In-Depth Research on Blockchain Games: A Revolution of Encryption Natives or a Bubble?

1. Introduction: What is a Full-Chain Game?

Recently, the Pass card of the full-chain game Sky Strife has FOMO'd to 21000 ETH on the testnet, attracting many non-full-chain game players to pay attention to the charm of this field. Since the advent of Pong in 1972, the gaming industry has developed all the way from early 8-bit games to today's complex online games, and gaming is no longer just simple entertainment.

With the rise of blockchain technology, the gaming industry is reshaping user experience in new ways. From Axie Infinity to Stepn, blockchain games are expected to realize the large-scale application of encryption. People are beginning to explore new ways to combine games and blockchain; beyond asset on-chain, can more elements be brought on-chain? Thus, the concept of full-chain games has emerged.

So what are the differences between blockchain games and traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are controlled by centralized gaming companies. The subsequent on-chain asset games ( such as Axie and Stepn put assets on-chain, but when the games shut down, the assets still lose their circulation value.

The whole chain game will put all interactive behaviors and states of the game on the chain, including game logic, data storage, digital assets, and game states, all processed by the blockchain, realizing a truly decentralized game.

The main features of blockchain games include:

1. Blockchain ensures the authenticity of data sources and serves as the storage center for all key data.

2. Game logic and rules are implemented through smart contracts to ensure traceability and security.

3. Game development follows the principles of an open ecosystem, providing creative space for third-party developers.

4. The game is independent of the client; even if the core developer's client disappears, the game can continue.

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2. Why do we need blockchain games?

Before understanding the necessity of blockchain games, let's briefly understand the current situation and operating model of the traditional gaming industry.

) 1. Current Situation of the Traditional Game Industry

According to data, the global gaming market size was $249.55 billion in 2022, expected to exceed $280 billion in 2023, and will surpass $600 billion by 2030. Compared to the film industry, gaming occupies an important position in economic development, and there are many aspects worth exploring in its commercialization depth and variety of types.

Currently, the number of gamers worldwide has exceeded 2.5 billion, approaching 3 billion. The reason games can attract so many participants is mainly because they meet human needs from multiple aspects:

1. Escape reality and restart life
2. Burden-free socializing
3. Rewards for receiving timely feedback
4. Low-cost free exploration
5. Pursuing achievement and self-actualization

Traditional games mainly include shooting, adventure, role-playing, battle royale, strategy, sports, puzzle, action, simulation, and other types. Among them, role-playing and adventure games perform excellently on various platforms.

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) 2. The Predicament of the Traditional Gaming Industry

Traditional games face two major dilemmas:

1### Game release is subject to licensing restrictions.

In certain countries or regions, publishing games requires obtaining government licenses. For example, China implements a strict game approval system, and the suspension of approval for game licenses between 2021 and 2022 led to the closure of many small and medium-sized gaming companies.

2. High pre-issue costs can easily lead to sunk costs.

In the traditional game development model, a large amount of labor and infrastructure costs must be borne in the early stages, and revenue can only be obtained after the release. If there are problems in development or release, the initial investment will become a sunk cost.

) 3. Attempts to Break the Stalemate of Web2.5 Games

Web 2.5 games attempt to bypass licensing restrictions by targeting global users and generate early revenue through the issuance of NFTs and tokens. Games like Axie and Stepn once gained popularity, but as their economic models collapsed, the subsequent development of Web 2.5 games faced obstacles. Some developers have begun to turn to full-chain games to explore new possibilities.

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3. Analysis of the Current Status of the Whole Chain Game Industry

Currently, the whole-chain game is in its early stages, with projects and infrastructure still under development. The industry can be divided into four main categories: whole-chain game projects, whole-chain game engines, whole-chain game chains, and whole-chain game distribution platforms.

) 1. Full-chain game project

Currently, there are no more than 10 playable on-chain games, most of which are still in the testing phase. The game types are mainly strategy-based, with some projects attempting to simulate management direction. Below are a few representative games:

1### Dark Forest

A decentralized strategy game developed by MIT graduate Brian Gu, inspired by "The Three-Body Problem." Features include:

• The game logic, data, and state are all on-chain.
• The open-source full-chain game model stimulates a thriving secondary creation ecosystem
• Use zk-SNARKS technology to achieve information hiding

2. Loot Survivor

The Loot ecological game developed by the BibliothecaDAO team is a text-based dungeon game. The gameplay is simple, mainly involving text interactions to fight monsters and level up.

3. Imminent Solace

The treasure brawl game based on ZK War Fog, developed by PTA DAO. It integrates PVP plundering, autonomous world exploration, and PoW resource mining, with simple operations and a good user experience.

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) 2. Full-Chain Game Engine

The full-chain game engine mainly solves issues such as contract and client state synchronization, content updates, and interoperability. Mainstream engines include:

1### Mud

Developed by the Lattice team, it is one of the earliest full-chain game engines, currently with the largest developer ecosystem.

2. Dojo

The engine of the Starknet ecosystem, developed around MUD in the Cairo language.

The emergence of these engines has greatly promoted the development of blockchain games.

) 3. Full Chain Game Chain

Currently, most blockchain game projects choose to build on general Layer 2 solutions such as Arbitrum Nova, Optimism, Starknet, etc. Some teams, like Argus and Curio, are developing proprietary chains specifically for blockchain games.

4. Full-Chain Game Aggregator/Distribution Platform

Currently, there are two specialized full-chain game aggregation platforms:

1### Composable Hub: Aggregates 56 full-chain games, of which 14 are online.

2. Cartridge: A full-chain game aggregator of the Starkware ecosystem, currently aggregating 5 games.

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4. The Core Advantages of Full-Chain Games

) 1. From PGR to UGR, giving players the power to create.

The full-chain game transforms games from PGC### Professional Generated Content ( to UGC) User Generated Content ( and UGR) User Generated Rules ( model. Players can not only participate in the game but also create new gameplay and rules.

) 2. Fairness and Transparency

The logic and rules of the whole chain games are fully on-chain, ensuring the fairness and transparency of the games, making it particularly suitable for gambling games.

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5. Challenges and Limitations of Full-Chain Games

) 1. Poor user experience

• Hard to match players who play together
• Some game settings have artificial thresholds
• Frequent bugs
• Playability is below expectations

2. Game type restrictions

Due to the performance limitations of blockchain, it is currently mainly suitable for strategy games and is difficult to support game types that require high real-time performance.

3. Requirement Verification

The core advantages of blockchain games ### UGR, and whether fairness ( can meet the real needs of players remains to be verified.

) 4. Decentralization may lead to chaos.

Completely open game design may affect the gaming experience, requiring a balance between professional design and user creation.

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6. Extension of Thoughts on the Business Model of Full-Chain Games

The business model of full-chain games is still being explored, and possible directions include:

1. Lightweight games: use the token charging method of NFT + Token
2. Open Narrative Games: Consider the payment threshold, subscription, or membership system.
3. Board games: Refer to the traditional commission model

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