NFTs Revolutionizing Gaming: A Practical Guide

Written by Daisie Team

Published on 10 July 2023 6 min read

Picture this: you're in the midst of a gripping game, and you've just received a unique weapon that completely alters the course of your gameplay. Now, imagine if you could actually own that weapon, not just within the game, but as a digital asset that you could trade or sell. Welcome to the era of NFTs and gaming, a revolution that's redefining the rules and rewards of online gaming. This practical guide will take you through the basics of Non-Fungible Tokens (NFTs), their increasing role in the gaming industry, and how you, as a gamer or developer, can leverage them. So, let's get started!

1. The Basics of NFTs

Before we dive into how NFTs are changing the game—quite literally—it's worth understanding exactly what NFTs are and how they work. Let's break it down.

What are NFTs?

NFTs, or Non-Fungible Tokens, are unique digital assets that you can own and trade on the blockchain. Think of them as digital collectibles. Unlike cryptocurrencies like Bitcoin, which are fungible and can be exchanged on a like-for-like basis, NFTs are unique. This means that each NFT has its own distinct value, and cannot be directly replaced by another. In the context of gaming, NFTs can represent in-game items or characters—think of that unique weapon or rare avatar!

How do NFTs Work?

NFTs work on the principle of blockchain technology. Here's a simple way to understand it:

Every NFT is recorded on a digital ledger called a blockchain.
This ledger stores information about the NFT—such as its creation, ownership, and transaction history.
Each NFT has a unique identifier and metadata that distinguish it from other tokens.
When you buy an NFT, the transaction is recorded on the blockchain, providing proof of ownership and authenticity.

Essentially, the blockchain serves as an unchangeable record of an NFT's life, ensuring that each token is unique, authentic, and owned by the person who bought it.

Why NFTs Matter?

So, why should you care about NFTs, especially in the world of gaming? Well, NFTs are transforming the way we interact with digital content. NFTs allow you to truly own in-game assets, which you can then trade, sell, or use as you wish. This ownership extends beyond the game itself, which opens up exciting new possibilities. For example, you could sell a rare in-game item for real-world money or use an in-game character across different gaming platforms. In other words, NFTs are adding a whole new layer of value and interaction to the gaming experience.

2. NFTs in the Gaming Industry

Now that we've covered the basics of NFTs, let's explore how they are making waves in the gaming industry. From their role in games to some popular examples, we're going to take a tour of the NFT gaming landscape.

Role of NFTs in Gaming

NFTs are becoming increasingly integral to gaming, and it's all about ownership and economy. When you buy an NFT in a game, you own it and have the freedom to do with it as you please. This could mean using it in the game, trading it with other players, or even selling it for real-world money. In other words, NFTs are creating a new kind of gaming economy, where players can earn and trade value within the game.

Moreover, NFTs allow for cross-game compatibility. Imagine using your favorite character or weapon from one game in another—NFTs can make that possible. This interoperability not only enhances the gaming experience but also adds to the value of the in-game assets.

Popular Games Using NFTs

Several games have already embraced the potential of NFTs. Let's take a look at a few examples:

CryptoKitties: One of the first games to use NFTs, CryptoKitties lets players buy, breed, and sell virtual cats. Each cat is an NFT, meaning it's unique and owned by the player.
Decentraland: In this virtual reality platform, players can buy land, build structures, and interact with each other. The land parcels are NFTs, and so are the items players create.
Gods Unchained: This trading card game allows players to collect and trade cards, which are NFTs. The more rare the card, the higher it can sell for.

These games are just the tip of the iceberg. With the rise of NFTs in gaming, we can expect to see more games offering unique in-game assets as NFTs.

3. How to Acquire NFTs

After seeing NFTs in action in the gaming world, you might be wondering how you can get your hands on these digital assets. Let's break down the most common ways to acquire NFTs: buying, creating, and trading.

Buying NFTs

Buying NFTs is as simple as shopping online, but with a few twists. First, you'll need to set up a digital wallet that supports cryptocurrency, as most NFT transactions are made with Ethereum. Then, you can head to an NFT marketplace, browse for the NFTs you want, and make your purchase. The NFT is then transferred to your digital wallet, and voila, you're the proud owner of a unique digital asset!

Creating NFTs

Feeling creative? You can make your own NFTs! Whether you're an artist, musician, or game developer, you can turn your digital creations into NFTs. Just remember that creating an NFT does come with a cost, known as 'gas fees' in the Ethereum network. Once your NFT is minted, you can keep it, sell it, or use it in compatible games or platforms.

Trading NFTs

Trading NFTs is where the gaming aspect really kicks in. Just like you might trade cards or in-game items with friends, you can trade NFTs with other players. This can be done in-game, on the game's website, or on an NFT marketplace. The trade could involve cryptocurrency, other NFTs, or even services. But remember, each NFT is unique, so trade wisely!

Whether you're buying, creating, or trading, the world of NFTs and gaming offers endless opportunities. Ready to start your NFT adventure?

4. How to Use NFTs in Games

Now that we've got a handle on acquiring NFTs, let's talk about the fun part—using them in games. NFTs can function as in-game assets or be traded within the game itself. Let's dive into these uses for a clearer picture.

Using NFTs as In-Game Assets

NFTs as in-game assets can add a whole new dimension to gaming. Picture this: You're playing an online game and you've just earned a magical sword. That sword is an NFT, and it's yours alone. The stats, the design, even the history of battles it's been in—everything is unique to that sword. You can use it, sell it, or trade it for something else. The control is in your hands. Games like "CryptoKitties" and "Decentraland" are already making this a reality!

Trading NFTs In-Game

Trading NFTs within a game opens up a whole new marketplace for gamers. Think of it as a virtual swap meet where you can trade your NFTs with other players. Got a powerful magic staff but need a shield instead? You can trade with someone who has what you need. It's not just about the game anymore. It's about strategy, negotiation, and making the best trade. Games like "Axie Infinity" are leading the way in in-game NFT trading.

Using NFTs in games brings a new level of ownership and strategy to the gaming world. It's more than just playing a game—it's about building a unique collection and making smart trades. Excited to see what you can do with NFTs in your favorite games?

5. Future of NFTs in Gaming

As we've seen, NFTs are already making waves in the gaming industry, but what does the future hold? Will NFTs continue to shape the way we game? Let's explore the potential impact of NFTs, as well as the challenges and opportunities they present.

Potential Impact of NFTs

The rise of NFTs in gaming could change the landscape in profound ways. For one, it could shift the power dynamics. Imagine a world where gamers have true ownership of their in-game assets and can trade or sell them for real-world value. It would be a step towards democratizing the gaming industry, wouldn't it? Furthermore, NFTs could pave the way for more immersive and personalized gaming experiences. Imagine a game where every item, character, and location is unique and has its own story to tell. That's the kind of depth NFTs could bring to gaming.

Challenges and Opportunities

However, like any emerging technology, NFTs in gaming come with their set of challenges. For instance, there's the question of how to maintain the balance between giving players ownership of their assets and preserving the integrity of the game. Or how to ensure that the value of NFTs doesn't lead to pay-to-win scenarios. But where there are challenges, there are also opportunities. Game developers could use NFTs to fuel innovation, create new revenue streams, and build stronger communities around their games. It's all a part of navigating this exciting new frontier.

There's no denying it—the future of NFTs in gaming is bright and full of potential. As gamers and game developers alike continue to explore the possibilities, who knows what incredible experiences we'll see next?

If you're excited about NFTs and their potential impact on the gaming industry, we highly recommend checking out the workshop 'Intro to NFTs' by Andrea Orejarena. This workshop will give you a solid understanding of NFTs and how they are revolutionizing various industries, including gaming. Don't miss this opportunity to stay ahead of the curve!