What is an NFT?

Have you ever wondered what an NFT exactly is and how it’s used in the world of gambling? NFT stands for a non-fungible token, which simply means that the token is unique and irreplaceable. NFTs are made up of one-of-a-kind, non-interchangeable data units that are kept on a blockchain-based digital ledger to create a proof of ownership. NFTs are collectible digital assets with monetary worth, similar to how tangible art has monetary value. But to really understand the possibilities of NFTs, scroll through our NFT gaming guide for beginners!

NFTs
NFTs
NFTs

NFT Meaning

Cryptocurrencies such as BTC and Ether are fungible tokens – it does not matter which Bitcoin you have, as they are all the same and of the same value. An NFT, on the other hand, is fully unique and cannot be traded like-for-like, and that is where the term “non-fungible” comes into play. The file contains additional data that raises it above the domain of pure currency and into the realm of, well, anything.

Any easily copied digital file, such as photography, art, films, tweets, music, and even memes, can be saved as an NFT to authenticate the original copy.

Despite the fact that they’ve been there since 2014, NFTs are gaining popularity currently as a popular means to buy and sell digital works of art.
NFTs are one-of-a-kind, or at the very least one of a very small run, and contain unique identifying codes.

While NFTs are currently mostly used for trading digital art, there are many more use cases.

How to use NFTs?

Beyond the representation of digital items, NFTs can be used to represent real-world items like real estate, art, fashion, and more. So you may buy an NFT to own part of an apartment and earn passive income or purchase a sneaker NFT from one of your favorite brands to get it delivered right to your door while also owning it in the metaverse.

By tokenizing physical assets, they can be bought, sold, and traded in a more efficient way, while reducing or even eliminating the risk of fraud.
Another use case for NFTs is the representation of individuals’ identities, contracts and more.

Mostly though, NFTs are still seen as digital assets and have become very popular in the use for gaming and the representation of in-game items in Metaverse Worlds. One of the most famous NFT games is Axie but we do expect much more sophisticated NFT games and Metaverses to launch in the following years, such as Star Atlas and Illuvium.

staratlas
What is a NFT Game?

DApp games may also be referred to as NFT games and are any type of game hosted on a blockchain platform. These games provide players with a chance to earn real money while playing, also known as play-to-earn gaming.

As the name suggests, dApps games make use of NFTs. With the use of NFTs, players can actually own their in-game items, such as a spaceship or your nice sword, and resell them to other players. Why would they want it? Well, it’s an NFT, it’s limited and non-fungible.

How do you make money in NFT Games?

This aspect is why even dApp games might also be more interesting to casino gamblers: you can play and actually earn money doing so – either by winning or reselling your items. More and more, such gaming applications also include other features, such as DeFi. This means that you may be able to stake one of your weapons or lease your avatar and earn a profit on it.

Additionally more and more gambling dApps are also making use of NFTs and play-to-earn Functions. There are NFT Poker dApps for example Polker. 

The whole entertainment industry will undergo a paradigm shift as a result of NFTs. When compared to other blockchain dapp platforms, Ethereum, EOS, and Tron are currently the most popular platforms to build dApp games.

polker

NFTs in Gambling

NFT games are gaining more and more attention and there are more and more options that are quite interesting from a gambling perspective.

NFTs in gambling bring with them the opportunity of

  • “play to earn”,
  • innovative new gambling  experiences,
  • shared house profits,
  • casinos owned by the players,
  • owning slots and other casino games and earn passive revenue,
  • gaining exclusive holder benefits.

The first NFT X Gambling dApps:

Decentral.Games

Decentral-Games offers a play-to-earn mechanism for the owners of ICE NFT Wearables, basically NFT clothes for your Decentraland Avatar.
In order to participate in the play-to-earn mechanism, users need to acquire at least one ICE NFT Wearable, either through purchase or delegation. When holding such an NFT players are allocated a set amount of Poker Chips, which then can be used to play ICE Poker.

Owners of such ICE NFT Wearables can earn money in many ways. There are daily challenges waiting to be completed but if you are not much of a Poker player you can also delegate your NFT wearable to players for a revenue share of their winnings.
Moreover, you can also mint new NFT wearable and sell them on the marketplace or collect ultra-rare DG Diamond Hands wearable and hope to sell them for a fortune later on.

Gambling Apes

Gambling Apes is another Metaverse Casino in Decentraland but also offers static online casinos for those, who are not quite ready for the Metaverse yet.
When you hold one of their NFTs you are eligible for a share of the profits. As a fact, 70% of the profit share will go to holders. Each NFT is eligible for the same amount of profit, you can increase your profit, by owning more NFTs.

We are excited by the spirit of Gambling Apes and we see them bringing even more innovative benefits to NFT holders.

Slotie

Slotie is another interesting NFT Casino project that presents itself as the one to bring DeFi to Gambling.
Slotie NFTs provide real-world benefits in over 150 casinos worldwide.

Owning a Slotie will give you the opportunity to become the house.
You can for example stake your Sloties in the slots of the partnered casinos.

Furthermore, holders will earn 12% of the NFT slots profits. And besides this passive income, owners also become VIPs in the partnered casinos, which will give them a benefit of 20% takeback on their lost bets.
But this is not enough – Slotie owners can take part in a weekly lottery game, by buying a ticket that costs 50 WATTs.

Polker

Polker.Games is an innovative Poker dApp utilizing NFTs to deliver the first NFT Play to Earn Poker Game.

Zed.Run

It´s not only pure NFT casinos that are of interest regarding NFT gambling. There are other projects like Zed Run.
Players can buy an NFT racehorse on Opensea and put it onto the race track on Zed.Run.
You can earn money by selling your horse, by breeding your horse, or by winning races.

zedrun

The Future of Gambling

The project’s innovations speak for themselves and give us a glimpse into the future of gambling.
If you are interested in any of the above projects be sure to DYOR as always, as we merely summarized the projects and we do not give any investment advice.

How NFTs change our world:

Creating Value for various Tokenized Assets

NFTs provide a means through which real goods such as art pieces can be tokenized, preventing duplication and granting sole ownership to the artist. This will in turn produce scarcity and increase the value of the art work.

It Increases Liquidity for Investors

Tokenizing assets allows investors to have more control over their commodities when they need it. A virtual landowner, for example, might opt to rent out his or her virtual property to advertising or influencers for a charge while still owning the land. In this example, the virtual land remains for the owner, but a portion of it has been liquified as rent.

Growth and development possibilities

NFTs have the ability to grow and develop the land sector. In real estate, for example, owning and managing virtual lands gives you the authority to select what you want to do on your land, and tying NFTs to land pieces has shown significant promise for growth and development. You have the option of renting it out, establishing a stable and secure business for advertising, or selling it online.

FAQs

Are NFTs a good investment?

We can not give a general answer to this question, as NFTs can represent almost anything and it very much depends on the NFT and the NFT project.
Generally NFTs that have utility are a much safer bet than speculating on artworks.

For example: Owners of a Gambling Ape NFT co-own a casino in the metaverse and will receive part of the casinos profits. If the Gambling Ape Metaverse Casino is a success you might earn a respective steady income. Though, as always you need to do your own research, as we are no financial advisors.

What is an example of a NFT?

The domain of NFT is still relatively new. In theory, as said, NFTs can be used for anything that is unique and requires verifiable ownership. Here are some current examples of NFTs to give you a clear picture:

  • An in-game item
  • A unique limited-edition sneaker
  • A unique digital artwork
  • A digital collectible
Julien Ross
Written by Julien Ross verified symbol Crypto Enthusiast
23 Articles

Julien is a digital experience writer and storyteller building bridges between his new love for the crypto space and his passions for remote work, travel, and entrepreneurship. He is the owner and operator of Content by Design and Blockheads! Creative. This all means that he’s able to seamlessly shift between the different passions in his life. His writings about crypto are all tinged with his love for creativity and desire to share his knowledge with the world. The world of travel and working remotely means that Julien has the ability to easily keep up to date with all of the latest innovations within the world of crypto. As a byproduct of that, he then uses his flexible working life to ensure that the latest info is shared with our readers. Of course, he also shares knowledge through his other business interests. He’s been able to build up a huge amount of experience when it comes to teaching others. Whether it is organizing conferences and bringing in the best keynote speakers or even leading talks himself, Julien has enough expertise to back himself in any situation. With crypto being a big part of his life, it wasn’t a surprise to us that he wanted to join our team. His desire to keep growing his own knowledge base, while also sharing what he knows with others, means that this is the perfect home for him. We feel as though it is our pleasure to have Julien on the team. His level of knowledge and attention to detail means that he can provide the very best content for our readers. This ensures that our dedication to providing high-quality and detailed reviews is followed up by Julien. The skills that Julien has developed as a storyteller mean that he will always lead to the right path.

More about this author
author reviewed shield

Reviewed and Fact Checked by Vlad Hategan , NFT Gaming Specialist