Cryptocurrency is like a wave that continues to build up and explode throughout the globe. Its effects were amplified by the current global pandemic that promoted online work ethics and transactions. With the world becoming more digitized, blockchain technology and online currencies are on the rise.
An important subject that hit the limelight with the rise of blockchains and cryptocurrency was NFTs. NFTs have gained popularity over the last few months, not only in the crypto community but also throughout the internet. It’s an entertaining and pleasant way to earn money and digital assets.
This beginner’s guide to NFTs will help you understand what they are, their role in gaming, and how they can be traded using cryptocurrencies on marketplaces.
Before explaining what NFT games are, you need to understand concepts such as smart contracts, GameFi, and blockchain.
A blockchain is a network of several ledgers and servers that function as blocks to validate information. It contains thousands or millions of blocks to work as a decentralized system. The information in every block is validated by all the other blocks, which is why it is hard to manipulate or cheat a blockchain. If the information is rejected by even one block, the ledger remains unchanged.
Just as the name suggests, a smart contract is a contract containing all variables and actions surrounding a contract that is uploaded on a blockchain. They are safe because they are automated and cannot be manipulated since they are on a blockchain. You can use smart contracts for almost anything, such as making an insurance policy or placing a bet.
Lastly, GameFi is a play-to-earn platform that brings together NFTs, blockchains, lending and borrowing, yield farming, and algorithmic stable coins by combining decentralized finance and gaming.
So, what exactly is an NFT?
An NFT is a digital asset that can exist in different forms, such as an image, a video, a photo, an audio file, or an in-game asset. NFT, which stands for ‘non-fungible token’ because it can be traded and broken down into parts, contains identifying information that is uploaded in smart contracts, providing proof of ownership.
NFT games are blockchain-based games with digital assets called tokens or NFTs. They are the newest invention to the gaming and cryptocurrency industry. NFT holders can use them to buy physical and digital items to further progress in the game or sell them to interested parties via any market. The buying, selling, and ownership of NFTs is what makes them different from standard digital art.
How do NFTs work?
NFTs are purchased using cryptocurrencies like bitcoin, and the ownership information is uploaded on a blockchain. Cryptocurrencies can be sold and bought securely through blockchain technology because it is safe. However, cryptocurrencies are very volatile, which means that their value can fluctuate rapidly.
Can you earn money on NFT games?
Absolutely! You can make a profit by playing cryptocurrency games.
NFT games use NFTs in their mechanisms, rules, and player interactions. They blend novel gameplay mechanisms with traditional gaming features to offer players more power over in-game assets like weapons, characters, skins, and virtual territories. For instance, a game may symbolize your character as an NFT. The digital assets you gather while playing the game and completing challenges can also be NFTs. To earn a profit, you can trade or swap these NFTs with other players or turn them into flat currency.
Can you lose money on NFT games?
The short answer is yes. Just like any investment, GameFi platforms have some form of risk.
For starters, you’ll need capital to buy tokens to start playing. This money can be lost when your tokens lose value or when you fail to cash out after losing interest.
Good NFT games to play in 2022
NFT games continue to thrive as more and more people embrace this technology. Here are some recommendations if you’re looking to start;
Battle Racers: This game is similar to casual racers and Mario Kart but focuses more on weapons. Players who win can sell their cars as NFTs for cryptocurrency.
Sandbox 3D: This NFT game allows participants to generate personalized voxel assets and trade them on online marketplaces.
Axie Infinity: This NFT game is similar to Pokemon, with emphasis on battling to win. It allows participants to develop their own battling creatures.