AlgoBlocks
- Jun 15, 2022
- 3 min read

NFT Games: A Quick Guide for Beginners

Updated: Jun 30, 2022

NFT games is the intersection of gaming, blockchain, and finance. It’s not like other video games; it’s a game powered by blockchain technology. And you can earn a nice paycheck just by sitting in front of your computer and playing for a few hours.

The money involved is not insignificant. In 2021, Nonfungible.com, one of the largest NFT data resources, reported that NFT game sales hit $5.17 billion. There are also rumors that gamers can earn as much as $100 a day, prompting some to quit their jobs and focus on playing.

So how do NFT games generate money? And where does the money come from?

What are NFT Games?

An NFT game is an online game that incorporates NFTs into its game rules and mechanisms. NFTs (short for non-fungible tokens) is a unique, digital token that exists on a blockchain. You can sell and trade NFTs, but you can’t replicate them. NFTs can be digital files like artwork, images, videos, and even music.

In NFT games, the NFTs could exist in different ways. Your avatar or character could be an NFT. The weapons, cards, trinkets, or even costumes you collected and earned could be NFTs. In ordinary video games, these items are only useful within the game itself. But in NFT gaming, these assets have real-world value.

These NFTs are locked in smart contracts (self-executing contracts run by code), which determine how the NFTs will function in the gameplay. NFTs are also tamper-proof, and since they’re non-fungible, every player has iron-clad ownership over their game assets. Just like ordinary NFTs, the value of the NFTs in the games depends on rarity, their use in the game, and the willingness of people to pay for them.

How do NFT Games Work?

There are two main types of NFT games based on the earning model: play-to-earn and in-game NFTs. Many NFT games offer a combination of both.

In-Game NFTs

In-game NFTs are the traditional approach to earning money in NFT gaming. Throughout the game, players win NFTs as collectible items, which they will then sell to or trade with other players. In some games, players complete objectives to earn NFT rewards.

While it’s fun to collect NFTs, this type of model doesn’t guarantee a steady income because landing valuable NFTs is a matter of luck.

Play-to-Earn NFT Games

Play-to-earn (P2E) games are a newer business model, which became more popular than their in-game counterpart. In a P2E game, the player is rewarded with NFTs as they play the game. This means that the longer they play, the more assets they collect, and the more they earn.

There isn’t a need to win big in the game. Players could get NFTs just by breeding new characters or trading cards. P2E became the standard in crypto-gaming due to consistent earnings.

How Game Developers Earn

The developers earn by charging players when they enter the game or taking a percentage of the NFTs sold or bought in the game. Most NFT games require an upfront payment to start playing or to progress to the next level. Companies also earn from in-game purchases of loot boxes or prize crates, which may contain items for the game.

Most Popular NFT Games

If you’re ready to dip your toes into NFT gaming, here are games you should check out:

Axie Infinity. Players collect or breed monster characters called Axies, which are NFT-based digital pets. As an NFT, each Axie is unique and distinguishable, and their value is based on the rarity of their traits.
Splinterlands. It’s a card-based strategy game with NFT cards. Players can also sell their cards for the native DEC currency and convert it to fiat money.
Gods Unchained. Like Splinterlands, Gods Unchained is also a strategy card game with NFT cards. Players could also sell their cards in the game for the native GODS currency, which can be converted to fiat money.

With every passing year, NFT games are one step closer to becoming mainstream, and more players choose to earn their living through playing. With the combined appeal of entertainment and money, joining the NFT game craze is an easy choice for many.

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