What Is an NFT Game?
The online decentralization movement, otherwise known as web3, is driving forward many segments of the current IT industry.
You are most likely already familiar with the existence of cryptocurrencies and blockchain technologies. A notable development is that the worlds of crypto, blockchain, and online games have combined their fortunes.
As a result, we have a brand new type of game that offers a unique NFT gaming experience.
An NFT game explained (short summary):
NFT games are a new type of game that uses NFTs to create unique gaming experiences. These games are built on blockchain technology and offer a wide range of benefits over traditional online games. In NFT games, you have true ownership of your in-game items.
This means that you can do whatever you want with them, including selling them, trading them, or even renting them out.
In this article, we cover everything that you need to know about what NFT games are. But first, let’s cover some basics.
What does NFT mean?
NFT is an acronym that stands for Non-Fungible Token.
Tokens can be fungible, which means that each token is interchangeable with another token of the same type.
For example, one Bitcoin is equal to another Bitcoin.
NFTs are non-fungible, which simply means that you can’t replace them with something else. NFTs are unique, and when created (minted) each NFT has its own individual characteristics that are stored on a blockchain.
» Learn more: How to buy your first NFT
This is similar to how each physical item in the real world has its own set of characteristics that distinguish it from every other physical item.
For example, if you have a brand new phone and trade it for a copy of Action Comics #1, you’d have something that’s not remotely similar to the item you’ve traded for.
NFTs can represent anything, but they’re most commonly used to represent digital assets like in-game items, art, and collectibles.
Whatever it represents, an NFT is on a blockchain and retains all of the characteristics of a cryptocurrency token, using the same blockchain technology in terms of security and immutability.
» Learn more: Different Types of NFT Projects
Unfamiliar with blockchain? Let’s fix that.
What is blockchain?
Blockchain is a relatively new technology and a very peculiar one at that.
Blockchain provides you with a unique system to record and store information. Data recorded through a blockchain is virtually impossible to hack, manipulate, or change in any way.
To understand it better, you should imagine blockchain as a digital ledger of transactions. It is a ledger that is always duplicated and distributed across all computers on the blockchain network, which is why it’s called a decentralized database.
If you have a transaction with someone on the blockchain, the record of your transaction is added to a ledger and distributed across the entire network. Technically, the transaction is recorded with a cryptographic signature that is immutable. This signature is called a hash.
» Learn more: Blockchain Technology Explained
How do NFT games work with blockchain technology?
Now that you grasp the basics of NFTs and blockchain, it’s time to see how they work together.
Since NFTs are stored on a blockchain, they come with all of the advantages of decentralization. NFTs are immutable, transparent, and secure.
Everything in a game that you play online can be considered digital goods. To claim ownership of your digital goods (whether it is an item, account, or avatar), you need an NFT — a token that’s bound to the blockchain.
This means that it is impossible to steal it or change it, and you can easily check the ownership of your NFT.
Meanwhile, NFTs have value in the real world so gamers can either trade them for other players’ NFTs, cryptocurrency tokens, or fiat currency.
» Learn more: Blockchain Gaming Guide for Beginners
Examples of NFT games
While there are already many NFT games out there, we decided to examine the most popular ones. First, let’s cover the ones that we’ve already mentioned: Axie Infinity, Gods Unchained, and The Sandbox 3D.
Axie Infinity has the same look and feel like a game from the Pokemon series. It is an Ethereum-based NFT game. Players are in charge of collecting and breeding digital pets called Axies. They take them into battles and dungeons as they make them more powerful.
Every pet is unique because there are millions of genetic combinations. The Axie Infinity NFT game platform has two tokens native to it – ERC-20 and AXS. ERC-20 is a utility token that players use to breed Axies, and AXS acts as a governance token. Unfortunately, this is not a free-to-play game, as you need 3 Axies to start playing. Axis are sold through Axie Infinity marketplace.
Unlike Axie Infinity, Gods Unchained is a completely free game. It has everything that you would look for in a card trading game. Players collect cards, make their custom deck, and combat other players in epic PVP battles. Winning will help you gain experience, and every time you level, you earn new cards.
This game sounds like the popular GWENT: The Witcher Card Game as well as Heartstone, but there is one huge difference – you can make cash while playing Gods Unchained. Behind Gods Unchained cards, we have an ERC-721 token which players can sell on a marketplace for GODS – the platform’s native token.
Say hello to the first NFT voxel-based game. In this metaverse, players create and trade virtual assets. This game looks like Roblox and Minecraft. The more creative players are, the better, as they can use the same set of tools to create unique objects and animate them.
Players can sell objects in the marketplace. Players can also create their own games and invite others to play them together. The most valuable asset in the Sandbox 3D is LAND, an NFT token native to this platform.
NFT games are the future
NFT games are the future. This might sound like a bold claim. However, if a gaming industry giant such as Electronic Arts tells its investors that collectible NFTs are going to be the future of the gaming and gambling industry, then it must mean something.
It appears that it’s too early to be 100% certain, but the chances are good that NFT games will make it to the very top of favorite games for many gamers. Why the uncertainty? There are some gaming giants, such as Steam, who don’t want to do anything with blockchain or NFTs.
At the same time, Ubisoft, Epic, and EA are embracing the idea of NFT games becoming one of the most popular genres. Given the current popularity levels of NFTs and blockchain games, it is safe to assume that they indeed are the future.
» Learn more: NFT gaming beginner’s guide
NFTs are a new way to create, own, and trade digital assets.
NFTs have many advantages over traditional methods of ownership, including immutability, security, and transparency. NFTs are stored on a blockchain, which gives them all of the advantages of decentralization.
NFT games are becoming increasingly popular, as they allow players to own, trade, and sell digital assets in a secure and transparent way. NFTs have the potential to revolutionize the gaming industry and the way that we interact with digital assets.