In-Depth Research on the Whole Chain Game: With Encryption Native as the Core, Is It a Bubble or a Revolution?

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

Recently, the Pass card of the all-chain game Sky Strife fomoed to 21,000 ETH on the test network, attracting the attention of many non-all-chain game players to this track. Since the release of "Pong" in 1972, the gaming industry has been on a wild ride, transforming from classic 8-bit games to today's highly complex and socially interactive online games, where gaming is no longer just simple entertainment.

With the rise of blockchain technology and the development of encryption currencies, the gaming industry is reshaping our 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 Crypto Mass Adoption. People are also beginning to explore new ways to combine gaming and blockchain, asking if more elements can be put on-chain besides asset tokenization. Thus, the birth of full-chain games.

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

In traditional games, all game logic, data storage, digital assets, and game states are stored in centralized gaming companies. The subsequently emerging asset on-chain games ( Web2.5 games ) put assets on-chain, allowing players to have ownership of assets and enhancing asset liquidity. However, when facing game shutdowns, game assets will still lose 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 state, all processed by the blockchain, thereby achieving true decentralized gaming.

The characteristics of blockchain games can be summarized in the following 4 points:

1. The authenticity of the data source is ensured by the blockchain. The blockchain serves not only as an auxiliary storage for data but also as 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 clients adopt an open-source model, providing ample 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. Why do humans need full-chain games?

1. Current Status of the Traditional Gaming Industry

According to data from Fortune Business Insights, the global gaming market size was $249.55 billion in 2022, expected to exceed $280 billion in 2023 and surpass $600 billion by 2030. In comparison, the global film market size was $94.4 billion in 2022. Gaming occupies a very important 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 participants is mainly because they meet the multifaceted needs of human nature:

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

2. Burden-free socialization: Multiplayer online games provide a platform for social interaction, making them relatively friendly for those with social anxiety.

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

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

5. Pursuing achievements and self-realization: By completing tasks and goals, players can fulfill their desire for success and recognition.

2. The Dilemma of the Traditional Gaming Industry

Currently, traditional games face two major dilemmas:

1. The release of the game is subject to license number restrictions.

In China, the impact of game approval numbers is particularly severe. After releasing 87 game approval numbers on July 22, 2021, there was a long period of stagnation, which gradually resumed in April 2022. During this stagnation period, many small and medium-sized game companies faced bankruptcy.

2. High costs before issuance can easily lead to sunk costs.

Web2 games need to bear the initial human resources and infrastructure costs during the development stage, and there is idle time cost during the waiting for the license stage. Only when the license is issued, the game is released, and commercial revenue is generated, can profit sharing take place. This leads to a long profit cycle and a higher risk of not achieving expected returns.

3. The Breakthrough Attempts of Web2.5 Games

Faced with these two dilemmas, Web2.5 games take the lead in breaking the deadlock:

1. Bypass domestic version number restrictions by targeting global users.

2. By issuing NFTs and tokens, income can be generated during the game testing and startup phase, reducing the financial barrier to game production.

However, as the Ponzi economic model collapses, it is difficult for Web 2.5 games to create another wave of popularity like Axie and Stepn. Some developers are turning to AAA titles, trying to grab a share among Web 2 users; others are turning to fully on-chain games, exploring new possibilities and value verification.

III. Analysis of the Current State of the Blockchain Gaming Industry

Currently, the entire blockchain gaming sector is at a very early stage, with both gaming projects and related infrastructure under development. The industrial landscape of the blockchain gaming field can be roughly divided into four categories: blockchain gaming projects, blockchain gaming engines, blockchain gaming chains, and blockchain gaming distribution platforms.

1. Full Chain Game Project

Currently, the on-chain game projects are in a very early stage, with most still in testing, and the number of playable on-chain games on the market does not exceed double digits. The overall game genre is mainly SLG( strategy type), with some simulation management games also under development.

The following are several representative on-chain games:

1. Dark forest

Dark Forest is one of the earliest incomplete information games built on decentralized systems. As a space conquest strategy game, players develop their empires by exploring the infinite universe. Its main highlights include:

• Game logic, data, and state are all on the chain, and centralized individuals cannot control it singularly.
• The open-source full-chain game model grants permissionless interoperability, fostering a thriving secondary creation ecosystem.
• Using zk-SNARKS technology for information hiding, achieving policy adversarial.

2. Loot survivor

Loot Survivor is a Loot ecosystem game developed by the BibliothecaDAO team. It is a text-based dungeon/Roguelike game that involves battling monsters through text interactions until death, and encourages players to continuously challenge themselves through a leaderboard.

3. Imminent Solace

Imminent Solace is a battle royale game based on ZK war fog, developed on the Mud engine. The game integrates PVP looting, autonomous world exploration, and PoW resource mining, with high ease of operation and user experience.

2. Full Chain Game Engine

The core purpose of the full-chain game engine is to integrate the common functionalities used in making full-chain games, forming universal code, allowing developers to focus on the development of differentiated game content. Currently, the mainstream full-chain game engines include Mud and Dojo.

1. Mud

Mud is the first full-chain game engine officially released by Lattice in November 2022. Currently, multiple projects have emerged in the Mud ecosystem, such as OPCraft, Sky Strife, Word3, etc., making it the full-chain game engine with the most developers.

2. Dojo

Dojo is a game engine that was born in the Starknet ecosystem and was officially released in February 2023. The Dojo ecosystem is backed by the Loot ecosystem and has several projects, such as Loot Survivor, Loot Realms: Eternum, etc.

3. Full Chain Game Chain

Current full-chain game projects tend to be built on some generic Layer 2 solutions, such as Arbitrum Nova, Optimism, and Starknet. Some teams are developing proprietary chains for full-chain games, such as the Argus team's World Engine and Curio's new Layer 2 developed based on OPStack.

4. Full-chain Game Aggregator/Distribution Platform

Currently, the aggregator/publishing platforms for all-chain games are still in their infancy. There are mainly two platforms:

1. 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 in development.

2. Cartridge

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

4. The Core Advantages of Full-Chain Games

1. From PGR to UGR, let everyone have the right to become a god.

The openness of blockchain games has transformed the binary division of "game companies as providers and players as consumers" into a new model where every player can become a game builder and creator. This possibility of free creation greatly enriches the content and functions of the games, achieving a transition from PGR(Professional Generated Rules) to UGR(User Generated Rules).

2. Fairness and Transparency, experiencing an unmanipulated gaming environment

The transparency of the game logic and rules of the full-chain game being completely on-chain can ensure the public transparency of the rules. By combining some encryption technologies such as ZK-SNARK, the full-chain game can provide experiences that are difficult for Web2 and Web2.5 games to achieve, for game types with a rigid demand for game fairness.

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