Crypto gaming is still in its infancy. Recent advances in blockchain technologies now allow for new types of games to be built entirely on-chain and the use of cryptocurrency game wallets, opening the way for the GameFi and the integration of a broader decentralized ecosystem.

GameFi

On-chain games are an example of the paradigm shift crypto has brought to traditional gaming. Game designs are driven by their constraints. Current iterations of on-chain games are typically turn-based RTS games as execution is limited by the cost of gas.

Through advances in blockchain infrastructure and scalability (e.g., zero-knowledge proofs and data availability layers), genres such as multiplayer online battle arenas (MOBAs) and first-person shooters (FPSs) can now be built entirely on-chain, thereby unlocking on-chain multiplayer online games at scale. The ability to put highly interactive games on the chain adds mainstream appeal and attracts a broader audience to the existing on-chain gaming ecosystem, attracting a generation of young gamers new to crypto.

In traditional games, the module community provides an organic way for players to experience the world beyond the core game. User-generated content (UGC) is a huge driver of revenue for games like Roblox and Minecraft, which outsource community management and development to independent creators.

This opens up an interesting new paradigm for game developers; instead of having game developers maintain 'official' game servers, for on-chain games, game studios can simply develop the underlying infrastructure (which can be as simple as a smart contract, specifying core game mechanics) and outsource hosting and further development to the community. Indie creators can bring their fantasy kingdoms to life by hosting 'private servers' with custom skins, gameplay and assets on top of the original game protocol. The community can then deploy native currency in their private servers for governance and in-game purchases.

Customizability

Building games on the chain brings transparency and a strong guarantee of invariance, while also providing customizability. By transforming core gameplay and functionality into 'hyper-structures', developers can build games with composability and customizability as first-class citizens, with a decentralized, community-first approach to development and growth.

In traditional games, modular communities provide an organic way for players to experience the world beyond the core game. User-generated content (UGC) is a huge driver of revenue for games like Roblox and Minecraft, which outsource community management and development to independent creators.

This opens up an interesting new paradigm for game developers; instead of having game developers maintain 'official' game servers, for on-chain games, game studios can simply develop the underlying infrastructure (which can be as simple as a smart contract, specifying core game mechanics) and outsource hosting and further development to the community. Indie creators can bring their fantasy kingdoms to life by hosting 'private servers' with custom skins, gameplay and assets on top of the original game protocol. The community can then deploy native currencies in their private servers for governance and in-game purchases.

In analogy to blockchain infrastructure, private servers can be thought of as a rollup of the base game at layer 1, with each server and community having its own token and ecosystem. Similar to the inherent composability and interoperability between rollups in the shared base layer, on-chain gaming allows for the interoperability of player assets and identities in previously decentralized communities.

Identity and Social Layer

Crypto also provides strong and composable digital identities for gamers. For example, Steam has a thriving ecosystem where players can customize their profiles and organize themselves into communities based on shared interests or games. Uploading the system to the chain allows crypto gamers to build reputations under pseudonyms while being able to port and leverage their identities and social graphs in games outside of a specific developer or publisher's ecosystem.

This also has significant implications for reputation-based services. As users accumulate reputation under pseudonyms in online games or in the broader digital community, these on-chain metrics, as well as the user's gaming identity, can be correlated with identities from other environments as indicators of authority and trustworthiness.

Summing up

Platforms like Steam provide composability and ecosystems for GameFi, but can also unilaterally impose restrictions on players that often go against community consensus. Decentralized alternatives like Cartridge allow users to benefit from the identity, governance, and social innovation at the heart of a decentralized gaming ecosystem, while retaining free market principles. If the next billion users will join crypto through gaming, it is critical to create crypto games with broad mainstream appeal while providing a superior user experience through well-designed incentive structures, sustainable economies, and platforms.