Crypto and NFT Gaming: Explained
The presence of video games revolutionized entertainment and the concept of fun from its presence for the first time. As projected, the world was transforming technologically and video games have been part of that evolution. Multiplayer, increasingly realistic graphics, online game, virtual reality. But something we could never imagine is the possibility of generating real money profits through the non-fungible token or NFT (Non-fungible token) and the games to win or P2E (play to earn).
NFTs by Definition
NFTs can be defined as digital assets that represent physical or virtual objects in our life outside of gaming. Unlike other online gaming options which offer only in-game assets as rewards for progress in slots, poker and other titles.
Don't get them mixed up with cryptocurrencies or fungible tokens – those are completely different. The thing is, you can trade bitcoins and other cryptos for equal values, but with NFTs, it's impossible because each one is unique and can't be duplicated. It's like they have their own personalities (non-fungible ones).
To put it simply, NFTs rely on blockchain technology, which provides them with safety features like being decentralized and unalterable. To top it all up, the majority of them are grouped together to form a portfolio of collectible elements called NFT collections.
Connection between NFT and Crypto
Just like cryptocurrencies, NFTs roam free on a blockchain network. Think of it like a decentralized computer network, where everyone is linked up by blocks and nodes, and nobody's the chief executive. Each block links to a previous block, as well as a date and transaction data, and by design they are resistant to data modification.
NFTs and cryptocurrencies are also similar when it comes to buying tokens. To put it another way, a cryptocurrency is generally used as a currency to buy an NFT. Most of the time, markets represent prices in cryptocurrency denominations. For example, an NFT can be sold for 1 Ethereum (ETH) or 3 Solana (SOL).
NFT vs. Crypto: What’s the Difference?
Cryptocurrencies are like virtual currency, just as the dollar in your wallet is real money. You can exchange dollars or bitcoins for goods and services with ease. And that’s where NFTs are different.
Think of them as those unique things like gold bars, luxurious jewelry, or a piece of rare artwork. These items hold their value because they are limited in number and deemed significant by collectors. Likewise, an NFT holds its value based on how much someone is willing to pay for it.
As for now, let’s dig a little deeper into the technical side. Cryptocurrencies and NFTs both have digital certificates of authenticity that remain unaltered over time. This metadata guarantees the item's legitimacy and also tracks its initial worth and all transactions ever made with it.
To top it all up, while bitcoin and other cryptocurrencies are identical to each other, an NFT is one-of-a-kind, just like owning an original Picasso or a 24k gold coin. And as with any unique treasure out there in the world of tangible things, the rarer or more special it is, the more valuable it will become – precisely what makes NFTs such a game-changer in their digital realm.
Play-To-Earn Concept Explained
Although the idea of "buying" things within games is not new, NFTs allow them to have a fungible value for their owner outside the virtual sphere. With all the current buzz about the experimentation and subsequent execution of the metaverse, a more virtual world, video games could not be left behind. To top it all up, they are the ones who can most exploit the idea of Play-To-Earn.
P2E games, as the name suggests, give players the chance to earn tangible rewards in real life. Typically, these rewards come in the form of NFTs – a type of digital asset unique to the game. The in-game assets you score from P2E games are like virtual clothes, landscapes, and other things that hold actual value based on their cryptographic content. And later on this value could be translated into real-world ones (that’s the main difference between traditional and P2E titles).
Unlike normal games, where game elements are stored in protected data networks and are owned by the companies that created the game, NFTs allow participants to own the unique assets they buy. In addition, once you own the NFT, you can sell it freely outside the platform on which it was developed, something that is not possible with normal titles.
Popular NFT Projects Linked to a Crypto
If you're into blockchain-based play-to-earn games, then you've probably already heard of Bored Ape Yacht Club (BAYC), one of the hottest projects burning up the ether in 2021.
Another blockbuster project that utilizes both NFTs and crypto is Axie Infinity. Released from the independent studio Sky Mavis in 2018, it is one of the largest and most popular P2E video titles, which allows its players to obtain cryptographic tokens called Smooth Love Potion (SLP) as rewards and that can be bought and sold for real dollars.
To top it all up, there are also other revolutionary NFT/crypto projects like Decentraland and Arenero, PASO, The Sandbox, Sorare, and more. Without any doubt, there are plenty more like these changing the landscape day by day.
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