Detailed Web3 game infrastructure

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Compiled by: Web3 navigation (official account)

We believe that taking time to study the emerging areas of blockchain and determine your needs and priorities is the basis for making Web3 games, which can not only attract users, but also withstand the test of time. You don't need to reinvent the wheel, just take advantage of some of the most core and exciting attributes of blockchain -- namely decentralization, composability and true digital ownership -- you can use the growing chain, protocol and application stack to start and expand your game development.

By the end of this article, you will easily understand:

  • How does the Web3 game infrastructure work?
  • How do some top projects in this field use these infrastructures now?
  • Which teams do you work with and how does it help you bring new empowerment to your game?

1ใ€ Why is infrastructure important?

With the huge scale and success of web2 infrastructure giants, you can think that the value they extract far exceeds the value they provide. However, as these enterprises consolidate their position and expand their product range, they enable the entire ecosystem to form, expand, and thrive on it.

First, infrastructure enables new entrants to focus on their core competencies.

What if every new company has to invent its own engine, cloud backend, app store and advertising network? This is not only incredibly inefficient at the company level, but even requires a lot of money to start; It will also significantly slow down the pace of innovation at the industry level, as most participants will spend their time and money simultaneously solving the same basic problems.

Infrastructure solves this problem. It provides companies in the early stage with components that can meet most of their needs, and then optimizes them at the edge of the stack in the future. This means faster execution, iteration, and expansion, as well as lower costs.

Source: AWS

Of course, highly specific requirements may still require customized solutions: the innovation of the whole stack is partly due to newcomers' ability to overcome current technical defects by themselves.

Infrastructure also enables developers to focus on the application layer, because problems such as network, storage, delivery and monetization are solved deeper in the stack.

This has driven innovation across the ecosystem to expand the supply of available content and experience. For example, the rise of Facebook has made social games possible because developers like Zynga can use the platform to distribute and acquire users. Similarly, real-time engines such as unity and unreal now provide developers with a comprehensive software suite to deal with major technical obstacles, including the physics and logic of games. This means that they can focus on the art, design and economy of their works, which more directly promotes their uniqueness, attraction and overall success.

In addition to relying on organic growth, large infrastructure players often accelerate and subsidize innovation. This can be achieved in a variety of ways, including providing funds (such as the grant of epic game), resources (such as AWS' cloud integral), guidance, and early use of proprietary software (such as epic's illusory engine 5). All these measures will help to start a solid developer ecosystem, so as to bring more diversified content and experience to end users, which will only make the underlying platform more attractive, so cycle.

2ใ€ Development status of Web3 / blockchain infrastructure

1. Limitations of web2 infrastructure

You may know most of the above names. For example, unity, AWS or steam are now the preferred suppliers for large and small developers; Other companies, such as admix and superscale, are emerging start-ups that currently provide limited services. Regardless of their development stage, these companies are serving all players in the same agnostic way.

At the same time, web2 infrastructure also has many limitations:

1) Ecological shackles

User data is not transferable, and the tendency to fear competition rather than embrace competition means that the web2 platform tends to seize every opportunity to lock users in.

We can feel from many aspects:

  • Proprietary ecosystem

For example, Microsoft, Sony and Nintendo have ensured that the hardware and software aspects of games are integrated into a unified experience for many years. This makes it impossible for players to switch between the ecosystems of companies, or mix and match them. Buying a specific game console means buying its ecosystem, which not only determines the content you can get -- exclusivity is rising -- but also brings future friction costs.

  • Dominated pricing power

In other words, it is more about the ability to dominate the potential abuse of financial terms. For example, Apple's control over the distribution, acquisition and monetization of mobile games through the app store has enabled the company to achieve a dominant position, most notably its much criticized pickup rate. The company also prevents developers from using any service provider in their applications that may circumvent Apple's payment and enable them to increase profits.

  • Platform risk

That is, the kind of risk that occurs when enterprises build on existing platforms to use their services and influence. Due to the lack of channel diversification and ownership, any sudden change in the terms or strategy of the platform may put your activities at risk. No matter what kind of platform, over reliance may lead to a weak position.

2) Audit system

Web2 enterprises can abuse their power in various ways.

For example, meta (Facebook) decided to ban Facebook's cryptocurrency related advertisements in 2018, and overturned this decision more than three years later, showing the sometimes capricious nature of the walled garden and the danger of relying on web2's infrastructure and influence to promote Web3 products. But the game has not completely escaped this trend. In October, valve banned blockchain games and NFTs from using its platform steam. Considering steam's current core role in game distribution and monetization, this decision has left a vacuum that needs to be filled if blockchain games are to find mainstream success.

These examples show that as long as the entities responsible for the underlying infrastructure - whether political or technical - have a say in their actions, the top-down audit system is likely to affect any individual or company.

2. Characteristics of Web3 infrastructure

Overall, web2 is unlikely to disappear soon. This means that the two worlds will continue to coexist, at least for a period of time.

That is, limited liability companies will thrive with decentralized organizations such as Dao, as well as on the technical level. For example, Tim Sweeney, CEO of Epic Games, once said that the company is committed to making its stores more open and " [recognition] national ownership ". Since valve banned NFTs from entering steam in October, Sweeney reiterated that Epic Games store will welcome all games, whether blockchain is supported or not.

Other web2 giants may also find their own position in the future of Web3.

In January last year, cloudflare, a network security provider, announced its goal to become "e; One of many technology platforms supporting Web3 and the growing metaverse ecosystem "e;. The company's presence on the stack of sorare seems to confirm these ambitions. Similarly, the capabilities of engines such as unity and unreal still make them the default authoring software for blockchain native game developers.

As these companies' interest in blockchain matures, they begin to allocate more resources to it, and the boundary between web2 or Web3 will continue to be blurred.

1) Getting started with Web3 infrastructure

At first glance, the blockchain game infrastructure does not look very different from the predecessor of web2. Please make your own judgment.

In the fields of asset creation and animation, real-time engine, cloud backend, liveops and analysis, the same tools and companies can and are being used in Web3. Because blockchain games rely on the same building blocks: creative software, scalable servers, and data-driven optimization are as critical to them as any free game mobile game. For example, horizon blockchain game uses Google cloud and AWS for application hosting, and uses Sigma and Photoshop for design.

Once you enter the blockchain game "e; Blockchain "e; On the one hand, things begin to become very different. With the development and maturity of the market itself, the chart above naturally needs to be updated. Then, every decision you make, every function you plan to add, requires some obvious blockchain native software. Of course, first of all, you need to choose your first layer blockchain, which is the most important building block in your whole stack. Then there are other functions, such as NFT and currency issuance, and defi related functions, such as pledge and liquidity pool, identity and fund custody.

The paradigm of Web3 has a lot to do with technology and more philosophical positions. Let's talk about decentralization, interoperability, and composability.

2) Decentralization

In blockchain, decentralization refers to the transfer of control and decision-making power from centralized entities to distributed networks.

It has several advantages:

  • First, it provides a trustless environment in which members can work together without knowing or trusting each other: consensus is reached technically through the verification mechanism of blockchain, not socially through interpersonal communication.
  • Secondly, it improves the data consistency of the whole network and limits the risk of information loss in the process of circulation
  • Third, it ensures that no node can cause the unexpected or intentional failure of the network.
  • Fourth, and finally, decentralization optimizes the allocation of resources and brings better services through better incentive mechanisms.

From a more practical point of view, decentralization helps to reduce potential abuse of power, that is, platform locking and unilateral audit system. For example, vitalik buterin became interested in the potential of decentralized technology after a patch in worldofwarcraft weakened a component of his favorite character. Generally related to NFTs " Real ownership " The idea of decentralization is a core element of the broader ideal of decentralization.

Ultimately, decentralization should not be considered absolute, but a continuous process. The most persistent developers may want to grant players management rights, while other developers try to retain full control of their games. Sky Mavis, which aims to eventually become a decentralized autonomous organization, lists the steps to achieve this goal in its white paper -- it is now in " Second edition "e; Stage, it is planned to be completely decentralized by September 2023. Time will tell us whether decentralization is beneficial to the game.

3) Interoperability

Interoperability refers to the ability of an asset to be used across multiple applications, protocols, and / or chains. It relies on the widespread adoption of open standards in the transmission, storage, and processing of data and assets.

In fact, compared with the typical locking of web2, interoperability provides players with an opportunity to effectively exit the game and transfer their items and processes together to a greener digital ranch. This is also good for developers. First, they can introduce third-party products into their games, which can greatly reduce the development time and cost, while extending the shelf life of their games. Secondly, cross game interoperability enables them to take advantage of liquidity anywhere to generate incremental revenue in the form of secondary sales in the external market.

Ultimately, interoperability makes the interests of developers and players more consistent, and it is possible to increase opportunities within and across virtual worlds by several orders of magnitude. More liquidity, greater Tam and greater utility mean that every creator, whether leisure or professional, is encouraged to produce and circulate more digital assets in more places.

Source: Galaxy Fight Club

4) Composability

Composability refers to the ability to mix and match software components.

Like interoperability, it is technically realized by the prevalence of open source code and ecosystem level standards (such as erc-1155 and erc-20 tokens); Culturally, it is realized by the open and transparent spirit of cooperation. If interoperability is about circulating and using assets, composability is about turning them into more things.

For example, using NFTs as building blocks allows developers to extend a set of primitives in a decentralized manner. The best example of this is the lot ecosystem, whose members are built on the same deliberately Abstract NFTs with RPG as the theme.

However, composability applies not only to individual NFTs, but also to games, mechanisms, protocols, and even the entire blockchain. The prevalence of open source code and the ability of anyone to access, read and utilize the wallet transaction history on the blockchain ledger enable developers to fork over and improve existing incentive mechanisms, capital efficiency models or interfaces. This promotes the innovation of the whole ecosystem, because if the agreement hopes to attract and retain users, it will be encouraged to continuously serve users in the best way.

Recent historical events provide us with several good examples. One example can be found in the world of defi. Sushiswap, a decentralized exchange and automated market maker that diverged from uniswap, sucked away the liquidity of its predecessors in the case of a so-called vampire attack. A similar thing happened in opensea, the leading NFT market, in January. At that time, the newly added looksrare attracted active users of the platform with its own token looks.

Composability also appears more and more in games.

The open standard around replaceable tokens allows axie infinity players to transfer their hard-earned SLP packages to third-party exchanges such as uniswap in order to exchange them for eth or enter the liquidity pool. In the kingdom of defi, heroes are interactive NFTs that can be lent to jewel, which is both a token and a currency in the game. Then, players can exchange their jewel for xjewel, a governance token; Or put the working capital into " Garden "e;, Gradually acquire digital land in proportion to their share.

In treasure, composability is used as a storytelling tool: the team suggests using LP tokens as keys to unlock " New time period "e; And "e; New fields "e;, And take magic -- the token of the game -- as "e; A natural resource, unfairly and unpredictably distributed in the metauniverse of treasure& quot; Composability tends to blur the boundary between replaceable assets and irreplaceable assets, so that one category can produce more other categories.

3. Web3 infrastructure practice

According to our observation, many blockchain supporters today tend to only raise the potential of this technology, ignoring some of the most urgent issues. Some of them may do this because they try to sell their vision to you and turn you into an incentive user of their blockchain products, encouraging... Others may try to take " Long term view "e;, Treat any limitations of technology as short-term obstacles that need to be overcome, rather than actual deal breakers.

All this makes it more important, although difficult, to accurately grasp the position of blockchain technology in its many commitments today. Blockchain is not omnipotent for games. Just as it is for other industries, understanding its limitations can help developers better evaluate some risks brought by implementing it in their games.

1) Centralization may still exist

At the organizational level, centralization is quite obvious.

In fact, some of the most successful blockchain games used today, including axie infinity and sorare, come from centralized organizations. These entities have organization charts, offices, payrolls, and what you expect in any " Normal "e Everything else found by non blockchain companies. In other words, building on and serving the blockchain does not necessarily reduce the centralization of these companies.

This also applies to other areas. At the technical level, most blockchain games rely on centralized databases and services. Data is stored in internal or private servers. In proprietary code, most of them are hidden from third parties. Last year, the influx of a large number of new players led to the paralysis of sky Mavis' server, leaving only capable teams to put them back online. The consequences of financial centralization are equally terrible: Recently, a person stole more than $500million of Eth and usdc from the ronin bridge of sky Mavis, which reminds us that centralization can better deal with potential catastrophic attacks.

A useful rule of thumb is not to seek Decentralization for the sake of decentralization, but to build it as your organizational and technical capabilities improve.

2) Audit may still exist

As a mature company with legal structure and representation, entities like the one we just described operate under sometimes strict legal constraints, including fraud monitoring, security law and consumer protection.

This applies to all types of games and games at all stages of development. As naavik pointed out in its own segmentation of the game, the terms of the sandbox indicate that the company complies with the jurisdiction of Hong Kong; If it decides to implement its policy more strictly, it may start reviewing content that is considered illegal in the country. In August last year, the Philippine Internal Revenue Service (BIR) announced that axie infinity players must register and pay taxes on their income from the game. We expect that in the coming months and years, such legal and financial reviews will only increase for blockchain games.

However, not all reviews come from the government. In fact, developers are free to enforce their own terms, some of which may sometimes violate Web3's anti censorship philosophy. For example, sky Mavis banned all low-level players from earning SLP in axie infinity in October. At the same time, Sandbox clearly states that it "e; Reserves the right to review and examine whether assets infringe copyright, and delete assets that violate these terms from the sandbox& quot; As blockchain games continue to attract more viewers and open to user generated content, this top-down moderation may become more common.

3) Ecological shackles may still exist

Despite the promise of asset interoperability and data portability, blockchain projects and companies can still maintain a certain moat of their users' participation and capital.

First, not all code can be built or even checked by others.

Although this certainly limits the possibility of vulnerabilities, it also prevents others from forking your game. Since there is no substitute, or better, a reward similar to sushi or look, in other places of farming, players are more likely to stay in the same place.

Moreover, competition does not exclude dominance.

In fact, companies, applications or agreements that best match the current market situation or provide users with the greatest value can still occupy, maintain and expand their market share. The development of axie infinity not only benefits from its gameplay, but also because it developed early in the market and has become a mainstream media to some extent " Play to earn " And got dozens of game guild's " Interpersonal level " With the support of cooperation, the scholarship programs of these guilds are basically subsidies for the adoption of games. Although this success has attracted many developers to embrace blockchain games, sky Mavis continues to benefit from its first mover advantage.

4) Interoperability is still limited

Interoperability is feasible in theory, but it does not mean its universality.

As a whole, blockchain games are actually becoming more and more dispersed among multiple ecosystems, because " Alternative "e; The first layer continues to attract users and capital with its unique value proposition. Except for a few rare cases such as blockchain monster hunting, most games cannot operate across the chain due to the lack of time, resources or technical capabilities.

This leads to inefficiency. Every new blockchain that accepts games as use cases will make the total user base and mobility more dispersed. The game of specific chain also needs the market of specific chain, which prevents the supply and demand of game assets from gathering. Although cross chain bridges do exist, they also have their own problems: they are not only vulnerable to hackers, but also force users to carry out cumbersome network and wallet switching, handle a large number of transactions, and bear the relevant costs.

Interoperability in practice must be considered " Various possibilities around file formats, visual rendering, design choices, practicality of items, various blockchain technologies and token standards... In addition, other creators and IP holders are willing to do so& quot; All this makes it "e; A huge undertaking "e;, This is true for individual developers and the entire ecosystem.

This should not prevent you from exploring its potential. Like decentralization, interoperability provides a wide range of ways to play, and token standardization is still in progress, which means that its new applications will continue to appear. It is worth noting where and how you use it in your game.

3ใ€ In depth understanding of Web3 game infrastructure

1. Blockchain

First, blockchain is the most basic and important infrastructure layer that developers need to choose for their games.

Although Web3 games were born on the Ethereum main network, now you can get more choices. In recent months, Ethereum's scalability issues and associated gas costs have prompted many people to turn to second tier solutions to make their in-game transactions more acceptable. In October last year, zed run of virtually human studio integrated the cross chain bridging solution of hyphen, biology, allowing players to transfer funds from Ethereum to polygon and then back without leaving the application.

At the same time, Web3 Games began to take off on other L1 chains. Avalanche has crabada, Solana has many active game developers, and splinterlands on wax reached an average of 353K in 2021, the only active wallet. With its modular infrastructure, networks such as cosmos and avalanche allow developers to quickly deploy their own blockchains to meet their needs. Defi Kingdom has recently made full use of this, launching DFK chain, its own avalanche subnet and the first " Outpost "e;.

Although it makes the decision-making process more difficult, developers have more choices. According to their priorities and what players they want to attract, developers can take full advantage of the respective advantages of these chains, whether it is speed, scalability, or low transaction costs. They can also start from scratch, if they want.

For example, sky Mavis decided to establish its own side chain ronin, which instead prompted developers to determine the future characteristics of its proprietary architecture. The result is a chain specifically designed for games, optimized for near real-time transactions and negligible costs.

Source: sky Mavis

In order to take advantage of Ethereum's first mover advantage and strong network effect, you can look at solutions such as polygon and immutable. Compared with the main network, these L2 can trade at a faster speed, require less computing power, and have less impact on the environment. As of recently, these two players also have sufficient capital, which should help their sustainability; And has launched its own fund to support the game NFT project established on its network.

If you are willing to explore other L1 solutions, we think avalanche may be a good choice. With its subnet product --"e; A set of dynamic validators "e;, Enable developers to start and run their own specific application networks -- you can run your games on the avalanche network while enjoying complete performance isolation. This means that the performance and user experience of your game will not be disturbed by external events, which may cause network congestion of another application. Defi Kingdom recently launched its own DFK chain using this technology.

2. Creation tools

Creative tools may be the most backward area of infrastructure in the blockchain game stack.

After all, most of the visible parts of NFT today are placed on the chain, not designed there. 2D content is still created in Photoshop, illustrator and other software; 3D content is still produced in blender, Maya, and after effects. Moreover, as mentioned earlier, even some of the most eye-catching blockchain games use non blockchain creative software in their workflow. Wilder world, an immersive 3D world, was developed on fantasy engine 5, and illuvium's job description of a 3D animator mentioned that the ideal applicant should be " Maya expert "e;.

From the perspective of players, it doesn't really matter whether the creation process takes place on the chain. So why should developers bear the cost of trading on the blockchain?

However, things are changing. First, creative software companies are increasingly aware of the opportunities for creators to participate in blockchain as early as possible in the workflow. Adobe announced last year that it hopes to add a "e; Prepare for NFT "e; Options for. Secondly, the rise of the UGC world supported by blockchain, such as the sandbox, is equipped with their own online editor, which can further blur the boundaries between the creation and casting stages.

Meanwhile, if you decide to use blockchain native editing tools, we suggest you take a look at fragcolor. The goal of the company is to establish " The first interoperable and modifiable native game engine "e;, And realize "e; Creation income " Economy, a creator centered economy equivalent to game income. In this mode, every game asset is considered a " Fragment "e;, It can be used with others to form a final NFT. Then, each sale will distribute the revenue to the respective creators of the NFT segment to obtain royalties.

Source: fragcolor

If you use unity, you can consider using the unity plug-in of venly, which enables you to manage items in the game as blockchain assets compatible with polygon. The solution also allows you to visually edit NFT contracts and tokens through the venture Manager window; Deploy new contracts and tokens from the editor; And read the player's wallet to update the number of tokens. This is one of the most seamless integration with mature web2 software we have encountered.

3. Identity, fund and asset management

Wallet based login is a major function of Web3, and there have been a lot of reports in the past few months. As seyi Taylor said, it also represents your identity, carries value, provides access, and preserves souvenirs. Like other cryptocurrency spaces, blockchain games also hope to make full use of this potential.

Source: seyi Taylor

In Web3, game login and asset custody complement each other: your wallet is both your passport and your vault.

In addition, "e; Paly to earn" The mode of has been promoting the rapid financialization of the game. As more and more blockchain games begin to seamlessly integrate financial functions, such as token exchange, stacking, liquidity pooling and auction, the need to join users with special tools will only increase.

In addition, integrating NFTs into the game as a core mechanism requires a secure and intuitive storage and custody solution.

In fact, NFTs are not only items in the game, but also can represent your progress in the game, an RPG level, or a pass to enter a specific dungeon. As wallets increasingly integrate players' specific game identities and achievements, it is crucial that developers begin to take this issue seriously.

4. Trading platform

The introduction of NFTs usually has a far-reaching impact on the economy of games.

Among these assets, the most discussed attribute is liquidity: if players decide to give up items in the game, they can buy and sell them in the free market. However, liquidity is possible only when the supply and demand sides of the transaction meet. Therefore, a trading platform is needed.

At present, most transactions are carried out in third-party markets, such as opensea, which provides collectors with a series of functions to set their sales or purchase prices, using fixed prices or auction modes. As a neutral infrastructure using open blockchain standards, they welcome assets from all games and genres and provide valuable liquidity to holders from a single access point. However, all indications indicate that the value chain in this aspect is further integrated directly within the blockchain game. It is worth exploring the reasons.

Source: Chris cantino

The in-game market brings many benefits:

  • First, they enable developers to own and customize user journeys through game specific processes and interfaces.
  • Second, they reduce friction, thereby improving retention: players can find liquidity in their favorite games, where other users are most likely to be buyers of what they want to sell.
  • Third, they improve the profit margin, because creators can bypass the market costs that usually tax the secondary income of the project, and can choose their own extraction rate. Fourth, they minimize the risk of vulnerabilities, because now everything is under the direct control of developers.

5. Economics in the game

We mentioned "e; Play to earn " How does the mode promote the rapid financialization of the game. In fact, some observers believe that these games may be the perfect wedge to bring users into defi. However, although " Play to earn " It is an attractive value proposition, but it fails to cover the extent to which blockchain games are currently integrating the well-known defi mechanism.

More and more blockchain games begin to introduce the original financial function of blockchain, because not only NFT, but also the existence of replaceable tokens for in-game transactions or governance, giving developers an opportunity to make full use of composability.

For example, a few days after hyping the airdrop of its governance token AXS, sky Mavis introduced the stacking function into its game as "e; Reward the long-term benefits of its community members " A way of.

Source: sky Mavis' stacking dashboard

If you have done your homework and are sure that your game can withstand the test of financialization, please refer to the following solutions that we think can help you stand out.

In terms of liquidity pool, balancer has an attractive value proposition. Its balancer liquidity guidance pool (BLBP) " Designed to allow the defi protocol to obtain capital from less liquidity than is usually required in the seedpit ", On AMMS such as uniswap or sushiswap. Blbps' price reduction mechanism enables interested users to wait until they are satisfied with the price before purchasing tokens. Illuvium integrated balancer pools before its launch as a way to attract external capital and connect third-party communities. Working capital pool is a good way to quickly make your game management more decentralized.

But maybe you are looking for more practical use cases? In this case, look at dokidoki, which allows you to deploy a digital vending machine inspired by gachapon. Using this tool, you can create a new gachapon machine in the game; Set its name, token and price of each game; Load your game's own NFT as a prize; And get tokens in real time when players use the machine. This may be a smart way to gamify your in-game NFT distribution while also earning passive income.

6. Payment

Where there is money to earn and spend, you will definitely find payment. Therefore, all financial aspects of blockchain games, from the existence of NFT to the ability to earn cryptocurrency as a reward for your actions, now need special solutions.

Perhaps the most important blocks to consider in this regard are at the beginning and end of the user journey: adequate, on chain and off chain solutions have become the key to the success of blockchain games.

However, in-game payment is not just an on chain and off chain problem. With the increase of possible game playing methods in blockchain games, maximizing its yield will ensure that players are encouraged to continue playing.

7. The emergence of end-to-end solutions

When we focus on a single component, a few companies are now arming developers with integrated solutions to meet all their needs in a turnkey manner.

This trend is not surprising -- as Jim Barksdale, the former CEO of Netscape, famously said, there are only two ways to make money in business& quot; Bundling and unbundling "e;. The current attempt to integrate more fragmented stacks is only the latest example of the former method, which is now targeted at blockchain. In more ways, blockchain will only make it more needed. Because composability and forkability mean that any new entrant can launch versions of their own existing tools or protocols (at least in theory), they are essentially the power of deregulation. In contrast, vertical integration is about bundling.

Building with a long-term mindset and keeping up with local and international regulations may actually be the only way to protect you from legal obstacles in the future.

For example, the regulatory Tango between meta and the German Federal Cartel Office on the company's cross application data collection has put it in a difficult position in the country since the court first ruled in 2016. After European regulators hinted at new legislation on transatlantic data transmission in May, the company threatened to shut down Facebook and instagram in Europe on the grounds that it would " Have a material adverse impact on [its] business, financial condition and operating results ". The game industry is also facing a similar struggle: many countries have restricted or completely banned trophy boxes, trying to regulate predatory micro trading. The slightest sign that local regulations are about to change will have a significant impact on your business and monetization ability. Especially KYC (know your customers) and AML (anti money laundering) should be carefully monitored.

We believe that integrated solutions may prove particularly attractive for some categories of developers, including:

  • Non blockchain native developers seek additional guidance in the technical and legal fields (KYC, AML...).
  • Mature publishers seeking enterprise level services, including specialized account management and customer support. For example, ultra is working with AMD and Atari, while Forte has Zynga and kongregate as customers.
  • The studio supported by venture capital puts the execution speed above the cost in order to quickly occupy market share.

With the continuous development of the entire blockchain ecosystem and the increase in the number and complexity of potential combinations of the entire stack, more and more developers should resonate with this product.

4ใ€ How to use blockchain infrastructure in your game

By now, you should have a good understanding of the working principle of blockchain infrastructure and its application in the whole blockchain game. Here, we want to leave you some practical tips, hoping to help your game make full use of the advantages of Web3 technology stack in the next key decisions.

1. Know your users

Do you want to turn gamers into cryptocurrency adopters or cryptocurrency enthusiasts into gamers?

By knowing how much your target users know about blockchain technology before, you will be able to determine how much emphasis you should put on user interface, induction, identity, capital and asset custody, community support, etc.

2. Understand your needs

Are you considering implementing NFTs or implementing alternative tokens while implementing NFTs?

If it is the latter, do you plan to introduce a dual system consisting of governance tokens and another token for in-game consumption (such as axie infinity)?

The more types of assets, the more tools you may need to integrate. For example, NFTs alone may require an in-game market, but no liquidity pool. You may need to use some kind of stacking in order to encourage governance rather than just trade-offs. If you are not careful, these functions may make your game more complicated for players.

3. Understand your priorities

How committed are you to the core principles of blockchain, such as decentralization and composability?

What are you willing to sacrifice to make your game the most successful?

Knowing this should help you determine some things, such as which chain to adopt, decentralization and centralized hosting, or whether you will open source your own code -- therefore, your game can also be forked.

4. Understand your limitations

What legal environment do you operate in?

Is your organization and legal structure ready to operate globally, or do you need specific licenses to receive, process and transfer funds?

The requirements of KYC and AML are very serious, and supervision is coming quickly. Please make sure your game and operation framework are future oriented, otherwise you will have a lot to do.

5. Understand your strengths and weaknesses

In the final analysis, how much support do you need?

Do you have a multidisciplinary skill set to integrate various components on your own, or is it best to adopt a comprehensive solution?

Are you willing to spend any capital you have on an integrated solution, or form your own stack from the open source network instead?

6. Embrace composability

Answering these questions should help you better understand which basic components should be used. But it may be hard to imagine what the whole stack might look like to you. Let's study several hypothetical cases.

Case 1: an AAA PC RPG game.

  • At the creative level, complex graphics and physics require an integrated Creative Suite like unity, which can handle most of your creative needs and enable you to obtain them from their 3D asset market. There is no need for blockchain's native creative tools: instead, focus on your art and gameplay.
  • If your goal is a mature virtual world, you will want decentralized governance to promote bottom-up creation and long-term management. Here, you can explore liquidity pools (such as balancers), bets, or a combination of the two to distribute governance tokens to your community at an early stage. If you want to reward early adopters, take a look at multisender, which allows you to send replaceable and irreplaceable tokens in batches to multiple addresses.
  • Among all these potential functions, compliance must be considered; This is the most reliable way to protect your ownership from legal challenges, which are bound to emerge as regulatory scrutiny increases.
  • Further, consider making defi a part of your game playing method, just like the way of games such as the kingdom of defi, cryptocurrency strategy and treasure. Blocks including bets, liquidity pools, and even loans can be integrated into the world construction of your game and achieve good results. One option here is pawnfi, which provides various modules for leasing, evaluating and selling assets, including LP tokens, NFT, etc.
  • An RPG game naturally needs a market: where can users trade their hard-earned works of art? Here, we suggest integrating this aspect of the game as early as possible. This can not only ensure a more stable game experience, but also gain more value by earning market fees.

Case 2: a card collection game.

  • Here, the creative layer may not need the most sophisticated creative software: 2D is likely to be enough to meet your needs.
  • Any successful collection card will generate a considerable number of simultaneous transactions. However, most of the assets exchanged may be of low value, which makes it more difficult to prove the high transaction cost of the current Ethereum main network. Choosing an alternative L1 or L2 expansion solution, such as immutable (such as illuvium) or starkware (such as sorare), should be a priority.
  • Due to the nature of your core game, your potential user base may be more casual than the previous example, so it is not suitable for blockchain.
  • In addition, compared with RPG Games rich in IP, card collection games may promote shorter participation time. This makes it unlikely that it will carry out cumbersome induction training through a third-party exchange, through KYC, and transfer funds to a wallet.
  • Economic blocks in the game, such as liquidity pools and bets, may not be your focus, because functions related to defi will introduce unnecessary complexity.
  • Instead, consider making your analysis as comprehensive and open as possible. The more in-game transaction data your players can get, the more likely it is to have new full-time collectors -- think about how sorare enables soraredata. This is how you build an ecosystem on top of your application. Although building a proprietary dashboard may not be a priority, you can also easily create a dashboard using tools such as dune analytics and covalent.

5ใ€ Summary

Although the Web3 game infrastructure can be overwhelming at first, any developer with a good intention will make full use of it wisely. The era of cryptokitties has passed, when people could only build on Ethereum's main network. The scope of chains, protocols and applications used to build and enrich games continues to expand rapidly, and new Web3 use cases continue to be unlocked along the way.

For better or worse, the financialization of Web3 games also means that developers should aim to explore the entire Web3 technology stack, not just focus on just enough game related infrastructure applications. For example, the increasingly fierce competition for players' time and mobility may make financial incentives more and more important to the success of the game. To illustrate this trend, developers may want to try various tools, from liquidity pool to pledge to yield summary.

PS: the article is long, and the content has been deleted for readability.

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