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

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

Recently, the Pass card of the on-chain game Sky Strife has achieved a trading volume of 21,000 ETH on the test network, attracting the attention of many off-chain game players. Since the release of "Pong" in 1972, the gaming industry has rapidly developed, evolving from early 8-bit games to today's complex online games; games are no longer just simple entertainment.

With the rise of blockchain technology, the gaming industry is undergoing an unprecedented transformation. From Axie Infinity, which combines gaming with encryption economy, to Stepn, which centers on social innovation, blockchain games are expected to drive the large-scale application of encryption technology. 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 gaming has emerged.

So how are full-chain games different from traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are controlled by centralized gaming companies. Asset on-chain games ( and Web2.5 games ) like Axie and Stepn put assets on-chain, allowing players to own the assets, but when the game shuts down, those assets still lose their circulation value.

The entire chain game puts all interactions and states of the game on the chain, including game logic, data storage, digital assets, and game states, all handled by the blockchain, achieving true decentralized gaming.

The main features of a blockchain game are four:

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

2. The game logic and rules are implemented through smart contracts, ensuring traceability and security.

3. Game development follows the principles of an open ecosystem. Game contracts and clients adopt an open-source model, providing space for third-party development.

4. The game is independent of the client. Even if the core developer's client disappears, the game can continue to proceed.

2. Why do we need full-chain games?

1. Current Status of the Traditional Gaming Industry

According to data, the global gaming market size in 2022 was $249.55 billion, and it is expected to exceed $280 billion in 2023, reaching over $600 billion by 2030. In contrast, the global film industry market size in 2022 was only $94.4 billion. Gaming holds a significant position in the leisure industry.

The number of gamers worldwide has exceeded 2.5 billion, approaching 3 billion. The reason games can attract so many players is primarily that they satisfy various aspects of human needs:

• Escape reality and restart life
• Low-pressure social
• Instant feedback rewards
• Low-cost free exploration
• Pursuing a sense of achievement and self-actualization

Traditional games are mainly divided into types such as shooting, adventure, role-playing, battle royale, strategy, sports, puzzle, action, and simulation. According to the data, role-playing and adventure games perform well on various platforms.

2. The Dilemma of the Traditional Gaming Industry

Traditional games face two major dilemmas:

1. Game release is restricted by licensing numbers. Taking China as an example, games must obtain a licensing number before they can be published. The stagnation of licensing number approvals from 2021 to 2022 led to the collapse of many small and medium-sized gaming companies.

2. The high cost before issuance can easily lead to sunk costs. Stages such as game development, waiting for approval, and acquiring users require significant upfront investment, have a long profit cycle, and carry high risks.

3. Attempts to Break the Game2.5

Web 2.5 games circumvent licensing restrictions by targeting global users and obtain revenue in advance through the issuance of NFTs and tokens. Games like Axie and Stepn once created a frenzy, but the excitement faded after their economic models collapsed. Some developers have turned to AAA titles, while others are exploring new possibilities in full-chain games.

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

Currently, the blockchain gaming industry is in its early stages and can be divided into four main categories: game projects, game engines, game chains, and distribution platforms.

1. Full-chain game projects

The number of playable on-chain games does not exceed 20, mostly in the testing phase, primarily strategy-based. Below are a few representative projects:

Dark Forest

• A decentralized strategy game on Ethereum, using zkSNARKs technology
• A representative work of full-chain games, pioneering the realization of game logic fully on-chain.
• The open ecosystem has given rise to a wealth of plugins and secondary creations.

Loot Survivor

• Text adventure game based on the Loot ecosystem
• Simple monster hunting and leveling up gameplay, emphasizing the "Play to Die" concept.

Imminent Solace

• Treasure hunting game based on ZK War Fog
• Developed using the MUD engine, the game experience is relatively good.

2. Full Chain Game Engine

There are mainly two engines: MUD and Dojo.

MUD

• The first full-chain game engine released in November 2022
• The most diverse ecosystem, including projects like Dark Forest, OPCraft, Sky Strife, etc.

Dojo

• Released in February 2023, based on the Starknet ecosystem
• Backed by the Loot ecosystem, representative projects include Loot Survivor, Dope Wars, etc.

3. Full Chain Game Chain

Currently, most full-chain game projects choose to build on Layer 2 solutions such as Arbitrum Nova, Optimism, and Starknet. Some teams like Argus and Curio are developing dedicated full-chain game Layer 2.

4. Full Chain Game Aggregator/Distribution Platform

There are mainly two platforms:

Composable Hub

• Aggregating 56 blockchain games, of which 14 have been launched.

Cartridge

• Starkware ecosystem's full-chain game aggregator
• Currently aggregating 5 Starknet ecosystem games

4. The Core Advantages of Full-Chain Games

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

The entire chain game transforms players from mere consumers into creators of game rules through open source code and interoperability. This possibility of free creation greatly enriches game content, achieving a transition from PGR( professional generated rules ) to UGR( user generated rules ).

2. Fairness and Transparency

The logic and rules of the entire chain game are all on-chain, ensuring the fairness and transparency of the game. This is especially significant for game theory games, as it can avoid centralized control.

V. Challenges and Limitations of Full-Chain Games

1. Poor user experience

• Match player difficulty
• The artificially set entry threshold is high.
• Bugs occur frequently
• Low playability

2. Game type is limited

Currently, the main focus is on strategy games, and it is difficult to implement game types that require high real-time performance.

3. The authenticity of the demand is in doubt.

The two major advantages of full-chain games, ( UGR and fairness, ) still need to be verified whether they can meet the real needs of players.

4. Complete decentralization may lead to chaos.

It is necessary to balance the relationship between professional design and player creation.

6. Thoughts on the Business Model of the Whole Chain Game

The business model of blockchain games should enhance playability by integrating its characteristics and adopting different strategies based on the type of game:

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

7. Summary

Full-chain games provide players with the opportunity to become game creators, but currently face issues such as poor user experience and low playability. In the future, it is necessary to explore how to combine wealth creation effects with game playability, leveraging full-chain characteristics to address the real needs of players. Looking forward to the emergence of a new gaming universe within an open ecosystem.

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