Last year, the Axie Infinity craze led to the rise of GameFi, which combines gaming and finance to create new game models with cryptocurrencies and NFTs. NFTs offer amazing new experiences and opportunities for players to be rewarded not only with fun but also financial value!
Time to catch up on how NFTs are improving the lot of gamers and how you can participate in this new revolution in gaming!
What is NFT?
A non-fungible token (NFT) is a unique unit of data that represents the ownership of digital assets such as videos, photos, audio, etc. on a blockchain. Unlike cryptocurrencies (which are fungible tokens), NFT game items are unique and not interchangeable. Blockchains make proof-of-ownership easy to establish. This technology opens up new opportunities and experiences for players by offering in-game items like characters, cosmetic items, consumables, etc. in the form of NFTs.
Game NFTs are different from collectible NFTs because of their utility. Instead of just holding crypto-collectibles in your wallet, game NFTs improve the player’s experience in many ways. For example, a game NFT could represent your unique character or avatar and allow users to earn in-game tokens or sell these NFTs to other players for profit after leveling up the character.
Unlike normal Web2-in-game items, a game NFT is non-fungible. This means that no two NFTs are identical and, therefore, not interchangeable. For example, you can always trade 1 Bitcoin for another 1 Bitcoin because they are fundamentally equal. But for NFTs, the metadata will distinguish one from all the rest, even for NFTs of the same type of in-game item— just like a numbered series of prints.
The differences between Web2 and Web3 games.
Web2 games = Gameplay + Traditional finance
Web3 games = Gameplay + Decentrailized finance (DeFi)
A really insightful chat with Howard (Co-founder, Ancient8) and Brendan (Content Marketing Manager, Ancient8) breaking down the impact of blockchain tech on games.
As discussed on our recent episode of GameFi Chat (linked above), the primary focus of Web3 games is to preserve (and even enhance) the quality of gameplay while delivering some financial value back to players for the first time. Selling NFTs also provides a new form of crowdfunding for game developers to build their game. This, in turn, allows players to invest in games early and benefit from their future success!
DeFi has been steadily growing in popularity by delivering better yield to users than traditional banks through its decentralized features. Soon, the same will be true for GameFi as gamers realize the benefits of NFTs - It’s time to truly own your game assets!
???? For MOBA players who have played League of Legends, this article “What If League of Legends Were a Web3 Game?” should be on your reading list.
Where to buy NFTs and how can I store them?
NFT marketplaces are the first place you should look if you want to buy NFTs (non-fungible tokens). But that’s not all the information you need. You can’t just buy NFTs with a credit card or PayPal. A crypto wallet and some crypto are essential to the process.
- Step 1: Get a Crypto Wallet (We recommend Metamask and Coin98 Wallet)
- Step 2: Buy some crypto and fund your wallet. Depending on which blockchain platform the NFT you want to buy is minted, you’ll need to buy the corresponding cryptocurrency. (BNB Chain →$BNB, Ethereum→$ETH, Solana→$SOL, etc)
- Step 3: Connect your Wallet to the NFT marketplace. Primary sales happen on project websites and NFT Launchpads; Secondary marketplace include OpenSea, Magic Eden, Binance NFT, etc.
- Step 4: Browse the NFT marketplace. Find something you want? Buy now or make an offer
How to Buy an NFT Summary
MetaMask and Coin98 are good browser extension wallets that can be connected to any NFT marketplace across multiple chains. You just need to transfer your crypto from a CEX (Centralized Exchange, like Binance, FTX, etc) to your wallet, go to the marketplace’s website, and connect your wallet (the connect button is usually in the top right corner). Be careful not to connect your wallet to fake or suspicious websites. Always double-check the URL and consider bookmarking if you use it often. Remember, if it seems too good to be true, it probably isn’t!
Can I play GameFi without having NFT?
OG Gamefi projects may require players to own in-game character NFTs to play, but this exclusive model is no longer popular.
Nowadays, there are plenty of ways to play blockchain games without any initial investment:
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Free to play games: Similar to the freemium model of Web2 games'. Players do not have to make an initial investment to be able to play, but there will be limitations on advanced features compared to those who have NFT items. Depending on the game and how skilled you are, you might still be able to earn from the game.
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Gaming Guilds are like online gaming collectives, or communities that exchange, support, and share matters around various games with each other on social platforms such as Facebook or Discord.
???? Gaming Guilds award scholarships in the form of game accounts to players so they may access and play the game for free and earn money based on their efforts.
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Airdrops: Some GameFi projects may reward their communities with game NFTs as a marketing strategy to encourage people to try out the game. To take advantage of these, you should follow the project on social media platforms such as Twitter, Discord, and Telegram.
Final thoughts
The gaming industry has been evolving rapidly over the last 30 years— from pixelated sprites to immersive graphics and gameplay. But up to now, games have been nothing more than entertainment (unless we’re talking about developers or pro players). With NFT technology, players will have an additional opportunity to create value for the project but also receive monetary value in return, which is quite rare in Web2 games. It's a win-win situation that benefits those who are curious early.
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