Minecraft will not allow non-fungible tokens (NFTs) to be utilized on the gaming platform The company describes them as incompatible with Minecraft's "values of inclusion and creativity as well as playing with others".
NFTs give ownership to a unique digital item, typically an image or video, with the ownership being recorded on an electronic register that is decentralised and referred to as a blockchain.
Digital files can typically be copied or deleted for free, however a NFT identifies the owner of the original file for purpose of selling, buying, or trading the ownership - usually in exchange for cryptocurrency.
NFTs were the hottest subject in January, when sales reached an all-time high of US$12 billion (AU$17.4bn globally). Sales dropped to a 12-month low in June due to the decline in cryptocurrency.
Minecraft which allows players to create entire virtual worlds, is extremely customisable. Minecraft has been around for more than 10 years and has a huge community of users who create skins maps, mods, and skins.
Minecraft offered a lucrative market for NFTs, with a user base of more than 141 million by August 2021 - already engaged in sharing unique digital items created for the game.
Mojang the Microsoft-owned development studio behind Minecraft has put an end to speculation that NFTs could be permitted in the game. In a blog post published on Wednesday, the developers said blockchain technology was not permitted, stating it was antithetical to the values of Minecraft.
The company claimed that each of these uses of NFTs or other blockchain technologies creates digital owner based on scarcity, exclusion, and is not in line with Minecraft values of inclusion and creativity.
"NFTs do not include all members of our community and create a stalemate of the haves and the nots. NFTs encourage speculation and profiteering, which we believe is incompatible with long-term happiness and success for our players.
Mojang claimed that the creations of Minecraft were of intrinsic value and there have been instances when NFTs were sold at fraudulent or artificially inflated prices.
The studio expressed concern that third-party NFTs could not be reliable and could lead to players losing their money. It also said it was worried an implementation of Minecraft that is entirely based on blockchain technology could disappear without notice, meaning players would have lost their investment.
It is referred to by the crypto community as an "rug pull" in which the developers behind a cryptocurrency project shut down the project and take off with the money. This has happened with one third-party Minecraft project called Blockverse. PC Gamer reported that the project vanished in January after more than US$1 million (AU$1.45m) was put into it.
Mojang left the door open to using "more secure" blockchain technology in Minecraft in the near future, but said it had no plans to allow it at present.
We've just posted the following announcement on our Discord regarding the current @Minecraft & @nftworldsNFT issues. pic.twitter.com/ARbKABRK4A
We've shared the following announcement on Discord about the current @Minecraft and @nftworldsNFT issues. pic.twitter.com/ARbKABRK4A
One group working on NFTs in Minecraft claimed that the move was an "step backwards" in the field of innovation, and that they would need to pivot to another gaming platform if they were banned.
Another hugely popular and customisable game, Roblox, which allows the purchase of items in-game but hasn't yet announced an opinion on NFTs. However, the chief business officer, Craig Donato, told VentureBeat in April that he couldn't see why the game would not allow NFTs and it was more a matter of when.
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Square Enix and Ubisoft, two other gaming companies, are also exploring NFTs as a possible option. Square Enix announced this week that people can purchase physical trading cards as well as digital versions of Final Fantasy VII for the 25th anniversary next year.
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