The latest cryptocurrency craze is items operating on non-fungible tokens (NFT). These tokens are digital assets that represent a single, unique object.
In recent years, the NFT markets have grown and provided a medium for artists to sell their works.
But, artists are not the only ones benefitting from this trend. Non-artists like musicians and game developers have come on board, expanding the token’s worth in the market.
Several games are available on the internet, providing a medium for players to sell their game characters.
The platforms make use of smart contracts to generate NFT assets. They are, however, unable to access data from other Blockchain networks as they are limited to the information on their blockchain. This is where the use of oracle comes in.
Oracles are third parties that connect smart contracts in the blockchain to external information. For instance, if you wanted to create an NFT with the ability to affect weather, you could use an oracle to extract weather information.
This feed is automatically updated and does not require human intervention to keep the service going.
Oracle based NFT games operate on this principle. However, they’re not as popular as other games.
This is due to several reasons which I shall explain as you read further.
What are NFT oracles?
As I mentioned earlier, NFT oracles are the middlemen between external systems and a blockchain. Since a blockchain is static, it can only interact with data within its network.
The development of the NFT oracles allows blockchain to be flexible by connecting it with other data sources and systems.
Types of NFT oracles
You can characterize oracles according to their trust, Information address, and hardware.
Trust
An oracle can either operate on a centralized or decentralized system. Centralized oracles use a single source of information and are governed by a single body responsible for all contract functions.
Decentralized oracles operate on multiple sources of information and are governed by numerous bodies.
Centralized oracles have several disadvantages. For example, it allows easy access, and a malicious person can jeopardize a smart contract.
Decentralized oracles, however, have better security because of their multiple sources.
Information address
There are input and output oracles that perform different functions. Input oracles transmit information within the blockchain, while output oracles transmit information to other networks.
Data Source
An oracle’s source could be hardware or software. Hardware oracles have information on physical items on the blockchain. Software, on the other hand, contains data from different internet locations.
Functions of an NFT Oracle
The fundamental function of Oracle is to provide a link between blockchain data and external data. To achieve this, you can utilize the oracle to compile data from numerous web pages and give a secured output.
In the same vein, users can utilize oracle to achieve several purposes. You could inquire about the creator of artwork using this system.
It also allows you to easily search for NFTs on your database.
What are Oracle based NFT games?
The growing interest in non-fungible tokens as a new asset has led to numerous new games based on the platform.
Play-to-earn games operate like the usual video games where players have to complete tasks to earn points.
This goal is achieved by using price oracles that link the value of a currency to the ability to participate in a specific NFT game.
Generally speaking, games that employ this strategy maintain the same number of tokens for entry, even if the token price fluctuates.
How do Oracles work in games?
Understanding oracle based NFTgames is quite easy. As I pointed out, these NFT games operate with an oracle.
Aside from linking the blockchain to external systems, they play a significant role in a player’s investment.
How? you might ask. I have explained this below.
Minting
Minting an oracle based NFT game is quite different from other blockchain platforms.
Imagine a new oracle based NFT game called HeyBCH, which has a game token of $HBCH. Assume that HeyBCH requires an NFT worth $100 in its standard $HCBH to start playing.
This means that if $HBCH is $1, then you’ll need 100 $HBCH to buy and mint NFT to start playing and earning.
But what happens if the price of $HBCH fluctuates? Let’s assume that instead of $HBCH = $1, $HBCH = $2. Normally, you would now need 200 $HBCH to start minting.
However, with oracle, instead of 200 $HBCH, you’ll require 50 $HBCH. Amazing right? How does it achieve this?
It uses a simple division technique. When $HBCH was $1, you needed:
- $100 divided by $1 = 100 $HBCH tokens.
- When $HBCH becomes $2, you’ll need:
- $100 divided by $2 = 50 $HBCH tokens.
- If $HBCH becomes $3, you’ll need:
- $100 divided by $3 = 33.33 $HBCH tokens.
Therefore, the higher the value, the lower the tokens you’ll need to start minting. Both traders and players jump at this opportunity because once the value drops, the tokens become higher.
In other words, they mint when $HBCH is high and sell when $HBCH is low.
Rewards Payout
While oracle based NFT games are rewarding with a higher value for minting, it has reverse effects on payouts.
Consider the scenario in which you win $1 worth of $HBCH tokens in the game. That means you earn one $HBCH token for every victory.
However, if the price of $HBCH tokens rises to $2.00 per token, you will only receive 0.5 $HBCH tokens. The higher the value, the lower payout you receive as your reward.
Oracle based NFT games
Below are some of the NFT games that operate with an oracle.
1. CryptoMines
In CryptoMines, you take on the role of a mining magnate who commands a fleet of workers and ships.
Your job is to acquire enough personnel, mining power, and ships for transportation. However, you’ll need a lot of patience, research, and strategies to achieve this.
Every planet you mine will have different mining requirements, so you must gather enough information about the land to purchase sufficient mining power.
The game uses Eternal as its primary currency, which you earn every time you complete a task.
Its user base is constantly expanding as a result of the Oracle System. The system allows new users to begin minting NFTs at the same rate as established players.
As a result of the game’s success, Eternal has now attained a market value of $1 billion.
2. CoinToFish
CoinTofish is a massive digital ecosystem in which players take on the role of fishermen. Since fishing rods are their most essential tools, they are valuable and serve as NFTs. Players can purchase and sell fishing rods in the fish market.
This marketplace is unlike any other because it provides an in-game buy-and-sell mechanism updated in real-time. It also includes several fishes that you can place in either a 3D or 2D view, depending on your preference.
The game allows you to farm, breed, and upgrade fishes which you can also use to fight other fishes.
3. BNB Heroes
BNB Heroes emphasizes economic expansion and long-term viability. It is an NFT collectible card game based on the Oracle RPG.
Its developers plan to make this game reliable and long-lasting so that users can earn BNB tokens while participating.
4. Age Of Cryptology
Age Of Cryptology (AOC) is a Binance Smart Chain-based Play & Earn game that combines an engaging and entertaining legend with the capabilities of blockchain technology.
It uses the non-fungible token (NFT) to represent each asset, letting you remain the sole owner and retain complete control over your NFT item.
There is also a utility token called Aureo, the major currency in the game’s economy. Aureo also has monetary worth because you can exchange it for other cryptocurrencies or even fiat currency like USD or EUR.
Are Oracle based NFT games sustainable?
Cryptocurrencies are highly volatile, making it difficult to predict the shift in market factors. Depending on the value of crypto, oracle based NFT games could grow or have lesser value than other NFT games.
Conclusion
Oracle based NFT games, like most NFT games, have something interesting to offer. However, relying on an oracle to maintain a game’s balance might not be sufficient to keep the game in the market.
Other games like Axie Infinity and MOBOX do not operate with Oracle but are doing very well in the market.
In other words, while Oracle has a fascinating edge to it, it might not be an ideal solution for NFT games.
