In-Depth Research on the Whole Chain Game: Is Encryption-Native a Bubble or a Revolution?

1. Introduction: What is a full-chain game?

Recently, the Pass card of the full-chain game Sky Strife has surged to 21,000 ETH on the testnet, attracting the attention of non-full-chain gamers to this sector. Since the release of "Pong" in 1972, the gaming industry has been rapidly evolving, from classic 8-bit games like "Super Mario" and "The Legend of Zelda" to today's complex online games such as "Fortnite" and "League of Legends"; gaming has long been more than just simple entertainment.

With the rise of blockchain technology and the development of encryption currencies, the gaming industry is reshaping user experiences in unprecedented ways. From Axie Infinity, which closely integrates gaming with the encryption economy, to Stepn, which focuses on social interaction and innovation, blockchain games are gradually being seen as a hope for the large-scale application of encryption technology. People are also beginning to explore new ways to combine gaming and blockchain. Beyond asset on-chain, can more elements be put on-chain? This gave birth to the concept of full-chain gaming.

So what is the difference between blockchain games and traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are stored on centralized game company servers. The subsequent asset-on-chain games ( are usually referred to as Web2.5 games ), such as Axie and Stepn, which put assets on-chain. Players can own asset ownership, increasing asset liquidity. However, when the game is discontinued, game assets still face the dilemma of losing their circulation value.

The highly anticipated full-chain games will put all interactive behaviors and states of the game on the chain, including game logic, data storage, digital assets, and game states, all handled by blockchain, thus achieving truly decentralized gaming.

The main features of blockchain games can be summarized as follows:

1. The authenticity of the data source is ensured by the blockchain. The blockchain is not just an auxiliary storage of data, but the true source of game data.

2. The logic and rules of the game are implemented through smart contracts. Various operations in the game can be executed on-chain, ensuring the traceability and security of the game logic.

3. Game development follows the principles of an open ecosystem. Game contracts and accessible game clients adopt an open-source model, providing a broad 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 to operate. This depends on the permissionless storage of game data, the permissionless execution of logic, and the community's ability to independently interact with the core smart contracts.

2. Why do humans need full-chain games?

1. Current Status of the Traditional Gaming Industry

The gaming industry has given birth to many excellent Web2 games during our growth process, from FPS games like Counter-Strike and Crossfire, to RPG games like Dungeon Fighter Online and Dragon Nest, then to MOBA games like League of Legends and Honor of Kings, as well as card games like Onmyoji and Hearthstone, games occupy a very important position in entertainment life.

According to data from Fortune Business Insights, the global gaming market size in 2022 was $249.55 billion, and it is expected to exceed $280 billion in 2023, with a forecast to surpass $600 billion by 2030. In contrast, the global film and entertainment industry market size in 2022 was $94.4 billion. It is evident that gaming holds an important position in economic development, with many areas worth exploring in terms of the depth of its commercialization and the breadth of its 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 satisfy human needs and weaknesses from multiple aspects:

1. Escape reality and restart life: The game provides a space to escape the pressures and challenges of daily life.

2. Burden-free socializing: Multiplayer online games provide a platform for social interaction, especially friendly for people with social anxiety.

3. Rewards for timely feedback: The game offers a rich reward system and a timely reward mechanism.

4. Low-cost free exploration: Many games offer rich virtual worlds that allow players to explore unknown territories.

5. Pursuing achievement and self-actualization: By completing tasks and goals, people can fulfill their desire for success and recognition.

2. The Predicament of the Traditional Gaming Industry

Currently, traditional games are facing two main dilemmas:

1. Game releases are subject to licensing restrictions.

Some countries or regions implement strict licensing systems for game releases, especially in China, where games need to obtain a license number before they can be released on the market. This has led to many small and medium-sized game companies facing the risk of closure.

2. The costs before issuance are too high, and it is easy to incur sunk costs.

In the development model of Web2 games, the game development phase requires bearing the upfront costs of human resources and infrastructure, with idle time costs during the licensing phase, and commercial revenue can only be generated after the game is released. This model results in a long profit cycle and a higher risk of not achieving expected returns.

3. Attempts to Break the Deadlock of Web2.5 Games

Faced with these two dilemmas, Web2.5 games are the first to attempt to break the deadlock:

1. Targeting global users, bypassing domestic licensing restrictions.

2. By issuing NFTs and tokens, income can be generated in the early stages of the game, lowering the financial threshold for game production.

In the exploration of Web2.5 games, eye-catching games like Axie and Stepn emerged. However, with the collapse of the economic model, subsequent Web2.5 games failed to sustain the hype. Some developers have begun to turn to full-chain games to explore new possibilities and value verification.

3. Analysis of the Current Situation of the Full-Chain Game Industry

Currently, the fully on-chain gaming sector is in a very early stage, with both gaming projects and related infrastructure still under development. The industrial landscape of the fully on-chain gaming field can be roughly divided into four categories: fully on-chain gaming projects, fully on-chain gaming engines, fully on-chain gaming dedicated chains, and fully on-chain gaming distribution platforms.

1. Full-chain game project

Current on-chain game projects are all in the early stages, with most still in testing. The number of playable on-chain games on the market does not exceed double digits. The overall game genre is mainly strategy type (SLG), with some projects also attempting to simulate management directions.

Here are some noteworthy full-chain game projects:

1. Dark Forest

Dark Forest is a decentralized strategy game built on Ethereum using zkSNARKs technology. It is one of the earliest incomplete information games established on decentralized systems. As a space conquest strategy game, players develop their empire by exploring the infinite universe, occupying planets, and resources.

The main highlights of Dark Forest include:

• Game logic, data, and state are all on-chain, and centralized individuals cannot independently control the outcome.
• The open-source full-chain game model grants permissionless interoperability, giving rise to a thriving secondary creation ecosystem.
• Using zk-SNARKS technology for information hiding enables the possibility of policy confrontation.

2. Loot Survivor

Loot Survivor is a game developed by the BibliothecaDAO team, and it is an important part of the Loot ecosystem. It is a text-based dungeon or Roguelike game that debuted at the on-chain gaming summit in Lisbon on May 25, 2023.

The gameplay is relatively simple, involving monster fighting through text interaction until death, and encouraging players to continually challenge themselves through leaderboards. Overall, the game's scale and playability are small, and it inherits more from the Loot ecosystem in terms of game creation, adding gamified storytelling to the Loot ecosystem.

3. Imminent Solace

Imminent Solace is a recently launched treasure brawl battle royale game based on ZK fog of war, developed on the MUD engine. Developed by PTA DAO, it integrates PVP raiding, autonomous world exploration, and PoW resource mining elements. The gameplay is similar to Dark Forest, but the controls are easier and the user experience is better.

The ultimate goal of the project is to create a war simulation game similar to EVE, where players will incur actual losses in resources and assets during gameplay and face strategic challenges. Imminent Solace is a relatively playable game among recent blockchain games, with good game interaction and experience.

In addition, there are games such as Sky Strife, OPCraft, and SmallBrain's word game Word3 developed by Lattice, the Web3 version of Werewolf called Framed, as well as battle royale type Loot Rayale and nurturing management type Genki Cats, all exploring the field of on-chain games, but most are still in the testing phase.

Currently, most blockchain games are basically web-based games, with almost no PC and mobile versions. This is related to the characteristic of blockchain games that do not require a client; web development is faster and cheaper, making it the developer's first choice. On the other hand, blockchain games are still in the proof-of-concept stage, and how to quickly develop a playable MVP version to validate the game's value is key.

2. Full-chain Game Engine

The goal of the full-chain game engine is to provide universal code and simplify the game development process. Compared to traditional game engines, the full-chain game engine places more emphasis on issues such as contract and client state synchronization, continuous content updates, and interoperability with other contracts.

The main full-chain game engines currently include Mud, Dojo, Argus, Curio, Paima, etc., among which Mud and Dojo are the two most mainstream.

1. Mud

Mud is the first full-chain game engine officially released by Lattice in November 2022. As one of the earliest full-chain game engines, Mud currently has the largest developer ecosystem. In addition to the earliest Dark Forest, projects such as OPCraft, Sky Strife, Word3, and the recent Imminent Solace have also emerged.

2. Dojo

Dojo is a game engine born in the Starknet ecosystem, originally centered around MUD.