How Do NFT Games Work? CoinGecko Explains the Inner Workings of These New Games and Explores the Differences Between Partially and Fully On-Chain Games

The gaming industry has undergone a significant transformation since the rise of play-to-earn (P2E) gaming, which leverages non-fungible token

NFT gaming, a new type of gaming launched in 2021, is similar to traditional video games, where players used to sell, trade, and buy items for in-game currency. However, NFT games allow players to transfer their earnings to other games and exchange them with other players with crypto assets.

NFT games leverage the capabilities of non-fungible tokens to provide the foundation for how players interact, the rules, and how players move in the game. Users who play an NFT game might use NFTs to create a character or find, create, buy, or trade NFTs within the gameplay.

NFT games differ from many traditional video games. Unlike traditional games, where players used to spend countless hours without tangible rewards, NFT games let players earn NFTs and trade them within the game or exchange them for real-world money.

NFT gaming has many advantages, including empowering players by providing them with a tangible incentive to invest their time and effort into gameplay, fostering strong communities of like-minded players who share a common interest in the game and its ecosystem and offering new revenue streams and economic opportunities.

For the past three years, NFT Gaming has gained massive popularity among intrigued gamers and non-gamers due to its novel design and unique profit opportunities. Nonetheless, have you ever wondered how blockchain-based gaming works? CoinGecko has unveiled the answer.

CoinGecko, an on-chain crypto market aggregator and a multi-chain non-fungible token explorer, has released a three-minute video explaining how non-fungible token games work and exploring the differences between partially and fully on-chain games.

The multi-chain NFT explorer reveals that many popular NFT games are not fully but partly on-chain, with only a few elements stored on-chain. These features can include high scores, game achievements, in-game items represented as NFTs and the game’s logic and infrastructure.

CoinGecko notes that creating a fully on-chain game is challenging, as blockchains are too slow and clunky to deliver a seamless gaming experience. The crypto firm further explains that current blockchain networks cannot withhold game features, given that many games have sprawling open worlds, ultra-realistic graphics and complex logic interactions.

However, Web2.5 offers the best of both digital and traditional worlds. It provides trustless ownership for elements and assets and a butter-smooth gaming performance similar to that of traditional games. Some examples of hybrid NFT games include Aurory, Gods Unchained, StepN, and Axie Infinity.