What Is NFT Gaming?
NFT gaming — aka game-fi and play-to-earn — is the next big thing in digital entertainment. Usually, platforms award in-game tokens and trade or sell them on exchanges for cryptocurrencies or cash.
Developers build play-to-earn games on various blockchain protocols, the most popular being ERC-20 and ERC-721 on the Ethereum platform.
How Do Game Companies Make Money From NFT Gaming?
Some play-to-earn NFT games charge an upfront fee. Others take a small commission off every in-game trade. Theoretically, smart contracts can also demarcate royalty payments and commissions back to developers and publishers, thereby creating another revenue stream.
How Do Players Make Money From NFT Gaming?
Players make money on play-to-earn platforms by earning valuable NFTs they can sell on credible crypto exchanges. Ultimately, blockchain technology provides a bridge between gaming worlds and the real one, which plows a path for developers to create innovative earning models.
Since NFT games are becoming incredibly popular, gaming companies are currently working on new models and ideas. Watch this space.
How Are NFTs Used in Gaming?
Typically, NFTs serve as in-game assets in blockchain gaming models. Common examples include weapons, rewards, avatars, inventory items, etc. With the rise of the Metaverse (and similar virtual worlds), the possibilities are endless. In fact, various life simulation projects are enabling NFT retail economies.
How Much Is the Current NFT Gaming Economy Worth?
According to the latest estimates, the current NFT gaming industry is valued at around $11.7 billion — and its growing. Thanks to the pandemic, more people are embracing digital entertainment than ever before. Notably, COVID lockdowns created NFT gaming economies in developing countries hit hard by the pandemic.
Is There a Difference Between Blockchain, Crypto, and NFT Games?
The three terms are often used interchangeably, but there is a slight difference between blockchain, crypto, and NFT games.
- Crypto Games: In-game assets are valued based on cryptocurrencies, which function as rewards
- Blockchain Games: Any video game built on a blockchain network
- NFT Games: In-game collectibles are represented as NFTs and traded over secondary marketplaces
What Are Some Popular NFT Games?
Currently, the popular NFT games on the scene include Axie Infinity, Sorare, The Sandbox, Crypto Dragons, Decentraland, gods unchained, Dungeonswap, and Ghost Recon Breakpoint.
How Does NFT Gaming Benefit Gamers?
Arguably, NFT gaming offers better incentives than other digital entertainment options. We’re not suggesting that people can live off their gaming earnings, but it’s a welcome source of side revenue for some.
Ingeniously, some games are using the play-to-earn model to democratize their platforms. Essentially, they’re giving high earners a say in how the game is further developed. A sense of ownership goes a long way in terms of consumer loyalty, and this trend could be a game-changer.
What Is the Future of NFT Games?
As we’ve said, NFT gaming is on the rise, and analyst expect the industry to grow exponentially over the next several years. Big gaming companies, including EA, are firing up NFT departments, and the market potential is ripe.
The Kelly Law Firm works with NFT game developers, publishers, and distributors on various business matters, including contracts, intellectual property issues, and other governance matters. If you’re ready to talk, get in touch.
