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Blockchain games are going mainstream much faster than we can imagine. And this is all thanks to the integration of NFTs into the mix.
We can’t deny that cryptocurrencies have become a huge market, and their crossover with gaming just made it boom further. Of course, this led to a ton of crypto-mobile games appearing for everyone to try.
Numerous NFT games have appeared, and NFTs provide interesting prospects to these games. Why? Because they provide ways to mind and quantify various in-game items like weapons, accessories, skins, and more.
NFTs or non-fungible tokens are the data added to files to create a distinct and unique signature. These can be a song, image file, Tweet, posted text, a physical item, or other available digital formats.
Wondering how these NFTs are implemented into the game environment? Technically, developers need to create smart contracts to swap, create, and implement these NFTs in a game.
These contracts consist of the rules for NFTs that are used. Plus, the smart contracts are self-executing fragments of code kept on the blockchain.
As for NFT games, these mix the classic game designs with unconventional gaming mechanisms. It lets users have more control and management over in-game assets such as characters, skins, weapons, virtual lands, and more.
All this is made possible by launching and introducing games on blockchains, then anchoring these with asset-powered, digital economies. These digital assets are usually NFTs since they’re distinguishable, unique, and tamper-proof.
Adopting the NFT token standards also lets developers preserve the uniqueness and scarcity of these in-game items. This is the reason why numerous blockchain game assets are pricier compared to others.
The play-to-earn NFT games allow users to generate income streams via game play. Typically, players are given tokens, though at times, they’re rewarded NFTs. These let them earn more as they continue to play.
In games, tokens that are earned are often essential since these are linked with the game’s crafting process. The thing is, the token method is more stable and balanced among the two. That’s because tokens can be steadily earned as an individual plays.
As for NFTs, the drops for these are more chance-based. This is the reason why players only occasionally receive NFTs as they play.
Play-to-earn has become highly popular with users living in low-income countries since it works as an alternative to fixed income. It’s also a boost to social security which has become even more essential during the onset of COVID-19.
The combination of these two can be considered a perfect match. In all the earlier models of online gaming, every item that was acquired/purchased could only be utilized in that game. Plus, these can only be taken advantage of using only one account.
If the gamer’s account was disabled, was hacked and stolen, etc. all money spent on items would disappear. So, everything they acquired would go to waste and the gamer can’t do anything about it.
This is a common reality among a lot of people and it’s something they’ve come to accept. It continues to happen since there’s no available alternative – that’s until NFTs started appearing, which changed everything.
By making in-game items NFTs, a lot of players will get to control and own their purchases, earnings, and crafts. This is more than just proving that their character’s weapons/accessories are rare. It also means that these can be purchased/sold on secondary markets, moved to multiple games, and more.
But what’s best about this is that the player can hold on to the value they put into these items.
With NFTs present in games, these will provide users another way to generate income via playing NFT games. Instead of earning fungible ERC-20 tokens like SLPs from Axie Infinity, you’ll get NFTs representing collectible items. This form of gameplay is the classic way of generating income through NFT games.
The worth of each item will vary based on their rarity, cosmetics, or utilities based in the game.
Let’s use CryptoKitties as an example: it’s a game that only relies on the concept of collecting in-game NFTs. There’s no way to continuously play the game and earn steady without the aspect of chance.
For the newer NFT games, these provide a combination of both in-game and play-to-earn NFTs.
We can’t deny that the play-to-earn concept is a growing phenomenon in the gaming environment. It’s where players of NFT games get rewards from within the game, which later on can be converted to cash. Yes, real money.
This type of cryptocurrency has been around for a couple of years. But despite that, it only reached great heights during the COVID-19 pandemic. This is due to the subsequent lockdowns which rendered millions of people jobless.
Although this is the case, these people are mostly open to earning additional funds via gaming.
Because of the pandemic’s impact, it affected the gaming market as well. That’s because millions of people ended up getting stuck at home, so they tend to play more games for entertainment.
One survey from March 2020 showed that gamers in the US spent around 45% more time playing during the quarantine.
The console and PC markets have lagged behind mobile. It’s because the latter globally dominated more than 50% of all internet traffic for the first time. This was during the first quarter of 2021.
While this is happening, a new kind of gameplay has been slowly moving into the market with great success. This is NFT gaming.
It’s the trifecta effect that NFT and blockchain gaming brings which make them both spectacular. Traditionally, blockchain-based games do two specific things: one is that it lets players relax and have fun. The other is it’s fast becoming a source of income for players.
So now, player investors are adding more blockchain games into their basket of assets and portfolios. To put it simply, blockchain gamers are turning into investors of their favorite games. From there, they curate then acquire unique in-game assets that they will later sell to acquire huge profits.
The whole idea of playing then earning is exceptionally enticing, hence, why NFT gaming has become a huge success.
As the gaming industry shifts its focus on in-game assets, the blockchain can likely solve a couple of related issues Thus, it can eliminate fraudulent items, incentivize more purchases and create scarcity. This is done by making the items transferable from one game to the other.
This is the primary reason why gaming needs the blockchain.
Decentralized gaming provides gamers everything they need, and these are the following:
Aside from the advantages of the principles, blockchain lets developers explore new horizons in a virtually unlimited and expansive foundation. This provides untapped potential for infusing endless varieties of technologies and modules that range from AR and VR. Not only that, but it also includes accurate pseudorandom number generators and more.
With everything combined, these technologies expand the meaning of gaming from just handheld interfaces.
With more NFT games appearing, players need to start getting into these before their prices go high. Currently, Axie Infinity is still considered quite expensive. Yet with more new titles coming out, these might be more affordable to get into.
Here are some of the up-and-coming NFT games to watch out for:
This is a fantasy-themed RPG where players will build a team to complete dungeon quests and earn resources. Like with other games, collecting resources allows crafting of in-game items which of course, can be profitable.
Just remember that the game will heavily focus on establishing communities or guilds.
Guild of Guardians is still in development and the founder NFTs are now on sale. A soft launch is set for the second quarter of 2022.
This one is a jungle-themed RPG where players can select a character who will try and outplay others. Players will aim for a chance to mine gold that takes the form of Gold Fever’s native token, NGL.
Players will also focus on collecting unique NFT items such as clothes, various supplies, and weapons.
Although a lot of NFTs utilize the ERC-721 token standard, NFTs are frequent on other networks like TRON, EOS, and NEO.
Let’s take a look at the different NFT gaming benefits that gamers can take advantage of.
Smart investors can see the huge potential for profiting in the blockchain and cryptocurrency sectors. And today, gaming is considered a brand-new way to effectively sell products and services. With this, the blockchain game solution might just become the next Tencent.
To get the attention of venture capitalists, owners and game developers aim to enter the bandwagon of blockchain-based gaming. It’s also analyzed that venture capital funds investing in blockchain-based solutions will bring in more investments soon. These investments are assumed to be over $52 billion between 2021 and 2022.
Classic in-game purchases are considered non-transferable, one-time investments that stay locked in one gaming world. Compared to NFTs, using these in gaming environments will allow players full ownership of their game assets. This is compared to regular games where the game developers own such.
Via blockchain technology, gamers will be able to save in-game purchases then opt to sell them to other players. Or, they can also transfer these to other games that are supported.
For most collectors, they value authenticity, uniqueness, and rarity. So, the scarcity of in-game NFT purchases can be proven via the immutable records in an NFTs fundamental blockchain network. This assigned public ledger certifies the uniqueness and number of each NFT, as well as the history of its ownership.
Classic online games are present on centralized servers. So, the in-game assets are all present within proprietary systems that do not connect with others.
Compared to decentralized games, these exist on independent blockchains that function as a back-end framework for other games that are interconnected. As a result, game assets that are defined by NFTs can be made to be interoperable across various environments.
For example, two games created on the Ethereum network can support similar in-game assets. These include armor, vehicles, or even all the characters available.
When a classic online game shuts down, gamers usually lose all their in-game purchases. But since NFTs exist independently and stay on the blockchain itself, it’s a different story.
As such, in-game purchases can be bought then sold no matter what happens to the game. And, newer games can be designed to easily plug into current blockchain protocols.
Moreover, blockchain-enabled game assets can’t be copied or tampered with. It’s all due to the permanent data that each NFT produces once they’re issued.
Despite blockchain games being highly promising, there are also problems and limitations here. One of these is transfer fees that can charge a large amount of the gamer’s earnings. Another issue is linked to data loss and the need to reward those who maintain the game networks.
A major hurdle for adopting blockchain in games is the user interface and experience.
NFTs are similar to real estate, fine art, and other cryptocurrencies. The biggest risk of investing on these is whether these tokens will retain their value. Token holders may get stuck with NFTs declining in popularity since people will start refusing to purchase them.
Blockchains are also still scaling poorly. Authorities are keeping an eye on money laundering with the use of NFTs as a new form of crime. With these problems, investing in NFT games can still be risky.
Below are other risks in blockchain games:
Losing money by playing NFT games is possible. The amount you can lose depends on the type of game you’re playing and the value of NFTs you hold.
NFTs are speculative, so losing money in this field doesn’t always mean you’re being scammed. The value of an NFT also depends on what people place on them, so market forces also affect your losses.
Like any crypto investment, it’s best to only spend what you can afford to lose.
With the value of some NFTs, it’s common for investors to fear losing their tokens. Playing a game or interacting with the blockchain puts your NFTs at risk, so always keep them secure. Fortunately, your chances of losing them are minimal if you follow the best practices in keeping your NFTs secure.
You can lose NFTs in a few ways which include the following:
The situations above can be avoided by having more knowledge on NFTs. It’s like PayPal or internet banking; if you don’t fully understand how these work, you wouldn’t use these platforms.
Gamers always look for diversity and new experiences. And they would definitely look forward to making money by playing their favorite games. Blockchain is just starting to develop its potential, so there’s probably a big future for blockchain games.
The upcoming years are sure to see an explosion of new games on the market. That’s because more blockchain networks are scaling and allowing users to access more user-friendly games suited for mobile. Plus, some games wield interesting storylines and stunning graphics.
A lot of gamers are turning their hobby into a career. With that, it’s easy to think that NFT gaming is the way of the future. NFT game creation has found its audience among gamers who participate in play-to-earn platforms.
With these games allowing gamers to earn money, they’re likely here to stay. In the past, games with great stories and fun gameplay have sustained online communities. Combining the ability to make financial gains allows these games to be more successful later on.
If the play-to-earn system is new to you, now is a good time to watch closely.