NFTs retain their value on the blockchain network as they render Web3 utility for off-chain and physical assets that need to be digitized in the new environment. Difference between NFT and Cryptocurrency? NFTs and cryptocurrencies, although similar in terms of their underlying technology, differ significantly. For one, cryptocurrencies are fungible, and two cryptocurrencies of equal value can be exchanged for one another. For NFTs that’t not a possibility. NFTs and cryptocurrencies also serve different purposes. Cryptocurrencies are digital currencies used to facilitate peer-to-peer transfers between individuals without the need for third-party intermediaries. NFTs, on the other hand, allows users to showcase the ownership of a digital asset. However, with the advent of NFT gaming, NFTs have become more than just collectibles. They are now viable in-game items and characters, just like the in-game items and characters in traditional video games. What is the Role of NFT in Gaming? NFTs in games are representative of in-game items. Imagine an NFT-based soccer game, for instance. The players, stadiums, jerseys, and every gaming asset would all be NFTs, and players can trade and transact such items within their blockchain network. This further provides new value functions for NFT gaming assets.
NFTs reshape the gaming industry by equipping users with new incentives which help the game become more valuable – as is the case with play-to-earn or more-to-earn gaming. The earning potential of NFT gaming is made possible as NFTs, by default, have developed to empower NFT holders to showcase asset ownership. With traditional gaming, ownership of gaming items is limited. While players have always owned their in-game items within the game, such assets become invaluable if developers pull the plug. Players could not trade off these items outside the game for some real-world rewards. NFTs, on the other hand, have broken this barrier and made it possible to exercise full rights and ownership over their in-game items, creating new in-game economies. Ever heard of Non-Fungible Tokens (NFTs)? Well, since the beginning of 2021, and as technology progresses, the industry has radically changed to cater to content creators, streamers, and artists in a way where the authenticity of their production becomes an entirely not-so-new value proposition of its own. This is all thanks to the way NFTs function online, and how people interact with them in the buy/sell market space. In short, NFTs are unique digital content hooked up to a blockchain that can be purchased and sold. Each NFT is one hundred percent authentic as there can be no exact replica.
What Are Non-fungible Tokens (NFTs) and how do they work? Non-Fungible Tokens (NFTs) are becoming the new digital investment craze. Since fungible items are anything that can substitute another item of the same category (think of it like exchanging your ten $10 bills for one $100 bill), NFTs are digital tokens that identify the asset as the original, unique, rare one and being non-fungible, they cannot be exchanged with each other. Just like how you couldn’t exchange your house with your neighbor’s house even if they are almost identical. Essentially, the NFT says into the digital world: “Hey! This is the original one!” It cannot be exchanged or divided, unlike money or bitcoin. This is because the token lives in a blockchain, which is basically a digital record of transactions. A quick example would be: ✅ You want to trade your one-of-a-kind engraved keyboard by Jeff Kaplan for the Mona Lisa, or cold hard cash. Versus: ❎ A friend offers you their one-of-a-kind Overwatch headphones signed by Jeremy Craig for half of the keyboard. You wouldn’t chop it up, right? Now when someone gives you money – it’s recorded on the list (aka the blockchain), and if you spend that money on an item – a record is then added on the list for that transaction and everything else that happens after that.
An example of this would work like: Craig buys an NFT from the creator David for $100.00, Craig is the owner Craig sells that NFT to Sarah for $110.00, Sarah is now the owner Sarah sells that NFT to Joan for $200.00, Joan is now the owner Joan sells that NFT to Daniel for $220.00, Daniel is now the owner Each record is called a block and all are chained together to make a very big list, thus, the blockchain. All these records are verified by numerous systems so everything is surely authenticated, you cannot just make something up and disrupt something’s authenticity. That is how cryptocurrencies like bitcoin, ether, and litecoin works- the blockchain creates ownership for money and tracks everything that happens to it in the digital world- purchases, exchanges, etc. This is how NFT works as well but instead of tracking the ownership for money, it tracks the ownership of a digital asset, which could be anything under the sun. NFTs allow an asset to be bought and sold while keeping and checking its authenticity- keeping one safe from counterfeit and fake ones, it can then be collected just like fine art.
Thus, only one can own the original digital asset. Just like in paintings in the real world, only one can own the original Mona Lisa by Leonardo da Vinci, and that makes it special and of high value, right? Where Can You Find NFTs? NFTs can be found on different platforms that allow one to upload an asset, turn it into something with a token on it that someone else would buy. As of now, assets with NFTs are digital art, game clips, virtual land, trading cards, and social media memorabilia, etc. Generally, anything that can be collected can contain NFTs. To create NFTs, first, you need to buy cryptocurrencies, usually Ethereum (ETH). Then get a digital wallet and connect the digital wallet to the platform you’re buying on. You can then set up your account on the website and add what you’re selling. Artists are usually offered “royalty” over the original art they put on sale, this means that they get a commission every time their item sells since the NFTs identify that he/she is the original owner of the item. Sounds good, right? It sets you up for months or even years of income, especially if your item becomes popular- just like the 10-second video artwork that sold for $6.6 million last February. However, it does not sound as easy as that, one has to pay a processing fee called “gas fee”. It is the fee for the process of putting the token into your asset and its cost depends on the supply and demand now. There are also tips on how you can be charged with a lesser gas fee since it depends on the market, sometimes the gas fee becomes lesser in the early mornings or weekends according to experts.
How To Buy NftWhich Companies Have Started Utilizing NFTs? The start of the rush in NFTs is linked to the launch of the NBA’s Top Shot website last October where users can buy and trade NFTs in the form of moments in the NBA games- video clips of highlights. The most popular of which is Lebron James’ slamdunk clip that was bought by a user for $208,000. It is also said that the website already acquired $250,000,000 worth in transactions. NFTs aren’t still evident in the major arcade and battle royale games but there are already exclusive crypto collectible games that gained popularity. Ever heard of the digital kitty that was sold for $170,000? Yeah, you read it right! 600 ETH (approximately $170,000) was spent by a user for the CryptoKitty ‘Dragon’ last December. CryptoKitties collectibles are some of the very first NFTs, every digital kitty is unique and the goal of the game is to collect as many different digital kitties. The Ethereum-based fantasy football game Sorare is the most recent example of gaming NFTs. In the game, the cards of football players are collected by the user and he forms a team to challenge other users. The Sorare digital card of Kylian Mbappe, the forward of 2020 Champions League finalist Paris Saint-Germain FC, was sold for $65,000 in the recent auction. Here are other quick examples of record-breaking NFT earnings from companies: The one-of-a-kind “1-1-1” race car from F1 Delta Time sold for 415.9 ETH last May 2019. In January 2021, Alien #2089 was sold for 605 ETH which was approximately $750,000 at that time. This NFT is part of the CryptoPunk collection, the first NFTs ever created. Just a month after Alien #2809 was sold, CryptoPunk Alien #7804 sold for 4,200 ETH which is approximately $7.5 million. It’s now the most expensive punk sold. In the NFT-based game Axie Infinity, an Axie named Angel was sold for 300 ETH last November.
The Next Applicable Uses of NFT in Gaming It’s just a matter of time before NFTs take over the world of gaming. NFTs will be the greatest change to game monetization. They will allow gamers to own very rare and unique in-game assets- one-of-a-kind skins in Fortnite, weapons, armor sets, limited edition wheels or car packs in racing games, even virtual lands- anything with collectibles. NFTs can also pave a way for effective security tokens- eliminating the risk of buying fake game collectibles. As collectibles become in demand, extremely rare NFTs will also increase in value and the owners may also make a considerable income by selling such. Apart from transforming in-game ownership, NFTs can also help users create a single digital identity for all games. This means that one can move truly unique skins, experience levels, and other in-game items across games, creating a more unified gaming experience. The possibilities that NFTs could offer in the world of gaming are endless- from collectibles, game ownership, to income generation. Whether or not NFTs are here for the long run, it has been evident that they have caused a rave and they have the potential to make their owners a lot of money. NFTs have made a lot of changes in the digital world and it is yet to take over the world of gaming, so you still have a choice to make – will you ride this one out or ride in on it with full-gear?
Here’s how to get started with play-to-earn and NFT games. Learn how to choose your first game, set up a wallet, and start earning money. Not a beginner? We suggest you take a look at our in-depth game guides. How to choose a game It’s important to identify which types of games you like. Play-to-earn is simply an evolution of gaming, and the basic assumption should be that you enjoy what you’re doing. If you get bored or feel like you’re working, then it’s probably not the game for you. Here are some questions to ask yourself when choosing your first play-to-earn game: In the beginning, you may want to start with a free-to-play game. This will give you a chance to test the game mechanics for free before committing financially.Check out our list of playable games where you can learn about their price, non-fungible tokens (NFTs), overall rating, and profitability. How to create a crypto wallet If you want to get started with play-to-earn games, you’ll need a crypto wallet. This will allow you to connect to the game and purchase NFTs. The most popular free online wallet is “Metamask.”
SlpMetamask comes as a browser extension or mobile app. It allows you to store any cryptocurrency on any chain you might need. Although popular, please note that Metamask is often a target for hackers. Be careful while using it, and never share your password and seed phrase with anyone. For maximal security, look into physical wallets to store your coins and NFTs. A physical wallet secures your cryptocurrency in an offline device that can’t be hacked. While better for security, you will still need Metamask or an alternative online wallet to access most games. You can then transfer your coins to the Ledger. Creating a wallet is easy. Check out the video below for a Metamask tutorial. For Solana-based projects, we suggest you use the Phantom wallet. Phantom is the most popular wallet on the Solana blockchain. In this tutorial, we show you how to use it to store and trade your cryptocurrency and NFTs on the Solana network. Wallets and security All wallets serve the same purpose: they serve as your own crypto bank. You’ll need a wallet if you want to store Bitcoin, Ethereum, or Axie Infinity tokens. The same is true for all transactions, as the wallet also serves as a validator.
In order to buy NFTs on any marketplace, you’ll need enough cryptocurrency for the transaction, gas fees, and a correct connection to the blockchain. Most NFTs live on the Ethereum blockchain, hence you’d need a wallet compatible with Ethereum to finalize the purchase. Once purchased, the NFTs are also stored in your wallet, which makes the compatibility with the chain even more important to keep in mind. It’s crucial that you remember the 24 words Metamask, or other wallets, give you at the beginning of your Web3 journey. No one in the world can help you remember or retrieve those words, and if you lose them, all your funds are gone. In no circumstance will a valid, trustworthy institution ask you to share your 24 words. If someone does, it’s a scammer. How to buy cryptocurrency? There are several ways to buy cryptocurrency, and the best method depends on the crypto you wish to acquire. If you own a Ledger, you can use their companion application, Ledger Live, to buy and swap almost any crypto. If you don’t, you will need a companion to your Metamask / browser wallet to buy the coins you need to play. Buying cryptocurrency on a centralized exchange Cryptocurrency can usually be bought directly through a centralized exchange (or CEX). The most popular centralized exchanges are FTX and Crypto.com.
Using FTX.US and Crypto.com is similar to registering with a financial institution. Although easy, the process will be long and will require several authentication methods. You need to complete the verification process in order to purchase or transact on the platform. FTX, in particular, is easy to use and allows you to buy all the major cryptocurrencies. You can buy BTC, ETH, USDT, and much more. Binance, on the other hand, hosts a bigger collection of coins, plus a private exchange where you can swap your crypto with other users privately. You will be charged a commission fee (this is called “peer-to-peer trading”). Binance also has its own chain, Binance Smart Chain, and its coin, $BSC. All three CEX allow users to pay with a debit or credit card, giving you a quick and easy avenue to transmute your fiat currency (EUR, USD, GBP) into cryptocurrency. Buying cryptocurrency on a decentralized exchange Remember that not all cryptocurrencies can be bought on a centralized exchange. New games, or even established titles, will sometimes use decentralized exchanges only (DEX), where the only available method of purchase is through other cryptocurrencies.
