Comprehensive Research on Blockchain Games: A Revolution of Encryption or a Bubble?

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

Recently, the Pass card for the blockchain game Sky Strife reached a trading volume of 21,000 ETH on the test network, attracting the attention of non-blockchain gamers to this field. Since the release of "Pong" in 1972, the gaming industry has rapidly developed, evolving from the 8-bit "Super Mario" to today's "Fortnite"; gaming has long been more than just simple entertainment.

With the rise of blockchain technology, the gaming industry is reshaping player experiences in new ways. From Axie Infinity, which combines gaming with encryption economy, to Stepn, which is centered around social innovation, blockchain games are expected to drive the mass adoption of cryptocurrencies. People are beginning to explore new ways to combine gaming and blockchain, and in addition to asset on-chain, they are also trying to bring more elements on-chain, giving birth to the concept of full-chain gaming.

So how do blockchain games differ from traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are controlled by centralized game companies. Asset on-chain games ( are often referred to as Web2.5 games ) such as Axie and Stepn, which put assets on the chain, allowing players to own assets and improve liquidity. However, when the game is discontinued, these assets may still lose value.

The full-chain game puts all interactive behaviors and states of the game on the chain, including game logic, data storage, digital assets, and game status, all handled by the blockchain, achieving true decentralized gaming.

The main features of blockchain games include:

1. Blockchain ensures the authenticity of data sources. Blockchain is not just an auxiliary storage, but the real source of game data.

2. The game logic and rules are implemented through smart contracts. Various operations in the game are executed on-chain.

3. Game development follows the principles of an open ecosystem. Game contracts and clients adopt an open-source model, 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.

2. Why do humans need full-chain games?

Before discussing the necessity of on-chain games, let's first understand the current state and operating model of the traditional gaming industry.

1. Current Status of the Traditional Gaming Industry

The gaming industry has developed to this day, giving birth to many excellent Web2 games, from Counter-Strike to League of Legends, and gaming has become an indispensable part of our entertainment life.

According to Fortune Business Insights, the global gaming market size was $249.55 billion in 2022, and it is expected to exceed $280 billion in 2023, reaching over $600 billion by 2030. In contrast, the global film industry size was $94.4 billion in 2022. Gaming occupies an important position in economic development, and its commercialization Depth and breadth still have great potential.

Why do humans love to play games

Currently, the number of gamers worldwide is approaching 3 billion. The reason why games can attract so many people is mainly because they satisfy human needs from multiple aspects:

1. Escape Reality and Restart Life: The game provides a space to escape daily stress.

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

3. Timely Feedback Rewards: The game provides a rich reward system and a timely feedback mechanism.

4. Low-cost free exploration: The game offers a rich virtual world for players to explore.

5. Pursuing achievements and self-actualization: Satisfying players' desires for success and recognition by completing tasks and goals.

Current Status and Development of Traditional Games

Traditional games are mainly divided into types such as shooting, adventure, role-playing, battle royale, strategy, sports, puzzle, action, and simulation. According to data from Newzoo, role-playing and adventure games are very popular across various platforms.

2. The Dilemma of the Traditional Gaming Industry

Traditional games face two major dilemmas: first, game distribution is restricted by licensing, and second, high costs before release lead to a long payback period.

Game distribution is restricted by license numbers

Some countries or regions require game releases to obtain government licenses. For example, China implements a strict game licensing system, which is overseen by the National Radio and Television Administration. The suspension of licensing approvals from July 2021 to April 2022 led to the closure of many small and medium-sized gaming companies.

High costs before issuance,容易产生沉没成本

In the Web2 game development model, there are upfront costs for human resources and infrastructure, and there are idle time costs during the waiting period for the license. Revenue can only be generated after the game is released. This model results in a long profit cycle and high risk.

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

In the face of these challenges, Web 2.5 games are trying to break through. On one hand, they bypass domestic version number restrictions by targeting global users; on the other hand, they generate early revenue through the issuance of NFTs and tokens, lowering the financial threshold.

Games like Axie and Stepn once sparked a craze, but as their economic models collapsed, Web2.5 games find it difficult to create such a booming scene again. Some developers are turning to AAA titles, while others are beginning to explore the possibilities of fully on-chain games.

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

Currently, on-chain games are in the early stages, with game projects and related infrastructure still developing. The on-chain gaming field can be broadly divided into four categories: on-chain game projects, on-chain game engines, on-chain game chains, and on-chain game distribution platforms.

1. Full-chain game projects

Currently, most blockchain game projects are in the early stages, and the number of playable games does not exceed two digits. The main game type is strategy, although some projects are attempting to simulate management direction. Here are a few representative blockchain games:

Dark Forest

Dark Forest is a decentralized strategy game built on Ethereum using zkSNARKs technology. The game is partially inspired by Liu Cixin's science fiction novel "The Dark Forest." As one of the earliest incomplete information games established on decentralized systems, Dark Forest's main features include:

1. Game logic, data, and state are all on-chain, and centralized individuals cannot control them individually.

2. The open height combination game ecosystem has spawned a prosperous secondary creation ecosystem.

3. Use zk-SNARKS technology to achieve information hiding, ensuring the possibility of strategic resistance.

Although the official version has stopped updating, the community is still organizing new game rounds. Dark Forest redefines the possibilities of Web3 gaming and inspires subsequent full-chain game projects.

Loot Survivor

Loot Survivor is a Loot ecosystem game developed by the BibliothecaDAO team. It is a text-based dungeon game where players interact through text to fight monsters and level up until their character dies. The game employs a leaderboard mechanism to encourage players to constantly challenge themselves.

Imminent Solace

Imminent Solace is a treasure battle royale game based on ZK war fog, developed by PTA DAO. The game combines elements of PVP plunder, autonomous world exploration, and PoW resource mining, with gameplay similar to Dark Forest but easier to operate. This is one of the more playable games in the recent full-chain gaming landscape.

In addition, games such as Sky Strife, OPCraft, Word3, Framed, Loot Rayale, and Genki Cats are exploring the possibilities of fully on-chain gaming. Currently, most fully on-chain games are web-based, with almost no PC and mobile versions.

2. Full-chain Game Engine

The full-chain game engine aims to provide general code for commonly used functions to lower the development threshold. Unlike traditional game engines, the full-chain game engine places more emphasis on issues such as contract and client state synchronization, content updates, and cross-contract interoperability.

The mainstream full-chain game engines currently are Mud and Dojo:

Mud

Mud is the first full-chain game engine released by Lattice in November 2022. Currently, Mud has the most game projects in its ecosystem, including Dark Forest, OPCraft, Sky Strife, Word3, and Imminent Solace.

Dojo

Dojo is a full-chain game engine born in the Starknet ecosystem, officially launched in February 2023. The Dojo ecosystem is backed by the big IP Loot, incubating projects such as Loot Survivor and Loot Realms: Eternum.

The emergence of the full-chain game engine has greatly promoted the development of the full-chain game track, providing developers with a lower-cost creative environment.

3. Full Chain Game Chain

Unlike the proprietary chains commonly used in Web2.5 games, current full-chain game projects are more inclined to build on general Layer 2 solutions such as Arbitrum Nova, Optimism, and Starknet. This is mainly because the user base of proprietary chains differs from the target users of full-chain games.

Some teams are developing proprietary chains for full-chain games, such as the World Engine by the Argus team and the new Layer2 developed by Curio based on OPStack. These new chains aim to resolve the conflict between the push-based model of blockchain and the loop-based model of games.

4. Full-chain Game Aggregator/Distribution Platform

Currently, the full-chain game aggregator/distribution platform is still in the nascent stage. There are mainly two platforms:

Composable Hub

Composable Hub is an aggregation platform focused on full-chain games under Composablelabs. Currently, it aggregates 56 full-chain games, of which 14 have been launched, 12 are in the testing phase, and 30 are still under development.

Cartridge

Cartridge is a full-chain game aggregator in the Starkware ecosystem.