Comprehensive Chain Game Depth Research Report: Exploring Bubble and Revolution from the Perspective of Encryption Native

I. Introduction: Definition of Full-Chain Games

Recently, the testnet Pass card for the blockchain game Sky Strife reached a FOMO of 21,000 ETH, attracting attention from non-blockchain gamers to this field. The gaming industry has evolved since the release of Pong in 1972, transitioning from 8-bit classic games to today's complex online games, far exceeding mere entertainment.

With the development of blockchain technology and encryption, the gaming industry is reshaping user experience in new ways. From Axie Infinity, which combines gaming with the encryption economy, to Stepn, which is centered around social innovation, blockchain games are expected to drive the large-scale application of encryption technology. People are beginning to explore new ways to combine gaming and blockchain; in addition to asset on-chain, more elements can also be put on-chain, giving rise to full-chain games.

The main features of blockchain games include:

1. The authenticity of data sources is ensured by blockchain, which becomes the storage center for all key data.

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

3. Game development follows the principles of an open ecosystem, providing a vast 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 still continue.

2. Analysis of the Necessity of Full-Chain Games

1. Current Status of the Traditional Gaming Industry

According to data, the global gaming market size was $249.55 billion in 2022, and it is expected to exceed $280 billion in 2023, surpassing $600 billion by 2030. Gaming occupies an important position in the leisure industry, with significant room for growth in both the depth of commercialization and the breadth of types.

The number of gamers worldwide has approached 3 billion. The reason games can attract such a large number of participants is primarily due to their ability to satisfy various human needs:

1. Escape reality and restart life
2. Burden-free socializing
3. Rewards for receiving timely feedback
4. Low-cost free exploration
5. Pursuing achievement and self-realization

Traditional game genres mainly include shooting, adventure, role-playing, battle royale, strategy, sports, puzzle, action, simulation, etc. Among them, role-playing and adventure genres perform exceptionally well on various platforms.

2. The Dilemma of the Traditional Gaming Industry

Traditional games face two major dilemmas:

1. The issuance of games is restricted by licensing numbers. For example in China, the stagnation of license approval has led to the collapse of many small and medium-sized game companies.

2. The pre-issuance cost is high, the payback period is long, and it is easy to incur sunk costs. The long development and issuance phases in the early stage make the profit cycle very long, and the risk of obtaining expected returns is relatively high.

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

Web 2.5 games circumvent the licensing restrictions by targeting global users and obtain early revenue through the issuance of NFTs and tokens, thereby lowering the financial threshold. However, as the Ponzi economic model collapses, it becomes difficult for Web 2.5 games to replicate their early success. Some developers are beginning to shift towards fully on-chain games to explore new possibilities.

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

Currently, on-chain games are in the early stages and can be divided into four major categories: on-chain game projects, engines, chains, and distribution platforms.

1. Full Chain Game Project

Representative projects include Dark Forest, Loot Survivor, Sky Strife, Imminent Solace, etc., most of which are in the testing phase. The game types are mainly strategy-based, with some projects beginning to experiment with simulation management.

Dark Forest, as a representative work, is a decentralized strategy game created on Ethereum using zkSNARKs. Its features include on-chain game logic, an open ecosystem, and the use of zk technology to achieve information hiding.

Loot Survivor is an important part of the Loot ecosystem, featuring text-based interactive dungeon gameplay.

Imminent Solace is a battle royale treasure brawl game based on ZK Fog of War, offering a good user experience.

2. Full-chain Game Engine

Mainly includes Mud, Dojo, Argus, Curio, Paima, etc. Mud and Dojo are currently the two most mainstream full-chain game engines, building the EVM-compatible ecosystem and Starknet ecosystem respectively.

Mud, developed by the Lattice team, is one of the earliest full-chain game engines, and currently has the richest developer ecosystem.

Dojo is an engine on the Starknet ecosystem, backed by the Loot ecosystem IP.

3. Full Chain Game Chain

Currently, most on-chain game projects are built on Layer 2 solutions such as Arbitrum Nova, Optimism, and Starknet. Some teams like Argus and Curio are developing Layer 2 specifically for on-chain games.

4. Full-chain game aggregator/distribution platform

There are mainly two platforms: Composable Hub and Cartridge. Composable Hub aggregates 56 full-chain games, while Cartridge aggregates 5 games from the Starknet ecosystem.

4. The Core Advantages of Full-Chain Games

1. From PGR to UGR, granting everyone the right to become a creator.

The whole-chain game supports permissionless interoperability, allowing players to freely build game features and experiences, achieving the transition from PGR to UGR. This openness transforms the game from a binary division to a new model where every player can become a builder and creator.

2. Fairness and transparency, experiencing an uncontrollable gaming environment

The logic and rules of the whole-chain game are all on-chain, ensuring the transparency of the rules. Combined with encryption technology, it can provide experiences that are difficult for Web2 and Web2.5 game types to achieve, which require fairness.

V. Challenges and Limitations Faced by Blockchain Games

1. Poor user experience

• The picture quality is rough, and the interactive experience is poor.
• Difficult to match with other players.
• Some game settings have artificial thresholds.
• Frequent bugs
• The narrative is grand, but the playability is extremely low.

2. Game Type Restrictions Currently, it is mainly suitable for strategy games, and it is difficult to support game types that require high real-time performance.

3. The authenticity of the demand needs to be verified. Whether the core advantages of full-chain games can meet the actual needs of players remains to be verified.

4. Complete decentralization may cause chaos. How to balance professional game development and player creation is a challenge.

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

According to the game type, the business model of full-chain games can be divided into three directions:

1. Lightweight Games: Adopting the NFT + Token Charging Model

2. Open Narrative Games: Consider paid entry barriers and subscription membership models.

3. Board games: You can refer to the commission method in traditional models.

Currently still in the exploratory stage, looking forward to more interesting models emerging.

7. Conclusion

Although the whole-chain games still face many challenges, their unique UGR characteristics and fairness and transparency bring new possibilities to the gaming industry. How to leverage these features to address the real needs of players is the core issue that builders of whole-chain games need to consider. We look forward to seeing truly innovative game projects that utilize the full-chain characteristics and meet actual demands emerge through continuous exploration.