Axie Infinity, a blockchain-based game available for Android, iOS, Windows, and macOS, has gameplay and goals that might be familiar to some gamers. It's a bit like Pokemon Go in that it has a team of three Axies with different perks that you use to battle teams led by other players or a computer algorithm.
But wait, what does “blockchain-based” mean and how does it work?
We've created this guide to help you understand what blockchain (and related NFTs) are, how they work, and how these technologies can be incorporated into a game. We'll also explain if you can make money playing. at Axie Infinity. At the end, we'll answer other common game-related questions.
How Axie Infinity Works
To understand what Axie Infinity is, you must first learn about blockchain and NFTs.
Blockchain is a shared ledger that makes it easy to record transactions and track assets in a digital network. Simply put, it is a system that allows users to save financial information and protect this information from modification and hacking. The ledger is duplicated across the entire network of users, and whenever a transaction is made by one user, it automatically occurs on the ledgers of other participants.
You may have already guessed that blockchain is the technology that allows the existence of cryptocurrencies, such as Bitcoin or Ethereum. Every cryptocurrency transaction made by other users affects the price of the currency. This, therefore, affects its real money equivalent value.
Suppose you have an Ether and its price is currently equivalent to $2. If more people want to buy Ether, its price will probably increase to, say, $960. So even though the amount of ether you own hasn't changed, its equivalent value in real money has.
NFT, or non-fungible token, in turn, is a unique digital asset that can be purchased with cryptocurrency (but not exclusively). In fact, it is similar to cryptocurrency in that it is also based on blockchain technology. Each NFT is certified as a unique digital asset that cannot be copied. This creates a scarcity effect, increasing the value of the NFT. Blockchain technology ensures that each NFT can be tracked as a unique and original object.
NFTs started as objects of digital art – such as music or digital paintings – and then became more diverse. Today, NFTs can be any type of digital file, the only requirement being its uniqueness. This also applies to in-game items.
Finally, we come to Axie Infinity. The game incorporates NFTs into its formula. Specifically, every monster in the game is an NFT. How does it work exactly?
You earn tokens by battling and winning in the game. These tokens can then be used to "breed" monsters by creating other NFTs. Using blockchain technology, each monster is recorded as a unique item and can be tracked. This verifies that the monster took real time and effort, earning it a higher value.
Can I win playing Axie Infinity?
In a market full of pay-to-win games, Axie Infinity positions itself as a play-to-earn game. You can earn real money by earning tokens, creating NFTs and selling them. But to start earning money, you must first invest in three monsters. At the time this article was written, the price of the cheapest monster was over $200, so you'll have to spend over $600 to start playing.
In this section, we will answer other questions related to Axie Infinity and NFTs.
Why are Axies so expensive?
People unfamiliar with the NFT world may be amazed at how expensive some yellow digital monsters can be. Indeed, the price may seem unjustified at first glance, since many of us believe that digital assets cost nothing. Most objects on the web are easy to copy and multiply, which hurts their value.
But NFTs are impossible to multiply. Technically, you can copy them, but there won't be a certificate that it's the original NFT. As interest in DTVs increases and their supply is regulated, prices are skyrocketing. This is a basic rule of supply and demand in practice.
I don't have the money to buy Axies. Does that mean I can't play?
Not really. Yield Guild Games, a holding company of Axie Infinity, is lending the first three monsters to players who can't afford them. Of course, every loan comes with an interest rate. When borrowers start making and selling their own Axies, the company receives 30% of the user's revenue.
What is Yield Guild Games?
Yield Guild Games has nothing to do with the development of Axie Infinity. It is an autonomous organization that promotes blockchain-based games by helping users start investing in NFTs. Think of it as a financial institution for gamers.
What are the currencies in Axie Infinity?
Axie Infinity has two in-game currencies, Small Love Potion (SPL) and Axie Infinity Shard (AXS). SPL is used to trade Axies and can be converted into real money. AXS, in turn, is a proposed governance token. Once implemented, it will allow players to have a say in game development. Additionally, both types of tokens can be traded as cryptocurrencies. Just like with Ethereum or Bitcoin, you can buy it, hold it, and hopefully sell for a profit later. Or you can lose all the money invested. Who knows?
How do developers earn through gaming?
Axie Infinity was developed by SkyMavis. The company earns 4,25% from every NFT sold in the gaming market. Additionally, developers and owners of AXS, the governance token, enjoy reduced monster farming fees. So, the more players join the game, the more the developers will earn.
Is Axie Infinity the only Play-to-Earn game out there?
No. Although the niche is still fresh, there are other blockchain-based games. As the technology develops rapidly and its popularity grows, we can expect to see even more titles appear in the near future. So if your goal is to make money, consider researching all the options to find the best one.
Is Axie Infinity an easy way to make money?
“Easy” is a vague concept. But in general, it's not "easy money" as players blinded by opportunity might imagine. Like any game, earning money in Axie Infinity takes time and effort. Players must have a smart Axie breeding strategy to develop the necessary skills, know how to fight and meet the challenges. Some gamers who take Axie Infinity seriously have reportedly quit their jobs to devote all their time to gaming.
Should I invest in NFTs?
There is no certain answer as to whether investing in NFTs is worth it. The technology is relatively new and we are not yet certain of its future. Will NFT Value Go Down After The Hype Ends? Probably yes, but we don't know when it will happen or if it will increase further. For now, NFTs are a great way to earn some extra cash. But quitting your job because you're lured by the Axies' huge prize money is risky. As a general rule for any cryptocurrency or NFT, invest as much as you are willing to lose.
The real beginning of the era of digitization?
Hopefully our guide has answered all of your questions regarding Axie Infinity and NFTs. Nobody knows what future the game holds, but most of us can agree that the concept is fresh and interesting. "To invest or not to invest" is a largely personal decision. If you are keen on new technologies and games, why not give it a try?
What do you think of the future of Axie Infinity? Share your thoughts in the comments section below.