adding NFTs to their platforms. In an official statement, the company explained that "NFTs take the focus away from playing the game and encourage profiteering, which we think is inconsistent with the long term joy and success of our players." Both Paul and James think that the statement is just one company's decision, not the death of NFTs as stated by the media.

 

Rejection or Reinvention?

The integration of NFTs into Minecraft and Microsoft's platforms has been rejected. According to the official statement by the company, "NFTs take the focus away from playing the game and encourage profiteering, which we think is inconsistent with the long-term joy and success of our players." Paul responds to this claim by highlighting Minecraft’s current practice, which encourages users to participate in comparable consumer behaviours, specifically the acquisition and use of digital assets. "They're just not calling it an NFT because it doesn't live on a smart contract or on a blockchain. However, they are selling you digital assets already and people are buying them." As such, Microsoft's choice to reject NFTs, according to Paul, is merely a ruse. [Listen from 2:40]

Paul believes that the present debacle has also highlighted Web3’s preoccupation with blockchain semantics. He states, "The ownership of a digital asset is here and it's just gonna be here forever," so holding on to the term NFT may create unnecessary categorizations. Paul thinks that Microsoft is essentially indicating that it dislikes the specific brand and not the technology itself. Essentially, they both believe that the company will build its own brand because it has everything it needs to develop and implement the technology on the blockchain. "In Minecraft, digital ownership is already there. It's just not on a blockchain. It's just that it's not called an NFT." In essence, the company is distancing itself from the terminology but not the concept. According to James, game firms like Roblox are actively utilising the terminology to their advantage in a safe decentralised ecosystem. Paul remarks, "NFTs are the future of everything!  They will change our world forever." Microsoft's rejection is only one company's decision, not the death of NFTs. [Listen from 6:33]

 

Key Takeaways:

• Microsoft's rejection is a statement of  the company’s disapproval of a specific brand and not the technology itself.
• NFT-like constructs already exist in Minecraft which allow users to purchase and use digital assets.

 

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram