6 Different Types of NFTs & Their Use in Gaming Industry
Blockchain Game Development
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November 15, 2023
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3 min read
Table of Contents
As per the recent reports shared by Statista, revenue is expected to show an annual growth rate (CAGR 2023-2027) of 18.55%, resulting in a projected total amount of US$3,162.0m by 2027.
The NFT market is one of the billion-dollar companies, and with time, different NFTs have been introduced. The use of NFTs is expanding to the gaming industry and virtual worlds from augmented to virtual reality, which opens the door to new opportunities for players.
Types of NFTs in Gaming
With time, a lot more NFTs are being introduced, which has led to different categories of NFTs with different applications of each one. In this blog, we will look at the top 7 types of NFTs and how they are being used in the game industry. Let's take a look.
P2E Game NFTs
Gamers, it is for you! One of the most used NFTs is P2E NFTs, which are used in crypto or blockchain-based games. These types of NFTs represent the digital assets within the game, such as game skins, characters, weapons, and other game objects. Play-to-earn games enable players to purchase, sell, and trade objects within the games to achieve their game targets and utilize them in the game as per the requirements. P2E game NFTs are available in the game or at NFT marketplaces such as OpenSea - an NFT marketplace.
Axie Infinity, Decentraland, and Gods Unchained are the three most popular blockchain games that use NFTs and allow players to get ownership over the rewards and in-game assets. For example, the game Axie Infinity uses 'Axies' that are pets. Axis or pets are creatures that can be bred and battled with each other within the game. Sky Mavis charges a 4.25% fee to players when they trade Axies on its marketplace.
Meraverse NFTs
Metaverse games are one of the top gaming trends due to their characteristics of immersive gameplay with realistic daily life experiences. Metaverse NFTs are unique digital assets such as virtual in-game land, property, in-game items and collectables on a blockchain platform. Furthermore, metaverse non fungible tokens are not limited to virtual real estate assets or in-game collectables but also come in the form of digital avatars, characters, and virtual ticketing.
NFTs for Metaverse are like a ticket for entering different virtual worlds where users can interact, trade, meet, manage events, and arrange conferences. Users can purchase NFTs from different marketplaces such as OpenSea, Rarible, SuperRare or wallets like MetaMask and Trust Wallet.
PFP NFTs
Profile picture NFTs are digital avatars for a person's display picture that can be utilized on the virtual worlds, communities, and social media sites specifically for Twitter. After creating the avatars or profile pictures, they are minted into NFTs on different blockchains, such as Eheterum, using smart contracts. When avatars connect with NFTs, they are stored and represent the ownership. Users can purchase the NFTs from various marketplaces after they have been minted to use them on various social media platforms.
Virtual Real Estate NFTs
Other than in-game collectables and avatars, virtual estate NFTs are also quite popular. This type is used in different virtual world setups where players/users buy in-game digital lands with real money. NFTs in virtual real estate are valuable not only as assets in games or metaverse environments but also as possible venues for social meetings, events, or even digital companies. As the Metaverse expands, the value of these NFTs may rise, enticing investors and producers eager to join in this new virtual economy.
Music NFTs
One of the most underrated yet important aspects of game development is music. With the growing collection of NFT categories, music NFTs have also become quite famous among artists. The purpose of music nonfungible tokens is to represent digital music, which authenticates the ownership. It allows artists and musicians to include direct artist-fan interactions, royalty collection, and the potential for unique, limited-edition releases.
If we look at their role in game development, Nonfungible tokens can potentially revolutionize music curation in the gaming industry. Music artists would not have to rely on waiting for massive contracts that take forever to approve. GameFi executives can purchase individual music NFTs or commission a group of artists who agree on an equitable division of money and collectively mint an NFT.
Once completed, the NFT would be automatically included in the game, and the artists would get compensated for their created content based on the song's popularity.
Generative art NFTs
To generate unique pieces, algorithms are frequently used, often involving code or mathematical models. Because the code generates versions of the artwork based on certain settings or randomness, each generative art NFT is unique. These NFTs show a process of production rather than a static image, and they've gained popularity because of their originality and the element of surprise in what each work will look like.
Now, let's see the scope of generative art NFTs in the gaming industry.
Using generative algorithms, game developers can create game worlds, levels, characters, goods, and even soundscapes, resulting in unique player experiences with improved replayability. These NFTs can also be used as collectable in-game assets, allowing players to possess and trade one-of-a-kind objects, improving the game's virtual economy. Furthermore, generative art includes AI-generated content, which reduces development time and costs while allowing for rapid content updates.
NFT Integration and Implementation in Games
The integration and implementation of different types of NFTs in games entails a transformative shift in how assets and interactions are handled within virtual environments. Using generative art, PFP NFTs, etc., offers players exclusive, unique, and verifiable in-game assets. The integration and implementation of NFTs in games enhances player engagement, offering more personalized and immersive gameplay encounters. Here are the two main features of integrating different types of nonfungible tokens in games:
-
In-game applications
-
Growth of Virtual Economies
If we talk about the in-game applications of NFTs, there is a shift in the gaming patterns. Using NFTs for in-game applications gives exclusive collectables, functional assets, personalized content to players, ownership and trading.
Exclusive collectables give players scarce and unique digital in-game collectables they can use while playing. It includes rare weapons, skins, or accessories. Regarding functional assets and personalized content, players have new opportunities to enhance the game experience.
Virtual economies are among the most interesting factors of NFT and blockchain-based games. These virtual economies open up player-driven economies, enabling them to sell, buy, and trade digital assets and boost their economic opportunities.
NFT Game Development | InvoGames
Develop an NFT game with a strong system for smart wallets and NFT integration that ultimately builds your game community. Contact us today to hire expert NFT developers and step into the top revenue-generation game category with us.
Table of Contents
As per the recent reports shared by Statista, revenue is expected to show an annual growth rate (CAGR 2023-2027) of 18.55%, resulting in a projected total amount of US$3,162.0m by 2027.
The NFT market is one of the billion-dollar companies, and with time, different NFTs have been introduced. The use of NFTs is expanding to the gaming industry and virtual worlds from augmented to virtual reality, which opens the door to new opportunities for players.
Types of NFTs in Gaming
With time, a lot more NFTs are being introduced, which has led to different categories of NFTs with different applications of each one. In this blog, we will look at the top 7 types of NFTs and how they are being used in the game industry. Let's take a look.
P2E Game NFTs
Gamers, it is for you! One of the most used NFTs is P2E NFTs, which are used in crypto or blockchain-based games. These types of NFTs represent the digital assets within the game, such as game skins, characters, weapons, and other game objects. Play-to-earn games enable players to purchase, sell, and trade objects within the games to achieve their game targets and utilize them in the game as per the requirements. P2E game NFTs are available in the game or at NFT marketplaces such as OpenSea - an NFT marketplace.
Axie Infinity, Decentraland, and Gods Unchained are the three most popular blockchain games that use NFTs and allow players to get ownership over the rewards and in-game assets. For example, the game Axie Infinity uses 'Axies' that are pets. Axis or pets are creatures that can be bred and battled with each other within the game. Sky Mavis charges a 4.25% fee to players when they trade Axies on its marketplace.
Meraverse NFTs
Metaverse games are one of the top gaming trends due to their characteristics of immersive gameplay with realistic daily life experiences. Metaverse NFTs are unique digital assets such as virtual in-game land, property, in-game items and collectables on a blockchain platform. Furthermore, metaverse non fungible tokens are not limited to virtual real estate assets or in-game collectables but also come in the form of digital avatars, characters, and virtual ticketing.
NFTs for Metaverse are like a ticket for entering different virtual worlds where users can interact, trade, meet, manage events, and arrange conferences. Users can purchase NFTs from different marketplaces such as OpenSea, Rarible, SuperRare or wallets like MetaMask and Trust Wallet.
PFP NFTs
Profile picture NFTs are digital avatars for a person's display picture that can be utilized on the virtual worlds, communities, and social media sites specifically for Twitter. After creating the avatars or profile pictures, they are minted into NFTs on different blockchains, such as Eheterum, using smart contracts. When avatars connect with NFTs, they are stored and represent the ownership. Users can purchase the NFTs from various marketplaces after they have been minted to use them on various social media platforms.
Virtual Real Estate NFTs
Other than in-game collectables and avatars, virtual estate NFTs are also quite popular. This type is used in different virtual world setups where players/users buy in-game digital lands with real money. NFTs in virtual real estate are valuable not only as assets in games or metaverse environments but also as possible venues for social meetings, events, or even digital companies. As the Metaverse expands, the value of these NFTs may rise, enticing investors and producers eager to join in this new virtual economy.
Music NFTs
One of the most underrated yet important aspects of game development is music. With the growing collection of NFT categories, music NFTs have also become quite famous among artists. The purpose of music nonfungible tokens is to represent digital music, which authenticates the ownership. It allows artists and musicians to include direct artist-fan interactions, royalty collection, and the potential for unique, limited-edition releases.
If we look at their role in game development, Nonfungible tokens can potentially revolutionize music curation in the gaming industry. Music artists would not have to rely on waiting for massive contracts that take forever to approve. GameFi executives can purchase individual music NFTs or commission a group of artists who agree on an equitable division of money and collectively mint an NFT.
Once completed, the NFT would be automatically included in the game, and the artists would get compensated for their created content based on the song's popularity.
Generative art NFTs
To generate unique pieces, algorithms are frequently used, often involving code or mathematical models. Because the code generates versions of the artwork based on certain settings or randomness, each generative art NFT is unique. These NFTs show a process of production rather than a static image, and they've gained popularity because of their originality and the element of surprise in what each work will look like.
Now, let's see the scope of generative art NFTs in the gaming industry.
Using generative algorithms, game developers can create game worlds, levels, characters, goods, and even soundscapes, resulting in unique player experiences with improved replayability. These NFTs can also be used as collectable in-game assets, allowing players to possess and trade one-of-a-kind objects, improving the game's virtual economy. Furthermore, generative art includes AI-generated content, which reduces development time and costs while allowing for rapid content updates.
NFT Integration and Implementation in Games
The integration and implementation of different types of NFTs in games entails a transformative shift in how assets and interactions are handled within virtual environments. Using generative art, PFP NFTs, etc., offers players exclusive, unique, and verifiable in-game assets. The integration and implementation of NFTs in games enhances player engagement, offering more personalized and immersive gameplay encounters. Here are the two main features of integrating different types of nonfungible tokens in games:
-
In-game applications
-
Growth of Virtual Economies
If we talk about the in-game applications of NFTs, there is a shift in the gaming patterns. Using NFTs for in-game applications gives exclusive collectables, functional assets, personalized content to players, ownership and trading.
Exclusive collectables give players scarce and unique digital in-game collectables they can use while playing. It includes rare weapons, skins, or accessories. Regarding functional assets and personalized content, players have new opportunities to enhance the game experience.
Virtual economies are among the most interesting factors of NFT and blockchain-based games. These virtual economies open up player-driven economies, enabling them to sell, buy, and trade digital assets and boost their economic opportunities.
NFT Game Development | InvoGames
Develop an NFT game with a strong system for smart wallets and NFT integration that ultimately builds your game community. Contact us today to hire expert NFT developers and step into the top revenue-generation game category with us.
frequently asked questions
Art NFTs provide unique in-game artefacts or collectables, and Utility NFTs provide particular functionality, such as abilities or access, which are common. Music NFTs allow for the ownership of exclusive soundtracks and are also gaining traction, providing a customized touch to gaming experiences. These NFTs improve gaming by increasing player engagement and providing exclusive content.
The most active marketplaces for NFTs vary, with significant activity observed on platforms like Ethereum, Flow by Dapper Labs, and Binance Smart Chain. OpenSea, Rarible, and Axie Infinity are important trading and minting hubs for NFTs. Each platform caters to a distinct demographic and presents a variety of collections, all of which contribute to the overall growth of the NFT market.
You can promote the NFT games by using social media channels, building communities on Reddit and Discord, collaborating with game influencers, and engaging with other gamers. You can also create product hype by showing behind-the-scenes or running campaigns to attract potential collectors to your NFT game.
Written By:
Schouzib I.
Content Lead
Know More About Gaming Industry
