Summary

NFT is a very unique digital collectible in the blockchain. This feature makes it ideal for representing characters, consumables, and other tradable items in games.

Today, NFT games have developed into a popular way to earn income in the Game-Fi world. In-game NFTs can be sold to other collectors and players, and players can even earn tokens through the "earn while playing" model.

If you need to transfer game NFT, you must transfer it to a compatible wallet. In addition, if you transfer NFT to the NFT market or other users, please be careful to guard against common scams. Finally, please carefully read the rules of the NFT game you play to understand whether there is a possibility of losing money.

NFT games are mainly active on Ethereum and Binance Smart Chain (BSC). Games like CryptoBlades and Axie Infinity use collectible characters to compete against each other, while games like Sorare use collectible cards.

Binance also provides an NFT blind box, giving holders the opportunity to issue NFTs with different scarcities. These blind boxes incorporate collectibles launched in partnership with NFT games.

Introduction

Since the popularity of "CryptoKitties", NFT games have gradually developed The "play and earn" model attracts many players. As we all know, Game-Fi combines the two fields of finance and gaming, allowing players to earn money while playing games. Profitability is no longer limited to winning, finding or raising rare collectibles worth thousands of dollars. Currently, in addition to animal collectibles, players can also try out a variety of game models with different themes.

What is NFT?

A non-fungible token (NFT) is a digital encryption token in the blockchain that represents a unique item. NFTs have many use cases. It could be an in-game digital asset, collectible cryptocurrency art, or even a real-life object like real estate. In a world filled with "piracy and plagiarism", creating decentralized digital collections and clarifying ownership has always been an unsolved problem. After the advent of NFT, the problem was solved.

NFT is non-fungible. This attribute determines that each token is unique and can never be interchanged with other identical tokens. You can exchange the equivalent of one BTC (Bitcoin) for another BTC in any way. As far as NFT is concerned, even if the NFT artwork series launches multiple versions, the different versions are not interchangeable. The metadata of all NFTs varies, just like prints sorted by series number.

How does the NFT game work?

NFT games are not equivalent to cryptocurrency collectibles lying in your wallet. The rules, mechanisms and player interactions of NFT games will all use NFT. For example, games can display a player's unique character or avatar as an NFT. Digital items found during gameplay may also be NFTs. You can exchange or trade NFTs with other players and profit from them. The relatively new "play and earn" model also allows users to make profits through NFT games. We will discuss this topic in detail later.

So, how to apply NFT to the gaming environment at a technical level? In order to exchange, create and apply NFTs in the game, developers create smart contracts that build rules for the NFTs used. Smart contracts are automatically executed pieces of code that are stored on the blockchain.

For example, CryptoKitties uses a small number of master contracts to build the game. The most famous of these is the "geneScience" contract, which determines the random mechanism for generating new cats. At first, the game's developers kept their code a closely guarded secret. Interested players have even developed tools to analyze the chances of cats possessing certain traits. Based on this information, players can increase the probability of raising rare cats and create higher profits for themselves.

What is a "play and earn" type NFT game?

"Play and earn" type NFT games give users the opportunity to earn income through games. Players are generally rewarded with tokens and occasionally NFTs. The longer the game time, the higher the profit. Tokens earned are often part of the game production process.

Tokens are generally more stable than NFTs. Players can steadily earn tokens through games, while obtaining NFT depends on luck. Users in low-income countries especially like the "play and earn" model, hoping to boost or replace fixed income or social security through games.

"Axie Infinity" is the leader in "play and earn" games. At the beginning of the game, players need to invest in three Axies or get free scholarships from other players. Form a team of novices and complete various tasks and challenges to earn "Smooth Love Potion" (SLP), an ERC-20 token that can be traded on the trading platform.

Breeders use SLP to raise new Axies and gain economic benefits from it. "Axie Infinity" is very popular in the Philippines, and many players rely on the "play and earn" model to earn living expenses. Earnings from their games range from $200 to $1,000, with some earning even more depending on market prices and time invested.

What is an in-game NFT?

In-game NFT is another way to earn income through NFT games. Unlike homogeneous ERC-20 tokens like SLP in Axie Infinity or SKILLS in CryptoBlades, players can earn NFTs that represent collectibles. This game mechanism is a traditional way to generate revenue from NFT games. The value of an item will vary based on its appearance, rarity, or utility in the game.

"CryptoKitties" is a game that simply collects in-game NFTs with a single gameplay. Without the opportunity factor incorporated into it, it is impossible to attract players to continue playing and earn stable income. Therefore, most emerging NFT games adopt a gameplay that combines "play and earn" with in-game NFT.

How to make money through NFT games?

The amount of profit from playing NFT games depends on the mechanics and market demand of the specific game. What you earn comes from other users who value the NFTs or cryptocurrencies earned in the game. Players need to sell goods in the market, trading platform or auction house to exchange for cash. For NFT games, their value comes from the collectability of the NFT or token or its utility within the game. These two factors can also induce speculation.

Will you lose money by playing NFT games?

NFT game players may indeed lose money. The exact amount of loss depends on the type of game, game mechanics, and the value of the NFT handled. Losing money does not necessarily mean being cheated. NFT is speculative, its value depends on people's investment, and losses are also affected by market factors. As with regular cryptocurrency investments, be sure to invest rationally and within your means.

Will I lose the NFT I hold?

Players are generally worried that their high-value NFTs will disappear while playing games or interacting with the blockchain. Whether you buy NFTs or obtain them in a game, you need to keep them safe. In short, it is indeed possible to lose your NFT if you take it lightly. However, the risk of losing your NFT can be minimized if you follow the best countermeasures we describe below.

Several reasons for losing NFT:

1. 1. Try to transfer the NFT in your personal wallet to a wallet that does not support the corresponding token standard.
2. 2. If you encounter fraud or fraud, send your NFT to criminals.
3. 3. Accidentally grant wallet access to a malicious smart contract, and the NFT disappears.
4. 4. Game rules cause NFT to be lost.

By deepening your understanding of NFT, blockchain technology and common scams, you can effectively avoid the first three situations. Don’t try PayPal or online banking if you don’t understand how to use it – the same goes for NFTs. In order to protect NFT, you should:

1. 1. Before transferring NFT to other wallets, you must confirm that it is not a scam. Read our guide to Five Common Cryptocurrency Scams and Strategies to Avoid them to learn about the most common scams.
2. 2. Understand the types of tokens and blockchains supported by the wallet or platform you are using. ERC-721 and ERC-1155 are the most commonly used NFT token protocols on Ethereum, while BEP-721 and BEP-1155 are the most commonly used protocols on Binance Smart Chain (BSC). Always send it to the correct address, and don't blindly assume they are compatible with each other.
3. 3. Only interact with smart contracts of reputable and trustworthy projects. If you allow smart contracts to interact with personal wallets, be on guard against bad contracts wiping funds away.
4. 4. Carefully review the rules of the game you are playing. Some NFT games allow players to trade with other users or use NFT consumables (such as items or potions). Please familiarize yourself with the gameplay to avoid any unexpected "losses".

Popular NFT games

There are many types of NFT games, most of which are active on Binance Smart Chain (BSC) and Ethereum. Some games offer a more traditional video game experience, while others focus primarily on the collectability of NFTs.

"Axie Infinity"

As mentioned above, "Axie Infinity" uses a mechanism similar to "Pokémon". Players can collect various creatures and start a duel. Axie Infinity is on the Ethereum blockchain. Users can earn potential income by trading Silky Love Potion (SLP), Axies, and Axie Infinity Shards (AXS). Both SLP and AXS can be traded on Binance.

"Sorare"

"Sorare" is a fantasy football game where players can collect and trade Real players. Build a five-man star team with free cards for beginners or purchase tokenized cards. By winning matches, scoring goals, or completing other events, players can earn points and level up.

Gods Unchained

"Gods Unchained" is a tradable NFT card game in Ethereum. The gameplay is similar to Magic: The Gathering or Hearthstone. Players need to build decks with different powers and advantages to compete against other players. The winner gets to use or sell in-game items. If you win the ranked match, you can earn Flux to create powerful NFT cards. Cards can then be sold or reinvested in new cards to earn a profit and stay in the game.

Binance NFT Collectibles

Binance NFT Market joins forces with partners to launch NFT blind box and Collectibles, providing NFT gaming experience. From digital artists to NFT games, we actively establish cooperation with all parties. All blind boxes on sale randomly place an NFT collectible with a certain degree of scarcity. You can open the blind box to reveal the mystery of NFT, or you can sell it directly without opening it.

NFT collections focus on a certain theme or project and launch a variety of NFTs and blind boxes. By far the most popular is the Game-Fi blind box collectible. Let’s take some of them as an example:

1. MOBOX collectibles. MOBOX is a gaming platform in BSC that perfectly integrates DeFi liquidity mining and NFT. This set of NFT blind boxes is composed of MOMO NFT and has random hashing power on the MOBOX platform. The greater the hash power of NFT, the higher the collection value of MOMO in MOBOX games.

2. "My Neighbor Alice" collectible. "My Neighbor Alice" is a virtual world-building game featuring NFT decorations. Although the game assets in this set of blind box collectibles are just decorations, they are still popular among users and have gained value in the secondary market.

Summary

NFT games use digital collectibles to set rules for NFT interactions between players. Some people value the collectible value of NFTs, while others want them to be practical. Although many NFT games play similar to trading card games, not every card collector is willing to play the game. Today, Game-Fi has created a new NFT game economic model and changed the way to make money through NFT. If you want to make money, in addition to hoping for good luck and collecting desperately, you can also create income by playing games.