Video games are nothing new to us but earning decent money off of playing them? Now that’s something different. NFT games have been blowing up over the past year thanks to the fact that a lot of people were able to leave their jobs to earn on games like Axie Infinity.
Where did these games come from? How are they possible? Let’s talk about all that and more when we break down the details of NFTs, NFT games, and how they all work together.
How the ETH blockchain enables NFT games
Before we can talk about how we can earn money from NFT games, let’s take a look at the system that lets all this happen. This whole thing wouldn’t be possible without NFTs or non-fungible tokens.
You’ve probably heard of these tokens which act as representations of real-world items. While they aren’t necessarily considered to be a currency, they can be valued and bought by crypto enthusiasts with cryptocurrencies.
The reason that NFTs work so well with the Ethereum blockchain is that they are able to utilize the blockchain’s advantages:
- Accessibility – Anything running on Ethereum’s blockchain can be transferred over and sold, making it easier for NFT owners to sell multiple NFTs from different products.
- Availability – Ethereum’s accessibility means users are able to buy ethereum at any time.
- Transparency – The blockchain’s distributed ledger is accessible to all, meaning you can trace the transaction and ownership history when you need to.
- Security – Ethereum’s blockchain is considered nearly unhackable, giving users peace of mind.
NFT adoption
With what we’ve learned about NFTs, we are seeing a good foundation for people to create a market around. With safety, accessibility, transparency, and availability all answered for, all people need to do is to take the plunge to participate.
This is where things get interesting. As NFT popularity grows, a few patterns begin showing up, making people review the impact that NFTs have had on an international scale.
Finder, an independent Australian information service, published the results of an online survey last November 2021, where they show that the Philippines ranks 1st in NFT adoption, followed by Thailand and Malaysia. In fact, of the 20 countries included in the survey, only two developed countries made it into the top 10, Hong Kong and the United Arab Emirates.
To have developing countries as the top three countries to adopt NFTs is a telling sign, so what gives? Generally, we can attribute this to the fact that NFTs have become a viable option to earn a living for a lot of people.
The rising demand for NFT Games
Let’s take the Philippines as an example given that they have the highest adoption rate. At its peak, Axie Infinity players were able to earn, on average, about 400 USD a month. When we consider that minimum wage earners averaged at around 7,385 PHP, we can see how a lot of people would consider starting their careers on Axie Infinity.
This is supported by the fact that smartphones have become commonplace. Statista reports that smartphones now outnumber the global population. In a report published in 2021, the country had around 79 million smartphone users in a population of 109.6 million people. The choice then is simple, either you struggle to find a job and earn close to minimum wage or spend a few hours a day playing video games to earn.
It has now come to the point that NFT-based games are quickly outpacing cryptocurrencies, NFTs, and other DeFi (decentralized finance) projects. In July of 2021, the Blockchain Gaming Alliance (BGA) has reported that 804,000 unique users connected to NFT games.
NFT games versus traditional games
Again, we have to understand that NFTs aren’t inherently a currency. That said, they will still hold value and, with the right methods, can help users earn a living while having fun.
As developers learn more about the technology behind these NFT-based games, more and more are able to develop games from different genres, all with the same goal in mind— letting players earn money through NFTs.
When we compare this to traditional games, particularly mobile games, it’s easy to see why people would choose NFT games. Sure, these traditional games might have better graphics, narratives, or the like but the fact that they won’t help you earn breaks the deal.
Given enough time, NFT games can definitely catch up to traditional games in these aspects anyway. We’re still at the beginning, watching the industry as it steadily grows in popularity, progresses in development, and maximizes its impact.
The role of NFT games
Currently, gamers already have a diverse range when it comes to these NFT games. Foremost in popularity is Axie Infinity but close behind are Decentraland and The Sandbox. Maybe sometime soon, we may be able to see NFT games giving gamers more of an option.
What helps is doing your own research before devoting your time to a game. Take some time to go through the options. What’s important is to know what you’re doing to make sure you avoid any rug pulls. The crypto space is young and we should be able to see a continuous stream of development in the coming years.
