AltLayer Founder: In-Depth Discussion on the Technology of Autonomous Worlds (AW)

Original Title: 《Autonomous Worlds: A Technical Deep Dive》

Original Author: YQ

Compiled by: Kate, Marsbit

In recent years, a new gaming model based on blockchain has emerged, promising to fundamentally change the way we build and experience virtual worlds. This model is known as autonomous worlds—persistent, decentralized virtual environments where community ownership and on-chain logic enable new forms of emerging games, economic incentives, and user-generated content.

In this extensive technical article, we will explore what autonomous worlds are, why they represent a radical shift from traditional gaming models, how they are constructed, the infrastructure that supports them, and the future possibilities they unleash. Dive into the forefront of crypto-native gaming.

What are Autonomous Worlds (AW)?

At the highest level, autonomous worlds are virtual environments driven by decentralized blockchain networks, where the rules, assets, and states of the world exist on-chain. This means that autonomous worlds are not controlled by centralized game developers but are co-owned and operated by their user communities. Characteristics of autonomous worlds include:

All game logic and state are encoded on-chain via smart contracts. The fact that all game logic and state are on-chain means that every core part of the game, from character attributes to item properties, is defined and executed by smart contracts on the blockchain. This provides complete transparency in how the game operates. Players can inspect the actual code behind the game mechanics and verify the authenticity of things like the scarcity and attributes of NFT items. Storing state on-chain also allows for features like provable randomness and transparency, such as dynamic pricing or drop rates. Overall, on-chain logic and state mean that the entire core "backend" of the game operates transparently and autonomously, rather than running on private centralized servers.

On-chain assets are represented as non-fungible tokens (NFTs). NFTs are used to represent unique in-game assets, such as characters, cosmetics, upgrade items, etc. Each token contains metadata that assigns it to a specific asset, endowing it with properties and tracking ownership on-chain. This provides players with verifiable digital ownership of scarce in-game items. NFTs can be freely traded on markets without interference from developers. Unlike virtual items on centralized platforms, NFT-based assets exist permanently on the blockchain, independent of any game. Players can also use NFTs across different games that recognize the same token standards.

Anyone can extend or modify the core game contracts without permission. As the community continues to expand upon the initial game, this allows for unexpected gameplay to emerge. One of the most powerful aspects of autonomous worlds is that the core smart contracts governing gameplay are open-source. This allows any developer to build plugins, game modes, levels, and other extensions on top of existing games. For example, someone could create a new competition format that connects to the core combat logic. If players enjoy it, these extensions can be adopted into the main game.

This permissionless innovation leads to faster iteration and community-driven development. Decentralized governance mechanisms enabled by tokens or DAOs allow the community to control key parameters and the future evolution of world rules and incentives. Autonomous worlds typically use decentralized governance in the form of voting-weighted tokens or DAOs. This enables the community to change token economic parameters, game rules, and even roadmaps and feature scopes. Proposals can be transparently submitted and voted on-chain, without any top-down control from any party. Power is distributed among regular players, core contributors, third-party developers, token holders, and other community members. This gives the community a true sense of ownership over the development of the world. However, large-scale decentralized governance remains an unresolved challenge.

Through direct integration with cryptocurrencies and DeFi protocols, users can freely exchange value in a permissionless economy. Because autonomous worlds integrate with general cryptocurrencies and DeFi applications, their economies are permissionless. Game assets represented as NFTs can be freely traded on markets or used as collateral in DeFi protocols. Tokens earned in-game can be converted into the larger cryptocurrency economy. This enables a true "play-to-earn" functionality, allowing players to reap economic rewards for their efforts in the game world. The permissionless economy diversifies business models and incentive mechanisms, aligning with open participation.

Unlike traditional centralized games, in an autonomous world, no single entity holds top-down control. The underlying blockchain technology grants users sovereignty over the assets they own and the actions they take in these environments. While the initial game designers may set the "physics" of the world by encoding the basic rules into immutable smart contracts, governance power ultimately resides with the community.

Why Autonomous Worlds Represent a Radical Shift

Autonomous worlds introduce a completely new way to build and experience blockchain technology-supported virtual environments. Here are the main differences from traditional games:

True digital ownership. Unlike virtual items that exist on isolated centralized game servers, blockchain-based NFTs allow users to verifiably own assets and take them anywhere. NFTs contain metadata that proves ownership of unique digital assets protected by the blockchain. This enables users to have complete control over their in-game items, allowing them to freely trade or move these items between different games and markets. Users do not have to worry about losing access to items when a game goes offline. Game developers cannot centrally control the in-game economy.

Permissionless scalability. Any developer can build autonomous worlds without needing approval from the core team. This enables faster iteration and community-driven development. The open and transparent nature of smart contracts means anyone can view and build upon the core logic that powers autonomous worlds. Developers can create new experiences such as mini-games, unique levels, quests, or even entirely new game modes. If these extensions prove popular, they can be adopted by the broader community. This permissionless innovation fosters greater creativity, as developers push the boundaries based on each other's work.

Persistence and resistance to censorship. Autonomous worlds will run forever on the blockchain network and can resist censorship or shutdown. One often-overlooked aspect of fully on-chain games is that once they are placed on-chain, they can operate independently. Given the resilience of blockchains (as long as there are validators, they can stay online), on-chain games have digital persistence: as long as the blockchain is running, they can exist as code. Theoretically, if the underlying blockchain that builds the game exists for 300 years, then the on-chain game and its logic will still exist and be stored on the blockchain, and players will still be able to play the game.

Play-to-earn economies. On-chain assets and currencies combined with DeFi and real-world markets allow closed game loops to give way to open economies, enabling users to monetize their time and effort. Users can earn real value and fungible cryptocurrency tokens by completing tasks and playing games. These tokens can be transferred to users' wallets and traded on markets outside the game. Conversely, tokens earned outside the game can also be brought into the game and used. This blurs the line between playing games just for fun and playing games to earn real income. New gaming profit strategies and business models have emerged in these open economies.

Decentralized governance. Blockchain-based coordination like DAOs allows users to collectively manage autonomous worlds rather than having unilateral control held by developers. Any changes to game parameters or logic can be proposed and voted on transparently. Power is distributed among regular players, core contributors, third-party developers, token holders, and other community members. This gives the community a true sense of ownership over the development of the world.

Interoperability between worlds. Assets and systems built for one world can more easily interoperate with other on-chain environments. For example, a specific cryptocurrency token earned in one game can be used in another game that recognizes it. Alternatively, users can bring their customizable avatars and decorative NFTs between different worlds and blockchain-based virtual environments. This interoperability fosters a rich ecosystem of interconnected experiences rather than closed worlds.

These represent fundamental expansions of user ownership, control, and economic rights in gaming environments, aligning with the spirit of decentralization. While not without drawbacks, the autonomy enabled by crypto-native architectures offers new creative possibilities.

How Autonomous Worlds are Built

Designing autonomous worlds requires expertise in game design, blockchain development, mechanism design, and systems thinking. Here are the key technical components involved:

Smart contracts that encode the "physics" and core rule sets. These define aspects such as token/NFT standards, basic character attributes/abilities, minting logic, etc.

Frontend implementation. It interprets on-chain state to render graphics, game UI, etc., for users. This can be achieved through traditional engines like Unity or specialized blockchain tools.

Cryptoeconomic design. Effective incentive structures drive desired user behavior and prevent exploits. Influencing factors range from gameplay rewards to governance.

Technical architecture. Low-latency synchronization of chain data to clients, modular/upgradable contracts, and composable interfaces between contracts are important architectural considerations.

Infrastructure requirements. Scalability through layer 2 solutions, oracles, cross-chain interoperability bridges, and other solutions to support optimal user experiences.

While autonomous worlds can leverage some patterns from traditional game development, such as combat mechanics and 3D environments, the blockchain aspect has its unique constraints and opportunities. Teams need expertise across both domains to build a robust on-chain gaming stack.

Infrastructure Supporting Autonomous Worlds

In addition to core game design and blockchain engineering expertise, several supporting technologies and infrastructure elements are crucial for providing a rich user experience for autonomous worlds:

• Layer 2 scaling solutions like rollups are essential for reducing transaction costs for high-frequency operations and achieving higher throughput.
• Data layers like The Graph allow frontends to efficiently query on-chain data. Identity and account abstraction solutions improve user experience by masking users' wallet addresses.
• Oracles allow for the verification of off-chain data to influence on-chain state if game logic requires it. Interoperability bridges enable users to seamlessly move assets between different blockchain environments.
• Cloud services, such as backend databases, compute/render farms, and message queues, can complement on-chain logic to enable complex in-game behaviors.
• Specialized tools like the Lattice framework can help developers implement common game patterns, such as character attributes and inventories, using reusable libraries.

As blockchain technology matures, the availability and complexity of the above solutions will greatly expand the possibilities for building autonomous worlds.

Future Possibilities

If these limitations can be effectively addressed, autonomous worlds enabled by blockchain and cryptoeconomics can open the door to entirely new possibilities:

• Interconnected metaverses—worlds that span narratives, mechanics, and economies.
• Truly decentralized virtual economies with their own localized cultures and behaviors.
• New community coordination tools that replace centralized governance.
• User-generated subnetworks—worlds created by synthetic tools and systems from other worlds.
• Reputation, identity, and social capital systems tied to on-chain activity records.
• Culturally significant digital spaces that capture the energy and buzz of physical scenes like Renaissance Florence, ancient Athens, or early internet message boards.
• By technically encoding community ownership, permissionless composability, and economic consistency, autonomous worlds can foster new forms of social organization, creativity, and production.

Conclusion

Autonomous worlds represent an ambitious vision for decentralized gaming environments—built on blockchain and cryptography—that offer users greater creative freedom and ownership. By encoding rules, states, and incentives on an immutable and community-controlled network, they promise to realize new models of user governance, economy, and cultural generation.

The concept of autonomous worlds is still in its infancy, but it sketches an intriguing North Star for the evolution of virtual environments supported by blockchain technology and cryptoeconomics. Their emergence will mark another step toward decentralizing the digital economy and enhancing user rights in virtual worlds. We are just beginning to see the possibilities of community-owned digital worlds.