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What Is NFT Game?

In pay-to-earn games, you can earn via buying, owning and selling NFTs. In essence, this is a high-risk investment in a digital asset that can generate income over time. 

A typical example of an NFT game is a game in which the main goal is to collect fantastic characters, "pump" them, cherish and create offspring. This requires parents to be strong. Hence the main rule – players purchase future mom and dad to make children, upgrade them and sell them. These operations are carried out purely for a cryptocurrency tied to a separate ecosystem, so you will be charged a commission for transfers in Bitcoin or Ethereum. There is also often a minimum withdrawal threshold.

There are now many NFT games available on the Internet that work according to this scheme, although some belong to other genres, such as card projects and even strategies. They often support cross-platform between PCs and smartphones. To play, you need to set up a virtual wallet, remember a secret password and have an intermediary – usually this is the application with which transfers are made.

What Does NFT Mean?

NFT (non-fungible token) is an individual cryptographic token.Their main difference from conventional cryptocurrencies like Bitcoin is their non-fungibility. Roughly speaking, all bitcoins are functionally identical to each other and have the same value. By exchanging one coin, you can get exactly the same in return – the amount will not change from the rearrangement of the terms, since both coins are interchangeable.

NFTs work differently. In a sense, they can be compared to unique trading cards. If the units of one cryptocurrency are no different from each other, then each token is a tiny program containing an identification number, metadata, and a set of instructions (the so-called smart contract). Each such program is written by a specific user or group of users, and then published in a single blockchain database. 

Due to the features of the system, information in all NFTs existing on the web is in the public domain: from the date of publication to the full history of transactions, including transaction amounts and addresses of digital wallets of buyers/sellers. In other words, a published token is very difficult to fake. Even if you peep into the source code of the contract and create a perfect copy of it, the fake can still be recognized, because its history cannot be falsified.

These properties allow NFT to act as a kind of certificate, which confirms the authenticity of any digital asset. Non-fungible tokens can be tied to images, animations, music tracks, videos.  As long as the product exists in the digital space, anything can become a valuable asset.

What Are Examples of NFT Based Games?

In the wake of the popularity of the blockchain and the concept of the metaverse, NFT games are growing like mushrooms after the rain. However, most crypto NFT games are very specific copies of ordinary games, the entire gameplay of which is focused on earning or spending cryptocurrencies. Often, the process of playing in the P2E (play-to-earn) format is given only a secondary role.

Collectible Card NFT Games

There are NFT collectible card games where you can earn money by defeating your opponent or by selling rare cards. The catch is that in-game progress depends on the composition of the player's deck, so buying or renting cards is a must-have promotion tool. In addition, in such games, the issue of card imbalance is quite acute: traditional balancing tools do not work due to the peculiarities of the blockchain. Blockchain guarantees the immutability of transactions, and the characteristics of NFT cards are the subject of a smart contract.

Another facet of the imbalance is the lack of cards with top stats. They are of great interest for collecting, but their owners get a competitive advantage over other players. However, on the other hand, it is the shortage of tokens that fuels the interest of users: a similar picture is also relevant for other blockchain games.

Mobile MMORPGs Using NFTs

Cryptocurrency farming is not allowed on smartphones, but typical MMORPGs on them are Tamagotchi simulators. NFTs can be integrated into such top games, because this will bring popularity to the project, and gamers will be able to earn something for the time spent.

Land ownership And Lease

One of the latest milestones in the development of NFTs on mobile devices are NFT crypto games that feature anime characters, an open world, and trading. Of course, in order to extract resources and earn money, you need to go to locations and farm. But what if you have so much currency that you can buy land and rent it out to other players? Or you can give tasks for the farming, so as not to do the "dirty" work.

A key feature of all these games is the low entry threshold, since each of them is designed for the widest possible audience. NFT games are extremely beginner friendly, and their basic mechanics can be easily mastered within an hour.

Can you Make Money Playing Crypto NFT Games?

In NFT games, there is no minimum income that a participant can count on. As a result, the profit depends on the conditions, popularity and mechanism of a particular game. You can earn by selling in-game assets by putting them on the exchange or auction. However, the demand for a product directly depends on its value for collectors or due to the presence of game advantages and features.

If you want to get rich on NFT games, you will have to spend at least $150 per week. Sometimes it’s not even about the value of the asset itself, but about the exchange rate of cryptocurrencies against fiat currencies. Cryptocurrencies are high-risk investments, and before spending money, you should make a clear plan: how much to deposit currencies regularly, in which projects to invest, for how long, and how much of it you can potentially receive. Please do not fall for scammers who offer to make money quickly and easily – if it were real, everyone would do it.

What Are Crypto NFT Games Advantages 

Exclusivity and earning potential. Objects in blockchain games are NFT elements. Because they are unique, and each item has a real value. Players can earn real money by speculating on the value of NFTs.

Openness. NFT based games are built on the blockchain, so they provide complete data transparency. For example, gamers can track the ownership history of NFT items.
Keeping the NFT out of the game. You can sell created and tokenized items even without starting the NFT crypto game.

Reuse of assets. Creators can use blockchain to develop their own ecosystem. So users will be able to use their characters and virtual items in other games if they are built on the same blockchain network.

What Are NFT Games Disadvantages

Blockchain games are perceived by users as decentralized platforms. But most often, developers use the blockchain only to conduct transactions with NFTs and regular tokens. And all game data is stored centrally on separate servers.

In theory, in NFT based games, all processes should be decentralized and located on the blockchain. For example, data on all user interactions, player profiles, textures, 3D models of characters and objects should be stored there.Then developers will be able to manage games only with the help of smart contracts, which will make all processes transparent.

In most modern blockchains, this way of storing data will be too expensive or technically impossible. For example, the commission on the Ethereum network for downloading a file weighing several kilobytes will be several thousand dollars. And for a megabyte, you will have to pay almost $1 million.

Due to the storage of all in-game information on servers, users face problems typical of centralized games. Storing data on the blockchain could solve some problems due to the transparency of smart contracts. These are the following problems:

Lack of rights to their in-game accounts. Most users, when creating a profile, believe that they can dispose of it as they want. But all accounts are not the property of the players, but only an identifier with which a person gains access to the server. And all ownership rights to profiles belong to the developers.

This does not mean that developers can get hold of your NFTs, because they are located on the blockchain. But the administration can at any time block the user's access to the account from which the assets are being withdrawn – for example, for violating the terms of use of the game. Then NFT can no longer be withdrawn from the player's account. 

The server blocks any transactions between the account and the cryptocurrency wallet, even if it is not linked to the game profile.

Shutting down game servers. Sometimes developers may temporarily shut down their servers due to technical problems or to work on fixing bugs. During this time, users cannot access their accounts. And if the player wants to withdraw NFT to a cryptocurrency wallet at this moment, the server is not able to confirm this transaction. This happens due to the shutdown of the interface, which should interact with the smart contract of the game, to which the assets are attached.

Lack of transparency of game mechanics. Users do not see the real actions of the developers and can only guess how the balance of the game is set. So the administration can hide the real likelihood of in-game items falling out. For example, users believe in the overestimated chances that the developers wrote to them and are more willing to take risks to open NFT cases. Players cannot check this probability, so they believe the words of the administration and spend more money.

Developers of NFT projects also face problems of centralization. For example, many NFT based games are filled with bots. They prevent players from earning tokens and negatively affect their exchange rate.

Bot creators receive a constant increased profit. For example, one such program can register 1-2 thousand NFT crypto game profiles. All of them will be considered multi-accounts, because they belong to one person, and this is prohibited in most games.But not all developers can track and block such programs on their platforms.

Bots do not need to take breaks for sleep and food, or be distracted by work and personal life. Because of this, multi-accounts will constantly mine NFTs and bring profit to their creator. And the number of tokens that real users receive will decrease. This happens because the smart contract of the NFT crypto game creates a fixed amount of NFTs and distributes them among all accounts. Because of bots, the number of accounts increases, but tokens do not.

New users come to the NFT crypto game, see the low rate of earning tokens on the network and quickly leave the project. And the bots will consistently make a profit, even if each account produces a minimum of NFT.