Games are one of the many types of NFTs that make up a major category in this digital sphere and have garnered a lot of attention. Video-game fanatics go to lengths to buy in-game assets for the maximum gaming experience. This led video game makers to use blockchain technology to develop and sell NFTs in the gaming domain.
The play-and-earn gaming system is a classic example. Game developers have been making gaming commodities, like digital collectables, gaming avatars and playing tokens, in the form of NFTs. Players can trade these outside a game in an open market and earn back what they have spent. Play-to-earn NFT games give users the chance to generate an income stream through playing. Typically, a player is rewarded with tokens and occasionally NFTs, earning more the longer they play. The tokens earned are often needed as part of the game’s crafting process.
The token method is usually the more stable of the two, as tokens can be earned steadily through play while NFT drops are more chance-based. Play-to-earn has been especially popular with users in low-income countries as an alternative or boost to fixed income or social security.
Axie Infinity is a leading name in this field. It was the first video game to incorporate NFTs in the form of gaming characters called Axies. Players use cryptocurrency Axie Infinity Shards (AXS) to trade. Several other NFT projects followed this idea, including CryptoKitties, Gods Unchained and Sorare.
Game creators have developed profound levels of interest in NFT and using them immensely. NFTs are used as in-game items in online gaming platforms. Non-Fungible Tokens helps drive the growth of in-game economies through immutable ownership records for in-game items.
Only in-game content such as characters, skins, etc., are sold as NFTs and not the entire game. Another use case of NFT is in the sale of a limited edition version of DLC assets to the player who wants to enjoy the exclusive uniqueness of NFT assets. This, however, doesn’t stop the company from selling its regular DLC.
The amount of money you can earn playing an NFT game will depend on the specific game’s mechanics and market demand. The money you make will come from other users who value the NFTs or cryptocurrencies earned in the game. You will need to cash out by selling your goods on a market, exchange, or auction house. With NFT games, value is derived either from the NFT or token’s collectability or in-game utility. These two factors also lead to speculation.
NFT gaming takes digital collectibles and creates rules for players to interact with each other’s NFTs. While some people value NFTs for their collectibility, others want them for their utility. Many NFT games work like a trading card game, but not everyone who collects the cards intends to play. Game-fi has now created new NFT gaming economies that have changed how people can earn using NFTs. To make money, it’s not just about luck and collecting anymore; it’s also about playing too.