Before we understand how NFT video games might work, first let’s understand what exactly are NFTs in games.

What are NFTs in games?

NFTs or Non-Fungible tokens are blockchain-based tokens that are used to represent virtual assets or items in video games. They are one-of-a-kind and transferable on digital platforms, meaning each token is unique and can be traded between players. This indicates that every token will have its own value on the market based on its utility, scarcity, and demand.

NFTs are used by developers to generate unique assets in their games. They can use these tokens to make every item in their games non-transferable, resulting in a rarity-based economy. NFTs, like other cryptos, can be bought, sold or traded and are stored in a digital wallet. Let’s assume you are playing a game where you can gather and trade items like shields, armour and swords. If the objects were fungible, gamers might trade their shields for swords or vice versa. However, if the objects were NFTs, every shield and sword would be unique, allowing the players to trade among themselves rather than relying on a third party to facilitate the transaction.

Non-fungible tokens are popular with collectors since they are exclusive and cannot be replicated. They can represent anything, from in-game assets to original works of digital art.  

What makes NFTs valuable?

Ownership 

In traditional gaming environments, the in-game items can only be used within the game itself and the values of the trading items were never determined and defined. In comparison, tokenized assets turn that notion by giving a player actual ownership of the asset. Players who buy any in-game assets can save them and trade with other users. Furthermore, physical ownership provides greater incentives to play a blockchain-based game and can also be a reliable source of revenue. 

Scarcity 

As NFTs are both unique and secure, this means they can produce value through scarcity. Most NFT projects mint a limited number of NFTs as a part of their collection. Therefore, once the original collection is sold, you will only acquire NFTs through the resale market. Of course, buying through resales will be more expensive as the previous owners will sell them for a profit, therefore, increasing the value of the NFT.

Rarity 

Another factor to consider which raises the value of NFT in video games is its rarity, which makes NFT assets unique. This means that rare or unique NFTs can significantly boost the value of well-known NFT collections. One technique for increasing the token’s value is to market some NFTs as “limited edition” collections, as many investors enjoy possessing something that no one else does.

Furthermore, there are certain non-fungible tokens that are more distinctive than others. An excellent instance of this is the Bored Apes from Bored Ape Yacht Club. Because of its uniqueness, this limited collection of cartoon monkeys has become one of the well-known NFT collections. With just 10,000 unique tokens in the collection, they are in limited quantity, which adds to the scarcity and NFT rarity that drives their worth.    

Utility

The utility is the value of an asset that it gives to its owner. The value of NFT is determined by the number of possible uses for which an owner can use it for their means. The majority of cases revolve around gaming, PFP, metaverse, fashion, etc. Presently, games are the ones doing the best in terms of utility. Games like NeoTokyo, Axie Infinity, etc., have a P2E policy that has made them popular. PFPs like Bored Ape Yacht Club and CryptoPunks have surged in value as more celebrities, and powerful figures buy them. The more useful an asset is, the more profitable it will be. This is because users are ready to pay a higher price for assets that provide more benefits.

How NFT video games might work?

Large firms, particularly in gaming, see NFTs as a way to generate a consistent revenue stream from digital content. The popularity of games based on blockchain has shifted the attention of users from conventional gaming systems. Tokenizing in-game assets in blockchain games is the cherry on the cake, making the game transferable and profitable. Traditionally, when users purchase anything in a game, the ownership of the asset does not go to them; rather, they are retained by the game developers. However, in the digital realm, players can buy anything using NFTs. They become the legal owners of the in-game assets and trade or resell them in the marketplace for additional in-game currency.

Let’s take an example of a unique Fortnite skin available in NFT. A player might be the first to unlock this in-game asset and claim ownership. Once the possession of the skin in-game is taken, the token for that asset can be resold to the highest bidder, which does not become the NFT owner as the ownership remains with the first player. The owner can make a fortune by selling the in-game asset. The same holds for the subsequent buyers of the same NFT, and the owner would continue to get the royalty amount. As a result, NFTs provide profitable trading.

Conclusion 

The gaming sector has undergone a fundamental transformation thanks to the perfect combination of video games, blockchain and cryptocurrencies, giving life to the NFT video game segment. The incorporation of cryptos and blockchain into a video game can be a powerful tool for growing your business and generating new revenue sources. Considering the advantages for game developers as well as players, NFT video games are projected to be a long-term phenomenon. Logic Simplified, the top game development company, offers high-quality services with skilled programmers and blockchain game developers to make your game successful and profitable. For any suggestions or queries, you can contact us or drop us an email at enquiry@logicsimplified.com.

Since the advent of NFTs, everybody globally is now buying and selling these tokens. But how to make NFT art and sell them? This article will explore a straightforward approach for effectively creating an NFT from scratch and trading it on the market.

What is an NFT art?

NFT art is a digital artwork that is supported by blockchain technology. The term stands for “non-fungible token.” It is a digital asset that is solely in the digital realm - you cannot touch it but own it. These are entirely one-of-a-kind artworks that cannot be replicated or altered, and the owner retains complete authority over the asset. The assets can be represented in the form of images, paintings, music, videos, video game collectibles, and other similar digital works of art. As these assets are unique, there can be bought and sold on NFT marketplaces, which usually accept cryptocurrency as payment.

How to make NFT art and sell- A Step-by-Step Guide

Choose your art form 

The options are endless in deciding what kind of NFT art you want. NFTs are usually associated with a work of digital art. This needs to be a digital file in a format supported by the marketplace or minting service that you intend to use. NFTs can take the form of anything. However, some of the most popular choices can be animated GIFs, songs, audio files, memes, images and more. Invest some time and effort into creating something you believe will get people’s attention.

Select a blockchain 

After creating your art, the next step is to choose a blockchain to mint (publish) your NFT. To begin the NFT minting process, you must decide which blockchain technology you want to use. There are various blockchains that will keep a permanent record of your NFT, and we recommend doing extensive research on each before you make a choice. However, selecting the one that will be most beneficial for you is crucial. Remember that different blockchains will have different rates, fees and niche buyers. Ethereum, Solana, Flow, Tezos and several other blockchains exit each with its community and decentralized apps (dApps) for creators as well as NFT owners.

Choose a marketplace that suits you 

A growing number of NFT platforms are available for creating NFT, but the best of them is a marketplace where the NFTs can be listed and sold. There are a plethora of NFT marketplaces in the crypto space, each with different methods of operation. OpenSea, SuperRare, Mintable and Rarible are some of the top choices. Different marketplaces provide services at fees which vary on the kind of NFT and the way you wish to mint it. Select the one that offers the best fit for your collection. You can also get NFT marketplace development services at incredibly economical prices. 

Set up your crypto wallet 

Digital money requires a digital wallet. As a result, when you have selected your NFT marketplace, you will need to set up a digital wallet and buy cryptocurrency in order to store your cryptos and NFTs. It is necessary to have a payment wallet to pay fees and get paid in cryptos when they are sold. There are countless crypto wallets, such as MetaMask, Torus, Coinbase, Portis, WalletConnect and many others. You can choose the one that is easy to set up and secure. It is important to keep in mind that the vast majority of NFT wallets are safe and browser-based.

Add cryptocurrency 

When your NFT is created, you must pay fees. These are referred to as gas fees. You must pay gas fees in order to complete a transaction on the blockchain. Therefore, before you mint your NFT, you must ensure that your digital wallet has sufficient funds to cover the cost of the transaction. Note that you must load your wallet with the appropriate cryptocurrency. For instance, to use the Ethereum network, you must have an ETH wallet.

Connect your wallet to the marketplace

Once you sign up for the marketplace, you will most likely be given the option to connect your crypto wallet. You cannot miss this step, especially if you want to start uploading and minting NFTs right away. Even if you are new to this, the most popular sites have an easy-to-follow approach and will guide you through how to connect your wallet. After you have done that, you will be ready to start transferring your digital files.

Publishing NFTs 

After covering the steps mentioned above on making NFT art, you will be ready to upload it to the platform. In most cases, the NFT marketplaces offer sellers the steps to upload their files to the platform. For this process, you must convert your existing digital files like MP3, PNG, or any type into an NFT format.

Sell your digital art as NFTs 

In the final step to make NFT art, you must decide how you want to market your NFT. It relies on the features of your chosen platform. There are three options to sell your artwork. Fixed price allows you to fix a price for the NFT and sell it right away if the buyer is interested to purchase at that price. The Timed Auction is a type of auction in which an NFT can be bid on for a defined set of time and the collector with the highest bid wins. Finally, the Unlimited Auction does not have a defined time limit. The interested ones will have enough time to enter their final bids until you accept one. In this case, you must come up with the minimum price. You will also need to calculate your royalties in order to continue profiting from your item if it is resold.

When determining the price, be sure to take into account all of the fees that you have already paid. If you set your pricing lower than the fees, you will end up losing money. 

You may also love to read: Why NFT online gaming is the next big thing?

What industries can benefit from NFTs, and how can they use them?

In the real world economy, Non-fungible tokens can be used for your profit by allowing for developing new types of businesses and organisations that were not possible before. People from a variety of sectors can use NFTs. The most notable applications could be the gaming industry, the art world, and the collectibles market. 

It is possible to create and keep track of digital artwork in the art world using NFTs. You can also use them to build unique and irreplaceable digital assets in the gaming sector.

Game app developers use NFTs to create rare and exclusive in-game assets that gamers can sell or trade. For example, card games could be used in the collectibles market to keep a record of one-of-a-kind objects.

Popular NFT examples

CryptoPunks: CrptoPunks is the trendiest NFT project that has grabbed the attention of NFT fans. The CryptoPunks are 10,000 punk-themed 8-bit characters, each with its unique features and characteristics. There are dozens of different NFT collections, and their value is determined by the variety of characters available.

Bored Ape Yacht Club: This NFT art is a collection of 10,000 one-of-a-kind comic book-style portraits of apes on the Ethereum blockchain. One of the reasons Bored Ape Yacht Club is so popular is that there is no other NFT character with the same design, making each BAYC NFT extremely valuable.

Axie Infinity: Axies are the characters that are used to play the famous blockchain-based game Axie Infinity. You need a minimum of three Axies to enter the game, and the owners can breed as well as trade their Axies for profit or even lend them to other gamers creating a passive income stream. 

Cool Cats: Cool Cats is another Ethereum-based NFT art collection hitting the headlines. This art consists of 9,999 unique items that are presented as blue cat animations. One of the intriguing aspects of this NFT art is that it allows developers to breed the characters to develop future generations.

Conclusion

NFTs are a new approach to trade your artwork. By creating an NFT, you can mint a virtual item that can be purchased, sold or traded in the open market. There is a common misconception that only tech-savvy creators and people can make NFTs successfully. However, the process of making NFT art can appear daunting at first if you are unfamiliar with NFTs, but it is actually very easy and straightforward. Learn more about NFT and blockchain technology with Logic Simplified, a leading game development company. For any suggestions or queries, you can contact us or drop us an email at enquiry@logicsimplified.com.

What is NFT 2.0?

NFT 2.0 is closely related to the first version of NFTs. In fact, NFT 2.0 operates seamlessly with NFT 1.0, incorporating the existing NFT infrastructure with new capabilities. NFT 2.0 can be viewed as an extension of NFT 1.0 rather than a completely new concept. While NFT 1.0 allows ownership of unique tokenized digital assets, NFT 2.0 broadens the possibilities by creating a new digital asset market with enhanced utilities (NFT use cases). Also, the most recent version of the NFT allows its owners to do more with their tokenized items. It enables players to interact and play around with their acquired digital assets. These assets can range from rare digital artwork to in-game objects, music, in-game items, tickets and other digital items.

But, apart from an increasing number of use cases, what distinguishes NFT 2.0? Let’s look at what differentiates NFT 2.0 from the previous form of NFT. 

What differentiates NFT 2.0 from NFT 1.0?

Generativity 

The ability to generate algorithmic randomness in tokenized digital assets is known as generativity. With it, players can pick an NFT that best fits their use case. Moreover, AI can incorporate customization to better meet the needs of NFT users. Let’s take a scenario to see how generativity works in NFT. 

Assume you have three devices: One device that supports video, another with text and audio support and a third device that displays JPEGs. The latest version of NFT enables players to combine multiple assets into a single entity. Algorithmic randomness can be used to determine which content is suitable for every device as it retrieves it. This means video NFT will play on the video device, music NFT will play on the music device, etc.

Composability 

NFT 1.0 only allows unique digital assets to be bought and sold on exchanges, but it is not possible to customize an asset. NFT 2.0 allows modifying an asset in order to develop a new customized asset. Metadata, artwork, and additional resources are all examples of changes. So, composability opens up to explore new possibilities for collectors by combining various assets together.

Interactivity 

Another notable aspect of NFT 2.0 is interactivity. Interactivity makes it possible for current NFTs to automatically execute any changes made to them and any other NFTs that are part of it. By incorporating smart contracts into each NFT, they become smart and intelligent to take input from users and other sources. The inclusion of smart contracts into the current NFT infrastructure equips the NFTs with the power to do more than existing NFTs. Also, based on the owner’s preferences, NFTs can do a wide range of tasks, including sending commands, equipping other NFTs, altering their look, and more.

Experientiality 

The experiential property of NFT 2.0 consists of the three features mentioned above, which collectively capture an authentic user experience. Consider collectible ticketed events as NFTs that provide the holder with advanced utilities. Alternatively, creating NFTs in response to how the user interacts with the application. In addition to many other industries, the gaming sector is keen to adopt NFT 2.0.

You may also read: NFT benefits for game owners and players

NFT 2.0 Abilities

The new version of NFT will have the following abilities:

Nested NFTs: NFT 2.0 enables infinite nesting of assets. This means that one NFT can be owned by other NFTs, which can further own other NFTs, and so on. Virtual exhibitions, games, conferences and artwork use nested NFTs. 

Smart NFTs: NFT 2.0, unlike its previous version, enables smart contracts to be linked to NFTs. Thus, when NFT ownership is transferred, the smart contract will instantly update asset ownership data and record it on the blockchain. The smart contract guarantees the NFT developer receives a royalty when the asset is traded.

NFT rental model: NFTs can be rented out, which can result in passive income for the owner. It consistently enhances liquidity and makes NFTs smarter, more adaptive and trustworthy for users.

Personalized NFTs: In NFT 2.0, every token can be associated with a variety of designs and appear on a unique platform. This is in contrast to NFT 1.0, in which there was only one format that was displayed to everyone.  

Co-owned NFTs: NFT 1.0 allowed only one company to be the legal owner of a given asset. However, with NFT 2.0, multiple owners can take part and hold a piece of non-fungible tokens. The asset’s and its owner’s trustworthiness improves when there are numerous owners. 

Multi-resource NFTs: NFT 2.0 has the possibility to connect with multiple resources such as video, image, art, audio and so on.

The bottom line 

If 2022 was a big year for NFT sales and hype, this year, 2023, and beyond can be even more significant as the industry reaches a major technological landmark. Looking at each feature and ability, you can already see the huge potential of NFT 2.0. The advent of this new iteration opens the gates to a new world, indicating additional opportunities and new use cases. Learn more about NFT and blockchain technology with Logic Simplified. For any suggestions or queries, contact us or drop us an email at enquiry@logicsimplified.com.

In order to comprehend NFT better, let us first take a step back and understand blockchain technology. Blockchain is a kind of database in which data is stored in blocks that are chained together. Each blockchain transaction exists in blocks that have been confirmed and approved by the computer network. A blockchain can either be decentralized or centralized, and cryptocurrency is linked with a database that is decentralized. This technology decentralizes data storage for transactions, as well as the ownership of NFTs. Blockchain records the transaction of authorization, ownership, and transfer publicly, which can be accessible to all users.

NFTs, on the other hand, are digital tokens that are stored on the blockchain and represent virtually any item. They have particular IDs in the form of code that links them to a specific address inside the chain. It can be a tokenized representation of images, playing cards, in-game items, videos, etc. These tokens are unique and provide the token holders with proof of ownership as well as the authenticity of the underlying asset. Also, since they are non-fungible, they cannot be traded or exchanged for another NFT, making them rare and valuable. 

With so many blockchains to choose from, how do you know which one is the best blockchain for NFT for you and the difference among them? In today’s article, we will take a close look at just that. 

How to decide on the best blockchain for NFT development?

With so many blockchains available these days, it is becoming harder to select the one that will best serve as the foundation for your NFT development. However, there are a number of factors that must be considered when looking for the best blockchain for NFT development. This includes the following: 

Smart contract functionality

All NFT platforms depend on smart contracts that govern the trade between buyers and sellers. In general, well-crafted smart contracts ensure the platform’s security. As a result, it is vital to ensure that the blockchain you choose must possess a reliable and robust smart contract functionality. To provide the highest level of efficiency as well as resilience, smart contracts must be rigorously tested. This will ensure that users and developers have the lowest possible risk of hacks, downtime, and breaches in NFT marketplaces. 

Transaction cost

Cost-effectiveness is another factor to consider before choosing the best blockchain for NFT. Making NFT-based transactions requires cost-effective methods, as not every transaction will require the exchange of millions of dollars in works of art. However, microtransactions, like virtual collectables, card games, and in-game virtual assets, can significantly make up NFT-based transactions.  

Security

The importance of security cannot be overstated, especially when dealing with a company or organization that handles confidential data. Moreover, portals with a PoW (proof of work) consensus process are vulnerable to attacks and can lead to loss of access, money and data. Eventually, decentralization is jeopardized. So, to avoid security breaches, select a blockchain that has a proven track record of keeping a security history of peer-review and mining-free consensus mechanism, such as proof of stake.  

Transaction speed

Speed is the crucial factor for the successful operation of a digital system. Transaction speed is mainly considered for the domains that involve the transfer and storage of value. Nevertheless, speed should not be exchanged for lack of security or high cost, as in the case with many blockchains. 

Now that you know the parameters to consider when selecting the best blockchain for NFT, we can look into the most prevalent blockchains and their capabilities. The following is the breakdown of the main types, ensuring you can pick one that meets your needs. 

List of Best blockchains for NFT 2022

List of Best blockchains

Ethereum 

Ethereum is the oldest and best blockchain for NFT creation. It features its own cryptocurrency called Ether (or ETH). Ethereum is an open-source platform for creating and running decentralized apps based on blockchain technology. The transactions on this blockchain are processed in ‘gas’. Gas fees are the fees you pay in order to use the Ethereum blockchain network. It is a scalable platform that includes a plethora of standards for various types of smart contracts. 

Ethereum is a driving factor behind two well-known token standards, ERC-721 (for the creation of NFTs) and ERC-1155 (for creating new semi-fungible tokens). These two standards have served as the foundations for the vast majority of the current NFTs, and this trend will probably continue. 

Flow 

Flow is another best blockchain for NFT. It is a fast and decentralized blockchain that facilitates the creation of decentralized apps. The native currency of this blockchain is Flow and was created primarily for games and digital assets. Many crypto fans have been drawn to Flow which is often referred to as an alternative to Ethereum. This proof-of-stake (PoS) blockchain can power entire ecosystems of apps, especially those related to digital assets and games. The NBA was one of the first main companies to use Flow, which was followed by the MotoGP, NFL, and esports teams. Since then, the crypto world has praised it and is gaining popularity. One of the notable aspects of the Flow is its speed, and that too without any excessive gas fees. This blockchain produces intensive scaling, and unlike Ethereum, it does not employ the sharding technique. It has its own NFT standard, which is the ERC-721 counterpart. Other aspects that set it apart include upgradeable smart contract features, human-readable security, the finality of transactions, and smart use account recovery possibilities. As it was expressly built to work effortlessly with non-fungible tokens, this blockchain is ideal for NFT developers and artists.  

Solana 

Solana (SOL) is an open-source blockchain that allows smart contracts, non-fungible tokens, and a wide range of decentralized apps. Proof-of-history (PoH) and proof-of-stake (PoS) consensus methods are used to build the Solana blockchain. It is a high-performance decentralized blockchain technology designed to allow for the scalability of user-friendly apps. Solana’s most notable characteristic, which made it easier for its widespread acceptance, is its fast transaction speed and low-cost transactions. Like Ethereum, Solana is a Layer 1 solution that aims to provide an interoperable ecosystem for any projects that use its network. 

WAX 

WAX (Worldwide Asset Exchange) is another famous network for decentralized games as well as NFT trading. This blockchain platform was created in 2017. As a consensus mechanism, it is a carbon-neutral blockchain that uses delegated proof-of-stake (DPoS). In WAX, the token holders vote on delegates who serve as validators for new blocks. Wax is widely regarded as the most environmentally friendly and conscious blockchain. This has shown to be a feasible blockchain solution for establishing marketplaces. It is one of the best blockchain for NFT and is home to some of the most popular NFT-powered games like R-Planet, Alien World, and Kolobok Adventures. To date, there are two WAX-power portals that allow you to sell and/or acquire NFTs: Atomic Hub and NeftyBlocks.

Tezos 

Introduced in 2018, Tezos is a decentralized open-source proof-of-stake blockchain that can perform peer-to-peer transactions and operate as a platform for smart contract deployment. Though it has only one NFT standard, i.e. the FA2 standard, it is gradually gaining attention. It functions using its native token, XTZ. Over the past years, Tezos NFTs have grown in popularity, with prominent marketplaces like Rarible, which now offers Tezos-based NFTs. The community of Tezos has been rapidly developing the platform, with the latest enhancements that have improved performance and extended the smart contract size limit. The gas charges on Tezo are less than a penny, and the speed of transactions is fast. Tezos, one of the best blockchain for NFTs has also created tools to aid in the automation of incorporating NFTs into the supply chains of enterprises. 

Tron 

Tron is another looming blockchain for NFTs. Tronix, the Tron currency, is pre-minded and can be exchanged on Binance as well as other exchanges. This blockchain standard is the world’s fastest-growing public blockchain network, with over a million accounts and a billion transactions. Tron is a decentralized blockchain-based platform with the goal of creating a free and global virtual content entertainment system. The Tron blockchain provides excellent scalability and developer-friendly tools within a diverse ecosystem of apps. It is a distributed ledger system that enables easy access to digital content at little or no cost. This makes it a highly in-demand crypto coin to develop a wide range of decentralized apps along with gaming dApps.  

Polygon 

Polygon is a Layer 2 solution for ETH that enables the creation of scalable and faster solutions with the use of autonomous smart contracts. The key benefit of this decentralized blockchain is that it is compatible with the virtual machine of Ethereum and has an economical gas fee. An advantage that allures people is its ‘lazy minting’ function, which means there will be no upfront charges when producing NFTs. However, when a non-fungible token is sold, there is a cost that must be paid. Polygon blockchain has already been used to create a number of NFTs, which can easily be found in the OpenSea marketplace by choosing the suitable blockchain. Its future potential includes incorporating additional base chains in addition to Ethereum. This will enable interoperability between multiplayer Layer 1 solutions using Polygon’s smart contract technologies, which are fast as well as scalable.   

Final Words

Blockchain games are becoming increasingly famous in the gaming world due to the ongoing buzz around NFTs, blockchain tech, and cryptocurrencies in general. NFT in gaming, an amazing new creation of blockchain technology has forever revolutionized the gaming world and grabbed the interest of both players and game app developers. The gamers now see the in-game objects with other eyes. As NFT is closely connected to gaming and digital art, they contribute effectively to the broad adoption of blockchain technology. 

Learn more about blockchain technology and NFT with Logic Simplified. For any suggestions or queries, you can contact us or drop us an email at enquiry@logicsimplified.com

Cryptocurrencies are considered fungible and unlike them, NFTs or non-fungible tokens are digital assets that can be traded or exchanged for something different. These unique digital items could be music, drawings, videos, and games too. The tokens are authentic digital certificates that are stored electronically in a decentralized distributed database that is publicly verified called the blockchain. Blockchain technology provides increased security to these NFTs. Their unique digital certificates or metadata have information that makes every NFT different from others. As they are expensive and unique, they cannot be copied.   

So, NFTs are digital items and they can be purchased and sold online using cryptocurrencies. Ethereum, which was launched in 2015 supports NFTs and this blockchain made it possible for people to create, store, and trade NFTs. Today, most NFTs are part of the Ethereum bitcoin. They are coded with the same fundamental software as other cryptos.     

NFTs are digital assets that could be any kind of music, videos, drawings, art, memes, and even games that cannot be copied and grants ownership. Here, in this blog, we will be talking about games using NFT to allow player-to-player interaction. The interaction is of a kind that lets players trade or swap each other's NFTs.  

In 2014, the concept of NFT came into being with the first-ever digital gif art piece called Quantum by Kevin McCoy and Anil Dash. And in recent years, NFTs have become popular and have been entering many industries, one of them being gaming. Especially during the pandemic, NFTs drew a lot of attention due to the increased interest of people in crypto-related investments.  

Nfts In Gaming   

According to a market research firm, a study of 1,500 console and PC gamers found that 56% of them are interested in earning non-fungible tokens (NFTs) through gaming.

Source: Interpret 

There is a paradigm shift and now in the gaming ecosystem, NFT adoption is boosting. NFTs have been seen as an asset that not just adds value to the gaming industry but brings revenue out of digital content. There is a lot to expect from NFTs now and in the future as they add value to the game by making the gameplay better. And, it gives players the power to buy and sell, and earn from resales. The NFT marketplace where the flow of money was always in one direction, now has given the players a chance to make money. Unlike traditional games, blockchain-built games are driven by NFTs and let players take value from the in-game purchases effectively.  

Most NFTs use the ERC-721 token standard with other networks available in the market such as TRON, EOSIO, NEO, etc. These blockchain networks make gameplay decentralized and ensure that the details of the NFT purchases like the number, its uniqueness, and ownership details are validated. In the video game industry, blockchain gaming is converting digital assets into real-life assets through NFTs. 

When we say owners, we talk about those who own NFTs and they could also be players while not all players own NFTS. Thus, the benefits of NFTs for both may vary. Considering that, let's individually go through the NFT gaming benefits for owners and players.

You may also read: Why NFT online gaming is the next big thing? An overview

Nft Gaming Benefits For Owners

NFTs are offering many benefits to game app developers and gamers.

1. It allows owners to attract financing from venture capital firms. There is a lot of potential for profit in blockchain game NFT solutions, i.e. from selling and purchasing products and services through gaming blockchain. 
2. It provides NFT game development solutions to bring new career opportunities for people in this field and it also attracts new participants to such NFT gaming benefits. NFT-based games can expand gaming economies, introduce new categories of games, and fuel game development at a great level. 
3. NFTs in gaming let players invest and own NFTs such as reward points, weapons, avatars, lands, etc. in a game and they can sell these elements to another player on mutual interest. This adds value to gameplay and gives more power to players. A player has the power in his hand to put his value in the game and take it back whenever they like.

Gamers buy NFTs through microtransactions and season passes and they earn a profit by selling these assets and even earn a share when these digital assets are resold in the future. It is common to notice players selling old games and using the money earned from them to buy new ones. The in-game purchases can also be moved from one game to another supported game.

1. The ownership of these NFTs or game collectibles can also be transferred once they are sold to another person. The ownership details also get updated in the blockchain when this happens.
2. The blockchain makes sure that these NFTs are secure and no fraud can happen. There is no chance of duplicacy as they are non-fungible and the owner cannot in any chance lose them even if the game shuts down. That is because these are stored in wallets and are transferable to a supported game.  
3. NFTs are also a great way to market products and services effectively. This attracts investors and players as NFTs offer them exciting options than just playing a game.  
4. NFTs could also be used to increase brand awareness. They can also attract new interest and adoption by adding new creative elements to designs.
5. NFTs are a great investment opportunity for gamers to invest in-game collectibles. The value of these collectibles increases and gives the owners a good return on investment.
6. When a game is downloaded on the play store and the download reaches a certain number, the game owners and developers earn a share of the download cost which increases the company’s revenue. Furthermore, in-game purchases of digital assets also bring in income for the game developers.
7. The NFT owners also earn a transaction fee for transacting an NFT gaming token. They receive this money either from the intermediary wallet or by selling or swapping it with someone else.

Nft Gaming Benefits For Players

When players acquire rewards while playing a game, they have an option of selling those as an NFT and earning money out of it. Non-custodial wallet providers make this possible for the players to make a profit through NFTs. NFTs have also opened other doors of income for players. Players now earn and acquire assets in games that they can use to earn cryptocurrencies and money.

1. Blockchain and NFT gaming benefits ensure that the players' digital assets are safe in a digital wallet at all times. It also allows secure transactions of buying and selling collectibles. Anyone can trust the data that the digital ledger provides. The digital ledger provides permissionless access to the details and proof of ownership for validity. 
2. One of the greatest benefits that come with blockchain technology and NFTs is transparency. It provides the NFT creators and collectors the details of the creator, the owner, when it was created, sold, transaction history, etc. 
3. Players are turning to NFTs not just out of interest but to seriously take it up as a profession. They have understood the importance of the integration of games in NFTs and blockchain market and how that can be leveraged to play and generate good income.

Popular Nfts In Gaming To Invest And Earn

Let’s talk about some of the best and popular NFT games that people have invested in and have made good money.

AXIE INFINITY

Axie Infinity is an NFT-based online video game developed on the Ethereum blockchain. You can play this game, win battles, and earn a cryptocurrency called smooth love potion (SLP) that can be exchanged for real cash. In fact, John Aaron Ramos, a 22 years old, was able to buy two houses within just a short time through his earnings from Axie Infinity. (Source: Businessnews)

THE SANDBOX

The Sandbox is a virtual style metaverse that is built on the Ethereum network and you can get involved in this game as a gamer, collector, or an artist. This mobile gaming platform has its own cryptocurrency called Sand that can be used to buy digital land, real estate or other NFT assets. The Sandbox also has an editor called the VoxEdit that lets its users create models, animations, avatars using a voxel editing tool that can be used in the same, and sold to others.

GODS UNCHAINED

Gods Unchained is a digital trading card game that lets the players play the game, collect cards, build decks, and sell cards that are NFTs and earn money. The game is free to play and offers complete ownership of in-game assets to its players. Like many, this game is also built on the Ethereum network. There are now over 13 million Gods Unchained NFTs out in the world, with over 65,000 unique asset holders. (Source: Godsunchained)

CRYPTOKITTIES

This is a blockchain game built around virtual cats and it happens to be the first game that was built on the Ethereum network. This game lets the players buy, collect, breed, and sell virtual cats called Cryptokitties to earn money. 

According to some estimates, the game had 1.5 million users who were responsible for $40 million worth of transactions on its platform. Individual cryptokitties have sold for more than $300,000 a piece, some say. As of this writing, the average sale price for a cryptokitty was $65.76. (Source: Investopedia)

Closing Thoughts

Blockchain technology has given rise to many innovations, one of them being NFTs. Likewise, the NFT ecosystem has been growing at a high pace and is becoming more and more accessible to people. It has become easy for anyone to create, buy or sell NFTs by following just a few simple steps. Having said that, the benefits of blockchain and NFTs in gaming, together have brought a massive change in how modern games are perceived in today’s times. They are a great opportunity to make money, especially for those who belong to the gaming industry. Share your thoughts and queries with us regarding NFTs in gaming by sending us an email at enquiry@logicsimplified.com 

The Metaverse is not a newly created word, and it was originated in 1992. Author Neal Stephenson invented the term first time in his fiction novel “Snow Crash”, imagining avatars who can meet and talk in a digital space. It is a combination of various technologies such as virtual reality, machine learning, augmented reality, artificial intelligence, and blockchain technology. Players can use this technology to develop a virtual identity and enter the digital world. They can have a captivating experience by adapting to their surroundings rather than focusing on a flat-screen. Metaverse gaming gives an illusion of you being part of the virtual world in real life. 

NFTs, on the other hand, are a new class of digital assets that is one-of-a-kind, valuable, immutable, and indivisible. They show the ownership of virtual assets like weapons, costumes, avatars, and many more. Nob-fungible tokens are safely stored on a blockchain technology behind cryptocurrencies. The NFTs technology plays a vital role in Metaverse game development. Once you buy a specific virtual object, you own a token that is certified on a blockchain and establish your connection with the virtual asset.

Metaverse and Gaming - The two sides of the same coin

In the gaming sector, the Metaverse is not a newly invented term. It is one of the major sectors which allows users to interact in ways they have never done before in a challenging game environment. It enables players to create, sell and trade objects in NFTs form in a shared digital realm. NFT gaming technologies are breaking the digital world’s limits, allowing gamers not only to trade items but also they can even transfer them through the Metaverse. 

This word is used by a few gamers in their gaming experience. With the right equipment VR headset, players will get an opportunity to teleport to their favourite games in person quickly. The online free-to-play cross-platform battle royale game Fortnite is the finest example of proto-metaverse. The gaming industry has evolved to the advanced world of virtual avatars and transactions that are powered by cryptocurrency or NFT (Non-Fungible Tokens).

Top 7 advantages of NFT in gaming

NFT in gaming will be one of the most important new developments in 2022, and it will be challenging for developers as well as publishers to ignore it. As it is a virtual environment, Metaverses have a wide range of features. However, the following are the most essential:  

Gamers will have more control 

When playing traditional games, players are acquainted with buying in-game items through seasons passes and microtransactions. But, NFT in gaming gives an opportunity to players to sell the in-game items and earn a share of future resales. Thus, giving players to have full control over their earned and acquired assets. This gives a great chance to players to invest in virtual assets. It is an excellent opportunity for gamers in the digital age, mainly those who grew up trading old games to fund new ones. For instance, in the Fortnite game, a player can change the character’s skin. This game creates a scarcity, but it is in the control of the developer. NFT in gaming allows players to control the sale and resale of items.     

Rise of Play-to-Earn games 

NFTs are advancing due to the popularity of play-to-earn model games, and some players are even making a living from them. Despite the fact that numerous Play-to-Earn games, like Pokemon, are identical to non-NFT games, there are claims that some of them are backdoor blockchains. Under the pretext of collectable objects, the game comes second to trade and buying cryptocurrency. Furthermore, by playing the games and winning them, users will win rewards in cryptocurrency form. Remember, Play-to-Earn games can also be challenging to navigate crypto wallets, buy-in fees, hidden costs, and more. However, by combining the best ideas and UX design of Free-to-Play and Play-to-Earn, there is still an opportunity for improvement. 

NFT in gaming adds value 

Till now, any objects that a user invest or unlocks in a game have a value within the game. Also, that money is lost if the game shuts down. On the other hand, NFT in gaming unlocks and adds value to gameplay that is already experienced. It is vital because NFTs have the potential to make a second-hand market for virtual games and objects effectively. NFT gaming lets users be the legal owners of in-game things, which they can sell, trade, or hold. This is possible by blockchain technology and an NFT-based in-game economy.  Users making money from a game isn’t a new concept, but NFTs are safer and adaptable.

Interoperability 

As stated earlier that NFT is based on blockchain. This provides the present system with a high level of security and interoperability. This is one of the most appealing features of NFT games. Classic console and PC games each have an environment that is incompatible. The assets and characters of the players are always restricted to that specific game. Games that are based on blockchain technology, on the other hand, boast interoperability - the ability to use specific game objects in various locations. NFT games can coexist on the interoperable or identical blockchain, with game assets that can be traded with other gamers.  

Authenticity 

NFT perks are mostly dependent on their uniqueness. As non-fungible tokens are produced on the blockchain, they are linked to specific records. The NFTs unique feature exhibits their potential for contributing value. Similarly, the makers of NFT have the possibility to issue a particular number of NFTs in order to build scarcity of supply. With play-to-earn gaming models that are by nature publicly decentralized, run virtual assets on blockchain portals. This makes NFTs immutable, which offers the assurance of authenticity. Immutability ensures that blockchain-based NFTs remain unaffected by changes, replacement, or removal. As a result, NFTs might simply represent their authenticity as the most valuable quality. 

NFT games will lead the metaverse 

The NFT powered games are far ahead of the curve for those looking at the perks of blockchains and metaverse. Games will be a part of the Metaverse, and Non-fungible tokens will connect them to their aspects of the connected, virtual future. The Metaverse will be distributed across the internet presented on various portals, games, and websites. This alters the way we play games, interact, and socialize. Gaming companies are competing to enter the Metaverse games. Metaverse and NFT gaming have already begun, and it will make it swiftly and easier. 

Next-generation social experiences 

Metaverse is to reinvent existing social interactions, and NFTs play a critical part. By owning specific NFT avatars, in-game assets, and items, players can authenticate their identity among the different avatars accessible in the digital universe that can be traded, bought or sold. This further provides users exclusive membership experiences in both the Metaverse as well as the real world. Therefore, the social experiences are enhanced. 

Future of Metaverse and NFT in gaming

Metaverse is still in its early stages, and innumerable gaming companies are working on developing it. It is a vast concept, and NFTs can play an important role in the wide ecosystem. Although Metaverse and NFT are two different entities, the design is the common thread that binds them both. In both Metaverse and NFT, a game designer's involvement is unavoidable. In order to create experiences that are a gateway into another universe, game designers will need to shift their skills, perspective, and approach. To create fantastic experiences for players, they must develop a fully engaging design. Developing the digital worlds that allow them to live in them rather than just experience it. 

Even though game app developers are still a long way from it, the indications of the Metaverse are becoming more evident. With the rapid rise of Metaverse and NFTs, game designers will undoubtedly play a significant role in the future. While some companies are still figuring out what the term means, the Metaverse is leading in the gaming industry. For instance, games like Fortnite, where players can dress up as their preferred Marvel or Star Wars characters, and in gaming portals like Roblox where you can gather badges and built your own world online. Same as the internet, Metaverse gaming will be the next big thing. 

Conclusion

In the gaming world, Metaverse refers to a concept that allows players to visualize different worlds. It will be a truly innovative and drastic method to enhance your digital experiences. It has the ability to revolutionize the way individuals interact with technology and people. Within seconds you will be able to make your human-like avatar, create a virtual room and enjoy a digital presence that is more like real-world interactions. As a result, a growing number of companies are searching for ways to adopt it. Considering the pace at which technologies are developing and companies are generating unique ideas surrounding immersive reality, it is a matter of time before the Metaverse becomes a reality. Moreover, NFTs also become more advantageous in terms of adding value and sustainability to the gamer's revenue by making them openly available on numerous interoperable blockchain portals. As a result, one will reasonably expect the best Metaverse and NFT games to make headlines in the coming years. How do you feel about the information that we shared in this article? If there is any suggestion or feedback about Metaverse and NFT future, you can contact us or drop us an email at enquiry@logicsimplified.com

What is NFT online gaming?

Whether NFT is used in gaming or somewhere else, the abbreviation refers to a “Non-Fungible Token” for digital assets. Though the name makes its sound complex, the concept is quite simple. An NFT is a blockchain-based digital crypto token representing unique identification codes and metadata. They can be added to a video clip, digital images or memes, etc. 

NFT is the basis of “play-to-earn” games. In order to play the game and obtain in-game objects, players have to spend a certain sum of cryptocurrency. Despite its form, when you have an NFT for a specific virtual item, you have a validated token for it on a blockchain or a digital ledger. In simple terms, you acquire a particular link that confirms your connection with the digital object.   

How are NFTs in-game assets traded?

Like cryptocurrencies, users can buy and sell NFTs online gaming assets on specific portals. However, a sale does not always include the transfer of the item represented by the token, like a game can represent your unique assets or character as an NFT. In this, the buyer does not receive the item. What changes is the ownership certificate of the NFT, which is registered on the blockchain. The certificate should be stored in a virtual wallet, which can come in a variety of formats, metamask, a secure physical device, or a free internet browser extension. To buy an NFT, the wallet must have enough of the necessary cryptocurrency. For instance, if a user purchases a token on the Ethereum blockchain, the wallet must have enough ether (ETH). 

What makes NFTs perfect for gaming?

Non-fungible tokens exist on blockchain technology, and this brings many advantages to the world of gaming. Unlike conventional games, where the game development companies offer access to digital objects, NFTs transactions take place between players in the gaming world. Following are the reasons why NFT online gaming will transform the game industry:

1. Ownership of in-game assets

What do you get in exchange for a character with the highest game level? Nothing, right! The in-game purchases in conventional gaming formats are one-time, non-transferable purchases where you had pay-to-play, free-to-play, and play-to-win models. Nevertheless, this will change with NFT online gaming. NFTs in the virtual gaming world gives players control over their in-game assets rather than the game developers. The use of blockchain allows players to save their in-game purchases, sell them to other users, or transfer them to other supported games. Therefore, Non-fungible tokens turn the traditional model of pay-to-play and replace it with the play-to-earn model. 

2. Interoperability

Typical online games are based on centralized servers. As a result, the in-game assets are present within the propriety systems that do not communicate with one another. Decentralized games, on the contrary, are built on separate blockchains that serve as the backend framework for other interrelated games. Thus, game assets characterized by NFTs can be developed to be interpolable across a variety of environments. For example, two games created on the Ethereum network can share in-game assets like armour, vehicles, and even the characters.

3. Provable Scarcity

Scarcity is a special feature that makes it different from other cryptos. The distributed public ledger or blockchain verifies the originality and ownership history of each NFT. Collectors place a value on originality. The scarcity of in-game NFT purchases is demonstrated by the unchangeable records built in an NFT’s basic blockchain technology. The market’s most unusual NFT assets will have the maximum value. This implies that even if the game developers decide to discontinue the game from the server, players can still benefit from the in-game objects they have bought by selling them to other players on the same blockchain as the game.

4. Immutability

When a classic virtual game closes down, players lose all their in-game purchases. On the other hand, NFT exists outside any particular gaming portal stored on blockchain technology. It allows you to buy and sell in-game purchases irrespective of what happens to the game, and new games can be developed to work with an existing blockchain system. Also, as every NFT game establishes a permanent record upon the issue, blockchain-enabled game assets cannot be copied or hampered.  

Future of NFT in online gaming

While there are benefits to using NFT online gaming, there are also significant obstacles to overcome. In general, NFTs should be made more enticing and available to public users who are not technologically advanced. Furthermore, as NFT has intrinsic value, some may be regarded as speculative goods. This possibility might entice users to buy in-game objects in the hope of later selling them for a profit instead of using those within the gaming world. Despite these challenges, the possibility for profit in the gaming industry will drive more blockchain-based games-focused companies to test with NFTs. Furthermore, the NFT games future will probably lead to more NFT infrastructure enhancements and the development of new solutions that allow widespread usage.

Final Thoughts 

NFT online gaming is a new technology that can transform the gaming world. Perhaps the greatest and certainly foreseeable impact is that the users will have complete control over the assets they have in the world of gaming. In terms of new games being developed and the features being updated using blockchain technology, there has been a lot of groundbreaking progress. NFTs are projected to be a long-term trend, benefiting both players and game app developers. With Logic Simplified, you can know more about NFTs, blockchains, and crypto games. Check out our recent blogs for more intriguing and useful reads. If there is any suggestion or feedback about NFT online gaming, you can contact us or drop us an email at enquiry@logicsimplified.com