With a number of gaming platforms making their debut in the industry, P2E games are not new to the town anymore. Gamers, crypto traders, and NFT aficionados have now turned their attention toward NFT gaming platforms. While there exists friction in introducing NFTs to traditional gaming platforms, many gamers enjoy the fun, function, and finance form this new range of games that are booming in the gaming industry.
NFT games, which then led the way for the Play to earn NFT games, are all based on blockchain technology. Though gamers concentrate on the gameplay and the experience they get, crypto enthusiasts look beyond just that before getting into these games. If you are a new bloomer when it comes to web3 gaming, here is a short insight curated just for you. Wondered what is happening at the backend of a blockchain-based game? Let’s dive in!
With NFTs, it began!
You know bitcoin even before you know blockchain. That’s how popular it is, and its downfall is turning the tables on the entire crypto economy and also affecting the global economy as well. When people thought blockchain was only for fungible tokens or cryptocurrency, Ethereum came and proved everything wrong.
The concept of owning digital files with tradability on the blockchain paved the way for what we call the NFT boom in 2021! NFT enthusiasts took this opportunity to bring NFTs to the games we pay and play.
So every in-game item we pay for can be an NFT which can be traded when we feel like it. This intriguing concept made people rush to the first NFT game on the Ethereum blockchain CryptoKitties! It is an NFT game where you have to buy an NFT cat to play with it and go for battles with it. Basically, you need them in order to enter the game.
The Cryptokitties were minted on the blockchain with ERC 721 standards. This standard is the NFT minting standard on the Ethereum blockchain, which indicates that every token minted on this standard is unique. What about cryptocurrencies, then? Cryptocurrencies are minted with ERC 20 standard, which is a minting standard for fungible tokens on Ethereum.
So with that being said, you should have joined the missing puzzles you had. If the P2E game you play has an in-game currency or token, it would be minted on ERC 20 standard. You can exchange any other cryptocurrency for the in-game currency you have. The game will have either a limited or unlimited supply of this currency.
There is a governance token and utility token in my game; what about them? Well, both of them are of ERC 20 standards; the governance token will usually have a limited supply while the utility token will have an unlimited supply of it.
Since these tokens are ERC20 standard (Ethereum compatible), they can be exchanged in any crypto exchange that complies with the Ethereum standards.
Every time you complete a task, you get these tokens as a reward in Play to earn games. You can either make money by exchanging them for fiat currency or even use them to buy more NFTs in the NFT gaming marketplace that can help you earn as well as boost your gaming experience hand in hand.
What standard is your P2E NFT?
If Every unique in-game item is an NFT, are they minted on ERC 721? The answer would definitely be a big no. There are indeed deficiencies that made both ERC20 and ERC 721 incapable of getting included in a Play-to-earn NFT game!
That is where ERC1155 came to the rescue, with the properties of both the standards to bring ease in transaction and cost reduction.
You know there are insanely hundreds and even thousands of in-game NFTs in the gaming platform. Thousands of players play the game at a time, which obviously brings about a number of transactions at once. It is important to process crypto tokens or in-game currencies and NFTs as well. But having separate contracts with ERC 721 for every NFT increases the cost and also results in a low-speed transaction.
Though ERC 20 standard supports bunch transactions, it is not feasible to mint assets using it. That is when ERC 1155 came in, supporting a bunch of transactions at once. It can support both fungible token and non-fungible token transactions at once, making it the ideal standard for play-to-earn NFT games.
The games you play and the NFTs you play with will be of standard ERC1155.
It is the safest standard for gaming platforms as they come with a safekeeping function for the sake of the gamers. What is that again? You will forever be thankful for the one who came up with this standard.
Imagine you mistakenly sent your NFT to someone else’s address instead of the one you actually need to send. With ERC721, it is done, and you can never get your asset back. But with ERC 1155 NFTs, it is possible to reclaim your token with the safe transfer function it comes with.
Every NFT you purchase for the NFT gaming marketplace will be stored in your wallet (as in the wallet address). The transactions get automated with Smart contracts, which are a set of codes that are etched while minting the tokens. They are self-executable codes when certain conditions are met. With all these being said, every time you get into the P2E gaming platform and do any transactions with NFTs, all these happen at the backend in seconds before you start playing!