What Are NFT Games and How Do They Work?

Ever wondered how you could own a unique, digital asset within a game? Welcome to the world of NFT games. When applied to gaming, NFTs can represent in-game items, characters, or even entire worlds.   

In this guide, we’ll discuss what are NFT games, explore different types of NFT gaming, and highlight some of the best NFT games in the crypto industry.

Key Takeaways:

• NFT games blend blockchain technology with video gaming, allowing players to own, trade, and interact with unique digital collectibles represented as NFTs.
• The different types of NFT games are play-to-earn games, trading card games, virtual worlds, sports and fantasy sports games, role-playing games (RPGs), simulation games, and art-based games.
• The Best NFT games are Axie Infinity, Sorare, Gods Unchained, Splinterlands, and Alien Worlds due to their unique gameplay, economic opportunities, and robust community engagement.

What Are NFTs?

Non-Fungible Tokens, or NFTs, are one-of-a-kind digital assets kept on a blockchain. Unlike typical digital files, which are easily replicated, each NFT is unique and cannot be replaced with another. 

NFTs can represent a wide range of digital assets, including artwork, antiques, domains, and even virtual real estate. They enable digital artists to verify and market their work, as well as collectors to acquire unique digital assets. The blockchain technology that powers NFTs protects their legitimacy and scarcity, making them valuable and appealing to purchasers.

What Are NFT Games?

The NFT games meaning is the intersection of blockchain technology and the video game industry. In these games, players can acquire, possess, and even trade unique digital assets represented as NFTs. 

These NFTs can take various forms, such as in-game items, characters, virtual real estate, or other game-specific elements. The key advantage of NFT games is that they provide players with verifiable and transferable ownership of their digital possessions. 

This allows for the creation of new economic models within the game ecosystems, where players can potentially profit from buying, selling, or exchanging their NFT holdings. Check out our guide on the best NFTs to buy right now.

How do NFT games work?

In these games, NFTs represent items like characters, weapons, or virtual land. Each NFT is unique and owned by the player, allowing them to buy, sell, or trade these items with others. This is different from traditional gaming where in-game items are controlled by the game developers and cannot be traded outside the game.

NFT games operate on blockchain networks, which record all transactions securely. Players can earn NFTs by completing tasks, winning battles, or simply exploring the game world. Some games also allow players to earn cryptocurrency as rewards.

What are play-to-earn games & In-game NFTs?

Play-to-earn games are video games where you can earn rewards, usually in the form of digital assets like cryptocurrencies or NFTs, by playing. These games use blockchain technology, allowing you to own, buy, sell, or trade in-game items for real-world value. The more you play and achieve, the more you can earn.

In-game NFTs are unique digital items within these games, like characters, skins, weapons, or virtual land, which you truly own.

For example, Axie Infinity is a play-to-earn game where you can collect, breed, and combat digital pets known as Axies.

The Benefits of NFT Games

NFT games offer several benefits that distinguish them from traditional video games. These advantages include ownership, immutability, interoperability, and scarcity. 

Ownership

One of the most fundamental advantages of NFT games is the notion of actual ownership. Traditional games do not allow players to own the stuff they gather. The game creator owns the rights to the in-game assets, which can be deleted or amended at any moment. 

NFT games provide players with true ownership of their in-game assets. Each item is an NFT kept on a blockchain, therefore it belongs to the user, not the game producer. This ownership is protected by blockchain technology, rendering it tamper-proof and transferable. Players can purchase, sell, and trade their assets as they see fit, resulting in a new economy within the gaming world.

Immutability

Immutability means that once an item is created on the blockchain, it cannot be changed or deleted. This feature ensures that in-game assets remain consistent and reliable. 

In the traditional gaming landscape, developers can make changes that affect the value or functionality of in-game items, often without the consent of the players. However, in NFT games, the immutability of the blockchain protects the integrity of each item. 

Players can trust that their assets will remain as they are, providing a stable and secure gaming environment. This reliability helps to build trust between players and developers, as players can be sure that their investments in the game are safe and secure.

Interoperability

Interoperability is a unique feature of NFT games that traditional games lack. In traditional games, items and assets are locked within the game’s ecosystem and cannot be used outside of it. 

However, NFT games use blockchain to enable interoperability between different games and platforms. This means that players can use their NFT items across multiple games or virtual worlds. 

For example, an NFT item earned in one game might be used in another, or a character skin could be transferred between different games that support the same blockchain networks like Ethereum or Solana.

Interoperability also encourages collaboration between different NFT game developers, leading to a more connected and expansive gaming ecosystem.

Provable scarcity

In traditional games, items can be duplicated or endlessly reproduced by developers, which can lead to inflation and reduce the value of rare items. 

In NFT games, each item is unique or exists in a limited quantity that is verified by the blockchain. This scarcity is provable because the blockchain provides a transparent and immutable record of each asset’s existence. Players can verify the rarity of their items, making them more valuable and desirable. 

This scarcity drives demand and can lead to a thriving market for rare and unique in-game assets. Players can benefit from this market by trading or selling their scarce items for profit,

Top NFT Games (Examples)

NFT Game	Type of Game	Supported Blockchain(s)	Total Sales Volume
Axie Infinity	Play-to-Earn	Ethereum and Ronin	$4.3 billion
Sorare	Fantasy Sports	Ethereum (Starkware)	$740 million
Gods Unchained	Trading Card Game	Ethereum and ImmutableX	$448 million
Splinterlands	Trading Card Game	WAX	$4.93 million
Alien Worlds	Simulation Game	WAX	$34.57 million

(Data Source: DappRadar)

1. Axie Infinity

Axie Infinity is the best play-to-earn NFT game created by Sky Mavis, where players engage in a fantasy world populated by creatures known as Axies. Each Axie is an NFT with distinct characteristics, making them collectible and valuable. To begin, you need to acquire at least 3 Axies, which can be purchased from the Axie Infinity marketplace.

The game operates on the Ethereum blockchain, utilizing two main cryptocurrencies: Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). 

AXS serves as the governance token. This allows players to vote on important game updates and changes. SLP is used primarily for breeding new Axies, a key feature of the game. You earn SLP tokens by participating in battles, completing daily quests, and advancing through the Adventure mode.

Axie Infinity has seen significant success, boasting over 2.7 million players. Some rare Axies have sold for over $100,000, highlighting the game’s economic potential. The game also incorporates a land ownership system, allowing you to purchase and trade land plots within the Axie universe. These plots can be utilized for gathering resources, constructing structures, and battling monsters.

2. Sorare

Sorare merges the worlds of fantasy football and NFT technology, offering a unique gameplay experience. Developed by Sorare, the game allows players to collect digital cards of real-world football players, each represented as an NFT. These cards can be used to build fantasy teams and compete in tournaments.

Sorare collaborates with over 200 football clubs, including notable teams like Paris Saint-Germain, Liverpool, and Bayern Munich, to provide a diverse range of player cards. The cards come in different rarity levels: Common, Rare, Super Rare, and Unique, with rarer cards generally having higher value.

Players assemble teams of five, including a goalkeeper, defender, midfielder, forward, and one additional player of their choice. Teams earn points based on the real-life performance of the footballers in their lineup. High-performing teams can win rewards, including new cards and Ethereum (ETH) tokens.

3. Gods Unchained

Gods Unchained is a free-to-play NFT trading card game. It is on the Ethereum network. The game revolves around strategic deck-building and skillful gameplay, where players assemble decks of cards that represent gods, creatures, spells, and relics. 

Each deck is centered around one of the six gods, each with its own unique playstyle and abilities. Players engage in turn-based battles against others, aiming to reduce their opponent’s life to zero. Strategic decisions, rather than luck, play a major role in the outcome of each match. 

Players earn new cards by winning matches and participating in various game modes such as Solo, Ranked, and Direct Challenge. These earned cards can be upgraded or traded on the marketplace, thanks to their NFT nature. The play-to-earn model allows players to gain tangible value from their skills and time spent in the game. 

Cards in Gods Unchained come in various rarities, including Common, Rare, Epic, Legendary, and Mythic, with Mythic cards being the rarest and most valuable. The game also features a native token called $GODS, which can be used for crafting new cards, staking, and governance within the game’s ecosystem. Players earn $GODS tokens through gameplay, which enhances the play-to-earn experience by rewarding active participation.

4. Splinterlands

Splinterlands is an NFT-based trading card game where you can collect, trade, and battle with digital cards. The game is inspired by fantasy themes, featuring various monsters, spells, and abilities.

In Splinterlands, you collect cards that represent different creatures and abilities. Cards come in different rarities and types, including monsters and summoners. They belong to different factions called Splinters, like Fire, Water, Earth, Life, Death, and Dragon. These factions have unique strengths and abilities, adding strategy to your gameplay.

The battles in Splinterlands are automated, but you set the strategy by choosing your cards before each match. You must consider the mana cap, which limits how many cards you can use, and your opponents’ potential strategy. Winning battles can earn you rewards such as Dark Energy Crystals (DEC), the in-game currency, and additional cards.

Splinterlands runs on the Hive blockchain, which ensures that all transactions are transparent and secure. The game also offers daily quests and seasonal rewards to keep you engaged. You can join guilds, participate in tournaments, and climb the ranks on the leaderboard. Splinterlands is free to start, but investing in cards or booster packs can improve your chances in battles.

5. Alien Worlds

Alien Worlds is a blockchain-based NFT game where you explore different planets, mine resources, and engage in various missions. You earn a cryptocurrency called Trilium (TLM), which is used for in-game activities and governance. 

The game operates across multiple blockchains, including WAX, Ethereum, and BNB Smart Chain, allowing you to move TLM between chains using “teleporting”.

To start playing, you must set up a WAX Cloud Wallet and create an Explorer profile. You can choose a planet to mine on and equip mining tools to extract TLM. Mining is one of the core activities, and each land plot has different attributes that affect your mining results. Besides mining, you can participate in missions involving sending spacecraft on adventures to earn NFTs and other rewards.

Conclusion

NFT games mix blockchain tech with video games, letting players truly own and trade digital items. Understanding what are NFT games and how they work shows how they can change gaming. These games offer different experiences, like play-to-earn and trading cards. 

Top crypto games such as Axie Infinity and Sorare highlight how players can earn and have fun. Exploring NFT games can offer new ways to play and profit, making them a unique and exciting part of the gaming world.

FAQs

Can I lose money playing NFT games?

Yes, it is possible to lose money when playing NFT games. There are several ways this can happen:

• Buying in-game items: Many popular NFT games require you to purchase digital items to play. These items can be expensive. Their value may drop over time.
• Trading losses: Players often trade NFTs with each other. The value of NFTs can be volatile. You might sell an NFT for less than you paid for it.
• Game shutdown: If the company running the game closes, your NFTs may become worthless.
• Scams: Some NFT games are not legitimate. They may take your money without giving you anything in return.
• Gas fees: Blockchain transactions often require fees. These fees can add up quickly.
• Time investment: Playing NFT games takes time. This time could be spent on other activities that make money.

To avoid losses, research games carefully before playing. Set a budget and stick to it. Be aware that NFT values can change rapidly.

Do NFT games make money?

Yes, NFT games can provide possibilities to earn money, although the results vary widely across players. These games frequently use a “play-to-earn” paradigm, in which players earn incentives, such as NFTs or in-game tokens, by performing tasks, engaging in fights, or reaching particular goals. 

These awards or NFTs can be exchanged or sold on numerous marketplaces, potentially making a profit. The profitability is also determined by the game’s popularity, the market value of the NFTs, and your ability to make strategic judgments. You can read our guide on how to make passive income with NFTs.

Are NFT games legal?

NFT games are legal in most nations, however rules may vary depending on local legislation. In general, NFT transactions and the earnings potential they generate must adhere to financial and digital asset restrictions. 

For example, in certain jurisdictions, NFTs are treated similarly to other digital assets like Bitcoin, which means they may be subject to taxes. In other regions, unique rules may apply, especially if the game mechanics mimic gambling or investment schemes. 

Before playing in NFT games, you must first comprehend your country’s or region’s legal situation.

How to play NFT games?

Playing NFT games involves several steps:

1. Choose a game: Research different NFT crypto games. Find one that interests you.
2. Set up an NFT wallet: You need a crypto wallet to store your NFTs and cryptocurrency.
3. Buy cryptocurrency: Most NFT games require you to use specific cryptocurrencies.
4. Create an account: Sign up on the game’s platform.
5. Acquire starter NFTs: Some games give you free NFTs to start. Others require you to buy them.
6. Learn the rules: Each game has its own mechanics. Study how to play effectively.
7. Start playing: Begin with simple actions. Gradually learn more complex strategies.
8. Join the community: Many NFT games have active player communities. These can be helpful for learning.

What are the different types of crypto NFT games?

NFT games are classified into several categories, each with its own set of gameplay and earning chances. Players can earn cryptocurrencies or NFTs by performing chores or winning fights in play-to-earn games, such as “Axie Infinity”. 

Trading card games, such as “Gods Unchained,” feature strategic fights and NFT-based cards. Virtual worlds, such as “The Sandbox” and “Decentraland,” provide immersive landscapes in which people can own land and create activities. 

You can trade and compete using digital athlete cards in sports and fantasy football game, such as “Sorare”. Other categories include RPGs like “Illuvium”, simulation games like “Alien Worlds”, and art-based games centered on music or creativity.