Full Chain Game Depth Research Report: Encryption Native Core, Bubble or Revolution?

1. Introduction: What is a Full Chain Game?

Recently, the Pass card sales for the blockchain game Sky Strife reached 21000ETH( on the testnet), attracting the attention of many non-blockchain game players to this field. Since the release of "Pong" in 1972, the gaming industry has undergone tremendous changes, evolving from classic 8-bit games to the complex online games of today; gaming is no longer just a simple form of entertainment.

With the development of blockchain technology, the gaming industry is reshaping user experience in a whole new way. From Axie Infinity, which combines gaming with encryption economy, to Stepn, which centers on social interaction and innovation, blockchain gaming is expected to drive the large-scale application of encryption technology. People are starting to explore new ways to combine gaming and blockchain; beyond asset on-chain, can more elements also be brought on-chain? This has led to the birth of full-chain gaming.

So how are blockchain games different from traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are controlled by centralized gaming companies. The subsequently emerging asset on-chain games (, commonly known as Web2.5 games ), put assets on-chain, allowing players to have ownership of assets and increasing liquidity. However, when the game shuts down, these assets may still lose 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 states, all handled by the blockchain, thereby achieving true decentralized gaming.

The characteristics of blockchain games can be summarized as the following four points:

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

2. Game logic and rules are implemented through smart contracts. Various operations in the game are executed on-chain, ensuring that the logic is traceable and secure.

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, truly achieving decentralization.

2. Why do humans need on-chain games?

1. Current Status of the Traditional Gaming Industry

According to data, the global gaming market size reached $249.55 billion in 2022, and is 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 an important position in the leisure industry, and there is significant room for growth in its commercialization Depth and variety of types.

Currently, 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 various aspects of human nature's needs:

1. Escape Reality to Restart Life: Provide a place to escape daily stress, allowing people to have a second life in the virtual world.

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

3. Rewards for Timely Feedback: The game offers a rich reward system and timely reward mechanisms to motivate players.

4. Low-cost free exploration: The game offers a rich virtual world for players to explore, satisfying their adventurous desires.

5. Pursuing achievement and self-actualization: Achieving self-challenge and role growth through completing tasks and goals.

2. The Dilemma of the Traditional Gaming Industry

Traditional games face two major dilemmas:

1. Game release is restricted by license approval.

Some countries or regions require government licenses for game publishing. Taking China as an example, the approval of publishing licenses was stagnant from July 2021 to April 2022, leading to the closure of many small and medium-sized gaming companies. Even with the resumption of releases, the contraction or adjustment of publishing licenses remains a potential threat to project teams.

2. High pre-issue costs can easily lead to sunk costs.

In the traditional game development model, there are upfront costs for human resources and infrastructure, and during the waiting period for the license, there are idle time costs. Revenue sharing only occurs when the game is released and generates commercial profits. This results in a long profit cycle and a higher risk of not achieving expected returns.

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

Web 2.5 games bypass domestic licensing restrictions by targeting global users, gaining revenue early in the game through the issuance of NFTs and tokens, thus lowering the financial threshold. Games like Axie and Stepn were once very popular, but as their economic models collapsed, subsequent games found it difficult to replicate their early success.

Some developers are turning to AAA titles, trying to carve out a share among Web2 users; others are turning to full-chain games, exploring new possibilities and value validation.

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

Currently, the whole-chain gaming industry is in a very early stage, with gaming projects and related infrastructure still under development. The industrial map of the whole-chain gaming field can be 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

Most on-chain game projects are still in the testing phase, and there are no more than 10 playable on-chain games available on the market. The game types are mainly SLG( strategy games), and there are also some projects attempting to explore simulation management. Below are a few representative playable on-chain games:

1. Dark Forest

Dark Forest is a decentralized strategy game developed by MIT graduate Brian Gu, alias Gubsheep, with some inspiration from Liu Cixin's science fiction novel "The Dark Forest." The game's features include:

• Game logic, data, and state are all on-chain, centralized individuals cannot control them independently.
• The open-source, fully on-chain gaming model grants permissionless interoperability, fostering a thriving ecosystem of secondary creations.
• Use zk-SNARKS technology to achieve information hiding and ensure strategy resistance.

Dark Forest redefines the possibilities of Web3 games and is regarded as a model of the combination of gaming and encryption. It is not just a game; it serves as a spiritual totem for the entire blockchain gaming ecosystem, inspiring many subsequent projects.

2( Loot Survivor

Loot Survivor is a text-based dungeon game developed by the BibliothecaDAO team within the Loot ecosystem. Players engage in monster battles and level up through text interactions until death, with leaderboards motivating players to continuously challenge themselves. The game is relatively small in scale and serves more to add gamified storytelling to the Loot ecosystem.

3. Imminent Solace

Imminent Solace is a treasure brawl game based on ZK War Fog developed by PTA DAO, using the Mud engine. The game integrates elements of PVP raiding, autonomous world exploration, and PoW resource mining, with simple operation and a good user experience. The ultimate goal of the project is to create a war simulation game similar to EVE.

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

( 2. Full-Chain Game Engine

The full-chain game engine aims to solve issues such as contract and client state synchronization, content updates, and contract 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, currently having the largest developer ecosystem. Representative projects include Dark Forest, OPCraft, Sky Strife, and more.

2### Dojo

Dojo is a full-chain game engine released by the Starknet ecosystem in February 2023, originally developed based on MUD in the Cairo language. The Dojo ecosystem includes projects such as Loot Survivor and Dope Wars.

The emergence of these game engines has greatly promoted the development of the full-chain gaming track and lowered the development threshold.

) 3. Full Chain Game Chain

Currently, most blockchain game projects choose to build on general Layer 2 solutions such as Arbitrum Nova, Optimism, and Starknet, rather than using dedicated game chains.

Some teams are developing proprietary chains for full-chain games, such as Argus's World Engine and Curio's new Layer2 based on OPStack. These chains feature precompiled ticking functions, which are expected to further promote the development of full-chain games.

) 4. Full Chain Game Aggregator/Distribution Platform

Currently, there are mainly two full-chain game aggregators:

1### Composable Hub

Composable Hub is an aggregation platform under Composablelabs that focuses on cross-chain games. Currently, it includes 56 cross-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 of the Starkware ecosystem, dedicated to creating a Web3 version of Steam. Currently, it has included 5 Starknet ecosystem games.

![Full Chain Game Depth Research Report: With encryption native as the core, is it a bubble or a revolution?])https://img-cdn.gateio.im/webp-social/moments-c4f74d5a3f0bec0f636e1d72783bdcc5.webp)

4. Core Advantages of Full-Chain Games

( 1. From PGR to UGR, giving everyone the right to become a god.

The whole-chain game allows players to freely build and create game functions and experiences, achieving a transition from PGR) Professional Generated Rules ### to UGR( User Generated Rules ). This openness transforms the game from a binary model of "company provides, players consume" to a new model where every player can potentially become a game builder and creator.

The advantages of blockchain games lie in their openness and flexibility, granting players greater creativity and freedom, allowing them to participate in the creation of game rules and content, forming a diverse, personalized, and vibrant gaming ecosystem.

( 2. Fairness and transparency, experiencing a game environment that is not manipulated.

The entire chain game puts all game logic and rules on the chain, achieving unprecedented transparency. This feature is especially important for gaming and gambling games, ensuring the rules are publicly transparent. Combined with some encryption technologies ) such as Z