This post will explain NFT games, including their features, earning mechanism, issues facing NFT games, and prospects.Characteristics and Interesting Features of NFT Games
- You can monetize the game
- Ability to create unique items
- Items and characters can be used interchangeably in multiple games.
- Items remain even after the game is over
- Hard to be cheated in the game
- Axie Infinity
- Crypto Spells
- The Sandbox
- Sorare
- CryptoKitties
- Low quality of the game
- High barrier to entry for users
- Legislation is not yet complete
Forecast for the future of NFT games
- Major companies are likely to enter the market.
- Legislation and barriers to entry are likely to improve
- It could also affect the price of currencies
Questions and Answers about NFT Games
- Do I need money to start an NFT game?
- Is it possible for minors to start NFT games?
- Do I have to pay taxes on the profits from NFT games?
What is the NFT games?
NFT games are based on the "blockchain" used in currencies.
NFT games are also called blockchain games.
Although they are built on the blockchain, playing them is different from existing games, and anyone can quickly start playing them using an Internet browser or smartphone application.
On the other hand, some unique and exciting features are not found in conventional consumer games or smartphone games.
Characteristics and Interesting Features of NFT Games
NFT games have unique and exciting features.
Main features and exciting features of NFT games
- You can monetize the game
- Ability to create unique items
- Items and characters can be used interchangeably in multiple games
- Items remain even after the game is over
- Hard to be cheated in the game
You can monetize the game
One of the most essential features of NFT games is that many games can be monetized by playing them.
In the past, even if you obtained a rare item in a game, you could not sell it to a third party.
However, in the case of NFT games, rare items and characters can be sold in the "NFT Market" and converted into the virtual currency.
Some of them, secondary trading in NFTSome, also allows you to obtain virtual currency directly while playing the game.
Sorare allows you to buy and sell NFT cards, so if you are interested in NFT games, Sorare is an excellent place to start.
Ability to Create unique items
Many of the items and characters in NFT games are NFT.
NFT are unique data that cannot be replaced.
Many items have no upper limit of issuance.
Still, a few rare items are often traded at high prices in the NFT market because they are rare and cannot be duplicated.
Many games allow you to create your own original items and characters that can only be found in one word.
Items and characters can be used interchangeably in multiple games
Some NFT games are compatible with multiple games, allowing players to use the items and characters they have acquired in each other's games.
Since NFT games themselves are still in their infancy, the number and types of games that can be used interchangeably are small.
Still, it will gradually increase as time goes by.
Items remain even after the game is over
In the past, no matter how much you paid for a game and how many rare items you got, all the data would disappear when the game was closed.
However, in the case of NFT games, even if the game is discontinued, you can keep the items permanently by saving them in your wallet or transferring them to another NFT game.
In other words, NFT items, which are digital entities, become one of your assets, just like virtual currency.
Hard to be cheated in the game
In existing games, players can sometimes cheat to enhance their characters by altering data.
It is almost impossible for a player enjoying the game to win against a cheater who uses an abnormally enhanced character in a competitive game.
NFT games, on the other hand, can be played without being bothered by cheating players because the decentralized management of blockchain technology allows any cheating to be eliminated immediately.
As you can see, NFT games have many excellent features that have never been seen before.
It is easy to start the game from an online browser or smartphone application, so if you are interested, please try NFT games.
To exchange items and characters obtained in the game for cash, you need to use the NFT Market and virtual currency exchange.
The NFT Market is operated by a domestic exchange approved by the Financial Services Agency so that you can use it with peace of mind.
Ranking of NFT Games
The following list the five latest popular NFT games for 2021.
5 Latest Popular NFT Games of 2022
- Axie Infinity
- Crypto Spells
- The Sandbox
- Sorare
- CryptoKitties
Axie Infinity
Axie Infinity is a battle game where you fight with a monster called Axie.
According to Blockchain Game Info, as of August 2021, it is the most popular NFT game in terms of active users and Ethereum trading volume.
Axie Infinity offers currencies SLP and AXS for playing the game.
AXS, the game's governance token, has increased in value by over 70 times since the beginning of the year and is still trending upward as of August.
"This game triggered the popularity of the phrase Play to Earn.
The downside is that you need Ethereum to start the game and three Axie characters NFT (you can sell them when you are no longer playing)."
Crypto Spells
Crypto is a trading card game created by a Japanese company called Crypto Games Co.
The cards you can get in the game are NFTs, and you can make a profit by selling rare cards on the NFT market.
If you can get the "card-issuing rights," you can also issue your original cards.
Furthermore, Crypto Spells aims to be a decentralized game, allowing users to be involved in the management of the game by voting on, for example, resolutions to adjust card parameters.
The Sandbox
The Sandbox is a Minecraft-like 3D open-world game to build buildings and create games.
You can also monetize your work by creating and selling voxel art, a combination of rectangles and NFT.
Sorare
Sorare is a unique trading card game that reflects real-life soccer results.
Players create teams by collecting cards from club teams worldwide and competing with other players for scores.
The score reflects the actual results of the game.
Players with high scores and high rankings will receive Ethereum and rare cards at the end of the season.
CryptoKitties
CryptoKitties is a cat-raising game that helped bring NFT games to prominence.
It took the world by storm around 2017-2018 and continues to be popular as of 2021.
It may be hard for some people to understand, but back in 2017-2018, CryptoKitties cats were sometimes traded for 10-20 million yen.
Incidentally, there is no apparent reason why the price was that high.
"The price depends on the rarity (scarcity).
Unusual characters with the high monster are resold at high prices, driving up the price.
Of course, mediocre characters do not fetch high prices."
Current issues in NFT games
While NFT games have many advantages, such as monetizing, they also face challenges.
- Low quality of games
- High barriers to entry for users
- Legislation is not yet complete.
Low quality of games
NFT games are easy to start using smartphone applications, so I would like you to play them yourself.
If you touch them, you will find that the quality is deficient compared to consumer games or regular smartphone games.
The problems with the quality of NFT games are both financial and technical.
In recent years, consumer games have begun to require large amounts of money for development, with one billion yen being the norm for a single game and many overseas titles that have become major hits worldwide costing over 10 billion yen to develop.
As a result, most popular titles are of exceptionally high quality in gameplay, graphics, and sound.
On the other hand, the quality of NFT games is not high because many of them are made on a low budget due to the lack of participation by major game development companies.
There is also a problem with the technology.
Many NFT games are based on the Ethereum blockchain.
Still, Ethereum has a scalability problem (processing delays and soaring fees due to too many users), making it challenging to create high-quality NFT games.
As a result, it isn't easy to create high-quality NFT games.
Since there are still problems in terms of both funding and technology, most games nowadays are 2D training games or card games that can be played even if the quality is low.
Whether or not a game is enjoyable depends on each person's subjective opinion.
Still, many users probably feel that NFT games are not attractive because of their low quality.
High barrier to entry for users
Since the quality of NFT games is still low, some people may start playing NFT games with the primary purpose of earning money rather than enjoying the games.
However, in that case, as mentioned earlier, many games cannot be monetized without an external wallet, NFT market account, or an exchange account to convert the virtual currency obtained through NFT trading.
Suppose you are an investor who trades in currencies regularly.
In that case, this is not a problem, but if you are not, you may find it cumbersome to prepare an account to earn money from games.
Furthermore, even after setting up the environment, you will need to sell NFTs and convert the virtual currency gained into dollars.
NFT games have not yet been able to compete with the popularity of existing games because existing consumer games and smartphone games are more fun if you just want to enjoy playing games.
Legislation is not yet complete.
NFT games are subject to the Act against Unjustifiable Premiums and Misleading Representations, the Law for Settlement of Accounts, and the Financial Instruments and Exchange Act, as they provide access to cashable NFT.
The Blockchain Content Association of Japan has created guidelines related to these laws, and other efforts are being made to maintain the soundness of the industry.
However, since NFT games themselves are a new field, there is still a sufficient legal framework.
Sorare is a popular game with many users, so this is an excellent opportunity to start playing if you are interested.
Forecast for the future of NFT games
NFT games still have a lot of work to do, but the future of NFT games is not pessimistic, and the outlook is relatively bright due to the following factors.
- There is a high possibility that major companies will enter the market.
- There is a strong possibility that legislation and barriers to entry will improve.
- There is a strong possibility that the price of currencies will be affected.
Major companies are likely to enter the market
Major game development companies are naturally very interested in NFT games.
It is almost certain that many major companies, both domestic and international, will enter the market in the future.
For example, Ubi Soft, the company behind notable titles such as The Assassin's Creed series, has tested and developed NFT games.
The current focus of NFT games is on earning money rather than on fun.
Still, if major companies enter the market and release games that many players find interesting, the market will expand further.
Legislation and barriers to entry are likely to improve
For example, most NFT markets have been open for less than three years.
Thus, while NFT games themselves are still in their infancy, the laws and environments surrounding them are still in the process of being developed.
As these improvements are made in the future, starting and monetizing games will become more systematic and easier to enter.
If you are interested in NFT games, Sorare is an excellent place to start.
It could also affect the price of currencies
NFT games are built on the blockchain.
Therefore, if the NFT games released in the future become popular, there is a good chance that they will positively impact the base currency handled by the blockchain on which they are developed.
The price of AXS, the in-game currency of Axie Infinity, the No.
1 game in 2021 that I mentioned earlier has skyrocketed since the beginning of this year.
NFT games are often created based on Ethereum and engines, so please pay attention to their future price trends along with NFT games.
"Usually, most currencies tend to move in the same way as bitcoin price, but gaming stocks often do not.
This is because you need that currency to buy NFTs in the game.
Thus, stocks that are not affected by the market price of currencies are beginning to appear."
Questions and Answers about NFT Games
Finally, three frequently asked questions and answers about NFT games.
- Do I need money to start an NFT game?
- Is it possible for minors to start NFT games?
- Do I have to pay taxes on the profits from NFT games?
Do I need money to start an NFT game?
Most NFT games can be started for free through online browsers or smartphone apps.
However, if you want to make money from NFT games, it will be difficult without paying.
The reason is that items that anyone can get without paying are not worth much.
You may be able to make a small amount of money without paying, but if you want to make a large amount of money, you will need to invest upfront like this.
Is it possible for minors to start NFT games?
Minors can play NFT games.
However, if you want to earn money, you will need to convert the virtual currency you get into dollars at an exchange.
Most exchanges require you to be at least 18 years old to open an account and even those that allow minors require the consent of a parent or guardian.
Do I have to pay taxes on the profits from NFT games?
Like with purchasing cryptocurrency, the minting of an NFT is not a taxable event.
It's only the disposal of the non-fungible token (such as through sale), which constitutes a CGT event.
It's only the disposal of the non-fungible token (through purchase, trade, or bridging).
Summary
In this article, we have discussed NFT games, gaining more and more attention in recent years.
- NFT games (blockchain games) are games created based on blockchain.
- NFT items can be bought and sold in the NFT market using virtual currency.
- The quality of NFT games is still lower than consumer games, and they are not as popular.
- There is a high possibility that the quality of NFT games will improve as major companies enter the market.
- If you want to make money playing NFT games, you need to use an exchange to convert the virtual currency you earn into cash.
NFT games are gradually gaining more and more players worldwide as a game where you can earn money while playing.
However, the barriers to entry are high, as you need an account or wallet at an exchange to earn money.
The quality of the game is low, so it is still far behind existing consumer games and smartphone games.
However, these problems will eventually be solved, and the games will become easier to play and monetize.
If you are thinking of making money with NFT games, please open an account as soon as possible.
