In-depth Research Report on Blockchain Games: A Bubble or a Revolution Under the Concept of Encryption Nativism?

Introduction: Definition of Full-Chain Games

Recently, the pass for the full-chain game Sky Strife has achieved a trading volume of 21,000 ETH on the testnet, attracting the attention of non-full-chain gamers to this field. Since the release of Pong in 1972, the gaming industry has undergone tremendous development. From classic 8-bit games like Super Mario and The Legend of Zelda to today's complex online games like Fortnite and League of Legends, gaming has long ceased to be just a simple form of entertainment.

With the development of blockchain technology, the gaming industry is reshaping player experiences in unprecedented ways. From Axie Infinity, which tightly integrates games with the encryption economy, to Stepn, which focuses on social interaction and innovation, blockchain games are seen as an important pathway for the widespread adoption of encryption technology. People are beginning to explore new ways to combine games and blockchain, asking whether more elements can be put on-chain besides asset tokenization. This has led to the emergence of fully on-chain games.

The main difference between blockchain games and traditional games is:

1. The authenticity of the data is guaranteed by the blockchain. The blockchain is not only an auxiliary storage of data but also the true source of game data, storing all key data.

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

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 to operate, achieving true decentralization.

2. The Necessity of Full-Chain Games

Before analyzing the necessity of on-chain games, we need to understand the current situation and operational model of the traditional gaming industry.

1. Current Status of the Traditional Gaming Industry

According to data from Fortune Business Insights, the global gaming market was valued at $249.55 billion in 2022, and is expected to exceed $280 billion in 2023, reaching over $600 billion by 2030. In comparison, the global film and entertainment industry was valued at $94.4 billion in 2022. The gaming industry plays a crucial role in economic development, and there is still much room for exploration in terms of its commercialization depth and variety of types.

Currently, the number of gamers worldwide has approached 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: The game provides a space to escape the pressures of daily life.

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

3. Instant Feedback Rewards: The game offers a rich rewards system and timely feedback mechanism.

4. Low-cost free exploration: Many games offer rich virtual worlds for players to explore.

5. Pursuing achievements and self-actualization: By completing tasks and goals, players can achieve self-challenge and character growth.

2. The Dilemma of the Traditional Gaming Industry

However, the traditional gaming industry faces two main dilemmas:

1. Game releases are restricted by license numbers: Taking China as an example, games need to obtain a license number issued by the National Radio and Television Administration in order to be published. The uncertainty of license number approval places immense pressure on game companies.

2. High pre-issuance costs can lead to sunk costs: In the traditional game development model, a significant amount of human resources and infrastructure costs must be incurred in the early stages, and profits can only be shared after the game is released and generates commercial revenue. This results in a long development and release process, increasing the risk of achieving expected returns.

3. Attempts to Break the Game2.5 Barrier

In the face of these challenges, Web 2.5 games are the first to attempt a breakthrough:

1. Aimed at global users, bypassing domestic version number 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.

However, with the collapse of the Ponzi economic model, the craze for Web 2.5 games is gradually fading. Some developers are turning to AAA titles, trying to get a share of the pie among Web 2 users; others are turning to full-chain games, exploring new possibilities.

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

Currently, the whole-chain gaming is in its early stages, with both gaming projects and related infrastructure still under development. The industrial map of the whole-chain gaming field can be roughly divided into four categories: whole-chain gaming projects, whole-chain gaming engines, whole-chain gaming chains, and whole-chain gaming distribution platforms.

1. Full Chain Game Project

Currently, the number of fully on-chain game projects available for experience does not exceed double digits, most of which are in the testing phase. The game type is mainly strategy type (SLG), and there are also some projects attempting to simulate management direction. Here are a few representative fully on-chain games:

1. Dark Forest

Dark Forest is a decentralized strategy game developed by MIT graduate Brian Gu, who goes by the alias Gubsheep, and is partly inspired by Liu Cixin's science fiction novel "The Dark Forest." The main features of the game include:

• Game logic, data, and state are all on-chain, and centralized individuals cannot independently control the outcomes.
• High openness, allowing third-party developers to create plugins and new gameplay.
• Implemented information hiding using zk-SNARKS technology, increasing strategic value.

2( Loot Survivor

Loot Survivor is a game developed by the BibliothecaDAO team and is part of the Loot ecosystem. It is a text-based dungeon game with simple gameplay, primarily involving text interactions to defeat monsters until the character dies. The game features a leaderboard to encourage players to continually challenge themselves.

3. Imminent Solace

Imminent Solace is a treasure brawl battle royale game based on ZK fog of war, developed by PTA DAO and built on the MUD engine. The game integrates elements of PVP looting, autonomous world exploration, and PoW resource mining, with simple controls and a good user experience.

![Full Chain Game Depth Research Report: Centered on Native Encryption, Is It a Bubble or a Revolution?])https://img-cdn.gateio.im/webp-social/moments-fc60e3d997cc9ee71fcc83239a632efa.webp)

(# 2. Full-Chain Game Engine

The main goal of the full-chain game engine is to simplify the game development process, addressing issues such as contract and client state synchronization, content updates, and interoperability. Currently, the mainstream full-chain game engines include:

1. MUD

MUD is the first full-chain game engine released by Lattice in November 2022. It has become the ecosystem with the most developers, supporting multiple well-known projects such as Dark Forest, OPCraft, and Sky Strife.

2### Dojo

Dojo is a game engine in the Starknet ecosystem, officially released in February 2023. It was initially developed around MUD using Starknet's Cairo language. The Dojo ecosystem includes several Loot ecosystem projects, such as Loot Survivor and Loot Realms: Eternum.

![Full Chain Game Depth Research Report: Centered around Encryption Natives, Is It a Bubble or a Revolution?])https://img-cdn.gateio.im/webp-social/moments-c4f74d5a3f0bec0f636e1d72783bdcc5.webp)

(# 3. Full Chain Game Chain

Unlike the game-specific chains that are highly regarded in Web2.5 games, current full-chain game projects tend to build on general Layer2) such as Arbitrum Nova, Optimism, Starknet, etc. This is mainly because the existing user base of game-specific chains is not very interested in the simple content of full-chain games.

It is worth noting that some teams are developing proprietary chains for the entire blockchain game, such as the Argus team's World Engine and Curio's new Layer2 project. These new chains aim to address the conflict between the push-based model of blockchain and the loop-based model of games.

4. Full Chain Game Aggregator/Distribution Platform

As the full-chain gaming is still in its early stages, the number of playable games is limited, and currently, there are mainly two dedicated full-chain game aggregation platforms:

1( Composable Hub

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

2. Cartridge

Cartridge is the full-chain game aggregator of the Starkware ecosystem, dedicated to creating a Web3 version of Steam. Currently, it aggregates 5 games from the Starknet ecosystem.

Four, the core advantages of full-chain gaming

The entire chain game achieves higher fairness and openness by putting the game's logic, state, data storage, and assets on the chain. Its main advantages include:

)# 1. From PGR to UGR, empower players with creative rights

In traditional games, players are mainly consumers of content ) PGC model ###. However, on-chain games allow players to participate in the formulation of game rules ### UGR model (, making every player a potential builder and creator of the game. This openness makes the game ecosystem more diversified and personalized.

)# 2. Fairness and Transparency

The game logic and rules of the whole-chain game are fully on-chain, ensuring fairness and transparency of the game. This is especially important for gaming and betting games, as it can avoid the risks of centralized manipulation.

5. Challenges Facing the Whole Chain Game