How will full-chain games completely change Web3 gaming in 2024?

Author: Cathrine Williams

Translation: Baihua Blockchain

In the ever-evolving landscape of the gaming industry, a groundbreaking phenomenon has emerged that merges technology, creativity, and finance—Non-Fungible Tokens (NFTs). NFTs are unique digital assets secured by blockchain technology, which have transcended their origins in the art world to become a driving force in the next generation of game development. This intersection has birthed a new era of gaming where players can truly own, trade, and monetize in-game assets like never before.

The development of NFT games marks a paradigm shift, challenging traditional gaming models by introducing decentralized and player-centric ecosystems. Unlike traditional games, where items and characters are typically owned and controlled by game developers, NFT games grant players true ownership of their digital assets. These assets are represented as NFTs on the blockchain, verifiable as scarce and unique, and can be securely transferred between players.

The integration of blockchain technology with gaming not only enhances the player experience but also introduces novel economic possibilities. Players can buy, sell, and trade NFTs in decentralized marketplaces, creating a vibrant in-game economy. Developers also benefit from this ecosystem, as they can implement play-to-earn models, allowing players to gain real-world value through gaming activities.

Moreover, NFTs enable cross-game compatibility, allowing players to use their digital assets across multiple gaming platforms. This interoperability enhances the longevity and diversity of gaming items, contributing to the creation of a shared metaverse where virtual assets can seamlessly transfer between different virtual worlds.

This introduction lays the groundwork for exploring the revolutionary landscape of NFT game development, where innovation and creativity converge to redefine our perceptions of digital gaming experiences, interactions, and value. As we delve deeper into the complexities of this emerging field, we will unveil the transformative potential of NFTs in shaping the future of gaming as we know it.

1. What are Fully On-Chain Games?

Fully on-chain games refer to video games that operate entirely on blockchain infrastructure. In traditional video games, most game logic, data storage, and asset ownership are managed by centralized servers controlled by game developers or publishers. However, fully on-chain games leverage blockchain technology to decentralize and distribute these elements, bringing a new paradigm to gaming.

Key features of fully on-chain games include:

1) Blockchain as the Backbone: In fully on-chain games, core functionalities such as game mechanics, asset ownership, and smart contract execution are directly integrated into the blockchain. This ensures that the game operates on a decentralized network of nodes rather than relying on a central server.

2) Asset Ownership and Non-Fungible Tokens (NFTs): Non-Fungible Tokens (NFTs) play a crucial role in fully on-chain games. Each item, character, or asset in the game exists as a unique NFT on the blockchain. This grants players true ownership of their digital property, enabling them to transfer, trade, or sell assets outside the game.

3) Smart Contracts for Game Logic: Smart contracts are self-executing code on the blockchain that manage various aspects of fully on-chain games. They define the rules, mechanics, and interactions within the game, ensuring transparency and immutability. Smart contracts can handle tasks such as distributing rewards, managing the game economy, and enforcing game rules.

4) Decentralized Consensus: Unlike traditional games, where a central authority verifies and maintains the game state, fully on-chain games rely on decentralized consensus mechanisms, often utilizing blockchain consensus algorithms. This decentralization enhances security, reduces the risk of fraud, and ensures that no single entity controls the game.

5) Interoperability and Cross-Game Assets: Fully on-chain games achieve interoperability, allowing players to use their assets across various games or virtual worlds that support the same blockchain standards. This creates opportunities for cross-game collaboration and builds a unified metaverse where digital assets can flow seamlessly between different gaming experiences.

6) Cryptocurrency Integration: Fully on-chain games often integrate cryptocurrencies or native tokens as mediums of exchange within the game ecosystem. These tokens can be used for trading, in-game purchases, or as rewards for players.

Fully on-chain games represent a fundamentally different approach from traditional gaming models, offering greater transparency, player agency, and a more open and interconnected gaming environment. As blockchain technology continues to evolve, fully on-chain games are likely to play a significant role in shaping the future of the gaming industry.

2. Fully On-Chain Games vs. Partially On-Chain Games

Fully on-chain games and partially on-chain games represent two different approaches to integrating blockchain technology into the gaming industry. While both leverage certain aspects of blockchain, they differ in the degree of decentralization of game elements. Let’s explore the key differences between these two models:

1) Fully On-Chain Games

Fully Decentralized: In fully on-chain games, the entire game logic, assets, and transactions are executed on the blockchain. This includes elements such as game mechanics, asset ownership, and in-game economy, all managed by smart contracts on the blockchain.

Asset Ownership via NFTs: Non-Fungible Tokens (NFTs) play a significant role in fully on-chain games. Each game item, character, or asset is represented as a unique NFT, providing players with true ownership and enabling them to trade or sell these assets across different platforms.

Decentralized Consensus: Fully on-chain games typically rely on decentralized consensus mechanisms, such as blockchain consensus algorithms, to verify and maintain the game state. This eliminates the need for a central authority, enhancing security and immutability.

Interoperability: Fully on-chain games promote interoperability, allowing players to use their digital assets across various games or virtual worlds that support the same blockchain standards. This helps build a more connected and unified metaverse.

Cryptocurrency Integration: Fully on-chain games often integrate cryptocurrencies or native tokens into the game for in-game transactions, purchases, and rewards, further establishing a decentralized economic system within the game ecosystem.

2) Partially On-Chain Games

Hybrid Model: Partially on-chain games maintain a balance between decentralized and centralized elements. While certain aspects, such as asset ownership, may utilize NFTs for blockchain processing, other elements, such as game logic and transactions, may still be managed by centralized servers.

Selective Use of Blockchain: In partially on-chain games, blockchain technology is selectively used for specific functions, typically those that benefit from decentralization or require transparency. This allows developers to integrate blockchain without completely altering traditional gaming models.

Centralized Components: In partially on-chain games, certain game features (such as matchmaking, server management, and some aspects of gameplay) may still be handled by centralized servers. This applies the advantages of blockchain to the most impactful areas while maintaining developer control.

Challenges of Asset Interoperability: Although partially on-chain games may use blockchain to handle asset ownership, achieving complete interoperability between different gaming platforms can be challenging due to the presence of centralized components.

Both fully on-chain and partially on-chain models contribute to the evolving landscape of blockchain gaming, each with its advantages and challenges. The choice between the two often depends on the development team's goals, the desired level of decentralization, and the specific use cases within the game ecosystem.

3. Advantages of Releasing Fully On-Chain Games

Releasing fully on-chain games offers several business advantages that can transform the gaming industry and provide unique opportunities for developers, publishers, and players. Here are some key business advantages:

1) True Asset Ownership

Enhanced Player Engagement: Fully on-chain games grant players true ownership of in-game assets, existing as NFTs. This not only deepens the connection between players and the game but also encourages long-term engagement, as players view their virtual property as valuable and transferable assets.

2) Decentralized Economy

Player-Driven In-Game Economy: In fully on-chain games, players can actively participate in the in-game economy by buying, selling, and trading assets in decentralized marketplaces. This player-driven economy can increase user retention, as players have financial incentives to stay engaged and contribute to the virtual ecosystem.

3) Interoperability and Cross-Game Collaboration

Expanded Player Base: Full interoperability allows players to use their assets across different fully on-chain games or virtual worlds. This not only provides players with a seamless gaming experience but also allows developers to tap into a larger player base, creating a shared metaverse where assets flow between multiple gaming experiences.

4) Blockchain Monetization

Play-to-Earn Model: Fully on-chain games facilitate play-to-earn models, allowing players to earn cryptocurrencies or native tokens through in-game activities. This incentivizes player participation and can attract a broader audience, including those interested in blockchain-based monetization opportunities.

5) Reduced Fraud and Cheating

Enhanced Security: Utilizing blockchain technology and decentralized consensus mechanisms in fully on-chain games can reduce the risk of fraud, cheating, and unauthorized modifications. This ensures a fair and secure gaming environment, particularly appealing to competitive gaming communities.

6) Community Building

Active Communities: Blockchain-based games often foster vibrant and engaged communities due to the transparent and decentralized nature of the ecosystem. Players become stakeholders in the game's success, leading to positive community engagement, word-of-mouth marketing, and potential growth through network effects.

7) Token Integration and Monetization

In-Game Token Economy: Integrating cryptocurrencies or native tokens into fully on-chain games provides developers with new monetization options. Tokens can be used for in-game purchases, trading, and rewards, building a decentralized economic system within the game ecosystem.

8) Market Revenue

Transaction Fees: Fully on-chain games can generate revenue by charging transaction fees in decentralized marketplaces where players buy, sell, and trade NFTs. Developers can benefit from each transaction, contributing to overall monetization strategies.

9) Brand Differentiation

Innovation and Leadership: Releasing fully on-chain games positions companies as innovators in the gaming industry. This can enhance brand differentiation, attract the attention of blockchain enthusiasts, and establish the business as a forward-thinking participant in the evolving blockchain gaming space.

In summary, fully on-chain games offer a disruptive and innovative way to play, providing developers and players with true ownership, decentralized economies, and novel monetization possibilities. Embracing this model can place businesses at the forefront of the evolving blockchain gaming ecosystem.

4. Conclusion

Overall, the emergence of fully on-chain games marks a transformative moment in the gaming industry, introducing a decentralized paradigm that reshapes how developers create, players engage, and economies thrive in virtual worlds. The business benefits brought by the launch of fully on-chain games are not merely technological novelties but highlight a range of advantages that can redefine success metrics and player experiences.

The concept of true asset ownership, facilitated by the use of Non-Fungible Tokens (NFTs), bestows real-world value on virtual property, thereby increasing player engagement. This shift from traditional models not only fosters player loyalty but also establishes a dynamic, player-driven in-game economy through decentralized marketplaces.

Interoperability becomes a cornerstone, connecting fully on-chain games within a shared metaverse, allowing digital assets to traverse different gaming experiences seamlessly. This not only expands the player base but also opens avenues for cross-game collaboration, igniting creativity and innovation within the gaming ecosystem.

The integration of blockchain technology introduces play-to-earn models, providing tangible incentives for players' efforts within games. This novel approach not only attracts a diverse audience, including blockchain enthusiasts seeking monetization opportunities, but also contributes to the creation of actively engaged and vibrant gaming communities.

In fully on-chain games, security and fairness become paramount, as the decentralized consensus mechanisms of blockchain reduce the risks of fraud and cheating. This not only ensures a secure gaming environment but also appeals to competitive gaming communities seeking integrity and transparency.

The introduction of cryptocurrencies or native tokens brings forth new monetization strategies, allowing developers to generate revenue through in-game purchases, trading, and marketplace activities. This token-driven economy fosters innovation and provides developers with additional tools to create compelling gaming experiences.

Furthermore, the commitment to blockchain technology in fully on-chain games positions businesses as industry pioneers, promoting brand differentiation and signaling a commitment to innovation. This forward-thinking approach is likely to attract the attention of both traditional gamers and blockchain enthusiasts, contributing to the growth and success of gaming enterprises.

As the gaming industry continues to evolve, fully on-chain games not only represent a technological shift but also reimagine the relationship between players and virtual worlds. By embracing the decentralized ethos of blockchain, developers are poised to unlock new realms of creativity, economic potential, and player satisfaction, propelling the industry toward a future filled with promise and opportunity.