GameFi Infrastructures beachhead? Who is going to be the new traffic gateway of blockchain games?
Jeff@Foresight Ventures
After the successful upgrade of EIP1559, ETH burning attracted much attention. As of now, the whole network had burned nearly 90,000 ETH, among which NFT and blockchain game gas fee accounted for 22.1% of the total, equivalent to 2.25 times the total burned ETH on uniswap. The“Defi Summer” is considered as a big test for all the blockchain (scaling) projects, while an oncoming wave of GameFi will undoubtedly open a new round of infrastructure beachhead.
Taking the native asset ecosystem as the division criteria, we generally classify the current GameFi operations of several blockchains into three categories: ETH on-chain scaling projects (Layer2), generalized sidechains for bridging assets, and other blockchains.
Sidechains (independent blockchains) inherit the DeFi user volume and become the first stop of GameFi traffic gateway.
According to DappRadar and Cryptoslam, the current leading blockchains of the NFT and GameFi remain to be ETH, Polygon, BSC, and Flow. It is not difficult to understand that the logic of DeFi infrastructure to capture users is still valid in the GameFi field, and users with Play2Earn expectations seek to find suitable investment (game) targets in the familiar ecology.
With the help of the traffic center Binance Exchange, ETH “super sidechain” BSC inherited the DeFi users on BSC. However, the blockchain game projects running on BSC are more like a variant of the popular game Axie. Mobox introduced the concept of mortgage NFT based on Axie, and CryptoBaldes introduced the concept of NFT upgrade to improve the winning rate.
The most impressive performance of the sidechain is the Ronin sidechain empowering Axie. Meanwhile, Polygon, as an ambitious ETH expansion side chain, has also creatively delivered the very popular horse racing game “ZedRun” in a highly complete ecology.
Flow, in possession of top flow NFT projects, has opened Ramp and other legal currency payment channels to directly exchange FUSD, and developed its own wallet and other closed-loop ecology, aiming to cultivate sticky user habits. I think that is also why NBA cards can stand out from several strong IP NFT projects. At present, RPG+NFT collection blockchain game project “Chainmonster” is open to public beta, and is planned to land on the traditional game platform Steam in 2022, drawing attention to Flow’s circle breaking ability. However, due to its relatively closed-looped and single ecology, Flow is slightly weak in terms of asset/NFT cross-chain bridge, and it remains to be seen whether it can undertake the users on the existing chain.
Although GameFi can inherit the user volume of DeFi, unlike the “withdraw and then trading” habit of DeFi users, GameFi users under Play2Earn mode prefer to temporarily save or permanently collect the Token/NFT obtained in the game and sell at the right point in time to get higher revenue. Every NFT collector or chain player can deeply understand that in addition to cheapness, high efficiency, and chain-crossing ability, the long-term safety of assets should also be an important condition to consider.
Therefore, even if the high-performance chain such as sidechain has become the first stop of GameFi traffic gateway, in consideration of asset security and expansion concerns, ETH blockchain is still the first choice of most of the upcoming blockchain game / NFT projects.
New ETH Layer2 Ecosystem — — Zero Knowledge proof (ZK) scaling scheme leads a new direction of GameFi infrastructure
Polygon acquired Hermez to bet on the ZK Rollup scaling plan. Polygon Studios lays out a comprehensive game ecosystem.
The continuously popular blockchain game Axie Infinity uses the self-developed sidechain Ronin, carrying a daily active user of more than 500,000 people. However, to achieve low fees and quick confirmation, most sidechains often bear the cost of sacrificing “decentralization” and asset security.
Even if the sidechain Polygon adopts a free and open node scheme to address this problem, providing users with both PoS bridge and Plasma bridge as briding tools, the security of the former and the timeliness of the latter are still highly criticized.
The ETH Layer2 Rollup scheme has been recommended by the Ethereum founder Vitalik multiple times, among which ZK Rollup, with its simple and fast charge-withdraw smart contract, not only ensures the safety of assets but also greatly reduces gas fee, making it highly-praised as an effective expansion scheme in the long-term cycle. Although it is relatively difficult for ZK to perform the complex general computation of contracts (compared with Optimistic Rollup), ZK is still recognized by the market since Optimistic takes too long to complete the withdraw process.
Refer to this article for more explanations of capacity expansion technology: https://vitalik.ca/general/2021/01/05/rollup.html
Therefore, after the establishment of Polygon Studios, determined to expand the GameFi and NFT map, Polygon then acquired Hermez Network with $250 million and invested $1 billion as the Polygon ZK Rollup strategic R&D fund, betting heavily to fill the gap of Polygon ecology’s Layer2 expansion scheme. However, as the most difficult expansion plan, the launch time is still uncertain, providing a window for other ZK expansion teams to snatch the market.
With StarkWare’s support, can Immutable X, born with the golden spoon, become the ZK Rollup leader in the GameFi field?
The predecessor team of Immutable X was Gods Unchained(GU), a famous blockchain game company. The legendary production team Fuel Games set a record of 400 ETH revenue in 5 days even when the market was down in 2019. The game created over 4 million NFT cards (ERC721 format) in the open beta, including the “sky-high” priced NFT card — — $62,000 worth Mythic. A strong background of investors like Coinbase, FTX, Animoca also makes it a team of stars born with a golden spoon.
As the number of users continued to grow, the GU team began to solve the congested and expensive transaction problems on the ETH chain, preparing a Layer2 expansion plan designed for blockchain games (NFT). The development team was originally called Immutable, to ensure the absolute security of users’ assets, and to achieve that, the side chain expansion scheme was abandoned.
Following Imumutable’s solution logic: expansion=ETH expansion=NFT expansion, after comparing Optimistic and zero knowledge proof (ZK) scheme, the team found that the “anti-fraud proof” of the former resulted in a lengthy token withdrawal process, and the disadvantage cannot be remedied. Therefore, Immutable finally abandoned Optimistic and chose the ZK expansion path instead. As mentioned above, with zero knowledge proof, the universal computing functions can not be realized in a short time. But based on the current development level of blockchain games, it can meet the simple needs such as NFT transaction synthesis, and maximize the safety of assets while being fast and free, which is enough for it to become the most “easy to use” infrastructure.
When faced with a choice between Validium and ZK Rollup for ZK scaling scheme, Immutable perfectly matched with StarkWare team, and designed a zero knowledge proof scheme suitable for blockchain game users -“Volition”. This scheme returns the option to the users, providing users with not only the high efficiency of Validium’s no data verification, which satisfies gamershigh-frequency transaction requirement of light-asset, but also ZK rollup’s data verification security, meeting the absolute security demand of low-frequency transfers for large amount asset. In April 2021, Immutable X launched its beta, saving NFT traders nearly $1.3 million Gas Fee in the first week. In the latest introduction of the project test scheme, Immutable X called itself a ZK Rollup Layer 2 expansion scheme, We believe that once the official version of Volition is launched, it will bring us a smoother user experience.
As mentioned above, Polygon Layer2’s launching gap may provide Immutable X with the opportunity to seize some market shares. I think there are three essential elements for blockchain infrastructure to seize market share:
- Smooth, cheap, and safe user experience
2. Abundant Dapp ecology
3. Strong marketing and publicity abilities
First of all, what does Immutable bring us in terms of user experience compared with the Polygon sidechain mentioned above?
Layer 2 expansion schemes in traditional concepts often have the stereotype of being complex and difficult to use. However, when using Immutable X, we found that Immutable X can form the same level of competitiveness with the Polygon sidechain in terms of user experience and security:
- Immutable X’s fluency and gas fee consumption are almost similar to Polygon’s
- What’s more, because Immutable X is a Layer 2 originated from ETH, it no longer has to prepare Matic as a Gas Fee reserve like using Polygon blockchain. This greatly simplifies the preparation process (although Polygon chain transfer consumes minimal Matic per time, it causes additional ETH Gas Fee expenditure when buying Matic from weather Cex or Dex).
- Most importantly, Layer 2 greatly improves the security of assets compared to side chains
As the Layer 2 scheme for ETH ecology, Immutable X can enable the prosperity of the whole ETH ecosystem. In recent activities, the hottest blockchain game project releases are also closely related to Immutable X ecology.
Although the high-profile 3A game “Illuvium” is not yet available, it reached a full circulation market value of nearly $4.5 billion in August, with total followers of more than 70,000 people. The game is designed with a complex and interesting monster battle system, containing ultra-high NFT synthetic trading opportunities. The game is expected to launch on Immutable X. in the 3rd quarter of 2021. “The Guilds of Guardians”, auctioned at a sky-high price, is the first to create the blockchain game team mode: individual players have to register as guild members to achieve Play2Earn. More than 130,000 users have registered in beta before the game is officially launched, it plans to launch on Immutable X in 2021Q4. Japanese classic NFT blockchain game with DAU up to 40,000 — — “My Crypto Heroes” also plans to work with Immutable X (the game plans to develop a Polygon version as well).
Another key of blockchain games is the transaction of NFT. In addition to collecting classic NFT Marketplace such as Opensea, Immutable X also developed the built-in Immutable Marketplace. It integrates NFTs from different game ecosystem into the same market as a NFT transaction “cross-project bridge”. Its original “Metaorder” order mode also helps traders screen their favorite NFT in the fastest way. Meanwhile, in the recently updated project plan, immutable put forward a new “carbon neutrality” NFT transaction concept, counting all Gas Fee generated by NFT transactions, and handing it over to the Immutable team to pay for carbon emissions indicators out of the project’s profit.
It is not difficult to find that Immutable X has locked the most closely watched blockchain game projects of the whole network and all potential users in advance through its complete ecological layout!
At the same time, IMX, a platform token, is on the agenda to encourage users to enter the ecology of Immutable X
While the IMX tokens white paper has not yet been released, it has begun to drop IMX tokens to early Gods Unchained players and Marketplace users. And the official Medium continues to post articles stating that new players still have a chance to get airdrop rewards of IMX tokens.
It is worth noting that although the current immutable X’s smart contract ETH balance is only more than 600, the number of coins charged per day remains high, maintaining a level of 1,000 addresses per day. While all the star games are currently not available, potential players are actively trying to use Immutable X.
We can boldly imagine what token rights can be given to IMX to capture users? Community governance voting, platform revenue dividends, platform trading universal tokens (NFT exchange across games), internal-test rights for games, NFT mortgage lending tokens… Immutable X, full of room for imagination, breeds much curiosity: whether there will be a new game-launching platform, a STEAM in the blockchain game field?
Can Gala find a brand new way to become a “arcade” for blockchain games?
GalaGames and ERC1155
In addition to the above Layer 2 battle, the competition among blockchain game projects is more fierce. The ultra-fast financing speed and the valuation of game projects often reaching billions of dollars, have made people feel the hotness and anticipation of the current market. However, at present, most blockchain game projects only have single games, and there are very few Metaverse auction blockchain game carriers such as The Sandbox and Decentraland. Therefore, in the heated discussion of metaverse + cblockhain game, lands auction also ushered in a new round of climax.
When it comes to land auction projects, Gala, another more unique ERC1155 project, is quite impressive. Gala aims to build itself into a game composite platform — — “arcade”, which is a rare blockchain game platform project in the field of blockchain games.
ERC1155 can be understood as a compatible version of ERC20Token and ERC721NFT, it can deploy an unlimited number of ordinary Tokens and NFTs in a smart contract while also capable of packaging multiple complex transactions to the blockchain. I think this feature is highly suited for developing NFT synthetic evolutionary games, especially for characterizing game points, economic tokens in the game ecology such as game coins and their NFTs.
For a simple example, in the construction game, if its specified upgrade path is 10,000 bricks =1000 walls =10 storys =1 building, if you want to represent the whole process through ERC721-NFT, you need to create at least 11,011 different NFTs, and if you describe the whole process with ERC1155-NFT,10,000 brick Token (NFT), 1000 wall NFTs, 10-floor NFTs and 1 tall NFT can be created. And the synthetic path of ERC1155-NFT is reversible, that is, if destroying 10 floors NFT can create 1 tall building NFT, then destroying 1 tall building can get 10-floor NFT.
Similar to Immutable X, Gala’s founder background also has a complete game gene. Founder Eric is one of the founders of the established social gaming company Zynga (stock code ZNGA, August 18th market cap of $9.079 billion). Zynga’s peak was around 2010 — — attached to Facebook’s powerful social network, it developed web games to the extreme and became the largest game manufacturer in the world with hot games such as “City Ville”. However, due to the excessive reliance on Facebook’s social networks, it misjudged the rise of mobile games and failed to make a timely transformation. The darkest moment of Zynga was fixed in China’s layoffs in 2014.
Thankfully, after learning from the previous experience, Gala successfully seized the new track of the blockchain games and improved the user systems in time to create social networks attached to the blockchain address. Russo (Polyient) described Gala as a content creation company that builds the game ecosystem in the long term and uses strong marketing skills to attract mainstream Internet users to participate in the blockchain.
Blockchain game “arcade” ecology overview
As a general token in “Gala Game hall”, Gala has community card, game pass, game development (land auction), game launch, NFT Marketplace, and other functions.
As a game development platform and launching platform, Gala takes advantage of the delicacy of ERC1155 standards to integrate five original built-in games, respectively: Town Star(Farm Construction games, open public beta), Spider Tank Project, Mirandus(will soon open public beta) and Fortified, Echoes of Empire. On a playable basis, each game also carries the Play2Earn mode, in which players earn Token rewards through rare rankings after collecting synthetic rare NFT.In five weeks into the TownHouse beta, 1.8 million monthly active users were captured!
In July 2021, Gala Games received an investment from the BSC Incubation Fund and asset-interacted the Gala tokens with the BSC chain to provide users with various ways of asset management.
In addition, Gala has recently released a new version of Game Stores, designed to integrate the gaming store and NFT MarketPlace.Gala tokens can be used to buy in-game feature packages for functional evolution or as an eco-currency to trade NFT within Gala Game Store. Gala Game Stores acts as an NFT transaction aggregator to help users simplify the NFT trading process as much as possible. Through functions such as screening and ranking, users can purchase the NFTs they need all at once, saving the time of switching back and forth between different game stores.
At the same time, Gala tokens can also be used to buy network nodes and share income with the whole community through participating in node pledges. We are looking forward to the future development of Gala as a unique platform game project!
Who can become the blockchain game Steam, and take the traffic gateway?
The development process of blockchain games can refer to the development process of Internet games, and its carrier may be from web pages to computer clients, from mobile pages to mobile APPs, from family computers to physical game consoles. I believe that the form of traffic entrance will also upgrade with the development of blockchain games. It may originate from the blockchain ecosystem into an integrated wallet, or a popular web page, or a game console with a “cold wallet” feature. The latest version of Google Horizon, just released recently, makes us more convinced that the future of Metaverse is not far away.
At present, blockchain games are still in the early stage, most of which adopt the two-step mode of recording operations on client-server and leaving asset allocation to on-chain bookkeeping. High-performance infrastructure is extremely important when games involve highly frequent and complex records on the chain. In the long run, lacking a safe side chain and the congested Layer 1, will eventually be iterated by Layer2 expansion and ETH fragmentation scheme. Polygon, MakerDAO quickly realized this and created the GameFi platform Gamefi.org in August. It is quite obvious that the blockchain game Steam is what all sides must contend for! As a rare Layer2 expansion scheme + game platform, Immutable X has the essential gene to grow into a blockchain game Steam.
“Small game hall” is also a game platform project that is very likely to appear in the development of blockchain games. To quickly break the circle, blockchain games need a simple carrier to lower the threshold for players and a simpler version of the Play2Earn mode to acquire customers. We also see the prototype of this small and beautiful platform in Gala Game, breaking the circle through blockchain games to attract users on the Internet.
The outbreak of blockchain games is an important event in the opening of the Metaverse era, and the flow entrance of blockchain games will also become a user hotbed of Metaverse. The battle for GameFi users is about to break out, let’s look forward to it together!
