(Part 1) Into the Autonomous World: Revolution, Growth, and Challenges of Going Fully On-chain
Why we’ve decided to build zBingo (and zPoker) fully on-chain.
The emergence of on-chain gaming is revolutionizing the dynamics of how games are played, owned and experienced, creating a decentralized paradigm that fosters true ownership, ultimate fairness and unique economic advantages. In 2023, the gaming industry further witnessed substantial growth, driven by the advantages and innovations intrinsic to the on-chain approach. This article delves into our inspiration to fully embrace on-chain gaming with zBingo, zPoker and more product offerings, and explores the lingering challenges that must be confronted to ensure the sustainable evolution of this vibrant field.
Beyond simply flipping PFPs and yield farming, blockchain serves as infrastructure enabling games to be built, operated, and implemented directly on decentralized protocols. Breaking away from traditional reliance on centralized servers, on-chain gaming uses smart contracts and NFTs to forge a new gaming landscape, one that offers true ownership of in-game assets and unmatched fairness.
This confluence of gaming and blockchain technology is propelled by a succession of games marked by enhanced player autonomy, unassailable fairness, and avant-garde economic designs. From CryptoKitties to Axie Infinity to the Loot Project, each new game launch instigates a surge in transaction volume and gas fees of its host network, reflecting the energetic success of product-market fit. Empowered by advancements in zero-knowledge proofs and scalability resolutions, the feasibility of migrating all assets, game logic, and state on-chain has transitioned from a visionary concept to an attainable reality. This enables permanence, fault tolerance, something at stake, and potentially deeper immersion and longevity compared to traditional Web 2 games.
Complexities of Blockchain Integration
One major challenge with building any games on a decentralized network like Ethereum is the matter of speed and scalability. Given the decentralized nature of blockchain networks, transactions need validation by multiple global nodes before they’re added to the blockchain. This often results in slower transaction speeds, which can hamper the real-time responsiveness essential for fast-paced games. Genres demanding a rapid response, like Multiplayer Online Battle Arenas (MOBAs), First-Person Shooters (FPS), or Real-Time Strategy (RTS) games, struggle to implement game logic on the blockchain promptly unless some centralized solution to enhance the experience is implemented. This makes turn-based games, such as Trading Card Games (TCGs) and strategy games, more suitable for blockchain integration.
However, transparency, a core feature of blockchain, can complicate the game design. Since all player actions and transactions are publicly visible on the blockchain, designing immersive strategy games that rely on players having incomplete information becomes a challenge. Achieving information asymmetry and allowing hidden information remains a complex issue.
Transition from Game Currency to Cryptocurrency
Historically, in-game currencies have been confined to the virtual worlds in which they were used. Players would invest time and money to earn these digital currencies but were unable to utilize them outside the game’s ecosystem. On-chain gaming challenges this model by introducing blockchain technology to create a decentralized and interconnected gaming universe.
With cryptocurrency and nonfungible tokens (NFTs), in-game assets and currencies gain real-world value and liquidity. Players can trade, sell, and utilize these virtual possessions across various games and platforms. It’s an evolution that promotes true ownership, interconnectivity, and a unique sense of immersion in the virtual landscape.
Evolving In-Game Economies
On-chain gaming is sparking a new era in virtual economics. Cryptocurrencies and blockchain-backed assets enable players to participate in complex in-game economies. They can engage in trading, farming, crafting, and more with tangible economic incentives.
These economic structures are not just simulations but real markets that respond to supply and demand, offering a profound experience to players. In addition, developers can create governance models that allow players to participate in decision-making processes, contributing to a dynamic and evolving gaming environment.
Accessibility and Interoperability
The rise of on-chain gaming facilitates broader accessibility to games and in-game assets. Players can access their virtual possessions across different platforms and games, thanks to the interoperability of blockchain technology.
This interconnectivity is not limited to the blockchain ecosystem. With bridges to conventional game engines like Unity, the on-chain gaming experience is increasingly seamless, bridging the gap between traditional gamers and the world of blockchain.
Regulatory Considerations
The evolving landscape of on-chain gaming also presents legal and regulatory challenges. It’s essential for developers and players to understand the legal implications related to taxation, intellectual property, consumer protection, and more. Collaborative efforts between regulators, developers, and the gaming community can foster a responsible and sustainable growth path for the industry.
About Zypher Games
Zypher Games unlocks a new realm of fully-on-chain gaming, designed to deliver a truly decentralized and provably fair experience leveraging cutting-edge AI and ZKP technologies. Join our gaming revolution:
📧 Reach out to us hello@zypher.game
🌟 Complete tasks on our Galxe space
🐦 Follow us on Twitter @Zypher_Games
🤖 Join our discussions on Discord
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