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Players complained about the hours of playing time almost a month of playing hours a day needed to earn just one free item—a cosmetic helmet for in-game avatars. It's not really a technology to be bolted on.

Welcome to the cutting edge of video games. Is it the early days of a major shift akin to free-to-play and mobile or just another stream of virtual assets enjoying hyper-inflated—and unsustainable—values?

It's an approach where the digital items inside video games—things like collectibles, weapons and cosmetic skins—are real world assets, similar to stocks or bonds, in the form of non-fungible tokens NFTs. The in-game NFT items can exist beyond the lifespans of games and retain value as long as there is demand.

That could come in the form of taking a rare item off the platform to sell elsewhere or accumulating in-game tokens that can be converted into cryptocurrencies like Ether.

Online multiplayer games such as Runescape and World of Warcraft , which both launched in the early s, proved the utility of robust in-game economies and spawned grey markets that, in some cases, saw consumers spend real money to unofficially buy game accounts or items on third-party sites like eBay.

Second Life, a forerunner to the metaverses of today , popularized the use of digital currency that corresponded to real world assets more than a decade ago. The rules are still being written.

Meanwhile, Ethereum, the most ubiquitous blockchain platform, is getting ready to launch a more robust 2. The Sandbox, which some consider a prototype metaverse, is a 3-D open-world mobile game that allows users to buy, sell and develop digital real estate.

There is still quite a bit to be sorted out, says Linden. The play-to-earn model, where users gain and lose assets, raises the question of whether gambling laws should be applied. Other applications, where groups of users pool their money to buy a single expensive asset could someday fall afoul of global securities regulators. Further, the use of in-game tokens and currencies that correspond to real world assets also brings up worries of market manipulation and other possible violations of securities regulations.

While future iterations of Ethereum, or other potentially more efficient blockchains, could offer a more environmentally friendly solution and cheaper fees, the regulatory concerns are not so easy to solve.