What is NFT Game? The potential of Game NFT in the next bullrun cycle

1. What is NFT Game?

NFT games are game projects, similar to traditional game genres, but developed on blockchain and using NFT to represent player ownership of digital items or assets in game.

If in traditional games, players can buy, sell, and exchange in-game items to level up and increase experience, then in NFT Games, those items will be expressed as NFTs.

These NFTs will play a core role in the game, be it characters, items, weapons, skin colors, hairstyles or costumes,... or any other characteristics suitable for the game, determined by the developer. game action given.

2. What is NFT?

NFT (Non-fungible Token) is a type of digital token developed based on blockchain technology, representing an irreplaceable and unique asset. This means that NFTs are non-fungible tokens and include different metadata that cannot be duplicated.

NFTs are applied to many niches in crypto, be it encrypted works of art, a type of digital asset in gaming projects, sports, music or even real estate, fashion items in the real world.

However, the applicability of NFTs in blockchain is still most evident in the GameFi industry due to their feasibility and accessibility.

NFT Games — *What is the concept of NFT?*

3. What is the role of NFTs in Game projects?

Unlike normal tokens, instead of users only being able to hold tokens in their wallets, wait for price increases to gain profits or stake to receive interest, NFTs have more applicability in Game projects.

As mentioned above, NFTs can be expressed in many different forms and have different utility, depending on the issuer and the nature of the project. Those applications can be used to play games to generate income, used to represent the player's identity, or equipped, exchanged with other players to make profits,...

NFTs will be created by game developers based on smart contracts, including their own rules and mechanisms. And these smart contracts will automate and execute those applications.

For example, an NFT will be established, allowing holders to participate in a game, earn tokens or an NFT for playing, or qualify for some other benefit if they own it. NFTs,…

4. Benefits and importance of NFTs in NFT Games

Ownership

In regular traditional games, the user does not actually own the items in the game. These types of items are still controlled and owned by the publishers and creators of that game. If the game unfortunately disappears or is closed by the owner, all items and achievements achieved in the user's game will also disappear.

NFTs are created by smart contracts on the blockchain and cannot be edited, changed or violated, so even in the event of bankruptcy or death of the project, users are still guaranteed full ownership. their properties.

Only when that blockchain stops developing or stops working will that NFT potentially disappear. Or another risk that can happen is that the project goes bankrupt, cannot continue to operate or is a scam, these NFTs will lose their liquidity because there is no need to buy anymore, they cannot disappear, they still belong to the owner. owned by the player.

This is one of the advantages of NFTs in games, helping players and participating in the game ecosystem to be completely assured of their in-game assets.

Interoperability and increased application

All NFT Games built on the same blockchain will be connected to each other due to infrastructure uniformity. So that NFT will not only be used within the game but can be used on platforms outside the game for different purposes, as long as it is supported by those platforms.

For example, in addition to using NFT in the project's ecosystem to play games, upgrade or stake,... players can bring that NFT to some third platforms such as marketplaces to trade, buy or sell other products. Lending platform to mortgage NFTs and borrow another type of asset such as coins, tokens, stablecoins.

Ability to make money

With players

All NFTs in NFT Games are mostly connected to a different in-game economy.

NFT buyers and owners can earn money and profits through the following popular ways:

Earn NFTs through freemint events or buy on the marketplace to participate in games, receive rewards such as project tokens, other NFTs,...
Trade and exchange NFTs on secondary markets to increase profits
Or simply, hold NFT to receive other benefits (project's own NFT or partner's NFT, participate in exclusive activities and events, receive airdrop tokens,...)
In addition, you can use NFTs in NFTFi projects to open additional applications for your NFTs as mentioned above.

With developer

For NFT game developers, this open economy also opens up new avenues for monetization. For example, developers can earn royalties every time the NFT they create is traded on the marketplace — an economic model that no longer requires game developers to optimize for in-game purchases Continuous and repetitive play is detrimental to the player's experience.

5. History of the creation of NFT Game

CryptoKitties can be considered one of the first NFT Games, developed on Ethereum in 2017, laying the foundation for the initial development of NFTs. This is a game using NFT, with quite simple gameplay mechanics, developed by Dapper Labs.

The game allows players to buy, sell and create NFTs on Ethereum, which represent cats. In addition to owning these NFTs, users can also "mix" different NFTs together to create a new cat (NFT), whose characteristics never overlap.

The heat of the game attracted tens of thousands of players and caused congestion on the Ethereum network at the time of launch.

Then, at the end of 2020 and early 2021, with the outstanding development of Axie Infinity, leading the NFT Game wave, a series of famous games were born with the number of users reaching millions and creating generating billions of dollars in revenue such as Gods Unchained, Thetan Arena, Star Atlas, Cryptoblades,...

NFT Games

6. Potential GameFi projects to pay attention to

The heat of the Game NFT market has been increasing in recent days after Binance started mentioning GameFi as the next name for this narrative. In addition, the return of AAA games (like Shrapnel and Cradles ) and onchain games like AI Arena (a game combined with AI) that were cherished during a long period of downtrend are also attracting the attention of the entire community. fellow investors. Starting with Big Time - GameFi project in the RPG genre, after launching tokens and monetization mechanisms, it created a certain boom in the GameFi niche.

To keep up with the heat of the market, there are also quite a few games that also choose this time to release some important updates and news of the project.

Everyone can read the two analysis articles below to update potential GameFi projects in the near future and exploit the potential and opportunities from them:

7. Conclusion

Above is basic information about NFT Games and the future development potential of this niche. It can be seen that with this comeback, most GameFi projects have taken a new approach to users, through distributing NFTs with freemint events or opening and selling NFTs at quite cheap prices. This is one of the opportunities to help real gamers or investors access the project more easily, reduce barriers and help GameFi become more and more mass adopted.

Hopefully the above article can bring useful knowledge to readers. Follow Bigcoin to update more information about other crypto projects.