The gaming industry is now walking parallel to NFTs exchanges and blockchain technology by including them in its ecosystem. NFT-based games are gaining popularity among younger generations. Also, on the other side, game developers are learning about the potential of NFTs in the gaming industry. They are also set to leverage new technology to earn better revenue. Moreover, NFT projects will take place, including blockchain-based games and in-game exchangers.
Though some companies are repulsed from accepting this new invention in their system, support from the global gamer population is high. This is so because NFTs can bring real value to the gaming world.
However, no one can tell the exact future for this advancement; Currently, people are talking about one of the trending topics: the Axie infinity game with NFTs. The NFT expert says that this concept is exciting as well as fresh. So if you want to learn about the interesting NFT project, let us continue with our topic:
Table of Contents
- Understanding Axie Infinity and how to play it?
- What are in-game currencies in Axie infinity?
- How is it generating high revenues?
- What are the other popular games inspired by Axie Infinity?
- What are the challenges that Axie Infinity is facing?
- Closing Thoughts
Understanding Axie Infinity And How To Play It?
To begin with, in Axie infinity, every player must buy a minimum of three Axies. Axies are monsters that players use to fight with other teams or players, and the concept is quite familiar with Pokemons.
There are several levels that players need to overcome. Also, they can upgrade their Axie using the Adventure Mode, where players need to climb ladders to enter different levels. Aside from this, players can also select the arena mode, where players can fight with various users on the platform using their Axies.
Like other cryptocurrencies, the cost of Axie is unstable and can fluctuate depending on various factors. An Axie’s value will rely on its potential, for example, stats, body parts, and skills.
Having an expensive Axie at the initial stage of the game will be helpful in the long term. Also, it lets players establish their supremacy in the early phase.
Furthermore, popular crypto exchanges like Huobi, Binance, and Kraken allow users to buy these Axie. Players can also play for free in the beginning by borrowing Axie from managers who are leaders in the game.
Whenever these managers lend Axie to any players, they are liable to get a piece of earnings from that player. This way, they can generate passive income sources for themselves. Many in-game NFT projects await to surface to improve the platform’s reach further.
What Are In-Game Currencies In Axie Infinity?
There are two in-game cryptocurrencies in total: Axie Infinity Shard (AXS)
and Small Love Potion (SPL). Users can trade Axie through SPL; also, users can convert this currency into real-life money.
On the other hand, AXS is a proposed governance currency. Users can participate in game development by implementing this currency. Aside from this, these currencies are suitable for trade, just like other cryptocurrencies. You can buy, sell, and keep its holdings, bringing you profit.
These characteristics of SPL and AXS make them valuable assets in the real world for exchanges. These currencies can come in handy for buying top NFT within its network.
Understanding The Workings Of Axie Infinity
To properly understand the concept of Axie infinity and its working, first, you need to know what non-fungible tokens and blockchain technology are.
Blockchain
Blockchain is distributed ledger facilitating records of transactions over a digital network. Also, it provides a feature of data tracking of transactions. Simply put, it allows users to store their financial information on a digital network that prevents it from any alteration or cyberattack. The system duplicates the data and shares it with every user in the network. Further, the same process occurs every time users perform transactions on the web.
Furthermore, every cryptocurrency transaction that users perform on the network affects the currency’s price, and consequently, it influences its actual value in real-world money.
Nfts or Non-Fungible Tokens
NFTs are a one-of-a-kind digital asset that users can buy through cryptocurrencies. Additionally, like cryptocurrency, it also functions over blockchain technology. NFT is unique and contains information for a particular digital file. Also, no one can copy or exchange a specific NFT with any other item. Due to this, NFT has come out as a rare item that boosts its value. Blockchain technology ensures that each non-fungible token is trackable to its original creator.
Initially, NFTs were only providing digital certificates to art objects. For example, digital paintings or music. However, today they have more diverse usage. NFT can be any form of digital media; the only requirement is to be unique. Further, the same concept applies to Axie infinity in-game items. You can take NFT training to understand the basics better.
In terms of the Axie infinity game, NFTs are the basis of its conceptual formula. Each Axie or monster in the game is a form of non-fungible token.
Here users can earn tokens when they fight and win in the game. Further, these tokens can help them gain more Axie or generate monsters by creating other NFTs. And due to the underlying blockchain technology behind this concept, it records every beast in the form of a unique item and makes it traceable. Further, it verifies that the monster has been taking real-world efforts and time for its creation, making it highly valuable in the real world.
To make better cash in the Axie infinity game, players need to develop a well-planned Axie generating strategy. Also, they should build relevant skills, complete in-game challenges, and know-how to fight a battle.
How Is It Generating High Revenues?
Where in most games, players play to win the game and unlock new levels, Axie infinity players play to earn real-world money. Here, users earn tokens and can make real money out of them. For this, users create NFTs and sell them. However, to monetize your gaming skills, you must put your resources in at least 3 Axies. Moreover, people can get access to a monster with a minimum price of 200 dollars. However, to start playing the game, you need to give 600 dollars to the platform.
Users cannot make similar NFT twice, but they can copy them. However, there is a digital signature or certificate that can verify its originality. With the increase in interest in NFT, there is a boost in its supply regulation, so the price automatically goes up. It works as regular supply chain practice.
The developer company of the Axie infinity game SkyMavis generates 4.25% profits with in-game NFT sales.
What Are Other Popular Games Inspired By Axie Infinity?
With the popularity of Axie infinity games, other digital games are also becoming accessible to gamers. As most of them are relatively new, they are still in their developing phase. However, the growth and progress opportunities for these games are in abundance.
One of the best examples is CryptokKitties. This platform allows players to buy, generate and exchange digital cats over the network. As per the recent news, a crypto kitty named dragon was sold at an unbelievable price of 170,000 dollars which equals 600 ETH.
Another famous example is the Sandbox. This game is almost similar to Minecraft. Further, the game players are free to create new items and sell them to other players. Also, the game uses its inherent coin SAND to support the platform. Apart from this, Sandbox is emerging as the central spot for players to share their thoughts, engage and interact with fellow gamers.
What Are The Challenges That Axie Infinity Is Facing?
Due to the sudden increase in users of the platform in popularity, cracks in the game’s core often come to the surface. Moreover, there have been multiple shutdowns of the entire game over the past few weeks.
Due to this, errors or disconnections are frequent, and players are forced not to involve themselves in the game. And it is emerging as a severe problem as most players consider the platform their source of income.
Furthermore, the value of in-game items has been dropping to zero. This implies that disconnections and errors in the platform will continue to prevail if it does not gain more support.
Closing Thoughts
The current gaming world is experiencing growth in projects related to blockchain-based gaming, and Axie Infinity is more like a successful experiment at the moment. Aside from the gaming industry, several mainstream spotting teams and companies are adopting NFTs for selling their collectibles. However, the gaming industry needs more time to integrate NFT to its full potential in its form. Also, US-based exchanges do not yet have any involvement with gaming NFTs.
