With growing crypto adoption, blockchain and NFT-based gaming is coming into its own. But even as gaming firms are looking at leveraging NFTs using the earn-while-you-play model, the risks associated with crypto remain
Mumbai-based Pransh Khemka entered the world of NFT and blockchain gaming last May, mirroring the footsteps of an influencer he was following to gain mining knowledge. Khemka, 21, invested ₹35,000 in blockchain-based games CryptoMines and Farmers World, both operating on a play-to-earn (P2E) model.
Simply put, using non-fungible tokens (NFTs), these games allow users to earn money as they play. NFTs are unique digital collectibles on the blockchain, a feature that makes them appropriate for use in games as representations of characters, as consumables and other tradeable items—an avatar could be an NFT, digital items one finds while playing could also be an NFT. Since no two NFTs are the same, it gives each digital asset a real-world value.
NFT games have gained popularity in the GameFi (or the blending of gaming with finance) world as a way to earn income. Gamers can sell their in-game NFTs to other collectors and players, and even earn tokens with P2E models. Through P2E NFT games, a player is rewarded with tokens and occasionally NFTs, earning more the longer they play. The tokens earned are often needed as part of the game’s crafting process. Some of the most successful P2E games are CryptoKitties, Decentraland, the Sandbox and Axie Infinity.
To swap, create and implement NFTs within a game, developers create smart contracts—self-executing pieces of code stored on a blockchain—that make up the rules for the NFTs used. The blockchain games allow gamers to track and analyse every action they’ve taken as well as other players' moves. There is a lot of transparency in these games, says Khemka. Instead of gamers wondering what is happening on the server of the game they’ve invested hours in, they can review every action taken by developers and other gamers.
Also read: India is home to 1.5 million NFT users; sixth in the world
(This story appears in the 17 June, 2022 issue of Forbes India. To visit our Archives, click here.)