NFT Games: What Are They and How Do They Work?

Non-Fungible Tokens (NFTs) are becoming a major part of the video game industry. They’re unique digital collectibles on the blockchain. You can use these digital assets in any game, but the market determines their value.

NFTs can be anything from a game character to items outside the game, like artwork or a house. They're usually sold during an ICO (initial coin offering), similar to an IPO (initial public offering).

The difference is that an ICO takes place before the product exists, while an IPO takes place after it's already been created and released.

Despite their unique properties, NFT video games have similarities with traditional video games. Both can be collected, traded, and sold. It’s just that an NFT may be considered rare because it’s difficult to obtain or has a limited number available to players.

If you’re interested in video games and the concept of NFTs, continue reading, as this article will discuss the essentials of NFT games and their benefits.

How Do NFT Video Games Operate

Developers create smart contracts that consist of game rules used for the NFTs. These contracts lay down self-executing code on how NFTs are supposed to be developed and implemented on the blockchain.

For gamers, NFT video games are a new breed of gaming that has taken the world by storm. They're based on blockchain technology, allowing them to be played without downloads or installs. Instead, you visit their website and start playing immediately.

These games are played through browsers, mobile apps, or desktop clients. Many use the blockchain, a public ledger that records all transactions on its network.

Players who play an NFT game are essentially creating a transaction on this ledger. They’re also signing their name with their private key and attaching a string of characters called an address to the transaction so that other users can verify it by scanning their public key into their wallet software.

Additionally, NFTs have a lot of potential for monetization. Players can buy and sell these items on secondary markets after playing with them. It opens up new opportunities for developers and players to make money from their games.

The Concept of NFT Video Games

NFTs are the latest innovation in gaming, and they're poised to change the way people play games forever. In particular, NFTs are used in video games to make them more immersive, fun, and social than ever before.

One of the benefits that NFT video games provide is their uniqueness. NFTs allow you to own digital things like video game characters or skins. And because the tokens are non-fungible (meaning they're unique), no one else can have the same token as yours.

It highly depends on the type of game, but in general, you need to cash out your goods on the market. There's a finite supply of each token—and since the demand is always rising, their value will too. It allows players to reach their return on investment (ROI) and potentially earn more.

The exact amount depends on numerous variables, such as the mechanics, the type of game, and the value of the NFT itself. The value of NFTs depends on what people place on them, so like any crypto investment, you should only spend what you can afford to lose. However, it’s still possible to lose money playing NFT games.

Top NFT Video Games Today

Now that you understand how NFT video games work, you might be curious what are the top games right now. We got you covered with a list of the top four games today.

1. Axie Infinity

Axie Infinity is a play-to-earn strategy game where players breed and raise digital monsters called Axies. You can buy these monsters from other players or produce your own by combining two of your own monsters. As a starter, you must make an initial investment to buy three Axies.

Each monster has its unique appearance and abilities, so breeding different types of monsters together allows you to create new species with special powers or skills not found in either parent monster.

The game offers potential income from trading Small Love Potions (SLP), Axies, and Axie Infinity Shards (AXS).

2. Duro Dogs

Duro Dogs is an NFT pet game on the Bitcoin SV network. Players create their Duro Dog through a unique serial number that determines the dog's characteristics. The rarity ranges from Common, Rare, and Ultra-Rare.

The game revolves around you interacting with your digital pet while gathering treats and equipable items. The more dogs and things you have, the more potential you have to earn.

3. Sorare

If you love football, this is the game for you. Sorare is a fantasy football game that involves collecting and trading soccer players. The premise is to create a five-player team using free cards or buying tokenized cards. You earn points to level up by winning games, scoring goals, and other events.

4. Gods Unchained

Gods Unchained is a tradeable NFT card game similar to Hearthstone. You can build decks with various powers and strengths to combat other players. Winning ranked games will allow you to earn Flux which lets you create powerful NFT cards. The more you win, the more in-game items you can use or sell.

The Dawn of NFT Gaming

Even though traditional video games are still popular today, that doesn’t mean NFT games won’t make their mark. Yes, their work differs from classic games, making them intriguing. The art of selling, trading, and buying is a primary feature of these games and can one day become the new norm in gaming.

One setback is that people may not want to spend money on video games or have to think about technical concepts. Video games are meant to be fun, and these features may deter gamers from trying them.

Despite these occurrences, the future of gaming will continue to develop. As technology progresses, you can expect new concepts, gameplay, and mechanics to become a mainstay in the gaming world. NFT games will compete in the industry with the next-gen consoles and software.