Play to Earn (P2E), also known as GameFi - the NFT game in which you can earn rewards and money just by playing games. Not surprisingly, the number of users continues to increase in Japan as well as overseas as interest in the Metaverse rapidly increases.
Therefore, in this blog, taking Axie Infinity, the game which made blockchain game become famous as an example, we will specifically explain the business model of Play to Earn. Besides, some people still believe that Axie Infinity is a Ponzi Scheme, but is it really so? Let&rsquo;s find out in the blog!
<div class="mce-toc" style="text-align: justify;">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8o">How to earn money with Axie Infinity</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8p">Business model in Season 19</a></li>
<li><a href="#mcetoc_1ga2p3d7i8q">Business Model Changes in Season 20</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8r">Axie Infinity is a Ponzi scheme?</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8s">What is a Ponzi scheme?</a></li>
<li><a href="#mcetoc_1ga2p3d7i8t">Actually, Axie Infinity is not a Ponzi scheme</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8u">Axie Infinity - Future Potential</a></li>
<li><a href="#mcetoc_1ga2p3d7i8v">In conclusion,</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga2p3d7i8o" style="text-align: justify;">How to earn money with Axie Infinity</h2>
<a title="Axie Infinity" href="https://axieinfinity.com/" target="_blank" rel="noopener">Axie Infinity</a> is a pioneer and one of the most popular blockchain games in the world. The number of daily users reaches 3 million, and the feature is that you can use 3 monsters called Axie that you purchase yourself at the start and get rewards such as battles. This is Play to Earn (P2E).
There are mainly 4 ways of getting money:
<ul style="text-align: justify;">
<li style="font-weight: 400;" aria-level="1">Get rewards by playing game&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Earn money by selling owned or bred Axies as NFTs on the marketplace</li>
<li style="font-weight: 400;" aria-level="1">After purchasing Axies, rent them out to players and receive a certain percentage of the earnings as a reward. (Scholarship)</li>
<li style="font-weight: 400;" aria-level="1">Buy, sell and rent land in the virtual space to earn real estate income</li>
</ul>
Axie Infinity has been updated many times, and as in February 2022, season 20 was officially launched. Season 20 has made a big change in playing rule to how you earn in Axie Infinity. So, for the sake of clarity, let's explain the Play to Earn business model in comparison to Season 19.
<h3 id="mcetoc_1ga2p3d7i8p" style="text-align: justify;">Business model in Season 19</h3>
The play stage is divided into two types: Adventure mode and Arena mode.
Adventure mode is positioned as a trial version for beginners, where they will play and battle against the computer. By playing here, in Season 19, players may be able to earn 50 SLP in crypto a day. SLP is one of Axie Infinity's two unique currencies, the other being AXS, a governance token. By the way, the price of SLP fluctuated between 0.06 and 0.4 JPY throughout 2021. Therefore, in adventure mode, even if you could earn it, it was just about a few JPY a day.
In Arena mode, it is called PVP (person vs. person), where users battle vs each other online and earn money. This is the main battlefield of Axie Infinity. All users' battle results in arena mode were ranked at any time, and rewards of 3,000 AXS were distributed to the top 1,000. In the case of the first place, there was a time when the reward was as high as several million JPY.
Furthermore, when using scholarships, the mainstream distribution includes 70% of the earned rewards are invested and 30% are players. In this case, if the player earns 1 million JPY, 700,000 JPY is the share of the investor.
In addition, the world of Luciana where Axie inhabits is divided into 301 x 301 squares called Terra, and players can obtain this tokenized land and sell it freel. Land that can be traded as real estate has a rank, and in November 2021, the parcel classified as Genesis, which is the highest rank, was sold for 550 ETH (about 286 million JPY).
<img class="responsiveImage" src="https://api.relipa.global/storage/542/5348934.jpg" alt="" />
<h3 id="mcetoc_1ga2p3d7i8q" style="text-align: justify;">Business Model Changes in Season 20</h3>
In Season 20, which was launched in February 2022, major changes were made to the above earning methods.
One of the reasons for this is that the number of SLPs issued in its own currency has become so large that its price has fallen considerably.
If the original cryptocurrency declines, the value of Axie Infinity itself as GameFi will decrease, and the existence of Axie Infinity itself may be threatened. Therefore, in season 20, the SLP provided by the operator in adventure mode was reduced to 0 at once. By suppressing the number of SLPs, the aim was to make the price of SLPs to rise again due to market forces.
In other words, the 50 SLP you could get in a day by playing in adventure mode became 0, and the 25 SLP you could get by clearing 3 daily quests also became 0.
Instead, AXS payouts in Arena mode has ] raised by an order of magnitude. Specifically, the top 1,000 was only available, but it was increased to 300,000 and 300 times, and the distribution amount increased from 3,000 AXS to over 110,000 AXS. In adventure mode for beginners and light users, there is no real reward, and by that amount, introducing a generous reward system for heavy users in arena mode, it can be said that GameFi's characteristics have become even stronger.
Until Season 19, only 1,000 AXS can be obtained, so the company switched to a strategy that gives users who had given up on high rankings a sense of hope that they might be able to reach the top 300,000.
In the blockchain game market, new popular content is appearing one after another, as if to catch up and overtake Axie Infinit. In order not to lose users to these forces, it can be said that the above-mentioned drastic incentives have been set.
<h2 id="mcetoc_1ga2p3d7i8r" style="text-align: justify;">Axie Infinity is a Ponzi scheme?</h2>
These days, especially since the middle of 2021, Axie Infinity has been attracting worldwide attention as a pronoun of P2E, but there are people who criticize its business model as a Ponzi scheme.
<h3 id="mcetoc_1ga2p3d7i8s" style="text-align: justify;">What is a Ponzi scheme?</h3>
A "Ponzi scheme" is a fraudulent scheme in which investors are solicited for investment by making a profitable investment story, but do not actually manage the investment. Investors believe that part of the profit generated by investment is being paid as dividends, but in reality, no investment is being made. Therefore, when the number of new investors disappears or decreases, this mechanism will reach its limit and will surely fail.
This type of fraud has been practiced for a long time in both the East and the West, and even in Japan, major fraud cases have come to light repeatedly at a pace of once every few years.
<h3 id="mcetoc_1ga2p3d7i8t" style="text-align: justify;">Actually, Axie Infinity is not a Ponzi scheme</h3>
The issue that determines whether Axie Infinity is a Ponzi scheme is whether or not the investor's investment is managed in some way.
In other words, in the case of Axie Infinity, is the external money when the player purchases the three Axies required for the game, or the commission when the player sells Axie as NFT. The point is whether it is used only for distribution as a reward or not.
One point worth noting here is that if a player wants to win high prizes in Arena mode, he or she should not just use the same Axie, but rather introduce Axies with high fighting power from time to time and update the strategy, one method that can be used to do this is breeding, where two Axies are used to mate to create a new Axie. There is no guarantee that a strong Axie will be born, but if you succeed, you can get a new Axie with high combat power, and you can expect to rank higher.
During this bleed, players will have to pay SLP in their own currency, which will burn their crypto assets. In other words, if the number of SLPs themselves decreases, the price will increase. In this way, Axie Infinity has a mechanism where the operator side adjusts the price, and it can be said that the element of operation is included here.
Looking at the flow of external money such as Axie purchase funds as player rewards, it can be interpreted as a Ponzi scheme. However, as long as the operator of Axie Infinity issues its own crypto assets, AXS and SLP, which are actively traded in the market, and has additional operational elements such as price adjustment by burning as described above, it cannot be called a Ponzi scheme because it can be judged that a mechanism that is difficult to fail is intentionally constructed.
In addition, Axie Infinity constantly distributes useful information on social media and dedicated sites, values ​​dialogue with the community, and otherwise makes every effort to earn the trust of many users and investors. In fact, Season 20 was also redesigned after carefully listening to the voices of the community and emphasizing their content. Considering these management stances, it is clearly unreasonable to conclude that it is equivalent to a Ponzi scheme, which is based on deceiving investors through fraud.
<h2 id="mcetoc_1ga2p3d7i8u" style="text-align: justify;">Axie Infinity - Future Potential</h2>
On March 29, 2022, Sky Mavis, the operator of Axie Infinity, announced that the Ronin Network, which is the base of the game, was hacked and about $625 million (about 77 billion JPY) was lost.&nbsp;
The outflowed funds were ETH (Ethereum) and UNDC, not including AXS and SLP. However, it was said that it included the funds of players and investors, as well as the earnings of the game, which caused a great shock to those involved. The next day, Skye Mavis announced a full refund, after which the attackers were blamed on the infamous North Korean hacking group Lazarus.
This amount of damage is said to be the largest in the history of cryptocurrencies, and Skye Mavis, who was aiming for even higher heights in season 20, was greatly disappointed. As evidence of this, AXS, which was around 9,000 JPY in March of the same year, plummeted to the 2,400 JPY level in June.
It can be said that we are now at a critical stage where the true value of Sky Mavis will be put to the test as to whether the full amount of damage can be compensated, and how much Sky Mavis can regain trust, including the establishment of measures to prevent recurrence.
No one can honestly predict what the future holds for Axie Infinity. However, from September 2021, Axie Infinity will support staking, and like many cryptocurrency projects, a mechanism has been established to receive rewards simply by depositing AXS. In addition, it is worth noting how far the P2E rule change due to Season 20 and the real estate transaction market in the virtual space will grow together with the Metaverse boom.
A notable feature of Axie Infinity, as already mentioned, is the strong tendency to pick up the voices of users and communities and reflect them in the system. That's exactly what happened with Season 20.
There is no doubt that the community-first mindset of providing an easier-to-use and more attractive environment without neglecting player dissatisfaction has won the hearts of many users and has gained strong support. Now that we are on the brink of a crisis, we must keep an eye on this critical moment to see if the management attitude of the past will speak for itself, and whether it will succeed in overcoming hardships and leading to a revival.
<h2 id="mcetoc_1ga2p3d7i8v" style="text-align: justify;">In conclusion,</h2>
The P2E business model at Axie Infinity is never static. Sometimes, like this Season 20, there are major rule changes. It can be said that this is a situation unique to blockchain games that are based on crypto assets and NFTs.
In particular, due to the interest rate hike policy originating in the United States from the end of last year and Russia's invasion of Ukraine, the cryptocurrency market in 2022 has caused considerable turmoil. Even the most popular Bitcoin and Ethereum have fallen nearly half of last year's all-time highs. Furthermore, we cannot predict or be optimistic about the trends of other altcoins such as AXS and SLP.
Therefore, even if you make money with Axie Infinity, you will need to calmly collect information, including the status of the hacking case and further rule changes, and be involved carefully.
At Relipa, we help our customers with their blockchain business. If you are thinking of DX with a safe and competitive blockchain service, please let us know. Our experienced engineers look forward to working with you.
&nbsp;

<div class="mce-toc">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1g9tjvhre2kr">NFT Development - About</a></li>
<li><a href="#mcetoc_1g9tjvhre2ks">How to build NFT: NFT Development Process step-by-step (From example of Relipa's NFT game - Widiland)</a>
<ul>
<li><a href="#mcetoc_1g9tjvhre2kt">Stage 1: Tokenomics and NFT Design</a></li>
<li><a href="#mcetoc_1g9tjvhre2ku">Stage 2: Marketing and Community Building</a></li>
<li><a href="#mcetoc_1g9tjvhre2kv">Stage 3: Fundraising</a></li>
<li><a href="#mcetoc_1g9tjvhre2l0">Stage 4: Token Listing (DEX / CEX)</a></li>
<li><a href="#mcetoc_1g9tjvhre2l1">Stage 5: NFT Initial market&nbsp;</a></li>
<li><a href="#mcetoc_1g9tjvhre2l2">Stage 6: Official project release</a></li>
</ul>
</li>
<li><a href="#mcetoc_1g9tjvhre2l3">Pros and Cons of Using outsource NFT Development</a>
<ul>
<li><a href="#mcetoc_1g9tjvhre2l4">Pros</a></li>
<li><a href="#mcetoc_1g9tjvhre2l5">Cons</a></li>
</ul>
</li>
<li><a href="#mcetoc_1g9tjvhre2l6">In conclusion</a></li>
</ul>
</div>
The Internet era has entered a new stage called "Web 3.0", and the attention toward the bright star - Blockchain, is increasing dramatically these days.
In fact, NFT's transaction results in 2021 is growing fabulously to 25 billion USD (~ 2.875 trillion JPY), about 250 times higher than the record of 100 million USD (~ 11.5 billion JPY) in 2020.
So, how to progress a NFT development project from the very first steps? Many people may understand the surface, but do not get the core mechanism or the development process behind.
In this blog, we will provide the ultimate guide to NFT while explaining the case of NFT game - Widiland that our company Relipa actually worked on from first stage of development to the final launching.
<h2 id="mcetoc_1g9tjvhre2kr" style="text-align: justify;">NFT Development - About</h2>
NFT development is the progress of creating NFT - related products and services, such as NFT games, NFT marketplaces, and NFT art.&nbsp;
The primary step required for developing an NFT is deciding which kind of NFT to market. Profitability is considered to be the biggest factor influences the decision step.
For example, the NFT games market size is very big, reaching 180 billion USD only in 2021. A single NFT artwork sold at a very high price of 69.35 million USD (about 7.5 billion JPY) in the same year is also an example for the high potential of NFT.
Once you've decided what to sell, it's time to start developing the Blockchain which will become the system basement as well as creating your own tokens.&nbsp;
<h2 id="mcetoc_1g9tjvhre2ks" style="text-align: justify;">How to build NFT: NFT Development Process step-by-step (From example of Relipa's NFT game - Widiland)</h2>
NFT has many different development methods depending on what kind of NFT you create. However, the general flow is similar, so through the NFT game "Widiland" launched by Relipa in 2022, let's explain in detailed how to start developing an NFT step-by-step.
"Widiland" happened in the world of 100 years in the future, when foods and energy are running down and human existence is in danger. The main theme of the game is setting the life for human-beings to survive on the new planet. In-game NFTs can be traded using the governance token - the WIDI.
<img class="responsiveImage" src="https://api.relipa.global/storage/526/nft-deelopment-process.png" alt="NFT Development process" />
Widiland Homepage: <a href="https://widiland.com/" target="_blank" rel="noopener">https://widiland.com/</a>
<h3 id="mcetoc_1g9tjvhre2kt" style="text-align: justify;">Stage 1: Tokenomics and NFT Design</h3>
The base of NFT project includes its purpose, future plans, the kind of finance and token to drive the business, and Tokenomic, which shows the way to maintain the supply - demand balance and the value of tokens.
In the case of "Widiland", the value is set to "400 million WIDI". A part from this,&nbsp; self-financing accounts for 21%, IDO for 2.5%, non-trading private sale for 9.5%, seed-partners for 6%, rewards by staking method make up for 28%, Metaverse fund for 15%. By the way, the token price is 0.04 USD for IDO, 0.025 USD for private sale, and transfer price to seed-partners is planned to be 0.015 USD.
In addition, creating and maintaining liquidity is indispensable for the operation of a crypto asset projects. Developers must ensure that tokens are traded at high prices, such as by making the project more attractive and installing incentives regularly.
<h3 id="mcetoc_1g9tjvhre2ku" style="text-align: justify;">Stage 2: Marketing and Community Building</h3>
To issue a cryptocurrency and officially start an NFT project, it is essential to create a White paper or Pitch deck equivalent to the business plan.
Additionally, detailed market research is indispensable for launching an NFT project. From the kind of NFT, content and price range, the demographic factors of target customers including age, gender, social standpoint, behavior history, etc., as well as the nationality and living areas will be researched.
Creating a website, landing page, and promotion video is also essential for the stage of raising awareness. Many targeted customers are less interested in the technical content of the Whitepaper. Rather than that, a more funny and valuable content, for example, &ldquo;How much you can earn in a game?&rdquo;, which can be reached by everyone, regardless of age or characteristic will attract much more attention. With that mindset, Widiland promotes and attracts customers through SNS including Twitter, Facebook, Instagram, YouTube, and Discord&hellip;
<img class="responsiveImage" src="https://api.relipa.global/storage/527/nft-development-widiland-case-study.png" alt="Widiland marketing and communicaton building" />
AirDrop and referrals can help you expand the attraction and UX of your NFT, and the free trials can help you discover potential demand.
Also, for example, if you form a partnership with an apparel maker or a sports maker and sell fashion items and sneakers worn by characters in the game as a NFT, it will be easier to raise funds and widely approach the clients of each company efficiently.
In NFT project, if the content itself becomes popular, the price of related tokens will surely rise, and if the number of token holders increases, the number of fans and users of the project will naturally increase, creating a virtuous cycle. By conducting marketing through detailed search, and continuing to build a diverse community, we can do an NFT development project that can not be ignored.
<h3 id="mcetoc_1g9tjvhre2kv" style="text-align: justify;">Stage 3: Fundraising</h3>
The next stage is fundraising, when funds to actually operate the NFT project will be gathered based on the Tokenomics design and Pitch deck (Business plan).
Taking Widiland as an example, we first collect money from selling tokens to strategic partners, then raise more funds from partners through private sales, and after that conduct IDO at DEX. Each of them was executed within 2 to 3 months, and we succeeded in raising about 190 million JPY in total, and we did reach the target value.
Creating a Pitch deck is somehow not necessary, but it requires careful preparation and behind actions so that you can raise money as your plans or even more.
<a title="Contact" href="../../contact" target="_blank" rel="noopener">Contact us for more information</a>
<h3 id="mcetoc_1g9tjvhre2l0" style="text-align: justify;">Stage 4: Token Listing (DEX / CEX)</h3>
To trade tokens, it is necessary to list them on a particular crypto assets exchange. In the case of NFT, the main exchange is DEX (Decentralized Exchange) like "Widiland" because it must be a coin that can be used on Blockchain based on Ethereum or same types of smart contracts.
Game players and investors will buy tokens by connecting their wallet directly to DEX. In "Widiland", you can use the WIDI to participate in games or purchase.
DEX is fully automated with smart contracts, so there are almost no fees. However, some tokens may be listed on CEX (Centralized Exchange), in that case, a fee will be required.
<h3 id="mcetoc_1g9tjvhre2l1" style="text-align: justify;">Stage 5: NFT Initial market&nbsp;</h3>
Since 2021, a multitude of NFT have been developed and traded in the market. Apart from selling in the specific marketplace for NFT only, if you want to set up and run your own project, it is common to raise funds by IDO (Initial DEX Offering). For example, in the case of NFT games, selling NFT such as characters, items, and accessories after offering the NFT initially in DEX (IDO) is very popular.
However, the situation did change in 2022, and there are increasing cases of selling NFTs before IDO in the form of "IGO (Initial Game Offering)" and "INO (Initial NFT Offering)".
Both IGO and INO, in some aspects, are the beforehand fundraising methods. These can create NFTs in advance, raise more funds by exchanging certain quantity of these NFTs before officially releasing, and use them for operation. If you sell the NFT initially, the attention to the project will increase, and when it is released officially, you can expect that the NFT sale transactions will be carried out earlier and more actively.
Also see: <a href="../../blogs/ido-development-in-japan-legal-or-not">IDO Development in Japan, legal or not?&nbsp;</a>
<h3 id="mcetoc_1g9tjvhre2l2" style="text-align: justify;">Stage 6: Official project release</h3>
After the above processes, the NFT project is finally released.
In that case, a careful testing whether the main NFT product can be released properly and without delay or not is essential. Also, in order to gain widespread trust, we must not forget to have a long-term vision of management before running into immediate profits. For example, adding new features and benefits on a regular basis is a good example.
In fact, for Widiland, the Beta version of Chapter 1 was completed at the end of May 2022, and a marketplace and DeFi functions (stalking, farming, treasure hunting) were added right after.
<h2 id="mcetoc_1g9tjvhre2l3" style="text-align: justify;">Pros and Cons of Using outsource NFT Development</h2>
As mentioned above, NFT development requires various preparation, know-how, and specialized knowledge, so inexperienced companies and start-ups cannot easily develop with their own resources only. That is why outsourcing development is strongly recommended.
Asking an IT company with a deep knowledge of Blockchain or an outsource company with talented engineers for help will ensure your success.
However, a thorough awareness about this kind of development method is important as besides the easy-to-see advantages, there are also some disadvantages that should be put under consideration.&nbsp;
<img class="responsiveImage" src="https://api.relipa.global/storage/525/nft-development-pros-and-cons.png" alt="NFT Development - Pros and Cons" />
<h3 id="mcetoc_1g9tjvhre2l4" style="text-align: justify;">Pros</h3>
<h4 style="text-align: justify;">1. Well-optimized Development process&nbsp;</h4>
The development process, such as the development of crypto assets, the creation and publication of NFT content and White papers until launching, and the appeal to investors and users, has been partially standardized. Therefore, if you outsource to a specialist, you will be able to get an early project outlook, unlike developing on your own from scratch.
By the way, if you have no actual experience, even if you can develop Blockchain and NFT yourself, you can not do marketing and other consulting work such as exchanging, building community and interacting with investors. Therefore, outsourcing firms need to be carefully selected.
<h4 style="text-align: justify;">2. High speed and good price</h4>
If you can choose a outsourcing company who has a track record of Blockchain and NFT development, once the project started, it will proceed very quickly. Moreover, it also contributes to cost reduction because there is only a little possibility that you will fail or have to start over. Especially in the case of outsourcing, it can be said that the advantage of low cost is quite high because the labor cost is cheaper than that in Japan while high quality development is still possible.&nbsp;
<ul>
<li style="text-align: justify;">Blockchain development team with specialized knowledge and experience</li>
</ul>
NFT Development requires deep knowledge and highly specialized development technology about Blockchain. Therefore, if you outsource to a company that has a highly experienced Blockchain development team, you will not only be able to respond to various requests, but you will also be able to be supported in troubleshooting after releasing, so the process itself is quite safe.
Especially, Vietnam is one of the world's leading blockchain development outsourcing countries. Compared to other countries and regions, we has built a long connection with Blockchain, and we have a great deal of experienced and well-skilled human resources, such as developing the world's most popular NFT game called "Axie Infinity".
<ul>
<li style="text-align: justify;">Practice time optimization</li>
</ul>
Using an outsourcing service, you can significantly reduce the development time, which will help you free up your time for other tasks.
<h3 id="mcetoc_1g9tjvhre2l5" style="text-align: justify;">Cons</h3>
<h4 style="text-align: justify;">1. Work management is not simple</h4>
Using outsourcing services, you can not manage everything in the development process or on-site situation. Reporting and communication are limited in quantity and time, which can lead to misunderstandings and extra costs due to unnecessary corrections.
<h4 style="text-align: justify;">2. Language barriers&nbsp;</h4>
Especially in outsource development, it may be difficult to communicate smoothly due to language barriers, cultures, and working mindset. Therefore, it will be necessary to confirm in advance whether there is a Bridge SE or engineer who is familiar with Japanese or not, so that there will be no discrepancy during development.
<h2 id="mcetoc_1g9tjvhre2l6" style="text-align: justify;">In conclusion</h2>
In the blog, we have provided an ultimate A to Z guideline of NFT Development process.&nbsp;
<img class="responsiveImage" src="https://api.relipa.global/storage/528/NFT-Development-Relipa-service.png" alt="[9:12 SA] Ho&agrave;ng Bảo Yến NFT Development - Relipa Services" />
In our company Relipa, we always try our best to give customers the optimum blockchain Development services.&nbsp;
Taking advantage of the strengths unique to outsource development, our services exceed expectations at a low cost, with the high technical capabilities and abundant experience from the engineers who are familiar with Japanese and well-qualified Bridge SE, IT Comtor team.
If you have any requests for NFT development or other Blockchain development, please feel free to contact us. We are sincerely looking forward for you.
Also see: <a title="Relipa's NFT Development Service (Japanese)" href="https://relipasoft.com/nft-development/" target="_blank" rel="noopener">Relipa's NFT Development Service (Japanese - Translated English)</a>

NFT Development - The ultimate guide from NFT Game Widiland

NFTs are attracting attention from many investors around the world as a proof of the irreplaceable and unique value of digital content. As proof of this, a digital art work published as a NFT in March 2021 was sold for about 7.9 billion JPY.
Nowadays, even artworks drawn by children are sold and bought at a very high price of several million JPY, and even game characters are also exhibited as NFT, which is definitely a investment target. So <a href="../../blogs/nft-development-the-ultimate-guide-from-nft-game-widiland" target="_blank" rel="noopener">how can we develop an NFT (Non-Fungible Token)?</a>
NFTs can list digital content such as images, videos, and event tickets in a dedicated marketplace with a simple procedure. However, when it comes to apps such as games, it is necessary to develop through a well-formed process. Therefore, in this blog, we will explain in detail what kind of programming language and framework is required to develop NFT.
<div class="mce-toc">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga8h7o2p9g">About NFT</a></li>
<li><a href="#mcetoc_1ga8h7o2p9h">NFT and Ethereum</a>
<ul>
<li><a href="#mcetoc_1ga8h7o2p9i">What is Ethereum?</a></li>
<li><a href="#mcetoc_1ga8h7o2p9j">What is the ERC standard?</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga8h7o2p9k">Ethereum and smart contracts</a></li>
<li><a href="#mcetoc_1ga8h7o2p9l">"Solidity" language for creating Smart contracts</a></li>
<li><a href="#mcetoc_1ga8h7o2p9m">"Truffle" framework of "Solidity"</a></li>
<li><a href="#mcetoc_1ga8h7o2p9n">Summary</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga8h7o2p9g">About NFT</h2>
NFT stands for and has the meaning of "Non-Fungible Token". Bitcoin and other cryptocurrencies, even cash usually do not vary in value no matter how many token is exchanged. There is no difference in the value of 100 JPY for a person and 100 JPY for another. This "exchangeable&rdquo; means &ldquo;fungible".
On the other hand, NFT is an irreplaceable (non-fungible) token that proves ownership to digital content by a digital data unit on the blockchain, such as sculptures and jewels, giving those the value that is unique in the world. Traditionally, digital content can be duplicated indefinitely on the Internet, and the same images on one person's computer can exist on another person's computer as many times as possible. And it was almost impossible to prove any one of them as the owner. However, it was NFT that realized this in a way that it could not be tampered with or forged with blockchain technology, and it had a great impact on people&rsquo;s concern all over the world.
Therefore, by using NFT, it is possible to add value as an original ownership to images, videos, and music, such as paintings and hanging scrolls. Moreover, the target is expanding to RPG games and trading card games. One example is the NFT game "My Crypto Heroes", which was released for the first time in Japan. This game can be played on both PCs and smartphones, and players aim to conquer the world by collecting items such as weapons that are also NFTs while collecting world heroes made with NFTs. Characters and items are NFTs, so you can buy and sell them in a marketplace.
However, in NFT market, if you want to sell a character from a general online game or social game, you cannot do it. Unless it is a game created using a special technology called smart contract on the crypto asset of Ethereum, which will be explained later, it is impossible to add value to characters as an NFT or buy or sell it in the market.&nbsp;
In addition, it is possible to build a mechanism that rewards the original author each time the work is delivered to a buyer different from the secondary and tertiary by utilizing smart contracts. It can be said that it is a remarkable feature unique to NFT.
<h2 id="mcetoc_1ga8h7o2p9h">NFT and Ethereum</h2>
NFT trading and development cannot be considered without Ethereum. In other words, the NFT system works because of Ethereum, which is called a blockchain "platform&rdquo;, which is different from other cryptocurrencies. So, let's continue with the ERC standards that are essential for Ethereum and NFT development.
<h3 id="mcetoc_1ga8h7o2p9i">What is Ethereum?</h3>
Ethereum is the second most popular blockchain after Bitcoin. It was released in January 2014. The key currency is Ethereum (ETH), which generates blocks every 15 seconds, so it is much faster than Bitcoin, which takes about 10 minutes, and it can be traded in large quantities. Ethereum is a decentralized application platform, and by using a mechanism called smart contract, which will be described later, it is possible to create and run unique tokens and applications on the blockchain. This is a big difference from other crypto assets, and it is the reason why NFT can be operated.
Ethereum, which is a platform type, is a very attractive blockchain for developers because it has a high degree of freedom and various software can be created. Therefore, since its birth, many people have started to create their own tokens by utilizing this. However, if you make a token on the blockchain, you need an individual wallet (an online wallet that is absolutely necessary when dealing with virtual currency), and it is not compatible if the token standard is different. Therefore, if each developer freely creates tokens in his own way, it is not practical because it requires troublesome work such as setting up a different wallet each time.&nbsp;
Therefore, if this standard is unified, wallets can be centrally managed and compatibility will be created, so the idea that it will lead to the development of the Ethereum market due to its ease of use is born.
<h3 id="mcetoc_1ga8h7o2p9j">What is the ERC standard?</h3>
With the above circumstances, the common standard for smart contracts (described later) called "ERC" was established with the aim of improving convenience for the entire developer community. It will become a formal standard once it is proposed on GitHub and approved by the developer community. (GitHub is a service provided by Microsoft-affiliated US company GitHub that allows multiple software developers to manage and share source code.)
ERC20 was first born in November 2015, and when it was released, it was used to create a number of unique tokens. And ERC223 was born in March 2017 as the improved version.&nbsp;
Furthermore, "ERC721" was born in September of the same year with the purpose of developing the idea of ​​this common standard in a completely different direction.
Unlike the previous ERCs, this ERC721 has made it possible to create an irreplaceable new type of token called NFT. All NFTs are created according to the rules of this ERC721, and conversely, the app cannot be launched on Ethereum unless it complies with this standard. Of course, Japan's first NFT game "My Crypto Heroes" introduced earlier was also developed according to the ERC721 standard.
By the way, Canada's Dapper Labs launched the world's first NFT game "CryptoKitties" just two months after approval (November 2017) after proposing this ERC721. This "CryptoKitties" ignited the NFT game and at the same time raised the awareness of NFT worldwide.
<h2 id="mcetoc_1ga8h7o2p9k">Ethereum and smart contracts</h2>
ERC is a common standard for "smart contracts," which are indispensable technologies for Ethereum. A smart contract is a program that automatically executes transactions on the blockchain according to rules coded in a specific programming language. The program coded here is converted into a form that can be processed on the blockchain and then deployed. Software and applications once deployed on the blockchain are almost impossible to rewrite or tamper with. Moreover, it has the advantages of speed improvement and cost reduction.
ERC is proposed on GitHub by any developers and will become a formal smart contract standard if approved within the community, but the numbers following ERC represent the order in which they were proposed. This means that the first born ERC20 was proposed the 20th. And the 721st proposal and approval was ERC721.
Using the ERC721 standard, NFTs can be developed, certifying ownership of digital content and recording all transaction history on the Ethereum blockchain. Therefore, all transactions are traceable, so no matter how many times you buy or sell, you won't lose track of who your content belongs to. Moreover, if you embed a royalty clause in a smart contract, the original author will be paid a certain percentage each time a sale is completed, so the copyright is also firmly guaranteed.
<h2 id="mcetoc_1ga8h7o2p9l">"Solidity" language for creating Smart contracts</h2>
To develop an NFT according to the ERC721 standard, we use a program development language called "Solidity". Solidity is a high-level object-oriented programming language created solely for the development of smart contracts on Ethereum. Since it is a high-level language, it needs to be compiled like C language and Java. It is based on C ++ and is made with reference to Python and JavaScript, and especially because it has a grammar similar to JavaScript, it will be very easy to use if you have development experience with JavaScript. Moreover, as the update is ongoing, the accuracy will improve over time.
Since "Solidity" is a high-level programming language, it is easy for people to understand, but it is difficult for computers to understand. Therefore, we will go through the process of translating it into low-level bytecode using EVM (Ethereum virtual machine) and executing it. You can also create smart contracts in a Python-like language called "Vyper", but it is still inexperienced and practically not comparable to "Solidity". Therefore, it is safe to assume that "Solidity" will be used for NFT development for now.
<h2 id="mcetoc_1ga8h7o2p9m">"Truffle" framework of "Solidity"</h2>
Solidity has "Truffle" as a de facto standard framework, which is already widely used in many development situations. Truffle has the ability to automate the compilation, testing and deployment of smart contracts. The flow of using Truffle is to first create an application template. Next, compile the smart contract, launch the node for local development, deploy the smart contract to the node, and test it. Therefore, if you make good use of Truffle, you can quickly and easily create smart contracts using Solidity, so we highly recommend it.
<h2 id="mcetoc_1ga8h7o2p9n">Summary</h2>
I told you in detail about NFT (Non-Fungible Token). If you want to develop and implement NFT, the existence of Ethereum is indispensable. However, Ethereum is worried that gas charges (commissions) are soaring even in many virtual currencies. In other words, this high gas cost can be a major obstacle to entering the market.
Therefore, the development of a new blockchain that does not cost much fees is progressing, so there is a possibility that the way NFTs should be will change in the future. If more gameplay and investors can participate in the NFT market, the market size is expected to grow further in the future. In that sense, now is a great opportunity to develop NFTs.
Relipa is specialized only for Japanese companies, and excellent engineers will help you develop NFT (Non-Fungible Token). If you are a startup or developer who is thinking of entering the NFT market in earnest, please feel free to contact us.
&nbsp;

Required language and framework for NFT development

NFT game is attracting attention as a soaring word in 2021. This online game, linked to the blockchain (distributed ledger), is pioneering a new paradigm of not only playing and enjoying, but also earning while playing as an investment target.
While cryptocurrencies related to NFT games are showing an extraordinary surge, various questions are asked, "Is this popularity real?" "Is it really profitable?" "Is it just a temporary bubble trend?" It is also true that they are being thrown.
NFT tends to be preceded by some sensational topics, such as digital art being sold for about 7.9 billion yen, but what is the actual situation? This time, we will focus on the "NFT game" and unravel it.
<div class="mce-toc">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga2s85aqfl">Why NFT Game is that hot?</a>
<ul>
<li><a href="#mcetoc_1ga2s85aqfm">1. Create your own character</a></li>
<li><a href="#mcetoc_1ga2s85aqfn">2. The more popular it becomes, the more money you have</a></li>
<li><a href="#mcetoc_1ga2s85aqfo">3. Enjoy character exchange</a></li>
<li><a href="#mcetoc_1ga2s85aqfp">4. Hacking? No problem</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2s85aqfq">Can you really make money from games?</a></li>
<li><a href="#mcetoc_1ga2s85aqfr">Axie Infinity</a></li>
<li><a href="#mcetoc_1ga2s85aqfs">NFT game - Trends and future</a></li>
<li><a href="#mcetoc_1ga2s85aqft">Summary</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga2s85aqfl" style="text-align: justify;">Why NFT Game is that hot?</h2>
What exactly is an NFT game? It looks like a normal online game on the screen, but the process and rules for playing it are completely different. Of course, the main body is NFT.
Various contents such as digital art and videos are traded in NFT, but recently, the target is also extended to games. And we cannot overlook the fact that we are building a new game market as a decentralized application called Dapp. So first, let's take a look at the appeal and notable points of this NFT game.
<h3 id="mcetoc_1ga2s85aqfm" style="text-align: justify;">1. Create your own character</h3>
Since NFT is a non-fungible token, the characters of the game traded here will be unique. If you follow the rules in the game and use all the tools and items to grow your own unique character, you can trade this as an NFT. The world view of the character varies depending on the game. Moreover, its value is clearly evaluated numerically like a stock price, so the grower is not complacent. How to raise a star character loved by the market is a showcase of your skill, and it will be a big exciting point.
<h3 id="mcetoc_1ga2s85aqfn" style="text-align: justify;">2. The more popular it becomes, the more money you have</h3>
(High popularity, high price)
In NFT games, if the character you raise becomes popular, it will be a good investment target. In traditional games, characters are the only target you can control in the game, and they are just a way to earn points and defeat enemies. And if you are a player of that game, many people around the world can operate the same character, and even if it becomes popular, related goods will sell.
However, in NFT games, the character itself is an investment target, and if you sell it, even one will be worth tens of thousands of yen or more, and ownership will be proved. In addition, the price of virtual currency, which is a token used for payment, will fluctuate while being affected by the excitement of the game. Therefore, you can expect the asset value of the tokens you get by selling the popular characters.
<h3 id="mcetoc_1ga2s85aqfo" style="text-align: justify;">3. Enjoy character exchange</h3>
A notable feature of NFT games is the system that allows you to exchange characters between completely different games. Not all NFT games, and the number is still small, but compatibility is novel. In the real world of art, it may be like bartering. Invite characters raised in a completely different game into the game you play, customize and sell them. Motivation to enjoy the game and motivation to earn high praise in the market. The fusion of two incentives not found in conventional games will be a new attraction unique to NFT games.
<h3 id="mcetoc_1ga2s85aqfp" style="text-align: justify;">4. Hacking? No problem</h3>
A major problem in today's online and social games is the existence of cheats that make characters unusually strong by fraud. The act of a heartless user ruining the game market would be terrible for those who genuinely want to enjoy the game. However, in that respect, NFT games systematized by blockchain cannot easily tamper with data, so even if cheating is performed, it can be immediately discovered and quickly eliminated, so it is safe.
<h2 id="mcetoc_1ga2s85aqfq" style="text-align: justify;">Can you really make money from games?</h2>
Since NFT games are a business model that has never been seen before, many people may be wondering if they can really make money. The first NFT game is a game that breeds and raises cats called "CryptoKitties" that appeared in 2017. And since it wasn't until 2021 that NFT games began to boil in earnest, I can't help but wonder, "Is it really okay?" However, there are people who actually make money from NFT games, and it is a fact that a very meaningful business model is being built. One of them is the "scholarship system".
NFT games are attracting attention for their novel profit style of earning while playing, which is called "Play to Earn". Many young people, especially in Southeast Asia and Latin America, who have lost their income sources due to the corona disaster, are all seriously trying to make a living by "Play to Earn". However, due to the high price of NFTs, it is very difficult for these young people to buy their own characters and participate in the game.
If wealthy people, investors, and even the decentralized autonomous organization "Yield Guild Games (YGG)" for investing in NFTs rent out the purchased characters and young people play and earn money using them, that is the case. A scholarship system is underway to share the amount (tokens) at a fixed rate. As a result, for example, Filipino users earn an average of $ 50 a day in Vietnam's first NFT game "Axie Infinity," which will be described later, far exceeding the average wage of $30 is marked.
In addition, game players can earn more assets by earning tokens and not immediately monetizing them, but by holding them and waiting for the tokens to rise in market price. In fact, the price of Axie infinity Axs tokens has increased 20 times in about 3 months. By the way, some Chinese investors who have paid attention to the asset value of NFT games have already owned more than 100 million JPY in games alone. Recently, transactions related to NFT games have become active, and the transaction volume of NFT in August 2021 of major exchanges marked about 120 billion yen, which is three times that of July in just over two weeks. Therefore, if you trade characters in NFT games and invest in virtual currencies that accompany them, you can expect to make a considerable amount of money.
<h2 id="mcetoc_1ga2s85aqfr" style="text-align: justify;">Axie Infinity</h2>
<img class="responsiveImage" src="http://api.relipa.global/storage/478/5428917.jpg" alt="NFT game" />
The NFT game "Dapp" is appearing one after another, but the one that is by far the most noticeable is "Axie Infinity" released by a Vietnamese startup in 2018. Axie Infinity is an NFT game where you can grow, breed and battle monsters on the blockchain Ethereum. The protagonists are six types of monsters called "Axie", each with a different personality. Insect-type, plant-type, bird-type, etc. have various appearances, strengths, and durability, and have their own strengths and weaknesses.
In addition, each Axie has four levels of rarity (rare value), and the rarity value increases in the order of common &rarr; rare &rarr; ultra rare &rarr; legend. Breeding with two monsters will create new monsters that have never existed in the past, and the possibilities are endless. Players buy the virtual currency Ethereum, set up a wallet on the web, deposit Ethereum there, and buy monsters. The condition is to purchase three monsters first, and one is cheap and costs around 20,000 yen, and if it is expensive, it costs 50,000 to 60,000 yen or more, so an initial investment of at least 100,000 to 150,000 yen is required. is.
There are two play styles, "Adventure" like sugoroku and "Arena" where players can enjoy battles with each other, and each player gets a virtual currency SLP token every time they win. If you sell a monster, you can get a virtual currency AXS token, but one unit is about 70 dollars (as of August 2021), it has risen about 15 times in about 2 months, and the market capitalization is 4 billion dollars. Axie Infinity has about 500,000 active users, 60% of whom are Filipinos. Axie Infinity is the first scholarship system I explained earlier, and if it continues to operate smoothly, it is thought that the second and third Axie Infinity will appear.
Also see:&nbsp;<a title="Axie Infinity and Ponzi Scheme - Play more, earn more?" href="../../blogs/axie-infinity-ponzi-scheme" target="_blank" rel="noopener">Axie Infinity and Ponzi Scheme - Play more, earn more?</a>
<h2 id="mcetoc_1ga2s85aqfs" style="text-align: justify;">NFT game - Trends and future</h2>
Axie Infinity has increased its profits by about 170 times in just four months from April 2021. This is an astronomical number from a real economic perspective, and it can be said that it is nothing more than a bubble. However, on the other hand, it is also true that NFT games have a mechanism that does not end this boom transiently. Traditionally, in the NFT market, transactions using the cryptocurrency Ethereum required a high fee called Gas, which was a factor that hindered the entry of many people. However, in May 2021, the developers of Axie Infinity built a side chain called "Ronin" that does not require a gas fee, and succeeded in the transition. As a result, the popularity of Axie Infinity exploded at once.
Furthermore, the appeal of NFT games lies in the epoch-making system that allows you to sell characters (real money trading) as mentioned earlier. This is an act that has been strictly prohibited in traditional social games. However, from the perspective of core gamers around the world, the NFT game has made buying and selling in the currency of characters, which was a big admiration, a reality. Therefore, the current situation is that many praises have been raised saying, "You did it well!". Its appeal has endless possibilities, so if people all over the world are addicted to this world view and the social significance of the scholarship system is widely recognized, NFT games will never be popular. It doesn't end with transients, and it may grow by an order of magnitude from here.
However, since NFTs are built on the blockchain, it cannot be denied that they may be targeted by cyber attacks or become a hotbed for money laundering. Moreover, since the way of thinking about NFT is different in each country and the legislation has not caught up, it is unknown what kind of trajectory the NFT game market will take in the future.
Also see:&nbsp;<a title="NFT Development - The ultimate guide from NFT Game Widiland" href="../../blogs/nft-development-the-ultimate-guide-from-nft-game-widiland" target="_blank" rel="noopener">NFT Development - The ultimate guide from NFT Game Widiland</a>
<h2 id="mcetoc_1ga2s85aqft" style="text-align: justify;">Summary</h2>
In our company Relipa, we always try our best to give customers the optimum blockchain Development services.&nbsp;
Taking advantage of the strengths unique to outsource development, our services exceed expectations at a low cost, with the high technical capabilities and abundant experience from the engineers who are familiar with Japanese and well-qualified Bridge SE, IT Comtor team.
If you have any requests for NFT development or other Blockchain development, please feel free to contact us. We are&nbsp;sincerely&nbsp;looking forward for you.
Also see:&nbsp;<a title="Relipa's NFT Development Service (Japanese)" href="https://relipasoft.com/nft-development/" target="_blank" rel="noopener">Relipa's NFT Development Service (Japanese - Translated English)</a>

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