An NFT is a unique digital collectible on the blockchain. Their unique properties make them suitable for games as characters, weapons, ships, or tradeable items.
In the Game-fi world, NFT games have become popular to make money. While playing, you can create or earn NFT items that you can sell in-game to other collectors and players.
The Evolution of Game Play
The video game industry is constantly evolving with various business models, from Pay-to-play to free-to-play to Gam-fi based model of play-to-earn, which utilizes NFT technology.
Pay to play
We are all familiar with the Pay to play games business model that started with arcade games in the ’70s and continues today with computer and system games through Xbox or PlayStation. Essentially, you pay upfront through a retailer like Gamestop or pay a subscription as with steam. The advantage is that the game development company gets their money upfront, and you can have full access to the game.
Free to play
The free-to-play business model got its start with the mobile game era. Customers expected their apps to be a free or meager cost, which drove the game developers to offer in-app purchases to cover their games’ costs. However, it turns out that customers were more than happy with this model as it allowed them to play for free and only paid money once they wanted to progress in the game faster or obtain an advantage over other players.
Play to earn
The latest business model, play to earn, where you earn money to play a game, has been made possible through blockchain and NFT technology. Gamers can earn cryptocurrency as they play games. According to the game, what you can earn varies, but they usually come from staking, farming the currency, or creating tradeable NFTs. Play-to-earn, however, has allowed players to generate income by simply playing as part of a game economy.
Popular NFT games
NFT games are available in a wide variety of genres; some offer traditional game experiences, while others are centered around the collection of NFTs.
CryptoKitties
CryptoKitties is one of the original NFT games that relies solely on collecting NFTs. Although CryptoKitties is referred to as a game, you can’t do anything with them except breed, sell, and buy them. Some cats are more valuable than others and can fetch high prices. There have been cases in which people paid more than $100,000 for a single cat!
Axie Infinity
Similar to Pokemon, Axie Infinity features collectible creatures and battles. You can purchase three ‘Axies’ or get a free Scholarship from another player to get started. As soon as you establish a Starter Team and begin completing tasks and challenges, you will be able to earn the Smooth Love Potion (SLP), an ERC-20 token that can be traded on exchanges.
Sorare
Sorare is a fantasy football (soccer) game where you can collect and trade real-life soccer players. The goal is to create a soccer team with five players by using free cards for beginners or tokenized cards. You can earn points for every game you win, every goal you score, or any other activity you perform.
Gods Unchained
In Gods Unchained, you play NFT based trading cards similar to Magic the Gathering or Hearthstone. To play, players build decks with different powers and strengths. Players win by finding in-game items they can use or sell. By winning ranked games, you can earn Flux that can be used to craft powerful NFT cards. Then, you can either sell them or reinvest in new cards to continue the process.
Closing thoughts
NFT gaming takes digital collectibles and creates rules for players to interact with NFTs. While some people value NFTs for their collectibility, others want them for their utility. Many NFT games work like trading cards, but not everyone who collects the cards intends to play. Game-fi has 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.
FAQ
What is staking?
Staking is a mechanism derived from the Proof of Stake consensus model, where funds a held by the user to help validate transactions and blocks on the network.
What is yield farming?
Yield farming is a method of earning cryptocurrencies by temporarily lending crypto assets to a gaming platform to provide liquidity.
What is an NFT?
NFT stands for non-fungible token. When a good or asset is fungible, it may be exchanged for another of the same type; it is not unique. Fungible currency includes everything from dollar bills to bitcoins. On the other hand, non-fungible items are those that are unique. Essentially, NFTs are collectible digital items with limited supply that can be bought, sold, and traded utilizing Blockchain technology. They may be anything digital from videos to photographs to audio to documents and even items within a video game.
What is Gam-fi?
Game-fi combines gaming and finance, and it offers players the chance to earn income as they play.