NFT games are different from just holding crypto-collectibles in your wallet. An NFT game will use NFTs in its rules, mechanisms, and player interactions. For example, a game could represent your unique character or avatar as an NFT. Digital items you find while playing the game could also be NFTs. You can then swap or trade your NFTs with other players for profit. A newer, play-to-earn model also allows you to generate income from NFT games which we'll discuss more later.

So how do you take NFTs and technically implement them into a game environment? To swap, create, and implement NFTs within a game, developers create smart contracts that make up the rules for the NFTs used. Smart contracts are self-executing pieces of code stored on a blockchain.

CryptoKitties, for example, has a small number of main contracts that structure the game. The most famous is their geneScience contract that determines the random mechanics that generate new cats. The game developers initially kept its code secret. Interested players even created tools to analyze the odds of particular traits in cats turning up. With this information, players could optimize their chances of developing a rare breed worth more money.