Blockchain Gaming Half III: Protocol-led second-generation video games – The Block

Blockchain Gaming Part III: Protocol-led second-generation games - The Block

Fast Take

  • Half III: An summary of the present state of protocol-led second era blockchain video games, together with: Ethereum, Enjin Coin, EOS, Loom, and Steem

That is Half III of a multi-part complete collection on blockchain-based gaming by Zane Huffman: Twitter @jeffthedunker

The collection is a end result of historic accounts and interviews with quite a lot of blockchain and crypto primarily based recreation initiatives, sprinkled in with opinions on the present state and alternatives inside gaming.

Half II might be learn right here.

Blockchain Gaming As we speak

The present iteration of blockchain video games represents a surge that commenced in December of 2017. If the primary era of video games refers to “gen zero”, then the present subject of blockchain and cryptocurrency video games from December 2017 to now signifies era one. The criticisms of blockchain video games as pay-to-play money grabs and infeasible at scale largely corresponds to errors and shortcomings of many initiatives and developments on this 2017-2019 period of blockchain gaming.


In in the present day’s trade, Ethereum is the preferred blockchain by way of recreation improvement. DappRadar reviews that there are over 400 blockchain video games registered on Ethereum, and a whole lot extra in numerous phases of improvement.

Regardless of widespread utilization by builders, gaming exercise on Ethereum has traditionally been fairly underwhelming. There are, at present, lower than 50 Ethereum video games that see non-zero exercise. Amongst these which are in manufacturing, complete day by day lively customers is lower than 10,000. Whereas there are Ethereum video games that service a wide range of genres: like technique, preventing, and function taking part in video games, there merely aren’t many gamers to get pleasure from these video games. That is largely because of the actuality that, in its present state, Ethereum isn’t geared up to deal with gaming at scale. This actuality was made obvious on the very begin of the December 2017 gaming growth, with the arrival of CryptoKitties.


The CryptoKitties Fiasco

Formally, CryptoKitties launched on Nov. 28, 2018. CryptoKitties is a crypto-collectible recreation on Ethereum the place customers breed and accumulate distinctive cats represented as ERC-721 non-fungible tokens. The complete scope of gameplay revolves round shopping for and auctioning cats to commerce and breed.

On December 2, the primary CryptoKitty, appropriately named “Genesis”, was bought in public sale for over US$100,000. This sale broke world data for digital collectibles and garnered the eye of audiences the world over. What adopted the Dec. 2 sale was a gold rush of people swamping the Ethereum community with the intention to breed and promote digital cats.

This surge in exercise dealt a crippling blow to the Ethereum community: the mempool of unconfirmed transactions ballooned to 6 occasions its earlier dimension, and transaction charges elevated exponentially. A lot of it is because CryptoKitties gamers had large incentives for his or her transactions to substantiate first, and had been capable of frequently pay extra for his or her verification earlier than others. Not solely did this trigger the community to decelerate dramatically, it made exercise outdoors of cat breeding nearly inconceivable.

Whereas the hype ultimately died down and issues went more-or-less again to regular, the introduction of CryptoKitties delivered proof that the Ethereum community merely wasn’t meant to deal with video games. Solidity is a contracting language constructed for safe communication of huge quantities of knowledge. Video games require quick transaction of small packets of knowledge. Due to this fact, the video games that adopted CryptoKitties noticed finest match to include an analogous nature of high-cost collectibles to make it possible for his or her gamers to spend a major quantity in fuel with the intention to play the video games.

CryptoKitties did have some very worthwhile takeaways, too. Most apparently, CryptoKitties is now a part of the bigger “KittyVerse”, a group of over two dozen DApps created by impartial builders that make the most of the ERC-721 kitties as property for these separate video games. This highlights a core metric of blockchain gaming: that gameplay might be made fluid throughout totally different digital environments and improvement mediums.

Supply: CryptoKitties

PoWH Community Takeover

One other curiosity introduction in Ethereum gaming historical past came about inside the Proof-of-Weak-Palms group. PoWH is a “clear ponzi recreation” through which gamers should purchase and promote POWH shares. Exercise available in the market pays dividends to current holders, and every purchase or promote adjusts the worth of the shares accordingly. The market runs autonomously via the execution of good contracts.

In the summertime of 2018, the staff behind PoWH launched a brand new recreation, “Fomo3D”. In Fomo3D, gamers might buy keys to the worldwide pot. Each buy went into the worldwide pot and reset a timer to 24 hours. If that timer went to zero, the final bought key wins the entire thing.

The worldwide pot shortly grew to a worth of over US$Three million, and plenty of speculated it was now “too large to fail”. There have been reviews of mining swimming pools colluding to behave as a cartel and blacklist new transactions into the sport, with the intention to safe their private final transaction because the winner. Bots had been in place throughout the board to ship in ETH when the timer obtained too low, but when miners refused to confirm these transactions, the bots had been rendered ineffective.

Nonetheless, the miners didn’t find yourself profitable. On August 22, 2018, an unnamed particular person manually stole the pot purchase forcing his personal transactions to fill everything of a number of Ethereum blocks. After per week and roughly 50 ETH in testing and spending, the customers gained the pot by filling consecutive Ethereum blocks solely with their very own transactions. In doing so, they gained the pot of over 10,000 ETH and occupied the complete community to take action. This highlights one other bottleneck challenge: underneath excessive circumstances, people or teams will pay to commandeer the complete Ethereum community.

Supply: Fomo3D

Broader Initiatives

It’s been established that gaming on Ethereum in its present state is pricey, gradual, and unscaling. After all, that’s to not say it has to be this manner, and the present DApps on Ethereum don’t account for the bigger initiatives in improvement to flesh out infrastructure via which extra sensible and nuanced gaming on Ethereum can happen.


Is a digital actuality world predicated on the Ethereum blockchain. The map is represented by 90,000 ERC-721 NFTs that correspond to distinctive positions in a 300×300 parcel grid. Every parcel is a 10 meter by 10 meter sq., and every parcel both represents a plot of land or highway. In August of 2017, there was a US$24 million ICO for MANA, the forex that governs the Decentraland world, which bought out in simply seconds. Initially, there have been some criticisms of MANA, as only a handful of whales had been capable of purchase up many of the tokens obtainable via the ICO.

Except for particular “plaza” spawn areas, every parcel of land was auctioned throughout two heaps. This public sale was executed in a decentralized method, and the MANA allotted for profitable bids was burned in entirety. When tokens are “burned”, they’re despatched to an inaccessible location and, for all intents and functions, out of attain for anybody to entry, underneath any circumstances. Land house owners can create their very own scene via the Decentraland Builder instrument and script totally different actions via the Decentraland SDK. A number of teams have organized themselves as “estates” that pooled parcels of land in hopes to create themed districts. A number of the deliberate developments via current estates embody buying districts, amusement parks, universities, and playing districts.

Present landowners can commerce their parcels for MANA, with a proportion of every transaction mechanically burnt. Of the roughly 2.6 billion preliminary MANA provide, over 1.5 billion tokens are already burnt or in any other case frozen. This aggressive burn mechanic has enticed speculators to hoard MANA in addition to parcels of land in anticipation of additional shortage. The most cost effective parcels of land are at present valued round 10,000 MANA, or about US$400. Extra enticing plots, akin to central or roadside parcels, and groupings are generally bought at ten occasions this fee and generally extra. It’s tough to position a price ticket on organized estates, though these bigger districts are doubtlessly price a whole lot of 1000’s and even tens of millions of {dollars}.

As of now, the world map isn’t at present traversable for the final. Gamers can work together with particular person parcels, however can not journey the world and wander throughout districts. Nonetheless, the “world explorer” characteristic is at present in closed beta and appears to be near launch.

The present market cap of MANA is effectively over US$40 million. Fans and speculators have positioned a whole lot of emphasis into Decentraland for its distinctive strategy to blockchain gaming. Decentraland stands out from current, failed video games on Ethereum in that Decentraland aspires to create one thing that depends on blockchain to achieve success. An autonomous, digital actuality universe wholly owned and managed by the gamers is an enormous feat not at present potential inside the bounds of the standard gaming trade.

Decentraland can also be receiving assist from different gamers within the Ethereum gaming area. MyCryptoHeroes is giving out collectible gear for avatars to put on. Different Ethereum DApps have bought their very own parcels of land in hopes of forging some metric of interoperability when the World Explorer goes dwell.

Decentraland is almost certainly not a 100% blockchain recreation. To this point, all the sport property, from forex to parcels of land to participant names and avatars, exist as Ethereum property. Nonetheless, it’s but to be seen how the unifying “world explorer” will operate- although it’s protected to imagine that each single enter and interplay is not going to be recorded as an Ethereum transaction. Regardless, the staff behind the VR world have proven to be working to maintain Decentraland as autonomous and decentralized as potential, and the undertaking has actual potential for enormous affect on blockchain gaming.

Supply: Decentraland

Enjin Coin

Is the most important gaming undertaking on Ethereum by way of market cap, with a present valuation above US$80 million. Enjin Coin gives a collection of instruments and sources for cryptocurrency gaming on Ethereum. The first service and performance of the ENJ token is the minting of non-fungible ERC-1155 tokens.

ERC-1155 tokens are NFTs particularly for gaming, and allow extra environment friendly commerce and switch on the Ethereum community than is feasible via ERC-721 alternate options. ERC-1155 property embody some quantity of ENJ, decided by the issuer. Holders can soften their gadgets again to ENJ as they please.

It’s essential to notice that, past effectivity positive factors by the 1155 customary, Enjin’s choices don’t service blockchain video games past what’s already provided by Ethereum. Enjin makes use of intelligent terminology akin to “blockchain-powered video games” to masks this. Past customary Ethereum DApps which have elected to include ENJ property, the video games that make up the Enjin ecosystem are cryptocurrency video games, not blockchain video games.

Enjin Coin was launched as an extension of the Enjin boards, and it’s ICO raised roughly US$23 million between August and September 2017. Initially, Enjin Coin’s main goal was to supply a worldwide, real-world unity of forex for use throughout the quite a few guilds and on-line servers whose communities had been primarily based on Enjin boards. The preliminary highway map emphasised constructing out infrastructure for Enjin Coin to be adopted by personal servers on video games like Minecraft and Unturned. The breakdown of ENJ put aside a big proportion of the full provide to supply to “supporter servers” that pledged to make use of Enjin Coin.

Nonetheless, because the undertaking grew, and Enjin discussion board exercise continued to dwindle, these efforts had been largely deserted. Earlier this yr, Enjin Coin launched a Java SDK alongside their Unity SDK to assist recreation builders to include Enjin Coin, however didn’t construct out the infrastructure for server house owners to simply undertake ENJ. There isn’t a proof of any of the supporter fund being allotted to Enjin communities, or of any communities actively utilizing Enjin Coin. The event staff is engaged on a customized EnjinCraft Minecraft server, however this undertaking doesn’t translate to different, impartial Minecraft servers.

As an alternative, these sources appear to have been as a substitute used to onboard cryptocurrency video games and Ethereum DApps to hitch the “Enjin Multiverse” of video games adopting ENJ and ERC-1155 property. There are at present a number of dozen video games pledging to make use of ENJ at present in improvement, although mainnet exercise stays minimal. Some builders have expressed issues in creating decentralized video games that depend on a centralized ENJ part. In response, a bunch of builders is working to fork the ERC-1155 customary in its place that eliminates the function of ENJ.

Supply: Enjin Coin

Loom Community

Is an incubator for blockchain video games primarily based on Ethereum. Loom Community has constructed a gamified sidechain community just like Plasma (defined beneath) to allow Ethereum blockchain video games as “DAppChains”, particular person Loom sidechains for particular person DApps.

On a DAppChain, customers can work together with mainnet Ethereum property and ship sources out and in of the sport by way of Plasma swaps. Whereas on the DAppChain, transactions are verified and propagated independently by Loom nodes, and checked versus the Ethereum mainnet at common intervals. In doing so, blockchain gaming on Ethereum is feasible in a way that’s a lot quicker and cheaper, and in addition performs no function in bloating or congesting the mainnet community.

The LOOM ICO led to January of 2018 and raised simply shy of US$46 million. Since then, the first developments have targeted on constructing out the Loom SDK for simple recreation improvement and deployment as a Loom DAppChain. They’ve additionally created CryptoZombies, a free-to-use on-line course on Solidity recreation improvement. Loom can also be liable for the Relentless TCG that at present operates in beta as a DAppChain. At time of writing, Relentless sees over thrice the transaction quantity as the preferred DApp on Ethereum (IDEX), and sees extra transactions than any blockchain recreation except EOS video games.

A lot of the enchantment for LOOM is its means to host video games that incorporate fee-less transactions for customers. As an alternative of customers paying for each enter, recreation builders as a substitute play a flat payment to Loom Community in LOOM tokens. There are roughly 10 lively DAppChains, with extra in improvement. That is the first focus of the LOOM token, and speculators usually recommend the tokenomics of LOOM aren’t robust sufficient to warrant accumulation by these not creating or taking part in on LOOM. Barely down from ICO, the market cap of LOOM is at present round US$36 million.

The opposite main critique of Loom lies within the centralized nature of its platform. Whereas Loom video games can nonetheless leverage qualities of Ethereum to tackle among the advantages of blockchain gaming, the character of DAppChains as wholly propagated and ruled by inside Loom nodes might be worrying from an ideological perspective. This could not distract from the large progress Loom Community has made in making blockchain gaming on Ethereum extra accessible and fulfilling.



If Ethereum’s function in gaming has been underwhelming, then Bitcoin’s is finest categorized as dismal. The place the throughput and contracting capabilities of Ethereum make gaming costly, gradual, and restricted in complexity, that of Bitcoin makes gaming at any capability close to inconceivable.

Previous to the CryptoKitties craze, there have been a handful of initiatives leveraging Counterparty property on Bitcoin for crypto and blockchain video games, in the identical vein that Spells of Genesis got here to be. Nonetheless, as Bitcoin has develop into more and more infeasible for microtransactions, these initiatives largely migrated to different chains or ceased operations fully. Sci-fi RPG Age of Rust is one such example- which migrated property from Counterparty on Bitcoin to ENJ ERC-1155’s on Ethereum.

There are some holdouts, both as a result of improvement inertia or unwavering religion in Bitcoin. Bitcorn and Mafia Wars are each video games using PEPECASH property (a tertiary layer on prime of Counterparty) that launched final yr, however the exercise on each is negligible. Uncommon Pepe Social gathering is TCG/RPG mashup leveraging PEPECASH that’s nonetheless in pre-alpha improvement because the first half of 2017.

Gaming on Bitcoin isn’t but fully doomed, due to the rising prevalence of Lightning Community (defined beneath).



When it comes to exercise, EOS outpaces Ethereum and all others for blockchain gaming. EOS doesn’t blow Ethereum gaming out of the water, however prime EOS video games have roughly double the day by day lively gamers versus prime ETH video games, and transaction quantity on EOS is magnitudes greater.

EOS function as the present most lively gaming blockchain is rooted in value and throughput superiorities particularly for gaming exercise. The EOS community operates via a Delegated Proof-of-Stake (DPoS) consensus mechanism, the place an elected governance system of 21 nodes work collectively to validate transactions and propagate the community, reasonably than working towards each other independently in a Proof-of-Work system, like Ethereum or Bitcoin.

This governance mannequin permits greater transaction throughput- research estimate mainnet transactions per second capability of EOS is someplace within the 50-250 ballpark (although it’s alleged that the community can eclipse 3,000 tps). Ethereum, then again, sits at roughly 15 tps. EOS blocktimes are additionally a lot quicker: two blocks per second versus Ethereum’s common of 13 seconds per block.

Past this, EOS additionally makes gameplay extra possible for the common participant by shifting exercise prices to DApp operators. By default, EOS transactions are fee-less. For actions that require some quantity of computational sources (like good contract execution for video games), the developer is liable for supplying models of RAM to pay for the prices of the community to carry out these actions.

Improvement on EOS can also be appropriate with C++. C++ is a much more widespread language within the recreation improvement world than Ethereum’s Solidity. Alas, on account of quicker and cheaper transactions and a extra accessible setting for recreation builders, EOS is taking up increasingly more of the gaming market share.

EOS mainnet launched ultimately of Could 2018 after a record-breaking year-long US$4 billion ICO. EOS Knights, which launched within the final week of August 2018, was the primary main recreation on the community. To this point, EOS Knights stays the preferred recreation on EOS and competes as the preferred blockchain recreation throughout all networks. At time of writing, there are roughly 2,500 day by day gamers and near 400,000 transactions every week.

EOS Knights is an idle RPG. Gamers buy characters that are despatched out to struggle enemies, degree up, and discover loot alongside the best way. The characters reward gamers with numerous in-game currencies and gadgets that can be utilized to beef up the characters or traded on {the marketplace} again to EOS. The sport was initially constructed as a cell recreation and is at present obtainable on the Google Playstore, in addition to on Chrome and Mac as a browser recreation.

Different widespread video games embody Prospectors, a massively multiplayer on-line real-time technique (MMORTS) the place gamers play the in-game financial system to mine digital gold ingots and construct out their mining expedition and EOS Dynasty, a Participant-versus-Participant roleplaying recreation the place gamers lead their group of fighters into turn-based battles to gather gadgets and improve their characters.

Supply: EOS Knights


EOS Community Criticisms

Whereas EOS has seen essentially the most success by way of blockchain gaming up to now yr, that doesn’t spell it as the long run “winner” within the area of interest or the general finest blockchain. EOS, together with different networks that had been launched because the “Ethereum killer”, took on numerous specs to make it extra simply accessible to the plenty.

The EOS strategy is highlighted by the elected authorities of 21 block producers. Many have argued that 21 BPs doesn’t present for ample decentralization and safety to guard the community from hackers and unhealthy actors. There was important concern concerning potential collusion between BPs and even allegations of unhealthy appearing from inside the governance system. 

The DPoS consensus mechanism isn’t battle-tested in the identical method because it’s PoW various, and there have been a number of incidences within the first months of EOS mainnet concerning funds being usurped and accounts being blocked. Block Producers have the capability to freeze and even revert transactions and blacklist accounts. If a significant recreation producer on EOS additionally acted as a Block Producer, these prospects are not any totally different than a standard recreation developer would possibly maintain over its gamers on their on-line recreation.

With time, EOS will proceed to harden and develop additional impervious to assaults. However as a more moderen participant and one which reduce corners by way of distribution, among the qualities of blockchain gaming ensured via Bitcoin or Ethereum are diminished on EOS.

One other main criticism that’s much more pertinent to gaming is the account system. In contrast to Ethereum, the place customers connect with video games instantly via their pockets addresses, exercise on EOS requires a registered account. EOS accounts require a non-zero quantity of RAM, so first-time players on EOS might want to pay cash via the sport or independently to fireplace up their account. Video games aren’t actually free-to-play when upfront prices are required.


Steem is an attention-grabbing blockchain to investigate in that it was created for a particular utility which isn’t gaming. Steem is the blockchain that powers the Steemit social media community, via which block rewards are allotted as content material payouts for well-received exercise on the community. In some regards, Steem is considerably of a predecessor to EOS. Each got here from the thoughts of Dan Larimer, who left Steem to create EOS (after leaving BitShares to create Steem), and Steem additionally makes use of a DPoS consensus mechanism.

Steem and Steemit launched in March of 2016, and took the area by frenzy as prime blogs on first launch had been incomes a whole lot and even 1000’s of {dollars} price of Steem and Steem {Dollars} (the Steem’s take at a stablecoin). Housewives, make-up artists, and journey bloggers all flocked to Steemit in what was the primary main adoption of a cryptocurrency software by most people. Steem and Steemit noticed a whole lot of criticism early on for unfair distribution mechanisms and stability of energy points in dictating person earnings, however the community underwent many forks to settle at a sustainable mannequin.

Because the Steem group continued to develop, group members took on quite a lot of initiatives to construct Steem out into an ecosystem of instruments and merchandise. Builders can work together with Steem by way of JavaScript, one of the crucial extensively understood and used languages in in the present day’s coding scene.

Spurred by the endured shortcomings of Ethereum, the Steem group started to work on a number of video games. Essentially the most outstanding of those was Steem Monsters, which continues to be the preferred recreation on Steem. Steem Monsters is a buying and selling card recreation. There are a number of options of the sport that features day by day quests, ranked ladders, and PvP tournaments. The exercise of Steem Monsters, at over 2,000 day by day customers, rivals EOS Knights and the opposite hottest blockchain video games.

Past the video games themselves, the attention-grabbing part of the Steem blockchain gaming scene is the style through which it got here to be. The $Four billion EOS warchest can fund the incubation of all types of various developments on the community. Tron’s gaming scene is fueled by their $100 million blockchain gaming fund reserved for Ethereum DApps that change over to Tron. The rise of Steem gaming took place 100% organically, the place passionate Steem supporters merely construct out their ambitions on the community they’re most enthusiastic about.


Up Subsequent:

Half IV – The Street Forward

Concerning the Writer

Zane was first uncovered to Bitcoin in 2013 via a gaming group that utilized Bitcoin. Since then, he’s adopted gaming intently whereas immersing himself additional within the cryptocurrency area. In 2015, he started working as a contract author for a number of crypto information blogs, and in the present day continues to work as a contract author for numerous initiatives and web sites within the area, primarily specializing in academic and technical content material. His pinpoint space of focus inside cryptocurrency continues to be gaming.

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