On-chain games, often referred to as Fully/Pureplay On-chain Games or simply "Fully On-chain Games", exist in the form of smart futures on the blockchain. They are distinct from GameFi games that only mint in-game assets as FT/NFT. All game states and logic in on-chain games are stored and executed on blockchain, offering features like decentralization, permissionless access, and composability.
On-chain Gaming Market Overview
As of September 14, the on-chain gaming sector has seen a total of 648,000 new players and a trading volume of 26.3 million. The number of active online games remains stable at 2,560, with a total market capitalization of 45.2 million USD. However, games with more than 1,000 monthly active users are relatively few, accounting for only about 9% of the total. Attracting users remains a significant challenge in the current Web3 gaming market downturn.
BNB chain hosts the most games, followed by Ethereum and Polygon. Considering games with over 1,000 monthly active users, BNB accounts for 5.3% of the total, Ethereum for 1.6%, while Polygon leads with a 10.2% share.
On-chain Gaming Investment Landscape
Investment continues to pour into the Web3 gaming sector. Five major financing rounds have garnered substantial attention, including significant investments in companies like Mahjong Meta ($12 million), Conductive.ai (undisclosed), Digital Entertainment Asset (undisclosed), Hungri Games ($1.9 million), and Irreverent Labs (undisclosed).
The amalgamation of eSports with Web3 projects is flourishing in the market, as exemplified by projects like Sorare. This month, Mahjong Meta secured $12 million in financing, becoming a highlight in the industry. The integration of traditional games like Mahjong with cutting-edge Web3 gaming is increasingly in the spotlight.
Features of Fully On-Chain Games
Compared to traditional blockchain games, fully on-chain games bring significant innovations in player asset ownership. In traditional blockchain games, if the game's operational and development teams halt, the value of player assets might be affected or even enter a so-called "GameFi death spiral" since a game's lifeline depends on team operations. In such scenarios, assets' value could plummet if operations cease.
However, this is hardly a concern for fully on-chain games. Once deployed, it doesn't matter if the original development team continues with maintenance—the game's resilience remains intact. This is due to open-source game codes, allowing the community to take over, even leading the game's development. "Dark Forest" exemplifies the power of fully on-chain game communities.
1. Composability
The key distinguishing feature of fully on-chain games from traditional ones is their composability, underpinned by their permissionless nature. With open code interfaces, anyone can redefine assets in new gaming contexts. This allows players to tailor game sessions and combine elements, fostering boundless creative innovations.
2. Artistic Presentation
First-generation blockchain games were mostly DeFi rebranded products lacking narratives or settings. High-quality ones like Axie Infinity and Theta Arena came in mobile game forms but had mediocre artistry. Second-generation games, however, often designed by veterans, after securing funds, exhibit superior artistic quality, as seen in products like Illuvium and Ember Sword.
3. Economic Model
This is a significant distinguishing factor between blockchain-based games (often called "chain games") and traditional games. In traditional games, centralized servers issue in-game assets, resulting in a high degree of opacity and controllability. Moreover, most of these assets are difficult to trade freely within the game. Thus, the in-game economic design does not impact the game's success as much as other factors. However, for chain games, transparent and freely tradable tokens and NFTs inevitably introduce a financial aspect. The game's economic cycle becomes a determining factor.
Full-chain gaming is one of the crucial areas in the application of blockchain technology. Leveraging blockchain's immutable, traceable, and decentralized characteristics, it offers a novel gaming experience. Unlike traditional games, full-chain games not only grant ownership of in-game items, record transactions, and activity logs, but also shift all logic and computations to the blockchain. This approach not only provides a fairer and more transparent gaming environment but also stimulates players to engage and co-create, thus significantly fostering innovation.
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