NFTs (non-fungible tokens) are gaining more and more ground in the world of video games. Based on the ‘play to earn’ model, these are based on NFT technology and allow those who play them to mine cryptocurrencies. Bearing in mind that the main motivation is to make a profit, these types of games are a trend that is gaining momentum. For some, it has become a way to earn income in the face of the lack of stable employment and the economic crisis exacerbated by the pandemic.
How do these types of video games work?
To understand how they work it is important to be clear about what NFTs are. These are digital representations of assets, which can be real-world objects such as works of art, vehicles, house deeds, and more. They can also be assets that do not have a tangible representation, such as virtual lands or video game avatars that can be donated, given away or sold. No NFT is the same as another, that is, its qualities are unique, exclusive and authentic, which is why digital tokens generally function as a collector’s item.
For its part, NFT games are based on collaborative economies that rely on blockchain technology to validate transactions, they are decentralized and all players have a share in the profits of the game. In this sense, each game creates its own financial ecosystem and all transactions, as well as the elements of the video game, can be converted into real money. It is precisely this dynamic that has changed the way in which video games are perceived, because generally, in traditional games you have to pay to play and not the other way around.
According to the Entrepreneur portal, in 2017 various projects based on blockchain and NFT technology arose, however, it was not believed that they would be so popular, especially in the video game industry. This year, several titles have become the sensation of the blockchain space, including: Axie Infinity, Alien Worlds, CryptoBlades Game, Upland, Galaxy Blocks, Splinterlands, My Defi Pet, which have contributed to increasing the value of the tokens, which increases sponsorship and at the same time attracts more public.
Some of the video games
At present, one of the most popular NFT games is Axie Infinity and it is precisely the one that marked the starting point of this new trend, of making a video game a way of working. With its play-to-win model, which has posted a total of $ 1.6 billion in revenue since its launch in 2018; in August of this year it had a sales volume of 845 million dollars, with more than 3.8 million transactions, according to data from NFT CrytoSlam.
This game, also known as the “Crypto Pokemon”, is based on a system of prizes, buying and selling small creatures with real value and that can be exchanged. The winnings that the player can receive vary since it does not have a fixed fee, but the most important rewards that Axie Infinity gives to the users are produced when they participate in cups and competitions against other players. By winning they can receive prizes in SLP, a digital currency that can be exchanged for cryptocurrencies or even real money.
According to the Criptonoticias portal, Axie Infinity remains at the head of NFT’s collections and is the first of its kind to exceed 2,000 million dollars traded to date.
In total, this video game has a historical volume of trade of 2.18 billion dollars, according to data from Dapp Radar. With this figure, it is not only the first collection to surpass that milestone, but it is almost $ 1 billion ahead of the second collection on the list, CryptoPunks.
Another popular video game is CryptoKitties, which was one of the first blockchain games invented. This game allows users to raise and collect virtual kittens on the Ethereum blockchain. CryptoKitties is still very popular with $ 30,000 in daily sales according to NonFungible data. Once players build their collections, they can go to the KittyVerse to participate in cat fights, solve puzzles, and more. Dapper Labs created this game on Ethereum and it was released in November 2017.
Also on the list of the most recognized video games is Upland, which is available on Android and iOS mobile devices. It is similar to a Monopoly game where you can buy and sell real world property, but in virtual space. The difference between this project and other online games that have a similar concept is that Upland has a cool Llama as a pet. Players have real property in the form of cryptocurrency tokens. So when they buy a property in the game (which has a real-world address), it belongs to you, thanks to smart contracts.
More and more interested
It is imminent that the universe of video games is changing rapidly. With the arrival of the pandemic, the paradigm shift in many settings accelerated. Now, it is not only played for fun but as a way to invest and earn money.
Under this scenario, more and more brands from different sectors are betting on the NFT market. For example, the creators of the simulation game The Sims recently announced the release of a game that will turn memories into NFT.
This is Proxi, in which the user, in addition to capturing their memories, can design objects and sounds to also convert them into tokens. The game is expected to be available later this year.
At the end of September, the social network TikTok reported its arrival on the NFTs market. The strategy consists of digital artist collectibles that will allow fans to “own a culturally significant moment” from the social media platform. These are just some signs that the world of cryptocurrencies is growing exponentially and on different edges, thus diversifying opportunities for all types of population, reality and needs.
Some aspects to take into account
After knowing what video games with NFT are and their opportunities to generate money, it is key to take into account some aspects. First, the initial investment. The initial investment in the game must always be taken into account. In all of them you have to pay a little money to start playing. The amounts vary depending on the game, so you must take into account what you are going to have to invest. Therefore, specialists recommend starting with a game where the investment is low, to learn more about the system.
Another aspect to consider is the burdens within the game, since not only must you have an initial investment, but there are expenses within the game itself. There are times when the player must make many investments within the game in order to advance. Finally, security is an essential point. There are games where there are hacks or there are security problems with the users’ wallets, so they can end up losing their money or their cryptocurrencies in it. For this it is convenient to check if the games have had problems with security in the past, before starting to make large investments.