On-chain Gaming at Modular Summit | Skill Tree #27

Shared sequencing for games

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• Shared sequencing = sequencer validating multiple rollups

• Sequencing models

  • basic decentralized sequencer: a proposer is randomly selected within a set of sequencers

    • + safe & fast finality, easily extensible to shared sequencing

    • - risk of skipped blocks, doesn’t capture MEV

  • sequencer consensus: 2/3 majority needed

    • adds latency the bigger the sequencer set (more seucrity)

  • consensus decentralized sequencing: proposer randomly selected, others sign on it

    • + adds soft confirmation and extra goodies (e.g. DA, low-security bridge)

    • - still no MEV capture, consensus adds complexity (e.g. liveness failure)

  • MEVA decentralized sequencing: sequencers bid to propose the block

    • + adds MEV capture

    • - auction models have tradeoffs

      • bid in advanced → uncertain avout MEV in the block so the rollup can capture less of it because of lower bids

      • public auction: leaks tx

      • commit-reveal auction: adds latency

  • monolithic shared sequencing: consensus decentralized sequencing but across multiple rollups

    • + adds atomic execution

    • - essentially one big heterogeneous rollup - throughput limitation

      • but: each rollup can be different & parallelization is possible as most tx won’t be cross-rollup → still hard to scale

  • shared MEVA: MEVA, but across rollups

    • + which bid to accept? (e.g. when A pays more for rollup 1 but less for rollup 2)

  • crossbar rollup shared model

    • rollup picks a set of bundles with tx that have to be atomically included across rollups (execution not guaranteed)

    • all rollups must validate this rollup

• The benefits of shared sequencing for gaming

  • enables cross-rollup bridging with the security properties of the (decentralized) sequencer

    • challenges: see above

  • atomically transacting with a general rollup for better liquidity

  • shard game across different rollups e.g. 1 rollup = 1 region or 1 rollup = 1 game system (e.g. economy, battle)

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The intergame thesis - a practical view on on-chain games

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• Open game development doesn’t mean lawless

  • on-chain games have digital physics which constrain composability and interoperability

• Intergame thesis makes the business case for fully on-chain games

  • internet of games

  • interoperability doesn’t have to happen between games → different stakeholders like discovery platforms, marketplaces, game publishers, game studios

  • → digital physics have to be broad and enable coordination between all these stakeholders

    • e.g. player identity, assets, game state, …

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Argus Labs’ World Engine - how games are different from other blockchain apps

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• Idea: Build a blockchain for a very specific use case in mind (gamers and game devs), making strong tradeoffs in the design to build a differentiated architecture

• How are games different #1: Loop-driven runtime - no user input needed to cause a state transition e.g. crops grow (vs event-driven runtime: user clicks button/makes a tx)

  • games have the concept of time and ticks

    (will be the topic of next week’s newsletter)

  • high tick rate as a new parameter to optimize for

  • deterministic transaction ordering is needed e.g. NPC first inflicts damage, then player heals → incompatible with gas markets

    automatic ticking is a potential solution here. also see next week’s newsletter

    • but: retrofitting even-driven runtime infra to do loop-driven runtime apps faces challenges

• How are games different #2: Use sharding (e.g. 1 region = 1 server or 1 system = 1 server) because of computational constraints

  • World Engine applies the same concept to rollups

  • Challenge: Sequencing → Argus has an opinionated sequencer designed for sharding which is, by default, asynchronous

• World Engine is composable with other engine module e.g. use world engine for sequencing, MUD indexer for networking

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The Four Reasons We Must Pay Attention to the Autonomous World

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• Reason #1: Unlocks a new kind of game - the metagame

  • doesn’t take place within the world but is one step removed

  • game about the ruling/power/laws within the world (e.g. “hacking” your way to success)

  • everyone can see the state of the world, try to make the laws, or game the system to their advantage (→ fairness)

  • hard forks are an additional metagame layer

• Reason #2: Composability

  • Mods on steroids, on a neutral layer

  • open question: permissionless vs community-curated

• Reason #3: Interoperability (within boundaries)

  • Each AW is composed of multiple games and financial infrastructure (e.g. AMMs, money markets)

  • No proven system yet, requires experimentation

• Reason #4: Free customization of UX

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Drake Star Global Gaming Report Q2 2023

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• 196 private investments worth $700m, > 80% early-stage deals, 52 blockchain-related deals

  • Notable: Everdome (blockchain-based metaverse platform - $50M), Anzu.io (blended in-game ad platform - $48M), Mythical Games (NFL Rivals, Blankos, Nitro Nation - $37M), Nodwin Gaming (Indian esports company - $28M), Goals (esports-ready football game with NFTs - $20m)

• Continuing M&A activity led by a recovery in public markets

  • Savvy Gaming Group acquiring Scopely (Monopoly Go, Stumble Guys) for $4.9B

  • Sega buying Rovio (Angry Birds) for $775m

  • VanEck Video Game Tech ETF +30% in 2023, Drake Star Gaming Index +15%

    • Applovin +144%, Sega +53%, Unity +52%, Roblox +41%