A Non-Fungible-Token is a unique identifier that can cryptographically assign and prove ownership of digital goods like art, music, and many other types of assets. NFT popularity has exploded in recent years, with many digital artworks and caricatures selling for millions of dollars, leading people to scoop up NFTs in the hope of earning easy money.
The verdict has still not passed on whether NFTs are a fleeting fad or a legitimate investment opportunity. However, this form of ownership is more promising than the traditional approaches for artists, creators, and opportunists. It has corrected the long-lasting issue of creating decentralized digital collectibility and ownership in a “copy-paste” world.
How do NFTs work?
NFTs are individual digital tokens that are stored on the Blockchain. The vast majority of NFTs minted today are stored on the Ethereum Blockchain, which means the ownership can be verified and traced whilst at the same time the identity of the owner can stay anonymous. The primitive value of an NFT is determined by the market and demand for it. This makes NFTs tradable just like any other physical asset.
Apart from tracing and proving ownership of an art asset, NFTs can be used in more “real-world” applications. For example a college can issue their degrees as NFTs, which then allows employers to verify an applicant’s education without worry of fraud or illegitimate degrees. Another example could be a venue selling their tickets as NFTs to better track them and reduce resale fraud.
Gaming is one of the most substantial domains to capitalize on blockchain technology and its most promising manifestation of today is the NFT. NFTs are expected to bring a new era of games to the world. The most prominently foreseeable impact is that gamers will now exercise complete ownership of the unique in-game assets and have the possibility to earn money through them.
One need not be a professional gamer to play and earn through NFT games. This new technology has opened up the gates to a massive target audience with the attractive proposition of earning real currency in-game.
This model is highly appreciated as gamers get compensated for their crucial play time in Tokens or NFTs. It allows users to generate a steady income while playing where earning is directly proportional to the time spent playing.
Axie Infinity is one of the most reputable play-to-earn games, requiring an initial investment to create a starter team. Smooth Love Potion (SLP), an ERC-20 Token is then distributed as a reward for completing various tasks. This Token is then convertible on different marketplaces.
For those gamers that weren’t incentivized enough by the Play-to-Earn model, the Share-to-earn model may be a more attractive proposition. Share-to-Earn has worked well so far for many Web3 gamer communities as rewards and return on investment is determined by group activity only.
In-Game NFTs are the most common mechanism of generating income with NFT games. In-Game assets cost different amounts depending on the cosmetics, rarity or utility in the respective game. For example, CryptoKitties relies solely on the collectability of their in-game NFTs, where the earning potential is not directly proportional to the time spent playing. In this case an element of risk is introduced.
The latest NFT games offer users a mixture of Play-to-Earn and in-game NFTs. NFT games will only increase in popularity and the increased traction they will gain will lead to increased liquidity and also gain greater trust from the wider game industry.
People want something new. The utility of the blockchain adds a new layer of interaction and ownership that could never exist before. The introduction of these new elements and novel game mechanics will have profound and long lasting effects on the entire game industry.
The NFT industry might currently only be in its beginning stages, but if the game industry continues moving in the same direction it has with the integration of NFTs into games, this will quickly lead to the creation of a worldwide trillion-dollar industry. The NFT game industry is already projected to overtake the Hollywood industry in the coming years.
Game-fi has created NFT game economies that have fundamentally changed the ways in which people can earn a living. Investing in NFT games is currently one of the most attractive opportunities, so the best time to invest in this new and emerging industry is right now.
Build on metaENGINE
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Building on metaENGINE is akin to shopping at the mall. Everything you need is readily available on the shelves. Once you’ve built your game, releasing it to the world has never been easier with metaENGINE’s publishing platform. Join the growing community of game developers who have already started on metaENGINE to gain access to critical crypto integration tools like NFT minting, forging, and decentralized metadata storage.