How do NFT Play-To-Earn games work if you are a newbie in this industry? Read more here to figure them out!
Back in the day, games were primarily designed for entertainment. Since the introduction of the non-fungible token (NFT) play-to-earn games, the online gaming landscape has changed. With internet access and a crypto wallet, you can earn an income by playing and winning your favorite games. Due to this, there has been a rise in NFT play-to-earn games in 2022.
For most, NFT games are a form of entertainment and a fun way of making an income. However, there are a few gamers who are skeptical about NFT games. This article will take you through everything you need to know about crypto and NFT games before looking for the best crypto games Australia.
What Are NFT Play-To-Earn Games?
NFT play-to-earn (P2E) games, often called crypto games, allow players to win small amounts of cryptocurrencies. As a player, you’ll earn a cryptocurrency by participating in contests and tasks the game offers. Since these games are decentralized, players can sell and transfer their earned assets for real money outside the virtual world.
On the other hand, non-fungible tokens, or NFTs, are collectible assets in the virtual world. In addition to cryptocurrencies, NFTs come in different forms, from earned skins to virtual lands, music, images, and weapons.
NFTs are irreplaceable, making them unique assets that are hard to duplicate. You might think of them as the Mona Lisa but in a blockchain. Like cryptocurrencies, NFTs are stored in a blockchain, not within your game. Significantly, each NFT has a corresponding value.
How Do They Work?
Using smart contracts, game developers design NFT play-to-earn games with specific rules for using an NFT. Smart contracts are self-executing codes installed on blockchains. Game developers can use NFTs across the game’s interactions and mechanics. However, the NFTs can only be accessed by a few individuals or sold to raise funds before the game’s launch.
Different NFT games have their distinct interfaces. To play an NFT game, you’ll need a crypto wallet to collect or purchase characters. In addition, you’ll need to play your avatar in a battle or competition to win. Once you win or buy a collectible in the game, you can sell it to earn cryptocurrency.
Meanwhile, NFT games have tokens you can earn the more you play. These tokens are also considered part of your game’s economics, and you can sell them for crypto. And when it comes to cryptocurrencies, the game developer can use one of these two main approaches:
1. Native Cryptocurrencies
Native cryptocurrencies are cryptos designed by the game developer and often exist as tokens. To make native cryptos happen, developers will develop a blockchain project, create tokens, and close it with smart contracts.
You can use these tokens as in-game currency. The best part is that they have value in the real world to make the game more exciting and engaging. Examples of native cryptos are Axie Infinity Shards (AXS) and Smooth Love Potion (SLP), found in Axie Infinity and exist within Ethereum’s blockchain.
2. Existing Cryptocurrencies
In this approach, developers use existing cryptos, such as Dogecoin, Bitcoin, Cardano, and Ethereum, as the in-game’s currency. Since these are well-known names in the world of cryptocurrencies, most games are given their names—for instance, Bitcoin Pop, Bitcoin Tycoon, Crypto Dragon, and Crypto Kitties.
Although these NFT games reward gamers with well-known crypto, it’ll take some time to accumulate them to a reasonable amount. As a result, monetization takes time to become fruitful, and the payout can sometimes be stingy.
Are NFT Games Free?
Most NFT play-to-earn games require an upfront payment to start playing. However, some NFT games are free-to-play, so you won’t have to purchase NFTs to begin playing. NFT games have different genres, including card games, metaverse, role-playing games (RPGs), massively multiplayer online role-playing games (MMORPGs), strategy games, arcades, or puzzles.
Here are some of the best free NFT play-to-earn games;
- Guild Of Guardians
- Alien Worlds
- Gods Unchained
- Titan Hunters
- The Sandbox
- Thetan Arena
- Chumbi Valley
- Galaxy Fight Club
- Gunstar Metaverse
- Zombie World Z
- Sugar Kingdom
- Cosmic Universe
- Outer Ring
- Real Realm
- Nest Arcade
In a free-to-play NFT game, players can earn NFTs by playing and winning. However, this will require engagement and some time.
Advantages Of NFT Play-To-Earn Games
All NFT games have a shared point, regardless of the currency it utilizes. Hence, they’re all advantageous in various ways. The primary advantage of an NFT game is that you can earn money while playing your favorite game. It creates a rewarding environment for gamers making it more entertaining.
Aside from gamers, developers also benefit from this concept. As gamers benefit by earning some money, developers benefit through leveraging rewards as a form of advertisement. Gamers will look for games that will pay them upon winning a battle.
On the other hand, advertisers can as well benefit from this concept by organizing sponsored tournaments. This shows that everyone can earn and make money through NFT play-to-earn games.
Disadvantages of NFT Play-To-Earn Games
The main disadvantage of playing an NFT game is that you can lose money. The amount of money one can lose in an NFT game depends on the value and mechanics of the game. However, losing money while playing an NFT game doesn’t mean you’re being scammed.
NFTs tend to be speculative, and their value often depends on the amount the gamers place on them. Therefore, your loss will be determined by its current market value. You should spend what you can afford, just like investing in crypto.
Furthermore, NFT games can be pretty technical. Some don’t offer a good user experience. Hence, it’s best to understand how to interact with the blockchain and use decentralized wallets.
NFT play-to-earn games have taken creativity and fun to a whole new level. Different NFT gamers have different agendas. Some value NFTs for utility, while others want them for their collectability.
Most NFT games operate like trading cards. However, not everybody collecting NFTs intends to play. To earn money, you’ll need not only collectibles and luck but also good playing time.
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