What are NFT games and how they work

What are NFT games and how they work

NFTs games have become a rage among users who want to acquire unique digital items through blockchain technology and cryptocurrency. To explain what NFT games are and how they work, Canaltech Has created an entire article that highlights what the headlines mean and whether they are safe to run.

What is NFT?

Abbreviation for NFT Non-fungal tokens, Which can be interpreted as a “non-fungible token” in free translation. The name may sound a bit strange, but think about the following: The word “token” can be interpreted as a kind of seal or digital certificate; The term “fungible” means anything that can be exchanged for something similar, without loss or increase in value.

Therefore, non-fungible tokens are classified as a digital item that cannot be replaced, exchanged, destroyed or copied. Even if there is a copy of that product, the original NFT is the only one that accurately proves its originality. In some cases, the artist or NFT owner may create multiple units of their work, but for most NFTs there is usually only one version.

The “Mona Lisa” painting is not an NFT, but has already been digitized on the Internet (Photo: Reproduction / Wikipedia)

Here is an example: world-famous works by artist Leonardo da Vinci, such as “La Belle Ferronier” and “Mona Lisa”, are easily available on the Internet and can be downloaded or printed by anyone. However, the original pieces, and therefore unique, are on display at the Louvre Museum in France.

Da Vinci’s paintings, if they are for sale on the Internet, can be classified as NFT, since they are non-fungible products (which cannot be replaced), even if there are millions of highly defined copies on the web.

What is an NFT game?

Since virtually anything on the Internet can become a non-fungible token – from photos, videos and GIFs to messages, audio files and other content – NFT games follow the same logic: converting some elements of the whole game or title into a single thing.

What sets NFT games apart from other activities in general is that games have invested in collectibles to attract more people. Players, instead, see the potential for profit from exclusive parts on these items, since each NFT in the game is unique, which may be considered rare among players.

Axis Infinity is an NFT game that lets you use real money to buy and trade items (Image: Handout / Sky Mavis)

However, NFT-based games also link to collectibles created and received during title play – the so-called “in-game NFTs”. That is, the user can also transact with the items collected during the gameplay and, as a result, earn money from the items sold in the game.

How do NFT games work?

Gameplay mechanics vary from game to game. However, most NFTs follow the title model Earnings from the game (Play to win a free translation), where players earn a source of income (tokens) just by playing the title in question. The more you play, the more you win. And this is the most common model because the more advanced the player, the better and rarer the items obtained during the match.

Do I have to pay to play NFT games?

Again: it will depend on the game and the developer, as the latter may adopt the method which is considered the most valid for the application of NFT.

Axie Infinite, for example, is one of the most popular NFT games right now. Just to start the game, you’ll need to pay US $ 1,200 (direct conversion R $ 6,720), which is equivalent to a minimum requirement of three axes (title collectible monster) to enter the game. Each ax used by newcomers sells for $ 400.

There are free options like Gods Unchained Card Games. There is no need to pay to join and the player receives a deck of 140 cards. It turns out that these cards have no value in the game, which means that NFT items that can be transacted with other people are only acquired with the progress of the player’s game.

Gods Unchained is a free-to-play NFT game (Image: Handout / Gods Unchained)

Popular NFT games

Despite not having the same reach as other titles, NFT games have been successful among users who enjoy play-to-earn mode. Some examples:

  • Axis Infinite;
  • Quite rare;
  • The unspoken of God;
  • NFT Binance Collection;
  • Alien Worlds;
  • Splinterlands.

How To Make Money In NFT Games?

It also depends on the mechanics adopted by each NFT game. The traditional method is to play a play-to-acquire title to get rare items and, in the future, trade them with other players.

In most cases, NFTs can be in-game, and clothing, weapons, equipment, and other elements that are already common in other games. The difference is that, necessarily, the player must buy an item from someone or sell an NFT that is on their character list. That, of course, if the player is interested in such discussions.

In conventional games for PCs, consoles, and cell phones, which sell cosmetic items that alter the character’s appearance or some items, the idea of ​​showing them to other players proves the rarity of those parts. This is the same idea for NFT games. But instead of keeping the item locked in inventory, the player can cash it out by selling it to someone else.

It is also important to note that just as the value of a game or NFC item in a game may increase suddenly, it may also go down. Everything will depend on supply and demand: the rarer the item, the more expensive it will be in the player community and the more sought after it will be. If that demand decreases or is lower than the previous day, the item may be devalued.

Canaltech on YouTube

NFT (Non Fungible Token) or, in Portuguese, “non-fungible token”. Simply put, a unique, immutable and uniform, non-transferable digital code. Learn more about the concept of NFT, understand the role of technology and its relationship with cryptocurrency. Watch the video What is NFT? And subscribe to Canaltech on YouTube.

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