Gamers Turn To NFT Games to Earn Cryptocurrency

Gamers-Turn-To-NFT-Games-to-Earn-Cryptocurrency

Play your way to profit with NFT games. 

Imagine being paid generously for playing video games. Sounds like a dream—or an overly ambitious American movie—doesn’t it? Well, it’s reality for those following the rise of NFTs or non-fungible tokens. According to the Chief Executive of video game company Electronic Arts (EA), Andrew Wilson, collectible NFTs are “an important part of the future of [the gaming] industry”.

So, what are NFT games?

NFT games are “play-to-earn” video games that are built on the blockchain and NFT technology. Unlike traditional video games, the rewards or characters you earn in the game are NFTs that you can trade for money. These rewards or collectibles can be digital cards, pets and the like.

NFT games place the power in gamers’ hands. These collectibles will remain yours even when the game disappears, you quit or you finish all levels. Some popular NFT games include Axie Infinity, a game where you collect fantasy monsters, and the first-ever NFT game CryptoKitties, in which you breed and sell digital cats. The rewards are traded for Smooth Love Potion (SLP) or AXS (Axie Infinity)—Ethereum-based cryptocurrencies.  

How do NFT games work?

An NFT game works like any other video game. There are levels and rewards. To implement the NFT part, there are “smart contracts”. A smart contract is a digital agreement that gets enforced by a specific set of rules. The players have to abide by the contract that is predefined by a computer code.

While playing the game, players can access in-game assets, such as cosmetics, digital cards, pets and more. They can then trade these as NFTs, helping players earn money. For instance, if a player accesses a new weapon—a sword perhaps—they can go beyond just using it to defeat other players. They can tokenize the sword and sell it to another player in exchange for money. 

NFTs are unique and scarce, adding to their monetary value. However, in the case of NFT art, the piece of artwork can be replicated—through false copies, screenshots and the like—thus reducing its rarity. Rest assured, that’s not the case with NFT games. The rewards you earn within the game are truly one-of-a-kind and cannot be replicated without putting in the work. This feature makes them a covetable and highly profitable asset. 

How do NFT games make money?

While NFT games are lucrative, they do require some initial investment. Players can access certain features of the game for free. However, to truly profit from the game, they will have to pay a fee or make in-app purchases. That’s how NFT game-makers earn money. 

Traditionally, video games would require players to pay for their services. However, now, with NFT games, there is more value for players, as within the games lies an opportunity to earn cryptocurrency, boosting their return on investment. 

This mutual profitability model—where both the game-maker and player are at an advantage—could be the future of gaming. After all, as per Wilson, gamers want “more modalities at play inside the game”. They want to go beyond “just straight 11-on-11 football” and explore newer ways of playing. He revealed, “They want more digital experiences outside the game—esports, NFTs, broader sports consumption, and they want us to move really, really quickly.”

Header Image by Flickr

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email
Alinda Gupta
I am a professional journalist and gourmand with an inexplicable love for caffeine. I admire old architecture and find comfort in fiction books. I am also an A1-level certified French speaker—bonne journée!

RELATED POSTS

How Supercomputers Are Affecting the Environment

How Supercomputers Are Affecting the Environment

Supercomputers may be our glimpse into the future. Renowned computer scientist John von Neumann proposed the term “technological singularity” to describe the point of development at which it is impossible to predict the changes that technology will bring to human civilization.

How to Invest in the Cannabis Industry

How to Invest in the Cannabis Industry

Despite cannabis (also known as weed or marijuana) being illegal in a large part of the world, the global cannabis market was worth US$28.26 billion in 2021 and is expected to grow to US$197.74 billion by 2028. Gone are the days when venture capital firms would dismiss cannabis companies as problematic investments.

Why Crypto Markets Crash and 5 Ways Investors Can Deal

Why Crypto Markets Crash and 5 Ways Investors Can Deal

With more and more people holding cryptocurrencies today, the crypto crash of May 2022 has had severe financial consequences. Reliable currencies, including Bitcoin and Ether, met a terrible fate, as did stablecoins, amounting to losses of over US$300 billion.