The development of gaming in recent years has been something to note. With the rise of blockchain technology, the popularity of the metaverse and their integration into online gaming has taken the standard of gaming to a whole new level. Blockchain in gaming is driven by NFTs and other digital assets representing the in-game content.
Through NFT games, you can earn crypto rewards and trade them for fiat currency on exchanges. To learn more, read on.
What are NFT games?
NFT games are Play-to-Earn (P2E) games that give users more control over in-game assets. They make it possible as the in-game items are NFTs that you can buy, sell and trade with other players on the platform as per your wish.
Experts have made this possible by developing games on the blockchain platform. These games' in-game assets are NFTs with unique values and traits. This gives the owners of these items a lot of benefits. They are:
- Immutability
As each in-game item you own is an NFT, it exists independently on the blockchain even if the game shuts down. Thus, regardless of what happens to the game, you can buy or sell your NFTs on the marketplace.
Furthermore, new games can be made to utilise these NFTs. As NFTs are based on blockchain principles, the data inside them is unchangeable and tamper-proof.
- Interoperability
In traditional games, your in-game assets are only usable within that game. You cannot use those in other games. NFT games change this situation with the help of blockchain technology. The in-game items of NFT games are interoperable. That is, you can easily use the in-game items of one game in another, provided they are built on the same blockchain.
- Ownership
When you buy an in-game item in a traditional game, it is only usable by you and supported in that game only. However, in NFT games, as in-game items are built on NFTs, you can buy, sell or trade them with other players. You can even use them in another supported game.
- Provable scarcity
When you buy an NFT, you can trace its entire history to the time of its creation. As blockchain records are immutable, people who collect rare and unique NFTs can get insured of their authenticity and rarity.
- Non-fungibility
Each NFT or non-fungible token is unique. You cannot exchange one with another and expect the same value in return. Similarly, the same in-game assets will not have the same value in crypto games.
Take the example of Axie Infinity; two Axies can be the same but have different traits. Thus, their values will differ when you sell them. This non-fungibility aspect of NFT-based in-game items allows players to earn a good profit if their NFT is rare or unique.
As a player, you can gain in-game assets in the following ways:
- By creating or breeding a new character
- Purchasing in-game assets on the game's native platform or third-party marketplaces
- Unlocking and earning new items by completing quests or missions
How do NFT games work?
NFT games work on the Play-to-Earn (P2E) model. This system allows gamers worldwide to earn a passive income from doing what they love. Generally, a player gets native gaming tokens as rewards, and in some cases, they get NFTs. The longer they play, the more the chance of earning rewards. This model has become very popular among gaming enthusiasts lately.
One very famous example of this kind of game is Axie Infinity. To start playing this game, you need to purchase 3 Axies. However, if you get a free scholarship from a fellow player, you can start playing the game.
After you start playing and have a starter team, you can complete tasks and challenges. In the process, you can earn Smooth Love Tokens (SLP), ERC-20 tokens that you can exchange for fiat currency on exchange platforms.
In the game, you can use these SLPs to breed new Axies. Each Axie has unique traits, its value will differ, and thus you will have an opportunity to create a market for them based on their rarity and uniqueness.
NFT games provide another way of generating income by offering in-game NFTs. Instead of earning in-game prizes like SKILLS in CryptoBlades, you get NFTs as rewards. However, the value of this NFT will depend on its rarity and utility in the game.
One of the best examples in this regard is CryptoKitties.
Income from NFT games
There are many instances of people in the Philippines who earn wages by playing Axie Infinity. Similarly, other games will offer you chances to earn money based on their mechanisms and market demands.
You can trade your game tokens on exchanges and sell your NFTs to other players, an NFT marketplace or an auction house to get money. The value of these items will depend on the in-game utility and collectability.
As the value of an NFT is completely dependent on its demand and supply, you may not always get a profit by selling your NFT asset.
Top NFT games
Currently, many popular NFT games have millions of users worldwide. Some of them are:
- Axie Infinity
- Gods Unchained
- Splinterlands
- The Sandbox 3D
- Alien Worlds
- Battle Racers
- Dogami
- Spider Tanks
- The Walking Dead: Empires
- MAD Metascientists
- Gold Fever
- Sidus Heroes
- Cosmic Champs
Important Pointers
Each NFT has its value, and you should safeguard your assets. There are some important points that you should keep in mind while handling your NFTs. They are:
- Do not transfer your NFT to any wallet that does not support your NFT standard. It is a bad practice to assume that the wallet to which you send your NFT will be compatible. Moreover, double-check the wallet address before you send them.
- Before letting a smart contract interact with your crypto wallet, ensure it is from a reputable project. Various scammers can steal your assets if you accidentally permit them.
- There is always a possibility that you can lose your NFT as per the game’s rules. Hence, always thoroughly go through the rules of a game before you start to play.
All NFT games may not be free to play, but their rewards surely compensate for it. If you are an investor interested in NFTs, this can be a good way to collect unique ones and add them to your collection. There is much potential for investors to gain profit in the gaming industry. This can potentially motivate non-blockchain-focused companies to enter the world of NFT gaming.
