What Is an NFT Game?

What Are NFT Games?

Simply put, an NFT game is a blockchain game that uses NFTs and tokens to create a real economy based on digital assets. Unlike most traditional video games, users of NFT games can receive, buy, collect, and trade NFTs with other players to earn an income from the game (play-to-earn, P2E). NFT games have revolutionized the gaming industry and are part of the digital future where cryptocurrencies and blockchain technology play the leading roles in the financial system.

Types of NFT Games

As in the field of traditional video games, they are divided into categories and genres. In GameFi, there are two main categories — Play to Earn and Free to Play. The difference between them is that Play to Earn NFT games require investment, and usually quite a lot of it so that users can earn an income and make more money from the game.

What is NFT game? NFT gaming in 2022

How Do NFT Games Work

Thanks to digital games on the blockchain, users can not only store their NFTs and unique digital collectibles in a crypto wallet but also use them as a character, avatar, or in-game item in a video game, earning money at the same time. Players can participate in contests and sweepstakes to win valuable rewards that act as NFTs and have real value. After receiving a reward for winning a game, you can exchange it for digital assets on the NFT marketplace provided by the game’s developers or on third-party websites.

All about NFT gaming within the games industry

Disadvantages of NFT games

Like any field, blockchain games are not without their drawbacks. Before you consider them as a way to make money, you should be aware of all the pitfalls in this field. This way, you can understand how it suits you. Now let us talk about the disadvantages of NFT games.

High Entry Threshold

One of the biggest disadvantages is the entry cost. To earn money, players have to buy items and characters. And the more popular the game becomes, the more expensive its characters and items become, making it difficult for beginners to get started. Besides, without investments, it becomes problematic to compete with other players and earn income since they have invested their money to improve them. And the more money you invest, the more you can earn, but at the same time, the risks of investing increase significantly. However, there are also free to play NFT games.

Money Laundering

The second major problem that affects the entire DeFi sector and the crypto community is money laundering. Decentralized applications and protocols cannot restrict attackers who use blockchain games for their purposes in any way.

High Risks

If you just want to play NFT games for fun without investing, it’s not a problem. Your money will be safe. However, if you invest, you will bear risks ranging from possible loss of value of digital assets to fraud. Let us list the main risks that users of NFT games can face.

Decreasing the Cost of Tokens

The stronger the hype around the game, the faster the cost of in-game items and characters offered in the form of NFTs increases. Accordingly, by buying loot boxes and in-game NFTs that have increased in price, players risk losing their investments when the game’s popularity begins to decline and, as a result, the value of in-game assets decreases.

Hacking of the DeFi Protocol

For example, in March 2022, hackers hacked into the Ronin network, which runs the popular game Axie Infinity, and extracted about $625 million in cryptocurrencies. This was the largest hack in the history of cryptocurrencies. Security also applies to individual protocols. The presence of vulnerabilities in smart contracts can lead to the loss of players’ funds, including their Non-Fungible Tokens.

Rug Pull

In DeFi, the Rug Pull scheme has become one of the most common scams, along with phishing attacks. The essence of the Rug Pull method is that the attackers intentionally create a fraudulent NFT game to deceive users and siphon their funds through the backdoors in the smart contract. One of the best examples of Rug Pull was the Squid Game project based on a famous TV series of the same name.

NFT gaming. All you need to know about games industry and the way it is digitalized

Most Popular NFT Games

Back in 2017, when the game CryptoKitties became popular, there were so few interesting games that you can hardly find enthusiasts now who would remember other NFT games. Although, in reality, there were quite a few, most of the games had poor mechanics or were released in raw form, which was not very interesting for users.

Card and Collectible NFT Games

Splinterlands

Leading NFT trading card game with over 300,000 players. Splinterlands was released on the Hive and WAX blockchains. Despite the fact that the most popular blockchain with smart contracts is Ethereum, games developed on this blockchain have not found this popularity due to the expensive transactions.

Gods Unchained

One of the first PVP card RPGs in this gaming industry, where users compete against each other to earn trophies in the form of NFTs, build unique card decks, and upgrade their collections to make their team stronger and win matches more often.

PVP, MMORPG and Epic Games

CryptoBlades

CryptoBlades is a popular play-to-earn and PVP game in the spirit of popular computer role-playing games in the early days of their creation, which immediately catches the eye when visiting a game site. The game runs on as many as five blockchains: BNB Chain, Polygon, Heco, Avalanche and OEC (OKX Chain). Players control virtual characters from a fantasy world.

Chainmonsters

Another game based on the famous Pokemon, like Axie Infinity, is only in the MMORPG genre. Free to play Chainmonsters is built on the FLOW blockchain. Players collect Chainmons and in-game items, which they can then sell on the marketplace. The game is planned to be released for PlayStation, Xbox and Nintendo Switch game consoles and is now available on Steam.

Lightnite

Lightnite is an online multiplayer game made in the likeness of the famous Fortnite game (as you might guess from the name) by the same game developers who created the popular gaming portal Satoshi’s Games. The other part of the name reflects the fact that the game uses the Lightning Network (LN), a second layer network for scaling and improving the privacy of the Bitcoin blockchain.

NFT Gaming Platform, Metaverses and Virtual Worlds

Alien Worlds

A metaverse where users rent or buy spaceships to explore the virtual universe, complete missions and earn real Trilium (TLM) cryptocurrency.

The Sandbox

A virtual metaverse that combines elements of Free to Play and Play to earn, inspired by the popular game Minecraft. In Game The Sandbox, players can buy and own virtual plots of land, build on them and interact with other players in the multiverse.

Upland

Upland is an NFT metaverse created on iOS and Android mobile platforms and running on the EOS blockchain. An interesting feature of the NFT game Upland is that the real estate in the game is matched with addresses from the real world. In other words, when you buy real estate and items in Upland, you own a virtual copy of the real-world object in this metaverse.

Mobox

Mobox, also known as MOMOverse, is a popular NFT gaming platform on the BNB Chain blockchain. The native tokens of the Mobox MBOX game were distributed on the largest crypto exchange Binance as part of the launchpad, and the company itself joined the project as an investor. By the end of 2021, interest in the game skyrocketed, leading to the price of MBOX tokens rising to $12. Since then, however, activity on Mobox has dropped significantly, and the price of MBOX has fallen to $2.50.

Mining and Farming

Farmers World

The first and most played farming game on the WAX ​​Blockchain in the Play to Earn category, one of the top 3 NFT games by the number of players with over 100,000 users. The essence of the NFT game Farmers World consists of players buying land to raise livestock and harvest crops.

Virtual Pets

Axie Infinity

A blockchain-based Play to Earn video game in the style of Pokemon. Players grow and upgrade virtual pets, which can then be sold as NFTs on the marketplace. The better and more unique the pet, the higher its value will be on the market. The game was released by the well-known studio Sky Mavis on the Ronin sidechain, which was hacked in March 2022. However, the Sky Mavis team promised to refund all users who were affected by this hack.

CryptoKitties

CryptoKitties is one of the first NFT gaming Play to Earn games based on the Ethereum blockchain. The gameplay is quite simple: players breed and sell virtual pets and also cross them with each other to get valuable offspring. The lucky ones manage to breed rare species of virtual pets that are highly valued by enthusiasts: the price of some species exceeds 10 ETH.

How Can You Make Money Playing NFT Games?

No matter which game you choose — P2E, F2P or M2e — users are offered many ways to make money from it, from investing or trading NFTs to participating in gameplay, mining and lending. There are several ways you can make money with NFT games. Let us take a closer look at them.

Buy and Save NFTs or Game Coins

HODL is the simplest yet effective investment strategy that has been repeatedly proven effective by many owners of large projects such as Bitcoin, Ethereum, Binance Coin, Solana, Cardano, Tron and many others. You do not have to participate directly in the game to earn.

Mining or Farming

Did you know that some non-fungible tokens allow you to mine or even farm tokens? For example, owners of NFTs issued on a DeFi platform and Biswap decentralized exchange in the BNB chain ecosystem can deploy them and earn income in the native tokens of the BSW platform. In addition, NFTs can be upgraded to generate more income.

Play to Earn

Some players earn $1000 or more per month just by playing the game. Sounds incredible, but it’s true. In practice, however, not everything is as simple as it may seem to beginners. The complexity of this method is that you need a lot of free time to understand the game.

Create Your Own NFT Game

Another way to make money with NFT games is to create them. You are not limited by anything and can develop games in any genre: Card games, MMORPGs, metaverses, horror and indie games. Complete freedom is limited only by your imagination and investment opportunities.

Final Thoughts

For example, the CEO of the well-known studio Electronic Arts, Andrew Wilson, believes that NFT and blockchain games are the future of the gaming industry. However, he also noted that it is still too early to be 100% sure of this. If EA joins the NFT movement, it is possible that every FIFA Ultimate Team will have its own NFTs, and every car from the new Need for Speed games could be a valuable digital asset on the blockchain. The NFT games are still in an early stage of development, so it’s difficult to even estimate their possible potential, but it’s safe to say that it’s quite extensive.

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