Non-Fungible Tokens (NFTs) are unique digital collectibles on the blockchain. Non-fungible means each token is unique and cannot be swapped identically for another token ever. This feature makes them suitable to use in games as representations as characters, consumables, and other tradeable items.
NFT games are different from just holding crypto-collectibles in your wallet. An NFT game will use NFTs in its rules, mechanisms, and player interactions. For example, a game could represent your unique character as an NFT. Digital items you find while playing the game could also be NFTs. You can then swap or trade your NFTs with other players for profit. NFT games have become popular in the Game-fi world as a way to earn income. You can sell your in-game NFTs to other collectors or players and even earn tokens with play-to-earn models.
So how do you take NFTs and technically implement them into a game environment? To swap, create, and implement NFTs within a game, developers create smart contracts that make up the rules for the NFTs used. Smart contracts are self-executing pieces of code stored on a blockchain.
CryptoKitties 3D, one of the most watched NFT games, for example, has a small number of main contracts that structure the game. The hatching contract that determines the random mechanics that generate new kitties from mystery boxes is a basic one.
Play-to-earn NFT games give users the chance to generate an income stream through playing. Typically, a player is rewarded with tokens and occasionally NFTs, earning more the longer they play. The tokens earned are often needed as part of the game’s crafting process. The token method is usually the more stable of the two, as tokens can be earned steadily through play while NFT drops are more chance-based.
CryptoKitties 3D requires an initial investment to purchase ‘Ancient Mystery Box’ to hatch a five-color common kitty. Once you have your kitty, you can stake it in the farm; when you kitty has fully energy you can transfer it to battlefield and challenge other kitties. No matter your kitty is in the farm or battlefield, you can earn KITT, a Binance Smart Chain (BSC) token tradeable on exchanges. Players use KITT to purchase new mystery boxes, breed new kitties, buy potions, or trading NFTs, creating an economy for the item.
Furthermore, in-game NFTs offer another way for you to generate an income through playing NFT games. Rather than earning a fungible BSC token like KITT in CryptoKitties 3D, you earn NFTs that represent collectible items. This gameplay mechanism is the traditional way of generating income with NFT games. Items will vary in their worth based on their cosmetics, rarity, or utility based in the game. In CryptoKitties 3D, players can also trade their kitties or mystery boxes in the NFT Market Place for income.
NFT gaming takes digital collectibles and creates rules for players to interact with each other’s NFTs. While some people value NFTs for their collectability, others want them for their utility. Many NFT games work like a trading card game, but not everyone who collects the cards intends to play. Game-fi has now created new NFT gaming economies that have changed how people can earn using NFTs. To make money, it’s not just about luck and collecting anymore; it’s also about playing too.