🔔Introduction

NFTs use blockchain ledgers to authenticate unique digital collectibles. This is key to how NFT games work. In gaming, NFTs are used to create characters, avatars, and items that players can collect to assist their gameplay and trade with other players. Developers implement smart contracts that set out how NFTs function within the game. The contracts are stored on the blockchain. Items are traded as if they were physical assets. Each transaction is recorded on the blockchain.

Non-fungible tokens (NFTs) are exploding in popularity. Trading volume for NFTs hit $10.67 billion in the third quarter of 2021, up a whopping 704% from the previous quarter, according to analytics platform DappRadar. One factor driving the skyrocketing trading volume is the growing popularity of NFT games. In-game items generated $2.3 billion of trading volume in that period, representing 22% of the total.

The NFTs game is still in its early days. Therefore, we should see significant growth ahead as NFT becomes more popular.

The simple answer is that NFT games allow users to earn money as they play. Blending video games with finance, or GameFi as players call it, these games use NFTs -- unique digital collectibles on the blockchain -- that gamers can sell in games to other collectors and players. Gamers can also earn NFTs in certain pay-to-earn gaming models. This setup allows gamers to invest in NFTs, which have the potential to appreciate.