In-Depth Research on Full-Chain Games: Is it a Bubble or a Revolution with Encryption as the Core?

Full-chain games have recently attracted a lot of attention, with Sky Strife's Pass card FOMOing to 21,000 ETH on the test network, sparking interest in this track among non-full-chain gamers. Since the release of "Pong" in 1972, the gaming industry has undergone tremendous changes, evolving from 8-bit classic games to today's complex online games; gaming is no longer just simple entertainment.

With the development of blockchain technology and encryption, the gaming industry is reshaping user experience in unprecedented ways. From Axie Infinity, which tightly integrates gaming with the encryption economy, to Stepn, which focuses on 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; beyond asset on-chain, can more elements be put on-chain? Thus, full-chain gaming has emerged.

So what are the differences between blockchain games and traditional games?

In traditional games, all game logic, data storage, digital assets, and game states are stored in centralized companies. Asset on-chain games (, also known as Web2.5 games ) like Axie and Stepn, put assets on-chain, allowing players to have ownership of the assets, and improving asset liquidity. However, when the game shuts down, game assets still face the risk of losing their circulating value.

The entire chain game will put all interactive behaviors and states of the game on the chain, including game logic, data storage, digital assets, and game states, all processed by the blockchain, achieving a truly decentralized game.

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

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

2. The game logic and rules are implemented through smart contracts. Various operations in the game can be 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 not related to the client. Even if the core developer's client disappears, the game can continue, achieving true decentralization.

Why do humans need full-chain games?

Before discussing the necessity of full-chain games, let's briefly understand the current status and operating model of the traditional gaming industry.

Current Status of the Traditional Gaming Industry

The gaming industry has given birth to many excellent works during our growth, from FPS games like Counter-Strike and Crossfire, to RPGs like Dungeon & Fighter and Dragon Nest, to MOBAs like League of Legends and Honor of Kings, as well as card games like Onmyoji and Hearthstone; gaming has become an indispensable part of our entertainment life.

According to data from Fortune Business Insights, the global gaming market size was $249.55 billion in 2022, and it is expected to exceed $280 billion in 2023, with a potential to surpass $600 billion by 2030. In comparison, the global film and entertainment industry market size was $94.4 billion in 2022. It is evident that gaming holds an important position in economic development, with significant potential for commercialization depth and breadth of types.

Why do humans love playing games

According to Statista, the number of gamers worldwide has exceeded 2.5 billion, approaching 3 billion. The reason games can attract more than one-third of people globally is primarily because they satisfy human needs and weaknesses from multiple aspects:

1. Escape Reality and Restart Life: The game provides a place to escape the pressures and challenges of daily life, allowing people to break free from real-world troubles, immerse themselves in a virtual world, and experience a second life.

2. Burden-free socializing: Multiplayer online games provide a friendly social platform for socially anxious individuals, allowing players to act freely and build relationships without worrying about the gaze of others in real life.

3. Receive timely feedback and rewards: Unlike the daily struggles of students and workers in real life, games offer a rich reward system and timely incentive mechanisms. After completing challenges, players can quickly gain new skills, unlock new levels, or obtain new items, which motivates them to keep moving forward.

4. Low-cost free exploration: Many games offer rich virtual worlds that allow players to explore unknown territories, interact with NPCs and other players, drive the storyline forward, and satisfy the human desire for adventure and exploration. Compared to the real world, the cost of exploration in games is much lower.

5. Pursuing achievements and self-realization: By completing a series of tasks and goals, people can fulfill their desire for success and recognition. Whether it is leaderboards or achievement points, it is easier to achieve self-challenge and character growth in the game.

Targeting specific or even multiple human weaknesses, the game cleverly satisfies the diverse needs and preferences of different users, excelling in both the breadth of coverage and the provision of a Depth immersion experience.

The Current Status and Development of Traditional Games

Traditional games are generally divided into Shooter(, Adventure), Role Playing(, Battle Royale), Strategy(, Sports), Puzzle(, Action), Simulation( and other types.

According to Newzoo data, role-playing and adventure games perform excellently on PC, mobile, and console, all ranking in the top five. In addition, shooting and battle royale games are also very popular on PC and console. The mobile sector is slightly different, with puzzle and idle games also being quite favored by users.

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) The dilemma of the traditional gaming industry

Currently, traditional games face two major dilemmas: first, game distribution is restricted by license numbers; second, the high costs before game distribution lead to a long payback period, making it easy to incur sunk costs.

(# Game publishing is restricted by licensing numbers.

A game version number refers to a specific license issued by the government that must be obtained to publish games in certain countries or regions. This system aims to regulate game content, ensure that games comply with local laws, culture, and values, protect minors, and maintain social stability.

For example, Germany has strict regulations on game content, paying special attention to content that may have a negative impact on young people; South Korea and Japan have a game rating system, evaluated and issued by relevant national agencies.

China implements a strict game license system, overseen by the National Radio and Television Administration. Games must obtain a license before being released in the Chinese market. After issuing 87 licenses on July 22, 2021, the issuance of licenses remained stagnant for a long time, gradually resuming only in April 2022. During this period of stagnation, only a few large companies managed to survive, while a large number of medium and small gaming companies faced bankruptcy. According to data from the Tianyancha App, between July and December 2021, more than 14,000 medium and small gaming companies with registered capital below 10 million ) were successively deregistered.

As the world's largest gaming market, China has over 500 million gamers. The issue of game approval numbers has become a pain point for many Chinese companies. Even with the resumption of issuance, the contraction or adjustment of approval numbers remains the sword of Damocles for every game project team. In the days of waiting for approval numbers, countless project teams face bankruptcy due to broken funding chains.

(# The cost before issuance is too high, which can easily lead to sunk costs.

In the Web2 game development model, the game development phase must bear the upfront costs of human resources and infrastructure. There are idle time costs during the approval stage, and revenue sharing can only occur when the approval is granted, the game is released, and commercial revenue is generated.

Clearly, a large amount of cost expenditure occurs in the early stages. Once issues arise during the development phase, licensing phase, or user acquisition phase, all prior investments may become sunk costs. For mid-sized games, costs typically reach several million dollars. The long development and distribution cycles in the early stages lead to extended profit cycles, resulting in a higher risk of not achieving expected returns.

) Attempt to Break Through Web2.5 Games

In the face of these two major dilemmas, Web 2.5 games are the first to attempt breakthroughs. On one hand, they bypass domestic licensing restrictions by targeting global users; on the other hand, by issuing NFTs and tokens, they can generate income through market-making during the internal testing and startup phases, significantly lowering the financial threshold for game production.

In the attempts to break through Web2.5 games, popular games like Axie and Stepn have emerged. Axie is very popular in Southeast Asia, with many people earning income from the game that exceeds the average working income of Filipinos. Stepn's "Move to Earn" model has also attracted many non-Web3 users to participate. However, with the collapse of the Ponzi economic model, it is difficult for Web2.5 games to create a similar craze like Axie and Stepn.

Developers are beginning to explore different directions. Some are turning to AAA titles, trying to carve out a share among Web2 users, but this has led to AAA titles in Web2.5 having to compete with both Web2.5 games and Web2 games. Another group is turning to full-chain games, exploring new possibilities and value validation. In this emerging Web3 industry, there are always those who want to be pioneers and pave new paths.

Analysis of the Current Situation of the Whole Chain Game Industry

The entire blockchain gaming industry is currently in a very early stage, with both gaming projects and related infrastructure still under development. The industrial landscape of the blockchain gaming field can be roughly divided into four categories: blockchain gaming projects, blockchain gaming engines, blockchain gaming dedicated chains, and blockchain gaming distribution platforms.

( full-chain gaming project

Currently, the on-chain game projects are in a very early stage. The number of playable on-chain games on the market does not exceed double digits, and most of the projects that can be experienced are still in the testing phase. The overall game is mainly focused on SLG) strategy type###, and there are also some new projects trying to explore the simulation management direction.

Since most games are still in development or unplayable, this section mainly introduces a few playable and distinctive blockchain games.

Dark Forest

Dark Forest is a representative work of the blockchain gaming sector, simply put, it is a decentralized strategy game created on Ethereum using zkSNARKs.

The game was developed by MIT graduate Brian Gu, alias Gubsheep(, with some inspiration from Liu Cixin's science fiction novel "The Dark Forest." Other team members include Alan, Ivan, and Moe. This project is unfunded, but its related new project Argus Labs recently just raised $10 million.

Dark Forest is one of the earliest incomplete information games built on decentralized systems. As a space conquest strategy game, players start exploring the infinite universe from their own planets, discovering and occupying other planets and resources to develop their empire.

Dark Forest has three main highlights:

1. Game logic, data