It is normal to wonder about a new innovation or idea, especially one that has begun to make waves. The problem is, though you might have several questions, getting accurate information can be difficult.
The same thing applies to NFTs. There are a lot of speculations and facts that it is now difficult to sieve out genuine information.
Fortunately, I have researched extensively on NFTs and can provide answers to pending questions you might have about the token’s games.
So, if you’ve been wondering about NFT and its games, you have come to the right place.
Below, I have extracted some of the most common questions about NFT games and provided comprehensive answers.
1. What are NFTs?
The term “non-fungible token” refers to a digital piece that is not mutually interchangeable. That is, you cannot exchange an NFT for the exact same NFT as you can do with some cryptocurrencies. NFT operates on the cryptocurrency blockchain, making buying and selling these tokens easier.
NFTs apply to several industries. They could be a collectible cryptographic art piece or as a digital item in a video game. Sometimes, they could be real-life items like buildings, clothes, or sculptures.
2. Why is an NFT valuable?
It is the property that an NFT represents that determines its worth. Often, it could be a digital piece of original artwork or digitized memorabilia. The main NFT does not always contain the digital form of the object; and instead, it serves as a point of reference for the existence of that object on the blockchain.
In simpler words, the NFT is like a deed that states that you own that item.
3. Are NFTs cryptocurrencies?
NFTs are not cryptocurrencies, and however, they are based on Ethereum and Bitcoin-like technologies, making them similar to cryptocurrencies.
Furthermore, NFTs, like cryptocurrencies, are on a blockchain, which ensures their unique identification and ownership. The blockchain also maintains a record of all transactions involving the NFT, including the property it represents.
4. What are NFT Games?
NFT games are similar to standard video games, and however, their regulations and mode of operation differ because it works on the blockchain. In NFT video games, a character or item can be an NFT that the owners can sell or exchange for a different NFT piece.
Though digital, players can earn fiat currency through their trades and exchanges. You can also generate money from NFT games by employing a more recent model known as “play-to-earn,”
5. How does NFT work in a gaming environment?
Developers create smart contracts that serve as non-fungible tokens (NFTs) regulations.
Smart contracts are codes that automatically implement themselves into the blockchain, and NFT owners use these contracts to exchange, manufacture, and implement new casts into an NFT game.
Let’s take CryptoKitties, for example. These items have a network of smart contracts that make up the entire structure and operation of the game.
The most valuable of these contracts is the geneScience, random mechanics that generate new cats.
Initially, developers kept the source code for the game under wraps. But, very interested players built methods to calculate the likelihood of various cat characters appearing in every game.
With this information, they could create a valuable uncommon breed that’ll have a higher value in the market.
6. What are Play-to-earn NFTs?
Play-to-earn NFT games allow players to earn money while playing games. Here, players receive tokens and NFTs, which increases the longer they play.
The token is the most common of the two rewards, while NFT rewards appear once in a while. As a result, players look out for these tokens more than they would for NFT rewards.
Axie Infinity is one of the most viral play-to-earn games available. Before playing, you must invest in three Axies that you can purchase from other players.
If you don’t have enough to buy, you could rent them temporarily, but you will share the rewards with its owner.
After you have formed a Starter Team and begun completing tasks and challenges, you will be able to purchase Smooth Love Potion (SLP). SLP is an ERC-20 token you can trade on cryptocurrency platforms.
Other games in this category include Spells of Genesis, So rare, Evolution Land, Forest Knight, and more.
7. What are in-game NFTs?
Aside from play-to-earn NFT games, there are also in-game NFTs that provide a means of earning to players.
Here, you don’t earn a fungible token from games like Axie infinity; and instead, you earn NON-fungible tokens from collectible items.
Every item has its worth, depending on its function and rarity. A good example is CryptoKitties which relies on the NFT collectibility.
Newer versions of NFT games contain both play-to-earn and in-game NFTs, the latter being the most common.
8. How do you make money from NFT games?
The amount of money that players can earn in an NFT game depends on the game’s technique and market demand. You will make money by selling these non-fungible tokens or cryptocurrencies that you have earned during the game.
There are several NFT markets and auction houses to sell your tokens.
9. Can I lose money while playing NFT games?
It is possible to lose when participating in NFT games. The type of game you are playing determines the amount of money you will need to invest to win.
The mechanics of the game and the worth of your NFT also play a part in your investment.
Just like crypto investments, you stand a chance to lose the money you invested. But, the amount you lose is dependent on market forces and the game’s rules.
10. Can I lose my NFTs
Since some NFTs have a significant monetary value, it is common for people to be anxious about losing them when participating in a game or interacting with the blockchain.
Whether you purchased your NFTs or earned them through gameplay, you can lose them.
Below are possible ways you can lose your non-fungible token;
- Making an attempt to send NFT from one wallet to another that does not recognize the NFT token standard.
- Transferring your NFT to a con artist
- Providing access to a malicious smart contract to your wallet. The smart contract can control or make your NFT disappear.
- Losing your NFT as a rule of a game
11. How do I avoid losing my NFT?
Aside from losing your NFT in a game, you can prevent other instances of losses. First, you must have a good understanding of NFTs and how blockchain technology works.
If you don’t want to lose your NFT, you should take the precautions below;
- Confirm the wallet you want to send your NFT to. Ensure that you’re not falling for a scam or sending your NFT to the wrong wallet
- Learn about tokens and blockchains that your wallet platform supports. The most popular NFT token or Binance Smart Chain are BEP-721 and BEP-1155 (BSC), while for Ethereum are ERC-721 and ERC-1155
- Ensure you interact with smart contracts from trusted projects. If you allow a smart contract to connect with your wallet, you should be aware that the contract may take your money
- Make sure you understand the rules of the game you’re playing
12. Who can play NFT games?
Anyone can play NFT games. In the same vein, anyone can use the NFT platform provided they have something to sell or enough money to purchase an NFT.
13. Are non-financial tokens (NFTs) the future of art and collectibles?
That depends on the market factors. NFT has become popular with artists, musicians, and other celebrities because it provides them with a different approach to selling their merchandise.
Galleries also see this medium as a potential market for their products. However, the market is unstable, and it is difficult to predict what might happen anytime.
14. What are the drawbacks of NFT?
While NFT systems might be appealing, there are some drawbacks you should be aware of.
First, NFT deals with digital items. As a result, you might be spending a lot of money on something free for anyone who can access the internet. This volatility could be one of the token’s biggest problems.
Being digital also presents the problem of bit rot. This is when the digital file is no longer available, and the owner cannot access it.
This situation could occur when the system no longer supports the file format or people forget their login. In the latter case, the owner might lose access to whatever NFT they own and never recover it.
Though NFT has been around since 2014, many recognized its potential in 2020. The fact that it uses blockchain technology also suggests that there might be more in-store than expected. Its smart contract, for instance, can be efficient in increasing the security of other platforms.
However, this is all speculation, and you can only wait and see what the future holds for NFT games.