2 August 2023
NFT games have evolved since their start during the CryptoKitties boom and have started to provide play-to-earn models. As it's come to be known, Game-Fi combines the worlds of gaming and finance and offers players the chance to make money as they play. You no longer have to only rely on winning, discovering, or breeding an expensive, rare treasure. In addition to collected animals, players can also experiment with a variety of gaming models in various themes.
A Non-Fungible Token (NFT) is a digital, cryptographic token that stands in place of a singular item on the blockchain. There are numerous uses for an NFT. It may be a downloadable gaming item, a collectible work of cryptographic art, or even a physical thing like real estate. The age-old problem of producing decentralized digital collectibility and ownership in a "copy-paste" society has been resolved by NFTs.
An NFT is not interchangeable. Due to this quality, each token is distinct and cannot ever be exchanged for another token that is exactly the same. You can exchange one ETH for another ETH that is exactly equivalent in every manner. This is not conceivable with an NFT, not even with NFT artwork distributed in a series with different iterations. In this situation, each NFT will have unique metadata, exactly like you would in a series of numbered prints.
Unlike simply keeping cryptocurrency collectibles in your wallet, NFT games offer more options. NFTs will be used in an NFT game's mechanics, regulations, and player interactions. A game might, for instance, depict your individual avatar or character as an NFT. NFTs can also be found in digital goods that you find while playing the game. Then, you can exchange or profitably trade your NFTs with other gamers. You can also make money from NFT games using a more recent play-to-earn paradigm, which we'll cover in more detail later.
So how can you technically integrate NFTs into a gaming environment? Developers build smart contracts that define the rules for the NFTs utilized, which are then used to exchange, generate, and implement NFTs within games. Self-executing pieces of code known as smart contracts are kept on a blockchain.
For instance, the structure of the game CryptoKitties is provided by a few core contracts. The geneScience contract that establishes the random mechanisms that produce new cats is their most well-known achievement. The code was first kept a secret by the game's creators. Players who were interested even made tools to calculate the likelihood that specific cat features would appear. Players could increase their chances of creating a rare breed that is more valuable by using this knowledge.
Users that play play-to-earn NFT games have the opportunity to earn money as they play. The more time a player spends playing, the more tokens and possibly NFTs they receive as rewards. The game's crafting system frequently requires the use of the tokens acquired.
Since tokens can be acquired continuously through gameplay and NFT drops are more chance-based, the token technique is typically the more consistent of the two. Users in low-income nations have taken a particular liking to play-to-earn as a supplement to or replacement for fixed income or social security.
One of the most well-known play-to-earn games is Axie Infinity. Three Axies must be purchased with real money at the start of the game, unless you may borrow a Scholarship from another player. You can earn Smooth Love Potion (SLP), an ERC-20 token that can be traded on exchanges, after you have a Starter Team and start accomplishing tasks and challenges.
SLP is used by breeders to produce new Axies, which supports the item's economy. Particularly in the Philippines, where many players began to rely on its play-to-earn business model, Axie Infinity rose to prominence. Depending on the market price and amount of work put in, many gamers earn between $200 and $1000 (USD) per month, and some even more.
You can earn money while playing NFT games through in-game NFTs as well. You gain NFTs that stand in for collecting objects as opposed to fungible ERC-20 tokens like SLP in Axie Infinity or SKILLS in CryptoBlades. This gaming mechanic is how NFT games have traditionally made money. The value of an item will vary depending on its utility, rarity, or cosmetic appeal in the game.
One illustration of a game that simply depends on the collectibility of in-game NFTs is CryptoKitties. Without a component of chance, it would be impossible to continue playing and generate consistent revenue. The majority of more recent NFT games provide both in-game and play-to-earn NFTs.
The mechanics of the individual game and consumer demand will determine how much money you can make playing an NFT game. Other users who value the NFTs or cryptocurrencies acquired in the game will be the ones who pay you money. Selling your things on a market, exchange, or auction house will be necessary for you to make a profit. Value in NFT games is derived from the utility or collectability of the NFT or token. These two elements also give rise to conjecture.
NFT games have the potential to cause financial loss. The precise sum depends on the kind of game you're playing, how it's structured, and how much money you're dealing with in NFTs. Losing money does not always indicate that you are a victim of fraud. Your losses are influenced by market dynamics because NFTs are speculative and have a variable value based on the value others place on them. Do not invest more money than you can afford to lose in cryptocurrencies.
Many people worry about losing their NFTs while using the blockchain or playing games because of how much some of them are worth. Whether you bought your NFTs or obtained them through gameplay, you must take care to protect them. In summary, if you're not careful, you can lose your NFTs. However, if you adhere to the recommended practices we'll discuss later, your odds of losing them are very low.
A few scenarios in which you might misplace your NFT include:
You try to move it from one wallet that doesn't comply with your NFT's token standard to another.
You transmit your NFT to a con artist after becoming the victim of fraud or a scam.
When you let a malicious smart contract access your wallet, it steals your NFT.
You forfeit it in accordance with the game's regulations.
With the exception of the last, you can steer clear of the aforementioned scenarios by learning more about NFTS, blockchain technology, and scams in general. The same is true for NFTs, just as you wouldn't use PayPal or Internet banking without knowing how to do it right. In order to prevent losing your NFTs, you should:
Digital collectibles are used in NFT gaming, which develops rules for players to interact with one another's NFTs. NFTs are valued by some people for their collectibility, while others seek them for their practicality. Although many NFT games function similarly to trading card games, not everyone who acquires cards intends to participate. New NFT game economies developed by Game-fi have altered how people can make money with NFTs. Nowadays, making money involves more than just chance and collecting; it also involves playing.