You must have heard of NFT art. But did you know that non-fungible tokens are also changing the world of gaming?
It’s in the blood of gamers. As soon as they launch their favorite game, they find themselves in a completely different world. It could be Fortnite, Minecraft, Call of Duty or any other, it doesn’t matter. The main thing is that each of them brings us closer to life in virtual reality. If you are a gamer, you probably know what role your nickname, character, skin and items play. In fact, these are not just virtual things, but a creative extension of your personality.
However, try to answer the following questions: how many of these items really belong to you? Perhaps these assets are unique from the rest, or at least rare? Is this really something to show off to your friends? Can you proudly say that you are one or two people in the world with something like this? It is impossible to answer this.
Fortunately, the advent of blockchain and cryptocurrencies has seriously changed the direction of the gaming industry. Specifically, in this article, we will focus on the topic of NFT games and how exactly they are changing the global industry.
What are NFT games?
NFT games are online projects based on blockchains and smart contracts. They endow this type of digital entertainment with a whole list of characteristic features. In particular, these are:
- degree of anonymity;
- level of transparency;
- the possibility of earning;
- reliability of transactions.
It is noteworthy that for such leisure, you will have to get a cryptocurrency wallet, if it is not already there.
What are in-game NFTs?
In-game tokens are digital assets that are represented in a specific project. NFT can be used to implement rules and to interact between players.
Each NFT is a virtual object that can be traded or exchanged. For example, weapons, territory, characters, resources and much more.
The correct functioning is provided by smart contracts. They allow developers to match NFTs with game environments and create self-executing rules.
Why are NFTs needed in games?
The use of NFTs is changing the game, allowing players to truly own the items they buy or win. That is just like it was in the old days. In addition, each item has a unique ID that will be associated with your account for as long as you own it. This means that assets can be stored without fear of their theft. Most importantly, they can also be monetized based on rarity and traded on blockchain markets in exchange for cryptocurrencies or fiat.
NFT hasn’t made it to the world-famous arcade or battle royale genre yet, but projects using crypto-currency collectibles are really in demand lately. Moreover, everything has reached such proportions that the popular collectible game CryptoKitties at one time overloaded the second largest blockchain in the world, that is, Ethereum. The CryptoKitties itself makes it possible to buy digital cats and breed them within the blockchain. Well, one of the most expensive crypto cats was sold for 170 thousand dollars.
A more recent example of NFT in gaming is the football project on the Ethereum network called Sorare. In it, users collect cards of football players and create teams from them to compete with each other. For example, at a recent Sorare auction, Kylian Mbappé’s digital card was sold for $65,000. Kylian is a striker for the Paris Saint-Germain team that qualified for the UEFA Champions League in 2020.
How do NFT games work?
How are NFT games different from the usual industry? That’s right, technology. It is based on the blockchain to create the underlying platform and unique items.
This segment is only a couple of years old, as the technology is not that simple. And now many projects are inferior to world hits in terms of graphics, well-thought-out plots and depth of scenario development. Therefore, we can say that this market is just emerging on a large scale. So, in the future, we will see massive growth, and such projects will be a source of income for many people.
NFT games come in various forms:
How do such projects differ from classic? Having upgraded a hero or having a unique, you can transfer or sell it on the official marketplace or on any other available NFT marketplace. Fraud in such cases is minimal, since all transactions go through the blockchain and smart contracts.
And in classic games, you will most likely have to look for those who want to buy on various forums and chats, and then independently negotiate the price and method of transferring money. Which, of course, is not safe.
How can you make money in NFT games?
When we talk about making money in NFT games, we are talking about the Play-to-earn economic model. A distinctive feature of which is the ability to earn income. To do this, players need to develop characters and increase their success. Read our detailed review in the article How to make money in NFT games.
Purchases in NFT games
How NFT games work if the decision is made to invest in the purchase of the first digital asset?
- The user is invited to create account and invest cryptocurrency to purchase a start token. Depending on the type, this can be depicted as a piece of land, a pet, a farm, a map, or a character for further battles.
- Next, you will need to increase the value of your NFT. To do this, the character is pumped, new objects are built on the purchased territory, crops are grown. Everything is done that allows you to improve the standard token.
- Getting the first profit. To do this, their earned / upgraded NFTs are put up for auction. What is sold there – characters, individual items of equipment, pets, plants from a virtual garden. The value of each item is determined individually and depends on the rarity or functionality. So, the more unique the item, the more actively other users will trade for it and, of course, offer more value for it in cryptocurrency or fiat currency.
- The last step is the sale. The user transfers the right to own the token to the buyer, and for this he receives cryptocurrency. It can be withdrawn to a virtual wallet and sent to your own needs.
Pros and cons
Among the advantages are:
- direct connection with cryptocurrencies, which means transparency of all operations, minimal risk of fraud both on the part of the buyer of the token and the developer providing such opportunities;
- received NFTs can be sold and get real money for them, which, in the future, can be disposed of at your own discretion;
- you can take part in the modernization of the project, since very often changes are determined by voting among the owners of non-fungible tokens, which means that there is a chance to eliminate the minuses that a particular player noticed;
- there is a monetization of the time spent on the game – each user not only enjoys the process, but also earns.
Despite the obvious advantages, also have disadvantages:
- simple and minimalistic appearance. All of them look rather primitive, do not have unexpected plot twists.
- work mainly on the Ethereum blockchain, which is characterized by slow and expensive transactions.
- Possible depreciation of the in-game currency. We wrote about this in more detail in the article Play-to-earn games (P2E): a new industry that has taken the world by storm.
- Various types of fraud. Due to the rapid popularization of NFT industry, multimillion-dollar investments and income, many different fraud schemes and scam projects have also appeared in them.
A lot can be said about the prospects. We will try to simplify the main message – they are the future. Already today it is noticed that hundreds and even thousands of people are moving into the virtual space and there they realize not only their creative potential, but also earn money. They buy or create their own NFTs, upgrade them, and then resell them at times more expensive. And this market is growing very rapidly. After all, users receive an additional incentive – material rewards.
However, it is worth noting that in the global sense, even the best NFT games are still at the beginning of their development. There are opinions that this is a temporary trend, a boom that may burst like a soap bubble in the future. But there were times when few people believed in bitcoin, and those daredevils who invested their money in the first coins became millionaires today.
NFT games are a big leap forward in the development of industry all over the world. First of all, NFTs allow you to truly own unique and rare in-game assets. In addition, the owners of very rare tokens will certainly earn considerable amounts from the sale of assets. Revolution or not, NFTs will definitely change how gamers interact within games. And blockchain technologies and Play-to-earn models will only contribute to this.