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

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

Recently, the Pass card of the blockchain game Sky Strife reached a fomo of 21,000 ETH on the test network, attracting the attention of non-blockchain gamers to this sector. Since the release of "Pong" in 1972, the gaming industry has developed rapidly, evolving from 8-bit classic games to today's complex online games; gaming is no longer just simple entertainment.

With the development of blockchain technology and encryption, the gaming industry is undergoing a transformation. From Axie Infinity to Stepn, blockchain games are expected to realize the large-scale application of cryptocurrency. People are beginning to explore new ways to combine games with blockchain; in addition to asset on-chain, can more elements be brought on-chain? Thus, the concept of full-chain games was born.

The main difference between blockchain games and traditional games is:

1. Game logic, data storage, digital assets, and state are all on-chain, processed by the blockchain, achieving true decentralization.

2. Blockchain ensures the authenticity of data sources, not only recording asset ownership but also storing all key data.

3. The game logic and rules are implemented through smart contracts to ensure traceability and security.

4. Follow the principles of an open ecosystem, game contracts and clients are open source, allowing third-party developers to innovate.

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

2. Why do we need full-chain games?

1. Current Status of the Traditional Gaming Industry

The gaming industry is developing rapidly, giving birth to many outstanding Web2 games. In 2022, the global gaming market size reached $249.55 billion, and it is expected to exceed $600 billion by 2030. The number of global gamers has approached 3 billion.

The reason why the game attracts so many people to participate is mainly that it satisfies human needs:

1. Escape reality, restart life
2. No Burden Social
3. Timely feedback rewards
4. Low-cost free exploration
5. Pursuing achievement and self-realization

2. The predicament of the traditional gaming industry

However, traditional games face two major dilemmas:

1. Game releases are restricted by licensing numbers. For example, in China, the stagnation of licensing approvals has led to the closure of many small and medium-sized gaming companies.

2. High costs before issuance, long payback period. A large amount of costs is incurred in the early stages, the profit cycle is long, and the risks are high.

3. Attempts to Break Through in Web2.5 Gaming

Web2.5 games bypass the licensing restrictions by targeting global users and generate early revenue through the issuance of NFTs and tokens. However, as the economic model collapses, Web2.5 games struggle to maintain their popularity. Some developers are turning to explore the possibilities of full-chain games.

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

The blockchain games are currently in the early stages and can be divided into four main categories:

1. Full-Chain Game Project

Currently, the number of playable on-chain games does not exceed double digits, mainly focused on strategy games. A few representative projects:

• Dark Forest: One of the earliest on-chain games, utilizing zk-SNARKS technology for information hiding.

• Loot Survivor: An important project in the Loot ecosystem, adopting a text-based interaction method.

• Imminent Solace: A treasure brawl game based on the ZK War Fog, with high playability.

2. Full-Chain Game Engine

Mainly includes two major engines: Mud and Dojo.

• Mud: The earliest full-chain game engine with the richest ecosystem.
• Dojo: The full-chain game engine of the Starknet ecosystem.

3. Full Chain Game Chain

Currently, projects are mainly built on general Layer 2s such as Arbitrum Nova, Optimism, Starknet, etc. Some teams are developing chains specifically for blockchain games.

4. Full-chain Game Aggregator/Distribution Platform

There are mainly two platforms: Composable Hub and Cartridge, which aggregate and distribute on-chain games.

4. The Core Advantages of Full-Chain Games

1. From PGR to UGR, everyone can become a creator

The full-chain game supports users to freely create game features and experiences, achieving the transformation from PGR(Professional Generated Rules) to UGR(User Generated Rules).

2. Fairness and Transparency

Game logic and rules are fully on-chain, ensuring fairness and transparency, especially suitable for gambling games.

5. Challenges and Limitations of Full-Chain Games

1. Poor user experience

• Difficult to match with players who are playing together.
• Some game settings have artificial thresholds.
• Frequent bugs
• Low playability

2. Game Type Restriction

Currently, it is mainly suitable for strategy games, and it is still difficult to implement for game types that require high real-time performance.

3. Real Demand or Fake Demand

Whether the core advantages of blockchain games can meet the real needs of players remains a topic of debate.

4. Complete decentralization may lead to chaos.

It is necessary to seek a balance between democracy and elitism.

6. Considerations on the Business Model of Full-Chain Games

Different business models can be adopted based on the type of game:

1. Lightweight Game: NFT + Token Charges
2. Open Narrative Games: Paywall + Subscription Membership
3. Board Games: Commission Model

7. Conclusion

The full-chain games create new possibilities for users, but still face many challenges. Future development needs to balance the wealth creation effect with playability and address the real needs of users. We look forward to the emergence of excellent projects that fully leverage the characteristics of the full chain.