An NFT (non-interchangeable token) is a unique record in a blockchain. A blockchain is a chain of blocks that are linked together and contain information about all previous actions with it. Cryptocurrencies work on the blockchain – Bitcoin, Etherium.
NFT is like a document that confirms ownership of an object in the digital world, but is not itself an object. Due to the fact that it runs on a blockchain, anyone can “find” the owner of the object, and this guarantees their right to the object.
NFT games offer gamers the possession of game objects, which they can freely dispose of – store, transfer or sell.
The problem is that NFT doesn’t actually guarantee anything-the blockchain on which it runs can be controlled by the developer. Internal tokens mined by players can be a “bubble” because the game’s economy relies on external financial injections from gamers or investors. As a result, at any moment the value of a token can go down, and the platform will cease to be interesting.
How to earn in NFT games
There are several strategies for making money in crypto games, from farming tokens to reselling them. Let’s break them down in more detail.
Token mining
NFT game developers position their projects as Play-to-Earn – play to earn. Gamers are offered earnings in the form of internal cryptocurrency (tokens), which work on blockchain technology and are traded on cryptocurrency exchanges. These internal tokens can be exchanged for bitcoin or ether and then converted to euros, dollars, or rubles.
Tokens in NFT games are awarded for actions, winning tournaments or completing tasks. These tokens can usually be sold immediately or used to further improve your NFT objects.
Reselling NFT objects
Almost every NFT game has its own marketplace with in-game items, characters and objects. Even without playing the game, any user with a crypto wallet can make a purchase and become an NFT owner. In the future, the price can rise or fall, leading to profit or loss respectively.
Renting out in-game objects
Metadiverse games such as Decentraland and The Sandbox are built around a blockchain-limited virtual space. By buying the land now, a person can expect to further increase the value of the assets further or start earning money by renting it out to other players or company representatives.
Another option is to rent out their NFT objects. This, for example, is done in Wave Ducks and Axie Infinity – another player mines tokens and shares the main profit with the account owner.
NFT games began appearing five years ago, but in recent years have been attracting more and more attention.
It is more reliable to make classic earnings based on your skills and competencies. Or start your own startup – because it is the creators of NFT-games that earn the most, not the gamers.