As the crypto industry seeks a “killer app” to spur widespread blockchain adoption, gaming continues to stand out as a promising sector. The market cycle of 2021 demonstrated that there was strong demand for blockchain-based games that offer engaging narratives and well-structured financial models. At the time the play-to-earn phenomenon gained widespread attention and prominent projects like Axie Infinity rode the wave. However, the hype died down significantly after the 2022 FTX collapse and subsequent bear market. It seems that solely offering financial incentives to users for them to play your game may not be a sustainable Web3 business model in the long run. Now we draw closer to 2025, the blockchain gaming industry hasn’t been making as much noise as before but that doesn’t mean there’s been a lack of innovation in this field. With new directions like Autonomous Worlds (AW), fully on-chain games (FOCG) and launch of a hot new game in Off the Grid, blockchain gaming may soon be catapulted again into prominence.
Autonomous Worlds and Fully On-Chain Gaming
An autonomous world (AW) is a virtual environment operating on a decentralized blockchain network, with its rules, assets, and world state stored entirely on-chain. Interactive games that are built through or on top of these autonomous worlds can be referred to as fully on-chain games (FOCG). This approach means that all aspects of the game, except for the frontend (the visible part on the player’s screen), operate solely through blockchain technology. The key distinction between an on-chain game and a traditional blockchain game rests in the integration of game logic within smart contracts and the storage of game state (like player name, rank, etc.) directly on the blockchain, rather than relying on a centralized gaming server connected only to an NFT smart contract.
Advantages of FOCG:
- Decentralized & Immutable: A unique benefit of fully on-chain games is their ability to operate independently once deployed. Once a blockchain is securely running through a validator network, its resilient infrastructure allows the on-chain game’s code and logic to theoretically endure for decades while still remaining accessible and playable.
- Open Source Composability: Since everything is stored on-chain, players and developers can freely reuse game logic to create new game types, build different visual interfaces, or develop applications that enhance the original game’s user experience. This democratized modding feature enables players to build upon a set of consistent rules that can theoretically last indefinitely.
- Reduced Tech Risk: Blockchain environments are complex and secure, making it challenging to test new technologies in fields like decentralized finance (DeFi). On-chain games offer a lower-risk opportunity for researchers and developers to test advanced technologies like zero-knowledge proofs and homomorphic encryption in a live setting.
Disadvantages of FOCG:
- Speed and Scalability: Since blockchains function as global shared computers maintained by thousands of nodes worldwide, they are often limited in processing speed and throughput especially to accommodate fast-paced games. This is why currently most FOCGs running on smart contracts are turn-based games like trading card games or strategy games.
- Proliferation of Bots: The open design of on-chain games and smart contracts allows bots to participate alongside human players, without a central authority to enforce anti-cheating measures. This can detract from the gaming experience, especially when NFTs and rare digital assets serve as in-game rewards so there is a high incentive to create bots to farm rewards.
- Too Much Transparency: The transparency of blockchain networks is usually touted as a benefit, but can inhibit game design because it reduces privacy. Smart contract transactions are publicly accessible, so game mechanics that rely on hidden information such as fog of war are difficult to implement on-chain.
Off the Grid - Web3 Gaming Done Right?
Recently launched Avalanche-based battle royale shooter Off the Grid has achieved unprecedented success compared to previous crypto games. In October 2024, the third-person shooter became the top free-to-play title on the Epic Games Store. Its primary recipe for success is because the developers prioritized quality gameplay and user experience above all else, and they did not overemphasize crypto and NFT elements.
Off The Grid has gained recognition by seamlessly integrating Web3 elements into its gameplay and blockchain-based marketplace, establishing a truly player-owned ecosystem. This was accomplished with such subtlety that some players did not even realize that the game was a Web3 game at first, despite the plethora of crypto-related features.
Daily users for Off the Grid in October 2024 since its launch on Oct. 8th
First and foremost, in-game items such as weapons, cybernetic upgrades, and skins are represented as NFTs. Players can take true ownership of their digital assets through the GUNZ Web3 gaming platform. These items are stored on the blockchain and can be freely bought, sold, and traded outside of the game, creating a player-driven economy. All of these transactions leverage the Avalanche blockchain, thereby improving transparency and reducing risk of scams typically found on traditional gaming marketplaces. Off The Grid rewards players with in-game currency and NFTs as they progress. Since players get additional incentives through items with real world value, they are more likely to continue playing to create a sustainable income stream. To wrap it all up, the on-chain data for players and items gives developers valuable insights into player behavior and spending, which can be used to guide future updates.
Off The Grid demonstrates how games can successfully integrate blockchain technology while achieving new levels of success through innovative gameplay and player-focused models. Therefore, the future of blockchain gaming remains promising as projects continue to bypass past hurdles through innovations in technology, positioning, and marketing.
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