What Are NFT Games and How Do They Work

Category: Blockchain NTFs
Posted by AIBC Group

NFTs are unique digital collectibles that are stored on the blockchain. Because of this feature, they are particularly suited to be used as characters, consumables, or other tradeable items in games.

A number of NFT games have become popular in the game-fi world to generate income. It is possible to sell your in-game NFTs to other players and collectors and even earn tokens with play-to-earn models.

Make sure you transfer your gaming NFTs to a compatible wallet when you move them. Whenever you send the NFT to an online NFT marketplace or another user, be on the lookout for common scams that might occur. Lastly, read the rules carefully of any NFT game you play to be aware of any potential loss.

As of right now, NFT games can be found on Ethereum and Binance Smart Chain (BSC). In addition, several games use collectible characters as part of a battling experience, like CryptoBlades and Axie Infinity, while others use collectible cards, like Sorare.

In addition to NFT Mystery Boxes, Binance is also offering NFT Mystery Boxes, offering holders the opportunity to own NFTs of varying rarities. The NFT games partnered with these boxes are part of a collection of games that will be released next year.

What Are NFT Games?

In contrast with holding crypto-collectibles in your wallet, NFT games are completely different from holding crypto-collectibles. NFTs may be used in the rules, mechanisms, and even the player interactions of a NFT game. An NFT, for example, could be used as the way your character or avatar is represented within a video game. When you play the game, you might be able to find digital items that might be NFTs. As soon as you have accumulated enough NFTs, you can exchange them with other players for a profit. Additionally, by using the newer, play-to-earn model, you can also generate income from NFT games, which we will discuss in more detail later on.

As a result, how would you take NFTs and make them into a game environment in terms of their technical implementation? For developers to create smart contracts that constitute the rules for NFTs to be used within a game, smart contracts are used to create, create, and implement NFTs. Essentially, smart contracts are a form of self-executing code that is stored on the blockchain.

The crypto-kitty game CryptoKitties, for example, has a limited number of commercial contracts that define the game’s structure. The most famous is their gene science contract, which determines the random mechanics by which new cats will be generated. At first, the developers kept the code of the game a secret. It is even possible that some players created tools to analyze the odds of particular traits turning up in cats in the future. Using this information, players could optimize their chances of developing a rare breed that would be worth more money.

What Are Play-to-Earn Games?

The NFT games that are play-to-earn offer users the possibility of earning an income stream by simply playing the game. The player is usually rewarded with tokens and occasionally NFTs, earning more by playing for a longer period. A number of the tokens gained by playing the game are often required as part of the crafting process of the game.

The token method is usually more stable of the two since tokens can be earned steadily through play, while drops from NFTs are more chance-based. The play-to-earn phenomenon has been especially popular with users in low-income countries as a way to supplement or supplement their fixed incomes or social security benefits.

Among the most well-known play-to-earn games, Axie Infinity is one of the best-known. In order to play the game, you need to make an initial investment to purchase three Axies, or you can earn a free scholarship from another player. Upon creating a Starter Team and completing tasks and challenges, you will be able to earn Smooth Love Potion (SLP), an ERC-20 token, tradable on exchanges.

Breeders use SLP for breeding new Axies, thereby creating an economy around the item. Many users started living off of the play-to-earn model of Axie Infinity in the Philippines, where it became particularly popular. Therefore, there are a lot of players who are making between $200 and $1000 (USD) each month, and some are even earning even more, depending on the market price and the amount of time they are investing.

What Are in-Game NFTs?

In-game NFTs are one of the ways that you can generate income through the NFT games you are playing. Instead of earning a fungible ERC-20 token such as SLP of Axie Infinity or SKILLS of CryptoBlades, you earn NFTs that represent collectible items. The use of this gameplay mechanism has served as the traditional method of generating income through NFT games for many years. Depending upon the cosmetics, rarity, or utility of an item within the game, there will be a huge variation in the value of such an item.

The Cryptokatties game is an example of a game that is entirely based upon the collectibility of NFTs in the game, to drive the game’s gameplay. The element of chance is the only thing that keeps you playing and able to earn a steady income without it. In terms of newer NFT games, most support both in-game NFTs as well as play-to-earn NFTs.

What is the NFT Games Monetization Program?

In order to be able to earn money playing an NFT game, you have to consider the game mechanics and market demand of that game. The money you make in the game will come from other users who value the NFTs or cryptocurrencies that you earn. In order to make a profit, you will need to sell your goods on a market, exchange, or auction house. When it comes to NFT games, value is derived either from the NFT or token’s collectability or its in-game utility. As a result, there is also speculation when it comes to NFT games.

5 Most Popular NFT Games

The NFT gaming industry has grown significantly over the last few years, with certain platforms establishing themselves as the main highlights of the sector. It was relatively recent that the best games, those that were at the forefront of the current craze for NFTs, were those that was successful integrating NFTs into popular game themes. In turn, this opens up a wide range of opportunities for players to enjoy both of their favorite game genres while also taking advantage of the lucrative virtual goods market as well. Having said that, let’s take a look at a few titles that fall under this category without further ado.

Axie Infinity

The game, known as Axie Infinity, borrows heavily from the Pokemon series and also adds its own blockchain twist, giving it an even more exciting feel. The core purpose of this Ethereum-based game is to compete against other players by breeding and collecting NFT-based digital pets called Axies. Essentially, every Axie has its own unique genetic imprint. Consequently, Axies pass down their weaknesses and strengths to their offspring. As expected, these digital pets are traded on Ethereum NFT marketplaces, and the price of each varies according to the rarity and characteristics of the pet.

You will need to purchase three Axies in order to get started with the game. If you finish every quest, player-versus-player (PVP) battle, or adventure mode that you start, you will be rewarded with a Smooth Love Potion (SLP) utility token – the platform’s native ERC-20 utility token – as a reward for your efforts. To breed a new Axie, you must purchase a certain amount of SLPs, which you can also purchase on exchanges. The Axis Infinity Shard (AXS) is another ERC20 token native to Axie Infinity that functions as the platform’s governance token. The game’s stake service will also be anchored by it, which is expected to go live sometime in 2021. Read more in our deep dive into Axie Infinity.

Gods Unchained

As a free-to-play game, Gods Unchained was designed to incorporate elements of the NFT into a familiar card trading genre. In a multiplayer game, cards can be collected by purchasing them from other players or by winning PVP matches, where the quality of the cards and the gaming skill of the players determine the winner. Clearly, skills and strategy are becoming increasingly important in multiplayer games. This is due to the fact that the game uses a ranked mode where players with the same rating are matched against each other.

Your victory is decided by the fact that you caused the opponent’s life to drop to zero before your own. As a result, you get experience points when you win. As soon as the experience bar fills up, you will move to the next rating or level, as well as receive a new pack of cards to add to your collection.

An ERC-721 token backs each card in your collection. Due to this, you can either trade them on the platform’s native marketplace or the open market. The platform’s native token, GODS, will be the payment method for those who wish to sell cards within the game ecosystem. It should be noted that the GODS token has not yet been officially launched at the time of writing this guide. Before deciding to purchase or receive any token marketed as God’s Unchained tokens, please be sure to confirm that the development team has released the GODS tokens to the crypto market. Learn more in our deep dive on God’s Unchained.


Splitterlands is a free-to-play tradable card game, similar to Gods Unchained, that lets players earn points as they play. Whenever you win a card match, you earn rewards. In order to be able to play Splinterlands, you will need to first purchase a starter pack of cards, register a Steam account, and unveil the purchased cards on Splinterlands. It is possible to be lucky enough to find a rare card in one of the first sets of cards that you purchase. There is also the possibility that you might find multiple cards of the same type. You can either combine identical cards to make them more powerful, or you can sell one of them for cryptocurrency if that is the case.

If you are familiar with the cards, you can then proceed to battle other players or participate in quests once you have familiarised yourself with them. Whether or not you earn more cards as a result of these activities depends on the outcome of these activities.

The Sandbox 3D

Sandbox is a voxel-based gaming metaverse and one of the most active NFT gaming platforms where players are able to make and trade digital assets. As a player in this game, you have the ability to manipulate and monetize voxel assets. This type of game can be thought of as the blockchain version of popular games such as Minecraft and Roblox. The platforms provide the tools necessary to create and animate objects, as well as to sell them on marketplaces. Furthermore, users can also create and play custom games through the platforms. Sandbox 3D has introduced a new native token for the metaverse. This token is an ERC-20 token. The platform’s marketplace will enable players to purchase in-game items directly from the platform. As a matter of fact, there are also LAND tokens, which are NFT tokens and are by far some of the most valuable and sought-after assets in the Sandbox game. The sale of LAND in April alone resulted in the sale of a record amount of $8.5 million.

Alien Worlds

There is a metaverse known as Alien Worlds, which simulates economic competition between players in an effort to explore other planets by way of collaboration. Players are encouraged to compete in order to acquire Trillium (TLM), which is required in order to gain access to additional gameplay and control competing decentralized autonomous organizations (Planet DAOs).

It is the purpose of the Alien Worlds metaverse that players can acquire NFTs to mine TLM, engage in battles, and complete in-game quests in order to earn NFTs. A player may purchase and assemble NFTs that are best suited to suit his or her gameplay strategy, depending on where they are in the game. Moreover, players may have the opportunity to engage in governance by electing the Councillors of six Planet DAOs, and thus be able to influence the direction of the game.

Can One Lose NFTs Playing NFT Games?

Playing NFT games can result in you losing money. Depending on the type of game you’re playing, its mechanics, and the value of the NFTs you’re handling, you will have to allocate the right amount. A loss of money does not necessarily mean you are a victim of a scam. NFTs are speculative instruments, and their value is based on what people place on them, so your losses also depend on what people place on them. Make sure that you only spend money you can afford to lose if you invest in NFTs.

Can I lose my NFTs?

It is a common fear that some NFTs are worth so much that they could be lost during the course of playing a game or interacting with a blockchain. Therefore, you need to make sure that you keep all your NFTs secure whether you have purchased them or earned them in-game. You may lose your NFTs if you are not careful if you do not take the proper precautions. It is highly unlikely that you will lose them; however, if you follow the best practices, we will discuss them later on.

The following are a few ways in which you might lose your NFT:

You are attempting to transfer your token from your wallet to another that does not support the token standard that your NFT uses.

A scammer has stolen your NFT, or you have made the mistake of sending it to a scammer. It is possible that you have given a malicious smart contract permission to access your wallet, and it has taken your NFT. In the end, it is part of the rules of a game that you lose your NFT.

The only thing you can do to avoid the above situation, other than the last one, is to improve your knowledge of NFTS, Blockchain technology, and scams as a whole. In the same way that you wouldn’t use PayPal or internet banking without knowing exactly how to use them, the same applies to NFTs. The following steps should be taken to ensure you do not lose your NFTs:

In order to avoid falling victim to a scam, be sure you aren’t sending your NFT to another wallet. Our guide to the 5 Common Cryptocurrency Scams and How to Avoid Them contains a list of the most common ones.

Ensure that you understand what types of tokens and blockchains your wallet supports. For example, on Ethereum, ERC-721 and ERC-1155 are the most common protocols for NFT tokens. For Binance Smart Chain (BSC), BEP-721 and BEP-1155 are the most common protocols for NFT tokens. Don’t assume that the sample is compatible with the address you are sending it to, and always make sure you are sending it to the right address.

You should only interact with smart contracts from reputable projects that you can trust. It is important that you are aware of the possibility that you could lose your funds if you allow a smart contract to interact with your wallet.

Before playing any game, make sure that you are familiar with the rules. Depending on the NFT game, you can trade with other players or use NFT consumables. Such consumables can include items, potions, and so on. Before diving into the game, make sure you familiarise yourself with the rules.