Analysis of the Development Path of Decentralization Platforms

Decentralization games have always been a hot topic in the crypto market. The recent explosion of the decentralized gaming platform Magic on Arbitrum has sparked widespread discussion, with some comparing it to the "Nintendo of the crypto world," in contrast to Gala games, which is referred to as the "Web3 version of the Steam platform." These two completely different models raise the question: which development path should decentralized gaming platforms choose?

Development Model of Traditional Gaming Platforms

Before discussing the development of decentralized gaming platforms, let's first understand the development history of traditional gaming industry platforms. Gaming platforms can be divided into three types:

1. Studio Mode
2. Development Engine Model
3. Distribution platform model

Studio Mode

The studio model starts from game studios and gradually develops into large companies with multiple game IPs. These companies attract players by continuously launching new games or sequels and make adjustments and improvements based on game performance. A typical representative is Blizzard Entertainment.

Blizzard Entertainment was founded in 1991 as a computer game development studio, with its first game being Warcraft (. With the launch of World of Warcraft ), Blizzard became one of the leaders in the gaming industry. Today, Blizzard is part of Activision Blizzard (, owning many well-known game IPs such as World of Warcraft, StarCraft ), and Diablo (.

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) Development Engine Model

The development engine model is a relatively new platform model, and Roblox is one of the most famous examples. Roblox is a community-based virtual world platform that allows users to design and create their own games, sharing and enjoying them on the platform. It provides game development tools, a virtual currency system, and commercialization features, forming an ecosystem for creating and sharing games.

Roblox's user data shows that it is very popular, especially among younger audiences. As of March 2021, Roblox had over 180 million active users, with nearly 40 million new users added in a year. According to Sensor Tower data, Roblox's revenue reached $2.96 billion in 2020, an 82% increase compared to 2019. This indicates that platform-based game engines have strong growth potential, particularly among young users.

The advantages of the Roblox platform lie in providing open tools and engines that allow developers to relatively easily create their own games and share them with other developers. This openness and interactivity stimulate innovation and collaboration, encouraging more people to participate in game development. On the Roblox platform, users can use the Lua programming language to write games and design game elements such as scenes, characters, and props through visual development tools. This open creative approach makes the games on the Roblox platform diverse and highly creative.

However, the development engine model also struggles to ensure the consistency and standardization of game quality. The games on the Roblox platform are created by community developers, whose skill levels and design styles may vary greatly. This can lead to a wide range of game quality on the platform, affecting the overall reputation and user experience of the platform.

( Distribution platform model

The distribution platform model takes Steam as an example, starting with its flagship products ) such as DOTA2 and CSGO(, gradually developing into a game distribution platform. Steam provides players with convenient game purchasing and downloading channels, and also offers game developers a wide promotion and distribution platform.

Nowadays, almost all PC games can be found on Steam, which has become a monopoly in this field. As a distribution platform, Steam helps game developers handle publishing and distribution, allowing developers to focus on game development without worrying about sales and distribution. Steam also provides players with a convenient way to purchase and manage games, as well as a means to communicate and interact with other players through the Steam community. Steam supports online multiplayer gaming and user-generated content, increasing player interaction and engagement.

Other game development teams have also launched their own game distribution platforms, such as Blizzard's Battle.net, EA's Origin, and Ubisoft's Uplay. For development companies that continuously produce excellent works, they prefer to control the distribution rights rather than share profits with pure distribution platforms.

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Development Path of Blockchain Gaming Platforms

Now let's discuss the correspondence between these three types in decentralized platforms and the development of corresponding products in the decentralized world.

( Game Studio Mode and Public Chain Ecosystem

Game studios typically have their own game engines and R&D teams to create games. This model involves many intermediate steps during the development process, requiring the involvement of multiple teams and individuals. As a result, the costs are high, making it a capital-intensive approach, but it can also lead to the creation of very successful game IPs.

This path has gradually evolved in the crypto world to first create blockbuster games and then issue public chains. Notable examples include the Flow public chain issued by Dapper, the creators of Cryptokitties, Ronin issued by Axie Infinity, and ImmutableX issued by God Unchained. With the "one-click chain issuance" technology maturing, products with traffic can issue their own Appchain or L2, or become the development path for blockchain games in the future.

Many projects have already begun to adopt this approach in the new products. Taking Fusionist as an example, they have launched their mainnet Endurance, which enhances user engagement, transparency, privacy, and security across the entire system by storing all user behaviors and achievements on the blockchain. In Fusionist's plan, they have three games set to be released on this new chain: Colonize, Conquer, Unite, creating a decentralized gaming public chain ecosystem around Endurance.

This approach relies on the influence of a single game, requiring the studio's first product to ignite excitement upon launch. This raises a question: if games are created for the public chain, the uncertainty of a game's popularity may lead to a long-term lack of users for that public chain; if the game struggles to be developed, the value of the public chain will decline as well. The core of the studio model may still lie in how to create an enjoyable game, rather than telling grand stories.

Furthermore, transitioning from a single game to a public chain may become a "shackle" for studios. The infrastructure of public chains, such as nodes, cross-chain bridges, and wallets, all carry varying degrees of security risks. The Skymavis studio behind Axie can be said to have both succeeded and failed with Ronin. After the theft on Ronin, users lost trust in this public chain, forcing other games or developers to distance themselves from this public chain that supports the entire Axie ecosystem, which is a significant blow to their development teams.

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( Development Engine Model

Roblox brings the concept of "metaverse" to life through a game development engine. Unlike centralized development engines ) such as Roblox(, decentralized development engines are built on blockchain technology, offering more freedom and creativity, allowing game developers and players to participate more effectively. Fragnova), Fragcolor###, and Cocos-CBX are two representative decentralized development engines that are continuously advancing the development of decentralized game development engines.

Fragnova's game engine provides a secure environment for game developers, allowing them to freely create, build, and share their games. Developers can create games on the Fragnova Network and publish and distribute them through the platform, similar to traditional centralized game engines, but the Fragnova Network places greater emphasis on Decentralization, offering developers more control and flexibility. For example, developers can freely choose game economic models and decide on which public chain to run their games. Additionally, the Fragnova Network ensures the safety and fairness of game data and the authenticity and transferability of users' digital assets by running all games on the blockchain.

Decentralization game development engines have many advantages over centralized game engines. Firstly, decentralized game engines can better protect game data and user digital assets. Secondly, they provide developers with more freedom and control, which can better meet the needs of different games. Lastly, by storing game data on the chain, decentralized game engines can achieve a fairer and more transparent game ecosystem, attracting more users and developers to join.

However, this does not mean that decentralized game engines have no drawbacks. On the contrary, it is the most difficult of the three paths, as traditional game development engines are already quite usable. The competitors for these products are not only Roblox but also development engines like UE and Unity. Large engines like UE and Unity hold significant positions in the market, providing more comprehensive tools and technical support, and have more stable and mature ecosystems, making them still the first choice for mainstream game developers. The ecosystem and community of decentralized platforms are relatively small and may lack some important resources such as tools, materials, and plugins compared to large engines. Therefore, when compared to centralized platforms, decentralized game development engines still have room for improvement and refinement in terms of technology.

distribution platform model

From Steam to 4399, due to the light asset-heavy operation, the distribution platform model has become the entrepreneurial model for many decentralized gaming platforms. Taking TreasureDAO as an example, from the first revenue protocol Magic of the Loot ecosystem to the largest decentralized gaming platform on Arbitrum, after several searches, TreasureDAO has showcased a piece of web3 magic and has now become a representative of the distribution platform model.

In terms of profit model, traditional platforms usually rely on game sales, sales of virtual items, and other means to generate revenue. On the other hand, decentralized platforms can profit through token rewards, NFT transactions, platform fees, and more. Regarding user protection, traditional platforms typically protect user rights through intellectual property rights protection, while decentralized platforms can use technologies such as smart contracts to protect user rights.

However, while the narrative is beautiful, the reality is somewhat different; there is a gap of 100 Mario between "Nintendo" and 4399. From the list of 18 games launched by TreasureDAO, it can be seen that most games still remain at the "mini-game" level, and compared to eye-catching games like Zelda and Animal Crossing, there is a decades-long industrial gap that cannot be compensated simply by quantity, let alone top IPs like Pokémon and Mario.

However, from another perspective, frequent low-cost trial and error is beneficial for the discovery of "hit products". Since the development path of blockchain games is not clear, mini-game platforms can launch multiple games to test player preferences, and then conduct in-depth development after identifying player demands. Compared to initially investing heavily in creating AAA games that may go unnoticed after release, this approach is more capital-efficient. The Beacon on TreasureDAO received a significant response from the community after its launch, and they can use this as a starting point to further expand the universe of TreasureDAO.

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