NFT Games are blockchain-based video games. Players can make money using NFTs and other elements of decentralized finance. Really profitable profits can only be achieved – if at all – through excessive gaming, however a direct investment in tokens of promising NFT games can be more profitable. New releases for 2022 include Illuvium, Guild of Guardians, Heroes and Empires, and the Psyker P2E game which many are looking forward to.
The crypto space experienced an extraordinary year 2021 – revolutionary technologies such as Defi and NFTs ensured investments in the billions, breaking all records. At the same time, they paved the way for a new era: crypto gaming.
Blockchain-based video games could become the next big hype. The combination of gaming, non-fungible tokens (NFT), and elements from the field of decentralized finance (Defi) seem to have the potential to fundamentally transform the gaming industry. A term seems to have already established itself for this: Gamefi.
Axie Infinity shows how it’s done
Axie Infinity did it. The Crypto Game, which is still in the beta phase, is already an essential source of income for many people from Southeast Asia who earn their living with it. And in Germany, too, some investors have managed to earn a passive salary with Axie Infinity: Play-to-Earn is the underlying concept, which makes it possible to earn money with video games.
Blockchain and NFTs reign supreme
When NFT games are mentioned in general, this means computer games that use blockchain technology. Specific game functions, such as in-game purchases or tokenized items, are implemented using distributed ledgers – a synonym for blockchain.
One of the central building blocks of crypto games is NFTs. The non-fungible tokens turn objects implemented in the game into unique objects that can be assigned to an owner. Gamers not only become virtual owners of the items and characters they have earned but also own them legally. This is not the case in classic video games.
NFT games as game changers
The advantage here is that the items can be traded freely via the blockchain with the addition of Defi protocols. Proprietary rights are assigned in a tamper-proof manner, allowing for secure buying and selling. Above all, the players themselves benefit from this concept, since winnings are not mainly pocketed by the big game providers as usual.
In addition to the financial aspect, tokenized in-game products have other advantages. They often give the character special abilities, which makes them stronger against competing comrades-in-arms. In conventional video games, there are also items that can be traded on marketplaces such as the Steam Market, but in most cases, they only serve cosmetic purposes.
Earn money while playing
However, selling rare in-game assets is not the only way to make money from NFT Games. The play-to-earn model also rewards players for completing tasks; how the reward system works exactly depends on the title. However, the distribution of profits is basically based on the same principle: Players can earn something using tokens that are distributed via smart contracts.
However, since tokens have little use outside of the blockchain, investors usually have to exchange them for more common cryptocurrencies in order to subsequently monetize them. This happens either via decentralized exchanges that were specially designed for the Defi sector, or on typical crypto exchanges.
