What is NFT Gaming? The Explosive Rise of the Play-to-Earn Trend
As gaming evolves, a completely new concept has emerged and is set to become increasingly popular in the future—NFT gaming.
So, what exactly is NFT gaming? Why has this keyword become so hot recently? Let's explore it further in the article below.
What is NFT Gaming? How does GameFi operate?
NFT Gaming (GameFi) combines "Game" and "DeFi" (Decentralized Finance).
NFT Gaming is where users can earn profits by playing games. Another common term for this field is the Play-to-Earn model. On the surface, it's about "playing games," but at its core, "financial" aspects are crucial in blockchain.
NFT Gaming includes games with their own tokens, used to reward players and trade in-game items. These tokens can also be exchanged for other cryptocurrencies or fiat on exchanges.
You can use tokens to purchase NFTs in-game, such as artworks or customizable characters, and resell them as their value appreciates. This approach is known as "Play-to-Earn."
As players compete for token rewards, blockchains are competing for users.
The Explosive Rise of the Play-to-Earn Trend
The NFT Gaming frenzy has transformed the traditional gaming system by offering users the opportunity to earn attractive rewards. Gaming is no longer just about entertainment; it's a means to make money.
In early July 2021, the price of AXS tokens from Axie Infinity soared by 185% in just 7 days, marking the explosion of Play-to-Earn.
Many GameFi projects have emerged continuously following the success of Axie Infinity, indicating a growing interest in the GameFi sector after previous CeFi & DeFi trends.
Why is NFT Gaming earning so much attention?
In traditional games, companies have complete control. Gamers earn money and items in the game, but they never truly own those items.
In contrast, blockchain games are changing this. If you buy an NFT item in an NFT game, you exclusively own it and have full rights to buy, sell, lend, give, etc. Many GameFi projects are emerging due to the NFT boom, signaling a potential new future for the gaming industry.
Play NFT Games
Play-to-Earn has provided a practical application for NFTs, expanding their utility. It not only offers participants a certain income but also, if blockchain gaming projects develop correctly, could change players' perceptions, seeing it as a way to earn income rather than speculation.
Play-to-Earn can be seen as a development phase of NFT gaming. Initially, projects mainly focused on collecting and trading NFTs (such as CryptoKitties). After a long period of development, players can now take their NFTs into battle against others to earn rewards.
Conclusion
GameFi has brought a fresh perspective to the Blockchain industry. Rather than just financial DApps, GameFi allows people to play games for entertainment andearn money through gaming mechanisms.
Will GameFi truly be a massively explosive trend in the future? We still await answers from players and game developers.ơ
