What is an NFT oracle?
The latest cryptocurrency sensations are non-fungible token-based games or NFT digital assets that are unique and inimitable. Today, NFT marketplaces have become a way for artists to sell their work directly to buyers without the need for intermediaries.
In this sense, the popularity of NFT assets has increased considerably even into the first half of 2022, as artists are not the only ones who have taken an interest in this market. Other companies and brands have started to develop NFT trading, in which users invest, participate, buy, sell and wait for the value of their NFT assets to appreciate.
In this sense, the creation of NTF assets, so-called “Smart Contracts.” On the other hand, they cannot access data from Blockchain networks, being limited to the participation of data within the same network. This limitation led to the development of “ChainLink oracles” as a tool for developing NFT assets.
What is Oracle ChainLink or Oracle NFT?
An oracle has the ability to give an accurate answer to everything; based on DeFi platforms, NFT oracles can provide information based on verifiable and accurate data. A Blockchain is static, which means it can only interact with data on its network. However, the development of Oracle NFT allows blockchain smart contracts or “Smart Contracts” to be connected securely and reliably to external sources and systems, allowing “developers” or NFT game developers to have a bridge to access real-world data.
Types of NFT Oracles
Currently, oracle types can be categorized by function and their data.
- Centralized and Decentralized: Centralized oracles are those that rely on a single source of information, controlled by a single entity responsible for regulating all contractual functions. In general, these types of oracles can present flaws; for example, the action of an evil entity is sufficient to undermine the integrity of the smart contract. Alternatively, decentralized oracles increase the reliability of smart contracts, as it depends on different entities. Decentralized oracle depends on other oracles to determine the validity of data.
- Hardware: Its function differs from software oracles. Oracle Hardware can track real-world objects in the smart contract, such as the arrival of a bus, plane, or car moving to a specific location.
- Inbound and Outbound: Inbound oracles transmit real-world information or information outside of the smart contract, while outbound oracles can transmit information from the Blockchain network or smart contract into the real world.
- Software: Contains online information data from various websites and afermite in block form in the smart contract.
Uses of NFT Oracles
Oracle’s main goal is to bridge blockchain data and the external information it runs on. Thanks to the oracle, it is possible to obtain a collection of information from different web pages and give an accurate and unmanageable result.
Additionally, NFT oracles allow users to perform the following actions:
- Ask the oracle for the creator of an NFT resource.
- Ask the oracle to reveal the creator of the NFT asset.
- Find your NFT creations.
How do oracles work in the NFT game economy?
The growing popularity of non-fungible or NFT token-based gaming platforms as a new asset class in the crypto market has led to the creation of a huge number of new demand-based games economies through the “Play to Earn or P2E” model in which the user performs certain functions that allow him to obtain tokens in return.
Therefore, given the popularity of these games and as a tool for regulating the entry price of NFT games, price oracles are implemented as a mechanism that determines or binds the value of a coin to participate in a particular NFT game. In general, games that implement oracle’s system have a relatively low barrier to entry. Oracle allows keeping the number of tokens to enter the game regardless of the price of the tokens, which is a plus for players on a tight budget.
In other words, the NFT oracle allows you to balance the input amount with a stable currency, keep revenue and profit always at the same level, to decrease or increase the number of tokens needed depending on the market value of that currency.
In this sense, the function of these oracles is to lower and raise the barriers to entry by regulating low margin profit percentages. Although this tool can maintain the duration of the game, it can at the same time pose a risk to the gaming economy when the price of the token decreases.
Oracle-based NFT games
Below are some NFT games that work with an oracle.
In CryptoMines, you play as a mining tycoon commanding a fleet of workers and ships.
Your task is to get enough personnel, mining power, and ships to transport. However, you will need a lot of patience, research, and strategies to achieve this.
Each planet you mine will have different mining needs, so you need to gather enough information about the planet/land to acquire enough mining power.
The game uses Eternal as its main currency, which you earn every time you complete a task.
Its user base is constantly expanding thanks to the Oracle system. The system allows new users to start mining NFTs at the same speed as established players.
Eternal’s current market capitalization is $1 billion following the game’s success.
CoinToFish is a huge digital ecosystem in which players play the role of fishermen. Because fishing rods are your most essential tool, they are valuable and act like an NFT. Players can buy and sell fishing rods at the fish market.
This market is different from the others because it offers an in-game buy and sells mechanism updated in real-time. Depending on your preference, it includes various fish that you can place in a 3D or 2D view.
The game allows you to grow, breed, and upgrade fish which you can use to fight other fish.
BNB Heroes focuses on economic expansion and long-term profitability. It is an NFT collectible card game based on Oracle RPG.
The developers of BNB Heroes plan to make this game reliable and durable, so users can earn BNB tokens while playing the game.
The Age of Cryptology
Age Of Cryptology (AOC) is a Play & Earn game based on Binance Smart Chain, which combines captivating and fun legend with the capabilities of blockchain technology.
Use the non-fungible symbol (NFT) to represent each asset, allowing you to remain the sole owner and maintain full control over your NFT item.
There is also a utility token called Aureo, the main currency of the in-game economy. Aureo also has monetary value, as you can exchange it with other cryptocurrencies or even fiat currencies such as EUR or USD.
Are Oracle-based NFT games sustainable?
Cryptocurrencies are highly volatile, making it difficult to predict changes in market factors. Depending on the value of the cryptocurrency, Oracle-based NFT games may rise or fall below other NFT games.
Oracle-based NFT games, like most NFT games, have something interesting to offer. However, relying on an oracle to keep the game balanced may not be enough to keep the game in the market. Other games like Axie Infinity and MOBOX don’t work with Oracle, but they do very well in the market. In other words, while Oracle has a fascinating advantage, it may not be ideal for NFT games.
Nnamdi Adibe is a native English writer and can write about many things. With his writing skills, he can provide well-researched content.
Nnamdi Adibe is a prolific writer at gblogo.com. He is interested in bringing you perspectives on financial liberation, fun, and investment from the rare vantage point of experience.
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